Operations Management

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Operations Management
2012-01-22 17:00:46
Chapter Four

Process Selection
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  1. the ability of the operation to efficiently product highly customized and unique products.
  2. Produce finished goods; customer buys from inventory
    Advantage: smooth production
    Disadvantage: inventory
    Make to Stock
  3. Start production when customer orders
    Advantage: no finished goods inventory
    Disadvantage: intermittent production
    Key performance measures: Lead time, orders completed on time (or late), and quality measures.
    Make to Order
  4. Make parts and subassemblies; finish when customer places order
    Advantages: less inventory, faster service
    Disadvantage: some WIP inventory
    Key performance measures: speed of service, inventory levels, and quality of product and service
    Assemble to Order
  5. Wait until someone places an order, then make the product
    MTO - Make to Order
  6. Make different parts, then put the parts together based on what customer ordered
    ATO - Assemble to Order
  7. Provides a basis for matching product choices made by marketing with process choices made by operations.
    Product-Process Matrix
  8. What are the 5 types of processes?
    • 1 Continuous
    • 2 Assembly Line
    • 3 Batch
    • 4 Job Shop
    • 5 Project
  9. Begin production only after receiving a customer order
    MTO - Make to Order
  10. Build modules prior to receiving order; assemble product after receiving customer order.
    ATO - Assemble to Order
  11. Manufacture entire product prior to receiving customer order.
    MTS - Make to Stock
  12. can provide a variety of options by using an assemble-to-order process. Example: Dell.
    Modular Production
  13. is the form of mass customization Motorola uses ofr its pager.
    Fast Changeover
  14. is used to defer a portion of the production until the point of delivery. example: Hewlett-Packard printers receive their final configuration for various voltages and powers supplies at U.S. or overseas warehouses before delivery.
    Postponement of Options