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63 Cards in this Set
- Front
- Back
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Operations and Supply Management
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the design, operation, and improvement of the systems that create and deliver the firm's primary products and services
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Operations
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refer to manufacturing and service processes that are used to transform the resources employed by a firm into products desired by customers
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Supply
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refers to supply chain processes that move information and material to and from the manufacturing and service processes of the firm
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Supply Chain Processes
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1. Planning (how will demand be met?)
2. Sourcing (selection of suppliers) 3. Making 4. Delivering 5. Returning (returns) |
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Goods vs. Services
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1. Service is intangible
2. Service requires interaction with the customer 3. Services are heterogeneous - they vary from day to day 4. Services are perishable and time dependent 5. Services are evaluated as a package of features |
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Exhibit 1.4 (The Goods-Services Continuum)
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Pure Goods (food) -->
Core Goods (automobiles) --> Core Services(hotels) --> Pure Services (teaching) |
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Servitization
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a company building service activities into its product offerings for ts current users
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Efficiency
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Doing something at the lowest possible cost
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Effectiveness
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Doing the right things to create the most value for the company
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Value
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Quality/Price
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Careers
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pg. 14
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Triple Bottom Line
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1. Social - employee and community
2. Economic - shareholders 3. Environmental |
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Competitive Dimensions
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1. Cost/Price
2. Quality 3. Delivery Speed 4. Delivery Reliability 5. Coping with changes in Demand 6. Flexibility and New-Product Introduction Speed 7. Other Product-Specific Criteria |
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Tradeoffs
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A company focuses on one competitive dimension over another
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Straddling
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occurs when a company seeks to match the benefits of a successful position while maintaining its existing position
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Order Winner
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a criterion that differentiates the products or services of one firm from those of another
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Order Qualifier
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a screening criterion that permits a firm's products to even be considered as possible candidates for purchase
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Productivity Ratio
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Outputs/Inputs
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Capacity Planning
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1. Long Range - 1 year or more
2. Intermediate Range - Monthly or quarterly plans for the next 6 to 18 months 3. Short Range - Less than one month |
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Strategic Capacity Planning
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provides an approach for determining the overall capacity level of capital-intensive resources - facilities, equipment, and overall labor force size - that best supports the company's long-range competitive strategy
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Capacity Utilization Rate
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Capacity Used/Best Operating Level
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Focused Factory (concept)
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a production facility works best when it focuses on a fairly limited set of production objectives
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Plant within a Plant (PWP)
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A focused factory may have several PWPs
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Capacity Flexibility
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ability to rapidly increase or decrease production levels
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Decision Tree (just definition)
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a schematic model of the sequence of steps in a problem and the conditions and consequences of each step
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Planning Service Capacity
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1. Time - Services cannot be stored for later use
2. Location - the service must be located near the consumer 3. Volatility of Demand is higher because of the 1st stated reason and others |
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Production Processes
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1. Source
2. Make 3. Deliver |
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Inventory Turn
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COGS/Average Inventory Value
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Days-of-supply
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Inverse of Inventory Turn calculated to days
Average Inventory Value/COGS |
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Little's Law
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Inventory = Throughput rate * Flow Time
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Throughput
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long term average rate that items are flowing through the process
Inventory/Flow Time |
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Flow Time
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the time that it takes a unit to flow through the process from beginning to end
Inventory/Throughput Rate |
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How Production Processes are Organized
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1. Project Layout (product remains in a fixed location - houses)
2. Workcenter (similar equipment or functions are grouped together) 3. Manufacturing Cell (area in which products of similar specs are produced) 4. Assembly Line 5. Continuous Process (like an assembly line but even more automated) |
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Splitting Tasks
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Possibilities:
1. Split the task - process the product in two workstations 2. Share the task - adjacent workstations do part of the work 3. Use parallel workstations 4. use a more skilled worker 5. Work overtime 6. Redesign |
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Customer Contact
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the physical presence of the customer in the system
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Exhibit 5.1 - Service Design Matrix
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Study. Shown in class
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Virtual Service
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Online customer interactions
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Service Blueprint
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emphasizes the importance of process design. Service flow.
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Line of Visibility
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What customer sees in the process design
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Poka-yokes
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procedures that block the inevitable mistake from becoming a service defect
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Tips for Managing Queues
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1. Segment the Customers - if something can be done very quickly for a specific customer, give them their own line
2. Train your servers to be friendly 3. Inform your customers of what to expect 4. Try to divert the customer's attention while waiting 5. Encourage customers to come during slack periods |
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Line Structures
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1. Single channel, single phase
2. Single channel, multiphase 3. Multichannel, single phase 4. Multichannel, multiphase 5. Mixed |
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Utilization Calculations pg. 116 -118
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study
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Total Quality Management
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Managing the entire organization so that it excels on all dimensions of products and services that are important to the customer. Two goals:
1. Careful design of the product or service 2. Ensuring that the organization's systems can consistently produce the design |
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Malcom Baldridge National Quality Award
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helps companies review and structure their quality programs
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Exhibit 6.1 - Quality Gurus Compared
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Crosby, Deming, and Juran
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Design Quality
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the inherent value of the product in the marketplace and is thus a strategic decision for the firm
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Conformance Quality
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the degree to which the product or service design specifications are met
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Costs of Quality
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1. Appraisal Costs (inspection, etc)
2. Prevention Costs 3. Internal Failure Costs 4. External Failure Costs |
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ISO 9000
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Focuses on business processes related to different areas of the firm
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ISO 14000
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Addresses the need to be environmentally responsible
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DPMO (Defects per Million Opportunities) Calculation
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(Number of defects/(number of opportunities for error * number of units)) * 1,000,000
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Six Sigma Methodology
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1. Define
2. Measure 3. Analyze 4. Improve 5. Control |
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P-value, UCL, and LCL
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Example 6.3 is all you need to know
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Exhibit 7.1 - Types of Development Projects
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study
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What is project management?
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defined as planning, directing, and controlling resources to meet the technical, cost, and time constraints of the project
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Pure Project
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self-contained team works full time on the projects
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Functional Project
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Housing a project within a functional division
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Matrix Project
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blend of pure and functional project. Each project utilizes people from different functional areas.
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Work Breakdown Structure
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Hierarchy of project tasks, subtasks, and work packages
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Gantt Chart
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shows both the amount of time involved and the sequence in which activities can be performed
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EVM Calc (pg. 188-191)
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Study
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CPM (pg. 192-196)
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Study
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