Operations Midterm

1. Supply Chain Processes
1. Planning: determining how anticipated demand will be met with available resources
2. Sourcing: selection of suppliers that will deliver the goods and services needed to create the firm’s product
3. Making: where the major product is produced or the service is provided
4. Delivering: logistic process, carriers are chosen to move products to warehouses and customers, in charge of the movement of goods and information
5. Returning: process for receiving worn-out, defective, and excess products back from customers and support for customers who have problems with delivered products
1. What makes “service” different from “goods”
1. Intangible; service innovation cannot be patented so a company with a new concept must expand quickly before competitors.
2. Interaction with customer; the facility must be designed to handle the customer’s presence.
3. Inherently heterogeneous; vary from day to day as a function of the attitudes of the customer and the servers.
4. Perishable and time dependent; services cannot be stored.
5. The specifications of a service can be defined and evaluated as a package of features that affect the five senses. (1) Supporting facility (2) Facilitating goods (3) Explicit services (4) Implicit services
1. Key Concepts in Operations Management
Manufacturing Strategy Paradigm
Lean Manufacturing, JIT, & TQC
Service Quality & Productivity
Total Quality Management & Quality Certification
Business Process Reengineering
Six Sigma Quality
Supply Chain Management
Electronic Commerce
Service Science
Business Analytics
1. Key Concepts in Operations Management: Manufacturing Strategy Paradigm
-Emphasized how manufacturing executives could use their factories’ capabilities as strategic competitive weapons.
-Management must devise a focused strategy, creating a focused factory that performs a limited set of tasks extremely well.
1. Key Concepts in Operations Management: Lean Manufacturing, JIT, and TQC
Integrated set of activities that are designed to achieved high-volume production using minimal inventories of parts that arrive at the workstation exactly when they are needed.
1. Key Concepts in Operations Management: Service Quality & Productivity
Great diversity of service industries that precludes identifying any single pioneer of developer that has made a major impact in these areas.
1. Key Concepts in Operations Management: Total Quality Management & Quality Certification
Baldrige National Quality Award
ISO9000
1. Key Concepts in Operations Management: Business Process Reengineering
Companies seeking innovations in the process by which they run their operations as a result of the need to become lean to remain competitive in the global recession in the 1990s.
1. Key Concepts in Operations Management: Six Sigma Quality
Seeks to improve the quality of the output of the process by identifying and removing the causes of defects and minimizing variability in manufacturing processes.
1. Key Concepts in Operations Management: Supply Chain Management
Applying a total system approach to managing the flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customer. Optimizing core activities to maximize the speed of response to changes in customer expectations.
1. Key Concepts in Operations Management: Electronic Commerce
Use of Internet as an essential element of business activity.
1. Key Concepts in Operations Management: Service Science
Applying the latest concepts in IT to continue to improve service productivity of technology-based organizations.
1. Key Concept: s in Operations ManagementBusiness analytics
Use of current business data to solve business problems using mathematical analysis, such as statistical analysis and forecasting.
1. Benchmarking
When one company studies the processes of another company to identify best practices
1. Effectiveness
Doing the right things to create the most value for the company
1. Mass customization
Producing products exactly to a particular customer’s requirements
1. OCSM
Design, operation, and improvement of the systems that create and deliver the firm’s primary products and services
1. Process
Made up of one or more activities that transform inputs into outputs
1. Product-service bundling
Building service activities into a firm’s product offerings to create more value for the customer
1. Sustainability
Ability to meet current resource needs without compromising the ability of future generations to meet their needs
1. Tripe bottle line
A business strategy that includes social, economic, and environmental criteria
1. Value
Ratio of quality to price paid.
Competitive happiness – increasing quality and reducing price while maintaining or improving profit margins
2. Dimensions of the Tripe bottle line framework
1. Social: fair and beneficial practices toward labor, the community and the region in which a firm conducts its business.
2. Economic: obligated to compensate shareholders who provide capital through stock purchases and other financial instruments via a competitive return on investment.
3. Environmental: firm’s impact on the environment.
2. Competitive Dimensions
1. Cost or 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
2. Order winner
A specific marketing oriented dimension that clearly differentiates a product from competing products
2. Order qualifier
A dimension used to screen a product or service as a candidate for purchase
2. Activity-system maps
Diagrams that show how a company’s strategy is delivered through a set of supporting activities
2. Operations and supply chain strategy
the setting of board policies and plans that will guide the use of the resources needed by the firm to implement its corporate strategy
2. Productivity
A measure of how well resources are used
2. Straddling
When a firm seeks to match what a competitor is doing by adding new features, services, or technologies to existing activities. Often creates problem if trade-offs need to be made
2. Supply chain risk
The likelihood of a disruption that would impact the ability of a company to continuously supply products or services.