Question

Suppose that a firm is considering moving from a batch process to an assembly-line process to better meet evolving market needs. What concerns might the following functions have about this proposed process change: marketing, finance, human resources, accounting, and information systems? 

Answer 1

When a company considers changing its batch process to assembly-line methods there are some items that may be of concern to the different organizational functions. They are listed below:

• Marketing department has to address with its customers how to communicate that the products are becoming more of a standard and how it will affect the customer’s pricing, lead times, and available features.

• Finance department has to revisit how it allocates costs during the manufacturing process based on the changing methods.

• Human resources department have to implement training for the involved employees so that they understand how to make the product and deliver it as marketing.

• Accounting department has to revisit its inventory methods. It could use some new methods to save the costs.

• Information systems have to develop or change the systems involved in all departments that handle the development.

A firm must consider the above-mentioned department’s functions before moving from a batch process to an assembly process.