Those things which directly and significantly contribute to winning business
Those aspects of competitiveness where the operation's performance has to be above a particular level just to be considered by the customer.
3 aspects of designing a service or product
concept, package, process
Taking apart a product to understand how a competing organisation has made it
3 approaches to complexity reduction
standardisation, commonality, modularisation
Range of organisational structures
from pure functional to pure project forms
Manufacturing process types
Service process types
Professional services, service shops, mass services
throughput time = work-in-process x cycle time
average time between units of output emerging from the process
units waiting to be processed
work-in-process x cycle time
longest stage in the process
(work content / throughput time) x 100
value-added throughput efficiency
restricts work content to only those tasks that are actually adding value to whatever is being processed
labour cost per unit of production
Fixed-position / Functional / Cell / Line layout
Supply network perspective
Setting an operation in the context of all the customers and suppliers that interact with it. (Materials, parts, information, ideas, people)
Third-party logistics (TPL)
Outsourcing to a specialist logistics company
All the players in the supply network, whether they are customers, suppliers, competitors or complementors, can be both friends and
enemies at different times.
Types of relationships in a supply network
B2B (Business to Business), B2C (Business to Consumer), C2B (Consumer to Business), C2C (Consumer to Consumer or peer to peer [P2P])
Do little themselves, rely on network of suppliers that can provide services and
products on demand.
Source each individual product or service from one supplier
Source each individual product or service from more than one supplier
Dual-sourcing or parallel sourcing
Using two suppliers for similar good or services. They are required to cooperate, but through adjusting the percentage of the contract according to previous performance competition can be achieved at the same time.
A small disturbance at the downstream end of a supply network cases increasingly large disturbances, errors.
Causes of the bullwhip effect
Misunderstanding and miscommunication, errors in forecasting, long or variable lead times, order batching, volatility in demand
caused by price fluctuations or promotions, panic ordering, perceived risk of
other’s bounded rationality within a supply network.
Use of electronic methods in every stage of the purchasing process.
Five phases of SCOR model (supply chain operations reference model)
Discover, Analyse, Material flow design, Work and information flow design, Implementation planning.
fixed volume of a container or the space in a building
Capacity of an operation
fixed volume + time --> the maximum level of value-added activity over a period of time
parts of the operation that are operating at their capacity ceiling
Cause of seasonality of demand
Climatic, festive, behavioural, political, financial, social
Overall equipment efficiency (3 aspects)
time, quality, speed
use the capacity of the operation for generating revene to its full potential
How to maximise the yield
over-booking capacity, price discounting, varying service types
stored accumulation of (transformed) resources in a transformation system
Day-to-day inventory decisions
how much to order, when to order, how to control the system
Large quantities of inventory are delivered to the customers to store, but they will only be charged for the goods as and when they are used.