Process selection refers to the way production of goods or services is organised.
Three primary questions to be addressed before deciding on process selection are:
(i) How much variety of products or services will the system need to handle?
(ii) What degree of equipment flexibility will be needed?
(iii) What is the expected volume of output?
An organisation’s approach to selection of the process for the conversion of resource inputs into outputs.
Key aspects in process strategy include:
- Make or buy decisions
- Capital intensity and
- Process flexibility
Process Selected Must Fit with Volume and Variety