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88 Cards in this Set
- Front
- Back
- 3rd side (hint)
Goods-Service Continuum
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Goods-Service Continuum
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What are the three basic functions of an organization?
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Finance, Operations, Marketing
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None
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What is finance responsible for?
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Finance is responsible for securing financial resources and allocating those resources, as well as budgeting, analyzing investment proposals, and providing funds for operations.
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What is operations responsible for?
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Operations is responsible for producing the goods or providing the services offered by the organization and therefore, operations is the core of what the organization does.
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None
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What is marketing responsible for?
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Marketing is responsible for assessing consumer wants and needs, and selling and promoting the organization’s goods or services.
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None
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Operations management is
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The management of systems or processes that create goods and/or services
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Operations management affects
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Companies’ ability to compete
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What is the value-added process?
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The operations function involves the conversion of inputs into outputs.
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_____ is the difference between the cost of inputs and the value or prices of outputs.
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Value-Added
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What are the types of operations?
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Goods Producing
Storage/Transportation Exchange Entertainment Communication |
None
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Goods Producing
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Farming, mining, construction, manufacturing, power generation
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Storage/Transportation
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Warehousing, trucking, mail service, moving, taxis, buses, hotels, airlines
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Exchange
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Retailing, wholesaling, banking, renting, leasing, library, loans
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Entertainment
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Films, radio and television, concerts, recording
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Communication
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Newspapers, radio and television newscasts, telephone, satellites
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Operations management includes
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Forecasting, capacity planning, scheduling, managing inventories, assuring quality, motivating employees, deciding where to locate facilities, supply chain management, etc
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Production of goods
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Tangible output
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Delivery of services
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An act
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Facilitating good
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Tangible product produced by a service industry firm
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Service job categories
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Government, wholesale/retail, financial services, healthcare
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What are key differences between products and services?
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Customer contact, uniformity of input, labor content of jobs, uniformity or output, measuring of productivity, production and delivery, quality assurance, amount of inventory, evaluation of work, ability to patent design
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Customer Contact
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Low Goods, High Service
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Uniformity of input
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High Goods, Low Service
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Labor content
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Low Goods, High Service
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Uniformity of output
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High Goods, Low Service
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Output
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Tangible Goods, Intangible Service
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Measurement of productivity
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Easy Goods, Difficult Service
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None
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Opportunity to correct problems
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High Goods, Low Service
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Inventory
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Much Goods, Little Service
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Evaluation
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Easier Goods, Difficult Service
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Patentable
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Usually Goods, Not Usual Service
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Challenges of Managing Services
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Service jobs are often less structured than manufacturing jobs
Customer contact is higher Worker skill levels are lower Services hire many low-skill, entry-level workers Employee turnover is higher Input variability is higher Service performance can be affected by worker’s personal factors |
None
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What is a model?
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A model is an abstraction of reality
(physical, schematic, mathematical) |
None
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Quantitative Approaches
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Linear programming
Queuing techniques Inventory models Project models Statistical models |
None
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Systems Approach
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“The whole is greater than the sum of the parts.”
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Systems approach is not _____.
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Suboptimalization
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Pareto Phenomenon
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A few factors account for a high percentage of the occurrence of some event(s).
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What is the 80/20 Rule?
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80% of problems are caused by 20% of the activities.
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What is competitiveness?
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How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services.
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Businesses compete using marketing in what ways?
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Identifying consumer wants and needs, pricing, advertising and promotion, product and service design, cost, location, quality, quick response, flexibility, inventory management, supply chain management, service and service quality, managers and workers
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Why do some organizations fail?
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Too much emphasis on short-term financial performance
Failing to take advantage of strengths and opportunities Neglecting operations strategy Failing to recognize competitive threats Too much emphasis in product and service design and not enough on process design and improvement Neglecting investments in capital and human resources Failing to establish good internal communications Failing to consider customer wants and needs |
None
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Strategy
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Mission
Mission Statement Goals Strategies Tactics |
None
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The _____ is the reason for existence for an organization
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Mission
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The _____ states the purpose of an organization
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Mission Statement
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_____ provide detail and scope of mission
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Goals
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_____ plan for achieving organization goals
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Strategies
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_____ are the methods and actions taken to accomplish strategies
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Tactics
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Examples of Strategies
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Low cost
Scale-based strategies (economy of scale) Specialization Flexible operations High quality Service |
None
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What are distinctive competencies?
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The special attributes or abilities that give an organization a competitive edge.
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What are strategy factors?
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Price, quality, time, flexibility, service, location
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What is the operation strategy for price?
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Low Cost
Example: U.S. first-class postage, Wal-Mart, Southwest Airlines |
None
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What is the operation strategy for quality?
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High-performance design and/or high quality
Example: Sony TV, Lexus, Disneyland, Five-start restaurants or hotels Consistent Quality Example: Coca-Cola, PepsiCo, Kodak, Xerox, Motorola, Electrical power |
None
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What is the operation strategy for time?
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Rapid delivery
Example: McDonald’s restaurants, Express Mail, UPS, FedEx, One-hour photo |
None
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What is the operation strategy for service?
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Superior customer service
Example: Disneyland, Hewlett-Packard, IBM, Nordstrom |
None
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What is the operation strategy for location?
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Convenience
Example: Supermarkets, drycleaners, mall stores, service station, banks, ATMs |
None
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Strategy Formulation
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Distinctive competencies
Environmental scanning SWOT Order qualifiers Order winners |
None
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What are order qualifiers?
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Order qualifiers are characteristics that customers perceive as minimum standards of acceptability to be considered as a potential purchase.
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What are order winners?
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Order winners are characteristics of an organization’s goods or services that cause it to be perceived as better than the competition.
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Key External Factors
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Economic conditions
Political conditions Legal environment Technology Competition Markets |
None
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What are quality-based strategies?
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Quality-based strategies focus on maintaining or improving the quality of an organization’s products or services.
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What are time-based strategies?
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Time-based strategies focus on reducing the time needed to accomplish tasks.
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_____ is a measure of the effective use of resources, usually expressed as the ratio of output to input.
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Productivity
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Productivity ratios are used for
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Planning workforce requirements
Scheduling equipment Financial analysis |
None
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Partial Measures of Productivity
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Output/(single input)
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Multi-Factor Measures of Productivity
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Output/(Multiple Inputs)
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Total Measure of Productivity
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Outputs/Inputs
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Productivity Growth
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(Current period productivity – previous period productivity)
/Previous period productivity |
None
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What is the main focus of product and service design?
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Customer satisfaction
Understand what the customer wants |
None
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What is the secondary focus of product and service design?
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Function of product/service
Cost/profit Quality Appearance Ease of production/assembly Ease of maintenance service |
None
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What are the life cycles of products or services?
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Introduction, Growth, Maturity, Saturation, Decline (S-Curve)
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_____ is the extent to which there is an absence of variety in a product, service or process.
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Standardization
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_____ products are immediately available to customers.
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Standardized
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Advantages of Standardization
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Fewer parts to deal with in inventory and manufacturing
Design costs are generally lower Reduced training costs and time More routine purchasing, handling, and inspection procedures Quality is more consistent Orders are fillable from inventory Opportunities for long production runs and automation Need for fewer parts justify increased expenditures on perfecting designs and improving quality control procedures |
None
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Disadvantages of Standardization
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Designs may be frozen with too many imperfections remaining
High cost of design changes increases resistance to improvements Decreased variety results in less consumer appeal |
None
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_____ is a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged.
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Modular Design
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Modular Design allows for
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Easier diagnosis and remedy of failures
Easier repair and replacement Simplification of manufacturing and assembly |
None
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_____ is the ability of a product, part or system to perform its intended function under a prescribed set of conditions.
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Reliability
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_____ is a situation in which a product, part, or system does not perform as intended.
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Failure
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_____ is the set of conditions under which an item’s reliability is specified.
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Normal Operating Conditions
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Three kinds of technology
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Product and service technology
Process technology Information technology |
None
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The three kinds of technology all have three major impacts on
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Cost, Productivity, Competitiveness
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Process Selection
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Variety
Flexibility Volume Job shop |
None
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_____ compares different process options and their relationship to volume and variety.
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Product-Process Matrix
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Job Shop
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Love Volume/Unique Product, Jumbled Flow
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Batch
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Low Volume/Multiple Products, Disconnected Line Flow
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Assembly Line
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High Volume/Standardized Product, Connected Line Flow
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Continuous
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Very High Volume/Commodity, Continuous Flow
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What is the operation strategy for flexibility?
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Variety
Example: Burger King (“Have it your way”), VOLUME Example: McDonald’s (“Buses welcome”), Toyota, Supermarkets (additional checkouts) |
None
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