Mgmt 602 Midterm

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  1. Themes of Contemporary Operations
    • 1. Services and Manufacturing
    • 2. Lean
    • 3. Environmental Concerns and Sustainability
    • 4. Globalization of Operations
    • 5. Customer-directed Operations
    • 6. Integration of Operations with other functions
    • 7. Supply Chain Management
  2. Theme of Contemporary Operations: Services and Manufacturing
    highly integrated in today's economy; services support manufacturing; manufacturing supports services
  3. Theme of Contemporary Operations: Customer-Directed Operations
    meet customer requirements, "voice of the customer"; customer can be a powerful driver in improving efficiency
  4. Theme of Contemporary Operations: Lean
    concerned with eliminating waste activities in every part of business
  5. Theme of Contemporary Operations: Integration of Operations with other Functions
    integration between departments; pulling everyone in same direction; cross-functional teams; employee rotation; information systems; management coordination
  6. Theme of Contemporary Operations: Environmental Concerns and Sustainability
    offer products and services while eliminating waste in an effort to be concerned about the environment
  7. Theme of Contemporary Operations: Supply Chain Management
    integration of suppliers to --> producers to --> customers; process sped up via e-business
  8. Theme of Contemporary Operations: Globalization of Operations
    accelerating of international business; keep global interests in mind when developing business strategy
  9. Operations Strategy
    is a consistent pattern of decisions for the transformation system and associated supply chain that linked to the business strategy and other functional strategies, leading to a competitive advantage for the firm.
  10. An example of Operations Strategy; specifically Mission and Objectives
    McDonald's -- Mission: quick food, consistent quality, low cost, clean and friendly; Objectives: compares cost, quality, and service to competitors
  11. Strategic Decisions
    Process, Quality, Capacity, Inventory
  12. Process
    specific equipment designed to provide meal quickly and careful; example, fry scooper, puts the right/same amount of fries easily every time
  13. Quality
    2,000 quality, food safety, and inspection checks during transportation of food; 72 safety and quality protocols at restaurants daily
  14. Capacity
    restaurant capacity designed to keep waiting times to a minimum; more employees during higher flux of customers
  15. Inventory
    Just-in-time replenishment; fast and frequent deliveries
  16. Distinctive Competence
    originally was unique service and supply chain transformation; NOW it is continuous improvement of transformation system and the MickyD's brand
  17. Ways McDonald's has adapted:
    menu expanded, computerized/updated information systems, biodegradable paper wrappers, healthy food trend, global expansion, international operations (McRice in Indonesia)
  18. Supply Chain Strategy
    competition of entire supply chains - NOT just smaller firms; need to take in account not only operations strategy, but also strategies of suppliers and customers in supply chain; supply chain needs to be unique and hard to copy; it is difficult to get suppliers on same mission, because #1 firm entirely controls supplier, but it should still be the goal
  19. 2 fundamental strategies
    imitation and innovation
  20. Imitation
    similar products, efficiency and low cost, high turnover
  21. Innovation
    product differentiation, high prices, buffers, unpredictable demand, high profit margins, should not choose only one supply chain strategy for all products
  22. Two types of Strategy for Operations Strategy Model
    Corporate strategy and business strategy
  23. Corporate Strategy
    defines what the company is pursuing; EX. Walt Disney, business of "making people happy"
  24. Business Strategy
    differentiation, low cost, or focus (unique, cheap and copied, can combine, is narrow or broad)
  25. Different aspects of Operations Strategy Model
    Mission, Objectives, Strategic Decisions, Distinctive Competence are the heart of operations strategy
  26. Mission
    needs to connect or even come from to business strategy
  27. Objectives
    (cost, quality, delivery, and flexibility) sometimes other objectives can be added such as environmental sustainability, should derive from the mission in quantitative and measurable terms (use bench marking as a comparison to other companies, behind or ahead)
  28. Strategic Decisions
    how objectives will be received, strategic decisions made for each process, quality, and inventory
  29. Distinctive Competence
    (operations capability) that makes it unique, needs to match mission, may be used to define business strategy but NOT necessarily
  30. Linking Strategies
    Operations strategy, business strategy, marketing strategy, financial strategy [ALL LINKED]
  31. Strategies for new Product Introduction
    Market Pull, Technology Push, Interfunctional View
  32. Market Pull
    · market will “pull” new products through; customer needs are the focus
  33. Technology Push
    technology determines new products; little regard for market; marketing creates demand
  34. Interfunctional View
    should fit the market need and have technological advantage as well; cross-functional teams make this happen, they have members from different departments (marketing, manufacturing, financial, etc.) work together to make the product from all different viewpoints
  35. New Product Development Process
    Concept Development, Product Design, Pilot Production/Testing
  36. Concept Development
    idea generation on how to satisfy market needs, several product concepts will be developed, different approaches are evaluated, one will be selected for the next phase; cross-functional team then established
  37. Product Design
    · designing the physical product; establishes set specifications and engineering drawings; engineers will make decisions that affect cost, quality (features), and schedule, cross-functional teams will be involved in the process; engineers will use computer software to design virtual prototypes (CAD, computer aided design); process design should be done simultaneously so that product design isn’t locked in place if production issues arrive
  38. Pilot Production/Testing
    complex products require testing of production protoypes ; process for production is finalized; an information package would be finalized that contains product and design specifications, training procedures, test results
  39. Misalignment
     is common among product development, product design and operations don’t always line up; technology misalignment occurs when the product designed by engineering cannot be made in operations, happens when new technology is misunderstood and other reasons. 
  40. There is a sequential process,
    where each function completes its work before the next one starts. For example, from marketing, it is handed off to engineering, and so on.
  41. Concurrent Engineering
    all areas are involved from the very beginning; each area shares efforts and ups and donwnplays its level of involvement during different stages
  42. DFM is an approach including:
    sign for Manufacturing, pg 52) (DFM) an approach including1. Simplification of products2. Manufacturing multiple products using common parts, processes, and modulesDesigning products so that they are easy to manufacture
  43. Modular Design
    Makes it possible for high product variety and low component variety simultaneouslyDevelop a series of basic components (modules) to make appearance of great number of different products, but to operations there are only a few components
  44. Types of Product Flow
    Continuous Production Flow, Assembly Line Flow, Batch Flow, Job Shops, Project
  45. Continuous Production Flow
    refers to process industries such as sugar, paper, oil and electricity. High volumes of production, highly standardized and automated, tends to be industries that have liquids because they flow through, operate at capacity, minimize inventories and distribution costs; since it is difficult to differentiate, “low cost” is the winner
  46. Assembly Line Flow
    linear sequence of operations, form one step to the next from beg. To end usually on a conveyor system; industries such as automobiles, computers, refrigerators; very efficient, but inflexible; takes weeks to change over assembly lines; high capital investment; uses product layout because everything is organized according to production flow
  47. Batch Flow
    production in batches or lots, products travel from one operation center to another; can make different types of products, so more variety; some products can skip some centers all together (bend, cut, paint, drill center), different flow paths, so the flow is jumbled and intermittent; configures equipment and workers, so more flexible; uses general-purpose equipment that is not specialized, which offers flexibility; can handle small orders; its jumbled flow causes production and inventory challenges, loses efficiency; uses process layout, where machines and workers organized by types in work centers; has less risk, economical, medium volume
  48. Job Shops
    special version of batch flow using process layout and making product to customer specifications; similar to batch process; small lot sizes
  49. Project
    for unique or creative products; example: concerts, building construction; some projects are stationary; difficult planning and scheduling; labor may be highly skilled; cost may be too high; can be highly customizable
  50. Throughput Ration
    (TR) – TR = (Total Processing Time for the Job / total time in operations) x 100%
  51. Mass Customization
    A strategy to provide products in lot sizes of one in high volume OR as other definition says mass customized production using computer aid; uses economies of scope, which is lots of variety of products from a single process; the process must cost the same as traditional mass production; early example is Motorola Pager
  52. Three forms of Mass Customization
    Modular production and assemble-to-order (ATO), Fast Changeover (zero setup time between orders), postponement of options
  53. Modular production and assemble-to-order (ATO)
    · Variety of options using assemble to order process – uses standard interchangeable modules (uses modular design) [ex. Dell]
  54. Fast changeover (zero setup time between orders)
    · Computerized production that has unique barcodes for each customized order, zero changeover time in equipment [ex. Motorola pager]
  55. Postponement of options
    · Defers a portion of production until the point of delivery [ex. T-shirt shops putting unique design at point of purchase] 
  56. Traditional mass production is based on Economies of Scale,
    which means lots of the same product with few options
  57. Pollution Prevention
    There are technologies for pollution prevention. investments in these reduce or eliminate pollutants from production; [ex.s: wasting fewer materials, updated equipment using less energy]
  58. Pollution Control
    technologies are also investments, used to treat or get rid of pollutants and harmful by products, they are added existing processes, adding another step
  59. Environmental Concerns
    Production process can have a great environmental impact 
  60. Services are intangible
    providing processes that create value but aren’t a physical product
  61. Simultaneous Production and Consumption
    is a characteristic of services; customer is in the production system while the production takes place; customer can introduce uncertainty by adding demands; services can’t be stored; communications and electricity services are the only services that are provided over long distances 
  62. Front Office Services
    are services that require interaction with the customer
  63. Back Office Services
     services that do not require interaction with the customer
  64. Service Matrix
    some services are highly customizable, and others are standardized. Collier and Meyer suggest the service matrix to incorporate both customer preferences and service system design; On top is customer wants and needs (service package or bundle)The side is the operations service system, which includes process design – captures the number of different ways that service customers can take in the service process; an infinite number of ways makes each service entirely unique; meant to classify different types of services and indicate how the operations management task differs among services
  65. Customer-routed services
     are services that customers want to be highly customized and unique, ex. Personal trainers, online shopping
  66. Co-routed services
    is in the midrange of customer wants and needs and service system design, ex. Golf course
  67. Provider-routed services
    highly standardized services, ex. ATM, McDonald’s
  68. self-service
    customers may serve as labor at key points in a service process, ex. Bagging your own groceries 
  69. Evolution of Lean and JIT
    After WWII, U.S. was head of mass production using repetitive manufacturing; leading to quality sacrifice and narrow jobs = job dissatisfaction; in 1960s, Toyota visited U.S. factories and decided not to copy setup; Toyota abhorred waste because of lack of resources; realized it needed to produce automobiles in smaller batches, w/ low inventory, simple and high-quality process, with involved workers; this BECAME Toyota Production System (TPS) and Just-in-Time (JIT) manufacturing 
  70. Seven Forms of Waste
    Overproduction, waiting time, unnecessary transportation, excess processing, too much inventory, unnecessary motion, defects
  71. Overproduction
    more than demand, too much inventory
  72. Waiting Time
    · machines waiting for parts, customers waiting in line
  73. Unnecessary Transportation
    double or triple trips, poor workplace organization
  74. Excess Processing
    · poor design of processes required extra labor or machine time
  75. Too much inventory
    · due to large lot sizes, obsolete items, poor forecasts
  76. Unnecessary motion
    · wasted movements
  77. Defects
    production of bad parts
  78. Five Lean Tenets
    1. Specify precisely what it is about a product or service that creates value form the customer’s perspective2. Identify, study, and improve the value stream of the process for each product or service· value stream  identifies processing steps and tasks undertaken to complete a project· value stream mapping – supports this tenet, creates a visual representation of the value stream of a process, chart example on pg 135· Gemba – Japanese term, opportunities defined in value stream3. Ensure that flow within a process is simple, smooth, and error-free, thereby avoiding waste· Waste  - anything that does not contribute value to the product or service · Muda – Japanese term for waste· Eighth form of waste – underutilization of workers; identified by Womack and Jones4. Produce only what is pulled by the customer· Push – typical mass production· Pull – mentality of lean production 
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Mgmt 602 Midterm
2013-02-13 06:29:53

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