Term
| Operations and Supply Management |
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Definition
| The design, operation, and improvement of the systems that create and deliver the firm's primary products and services. |
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Term
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Definition
| The manufacturing and service processes that are used to transform the resources employed by a firm into products desired by customers |
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Term
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Definition
| The supply chain processes that move information and material to and from the manufacturing and service processes of the firm. These include logistics processes that physically move product and the warehousing and storage processes that position products for quick delivery to the customer. |
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Term
| The Supply Chain Processes |
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Definition
1) Planning
2) Sourcing
3) Making
4) Delivering
5) Returning |
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Term
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Definition
| Services are: 1) Intangible, 2) Require some degree of interaction w/ customer, 3) Heterogeneous (they vary day to day), 4) Perishable and time dependent, and 5) Services are a package of features (five senses) |
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Term
| Pure Goods, Core Goods, Core Services, and Pure Services |
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Definition
Pure Goods = Food, chemicals
Core Good = Appliances, Cars (service/warranty)
Core Services = Hotels, Airlines (must have a tangible good)
Pure Services = Teaching, consulting |
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Term
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Definition
| A company building service activities into its product offerings for its current users. i.e. Maintenance, training, etc. |
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Term
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Definition
| Doing something at the lowest possible cost/inputs. |
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Term
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Definition
| Doing the right things to create the most value for the company. |
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Term
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Definition
| Quality / Price. Give a customer a better car for a lower price = BIG value |
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Term
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Definition
1) Social
2) Economic
3) Environmental |
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Term
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Definition
| Price, Quality, Delivery Speed, Delivery Reliability, Coping with Changes in Demand (Change Volume), Flexibility and New Product Introduction Speed (Change It), and Support |
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Term
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Definition
| In Competitive Dimensions, you may not be able to keep cost low if you have high quality...It's a trade-off |
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Term
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Definition
| When a company seeks to match the benefits of a successful position while maintaining its existing position. This is risky. |
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Term
| Order Winner vs. Order Qualifier |
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Definition
Order Winner = A criterion that differentiates products or services of one firm from another. What makes us better?
Order Qualifier = It's what allows your company to even be on the map. You meet the basic criterion. |
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Term
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Definition
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Term
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Definition
the ability to hold, receive, store, or accommodate. If you're a service business, this may be how many customers you can take on at a given moment.
Time Durations:
Long Range - Greater than One Year
Intermediate Range - 6-18 months
Short Range - Less than one month |
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Term
| Strategic Capacity Planning |
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Definition
| 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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Term
| Capacity Utilization Rate |
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Definition
| Capacity Used / Best Operating Level |
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Term
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Definition
| Factory that focuses on specific production objectives and produces a small set of similar products. |
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Term
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Definition
| Smaller focused factories all under the same roof as an answer to different consumer / company demands for products. |
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Term
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Definition
1) Maintain System Balance (Part 1 gives exactly what Part 2 needs)
2) Frequency of Capacity Additions (Upgrading too much or too little)
3) External Sources of Operations and Supply Capacity (Outsourcing & Sharing Capacity)
4) Decreasing Capacity (When times are rough, how can you shed capacity off?) |
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Term
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Definition
| A schematic model of the sequence of steps in a problem and the conditions and consequences of each step |
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Term
| Planning Service Capacity |
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Definition
Time - Services cannot be stored for later use.
Location - Service capacity must be located near the customer.
Volatility of Demand - Consumer behavior and consumer interactions are different everywhere. |
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Term
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Definition
| The time needed to respond to a customer order |
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Term
| Customer Order Decoupling Point |
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Definition
| Determines where inventory is positioned to allow processes or entities in the supply chain to operate independently. i.e. Retail stock keeps the manufacturer from the consumer. The point is closer to the customer |
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Term
| Make-to-Stock, Assemble to Order, Make to Order, Engineer to Order |
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Definition
Make-to-stock
Offer finished goods. Retail stores.
Assemble-to-order
Customized to the consumer, made from preassembled modules. Think Harley Davidson
Make-to-Order
Make the customer's product from raw materials
Engineer-to-Order
The firm will work with the customer to design and then make the product |
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Term
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Definition
| The attempt to achieve high customer service with minimum levels of inventory investment |
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Term
| Total Average Value of Inventory |
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Definition
| The total average investment in raw material, work in process, and finished goods inventory |
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Term
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Definition
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Term
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Definition
| 1/Inventory Turn X 365 (how many days do you turn your inventory) |
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Term
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Definition
| Inventory = Throughput Rate X Flow Time |
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Term
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Definition
| Long term average rate that items are flowing through the process |
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Term
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Definition
| The time it takes a unit to flow through the process from beginning to end. |
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Term
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Definition
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Term
| How Production Processes Are Organized |
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Definition
Project Layout
The product being made stays at a fixed location. Equipment is moved to the product
Workcenter
Where similar equipment or functions are grouped together, such as all drilling machines in one area and all stamping machines in another.
Manufacturing Cell
A dedicated area where products that are similar in processing requirements are produced. Cells are designed to perform a specific set of processes.
Assembly Line
Processes are arranged according to the progressive steps by which the product is made.
Continuous Process
Similar to assembly line in that there is sequential steps, but the flow is continuous (such as with petroleum, chemicals, and drugs) |
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Term
| High vs Low Degree of Customer Contact |
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Definition
| High contact means they can affect the time of demand, the nature of the service, and the quality. High is more difficult to manage. |
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Term
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Definition
Pure virtual customer contact - Customers contact between eachother (ebay)
Mixed Virtual and Actual Customer Contact - Customers interact with each other in a server-moderated environment such as product discussion groups, YouTube, WikiPedia... |
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Term
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Definition
| A flowchart detailing the service process. Emphasizes what is visible and what is not visible to the customer. |
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Term
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Definition
1) Segment the customers
2) Train your servers to be friendly
3) Inform your customers of what to expect
4) Try to divert the customer's attention when waiting
5) Encourage customers to come during slack periods |
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Term
| Single Channel, Single Phase |
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Definition
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Term
| Single Channel, Multiphase |
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Definition
| A car wash (single place, multiple phases) |
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Term
| Multichannel, Single Phase |
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Definition
| Cash registers in Walmart |
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Term
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Definition
| Hospital receives patients and takes them to several locations (channels) and then performs multiple phases at each channel |
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Term
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Definition
| A mixture of multiple and single channel line structures |
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Term
| Average Utilization Calculation |
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Definition
Arrival Rate / Service Rate
15 per hour come to the store and I can serve 20 per hour. 15/20 = 75% |
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Term
| Average Number Waiting in Line |
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Definition
(Arrival Rate)^2
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Service Rate X (SR - AR) |
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Term
| Average Number in the System Calculation |
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Definition
Arrival Rate
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(Service Rate - AR) |
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Term
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Definition
Average Number Waiting in Line
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Arrival Rate |
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Term
| Average Waiting Time in the System |
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Definition
Average Number in the System
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Arrival Rate |
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Term
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Definition
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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Term
| Malcolm Baldrige National Quality Award |
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Definition
| An award from the department of commerce for companies with high quality |
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Term
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Definition
| The inherent value of the product in the marketplace |
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Term
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Definition
| The degree to which the product or service design specifications are met |
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Term
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Definition
| The person who does the work takes responsibility for making sure his or her work meets specifications |
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Term
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Definition
1) Performance
2) Features
3) Reliability / Durability
4) Serviceability
5) Aesthetics
6) Perceived Quality |
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Term
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Definition
Costs attributable to the production of quality that is not at 100%.
1) Appraisal Costs - Inspection, Testing, etc.
2) Prevention Costs - Costs to prevent defects
3) Internal Failure Costs - Costs for defects incurred within the system (scrapping the part or repairing it)
4) External Failure Costs - Warranties, Returns, Complaints, etc. |
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Term
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Definition
International standards for quality management ans assurance.
ISO 140000 is for environmental management |
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Term
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Definition
Number of Defects
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Number of Opportunities for error per unit X Number of Units |
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Term
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Definition
| The philosophy and methods companies such as General Electric use to eliminate defects in their products processes. |
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Term
| Six Sigma Methodology - DMAIC Cycle |
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Definition
Define
Measure
Analyze
Improve
Control |
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Term
| Find upper and lower control limits |
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Definition
1) Number of defects
------------------ = P
Number of Samples X Sample Size
2) S(p) = Sqrt ((P X (1-P))/n)
3) UCL = P + Z X S(p)
LCL = P - Z X S(p) |
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Term
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Definition
| Planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of the project. |
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Term
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Definition
| A self-contained team works full time on a project. The project manager has full authority over the project |
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Term
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Definition
| Team members are assigned from the functional units of the organization. The team members remain a part of their functional units and typically are not dedicated to the project |
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Term
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Definition
| A structure that blends the functional and pure project structures. Each project uses people from different functional areas. A dedicated project manager decides what tasks need to be performed and when, but the functional managers control which people to use. |
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Term
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Definition
| Program --> Project --> Task --> Subtask --> Work package |
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Term
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Definition
| Shows both the amount of time involved and the sequence in which activities can be performed. |
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Term
| Earned Value Management (EVM) |
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Definition
| Has the ability to measure scope, schedule, and cost in a project |
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Term
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Definition
1) Identify each activity to be done in the project and estimate how long it will take to complete each activity
2) Determine the required sequence of activities and construct a network reflecting the precedence relationships.
a. Immediate Predecessors
i. Activities that need to be completed immediately before an activity
3) Determine the critical path
4) Determine the early start/finish and late start/finish schedule
a. Slack time
i. Leeway in when the activity can start and finish |
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