Chapter 3: Product Design and Process Selection

- Used business strategy called vertical integration, which a company would control every stage of industrial process, from mining the raw material to transporting to product.

Automation describes the company’s reliance on robotic control systems rather than human capital. In other words, as automation increases, Andrews will use more machinery to produce its products. Therefore, labor hours will decrease, and, in turn, the lower labor costs will reduce expenses. There are different approaches that Andrews will take for automation in the low and high-tech markets.

CAD systems are used for the graphic design, it generates three dimensional graphic designs, and the knowledge worker can check the design from different angles. The analysis of design via this way is much faster and more accurate than the traditional ways. It is accelerating designing phase by which it not only save time but also save cost and production phase can start sooner than expectations.

Vertical integration is a concept in which a company develops or acquires production units for outputs which are

Vertical integration is when one firm joins with another at a different stage of the same production process. Forward Vertical is when the other firm is at a later stage and Backward Vertical is when the other firm is at an earlier stage. Vertical integration as a whole allows for a firm to control key stages of the production process; guarantees access to a market; and gains control of supplies. Companies such as Zara and American Apparel are vertically integrated, especially at key stages of

Andrew Carnegie, for one, built a giant steel empire using vertical integration, a business tactic that increased profits by eliminating middlemen from the production line. Conversely, John D. Rockefeller’s Standard Oil Company used horizontal

Vertical integration – when you choose to produce raw materials and/or distribute finished goods themselves rather than rely on independent suppliers, factors and agents for these tasks

Vertical integration is a business growth strategy for economics of scale. It is typified by one firm engaged in different parts of production example; growing raw materials, manufacturing, transporting, marketing, and/or retailing to expand business in existing market for the firm. It can function in two directions both forward integration and backward integration.

I have learned many from the introduction Flowcharting written by (Streib Bill), “Flowcharting is a detailed graphical representation of a process or procedure”.

From this sprang forth the popularization of CEOs and different departments to increase efficiency. Vertical integration because many of big businessmen of the time had a large capital to start out, so buying all the means of production was an easy and sound investment. Horizontal integration calls for buying out the competition. In these cases, the largest company would often times drive down their prices so low that the smaller company would attempt to compete, but end belly up and sell the business for a smaller

Process Flowchart - The process flowchart is a description of how the various processes of the ISO 9001 QMS interact with each other. The process flowchart is required in ISO 9001:2008 section 4.2.2.

Increased automation is the result of a need to reduce cost, which in turn is driven by a company's need to become more competitive and grow market share -- a trend accelerated by pressures felt by the difficult economic situation.

Product concept: This is when a business products is part of their business brand image. The products shape the business and its unique selling point in the market.

A company won’t integrate vertically its production if it against its business interest. There are some vertically

The process flow chart showing how customers are processed through the operation is shown as following: