Chapter 5 Terms Flashcards
Product - Process Matrix
linking a product’s life cycle and marketing decisions with operations capabilities
5 different process types
Project Job shop Batch Repetitive process Continuous process
Project
unique, one of a kind (ex. custom home)
high complexity, outsourcing, flexibility needed
Job Shop
customized, low volume (ex. auto repair, beauty salon)
High variety of inputs and process flows
High work-in-process inventory
Batch
moderate volume and variety (ex. bakery, automotive parts, cinema)
Dominant flow patterns, some common inputs, setup time can be high
Repetitive process
standard products with a range of options (ex. appliances, automobiles, buffet restaurant)
All products follow the same sequence
Standard method and materials used
Continuous process
commodities with high volume, little variety (ex. aluminum cans, laundry detergent, gasoline) Products follow sequence Operations run 24/7 Line stoppages are very costly Highly specialized equipment
Mass customization
customers design a product by choosing from a range of options (ex. Dell computers)
Cellular manufacturing
production of products with similar process characteristics on small assembly lines called work cells
Engineer to Order
unique, customized products
Make to Order
products that have similar designs but are customized during production
Assemble to Order
products that are produced from standard components and modules
Make to Stock
finished goods that are held in inventory in advance of customer orders
Service process matrix
categorizes service processes based upon the degree of customization/customer interaction and labor/capital intensity
Professional services
interacting closely with clients to deliver customized services (ex. lawyers, doctors consultants)
Service factory
low customer contact, customization and labor intensity, but high investment in facilities and equipment (ex. trucking companies, airlines, hotels)
Service shops
high degree of capital intensity and customer interaction/customization (ex. automobile repair shops and hospitals)
Mass services
low customer interaction/customization and high labor intensity (ex. retail banks, gas stations and other retail outlets)
Service blueprinting
an approach similar to process mapping that analyzes the interface between customers and service processes
Customer actions
all of the steps taken by customers as a part of the service delivery process
Front office actions
actions of frontline contact employees (face to face encounter)
Back office actions
non-visible interactions with customers (ex. telephone calls etc…)
Support processes
activities carried out by employees who do not have direct contact with customers
Physical evidence
represents all of the tangibles that customers see or collect during their contact with a company
Fixed-position layout
used when the product cannot be moved during production (ex. homes, buildings, bridges, large ships)
Functional layout
groups together similar resources (ex. fitness centers and Macy’s)
Product layout
resources are arranged according to regularly occurring sequence of activities (ex. automotive assembly line, Noodles & Co., buffet line)
Repetitive and continuous processes typically use
Lack of flexibility and low work variety for employees (drawbacks)
Line balancing
assign tasks so that idle time and the number of workstations are minimized
Precedence relationships
identifying the order in which tasks must be completed
Takt time
maximum allowable cycle time at each workstation
Takt time equation
available production time per day/output needed per day
Theoretical number of work stations
total of all task times/takt time
Efficiency
[sum of all task times/(actual work stations * takt time)] * 100
Competitive priorities
Quality Timeliness Cost Flexibility Innovation
