Exam 1 Flashcards
Services vs. manufacturing - Comparisons
- Degree of customer contact
- Labor content of jobs
- Uniformity of input
- Uniformity of output
- Measurement of productivity
- Production and delivery
- Quality assurance
- Amount of inventory
- Evaluation of work
- Ability to patent design
Production Types - Defined
- Continuous flow.
- Fast chain.
- Efficient chain.
- Agile.
- Custom-configured.
- Flexible
Bottlenecks
a point of congestion that creates delays and will cost your business valuable time, as well as increase your production costs.
Functional coordination interdependence
The activities that are parts of a supply chain (regardless of how it is defined) are interdependent with other supply chains in that they share various common resources.
Generally the key aspects of Supply Chain management are Purchasing (sourcing), Planning (scheduling) and Logistics (delivery)
Core competencies
The special attributes or abilities that give an organization a competitive edge. To be effective, core competencies and strategies need to be aligned.
Make/buy decisions
A make-or-buy decision is an act of choosing between manufacturing a product in-house or purchasing it from an external supplier.
Quantitative vs. qualitative
Quantitative data is numbers-based, countable, or measurable. Qualitative data is interpretation-based, descriptive, and related to language.
Efficiency vs. effectiveness -Formula, differences
Efficiency (Output/Input) is defined as the ability to accomplish something with the least amount of wasted time, money, and effort or competency in performance. Effectiveness is defined as the degree to which something is successful in producing a desired result; success.
Agility measurement
Measuring the impact of agility on business performance, therefore, requires measuring metrics assessing the level of customer service (i.e., speed, reliability and quality of service), and the cost to serve.
Sustainability
sustainability in business refers to a company’s strategy to reduce negative environmental impact resulting from their operations in a particular market.
4DX value
Focus on the wildly important, Act on the Lead Measures, Keep a Compelling Scorecard, Create a Cadence of Accountability
Business modeling shortfalls
Neglecting operations strategy
Failing to take advantage of strengths and opportunities and/or failing to recognize competitive threats
Too much emphasis on short-term financial performance at the expense of R&D
Too much emphasis on product and service design and not enough on process design and improvement
Neglecting investments in capital and human resources
Failing to establish good internal communications and cooperation
Failing to consider customer wants and needs
Order winners vs. order qualifiers
Order qualifiers
Characteristics that customers perceive as minimum standards of acceptability for a product or service to be considered as a potential for purchase
Order winners
Characteristics of an organization’s goods or services that cause it to be perceived as better than the competition
Economics of scale
Economies of scale are cost advantages companies experience when production becomes efficient, as costs can be spread over a larger amount of goods.
Productivity formula
Total output/Total input
Organizations strategy connections
Effective product and service design can help the organization achieve competitive advantage:
Packaging products and ancillary services to increase sales
Using multiple-use platforms
Implementing tactics that will achieve the benefits of high volume while satisfying customer needs for variety
Continually monitoring products and services for small improvement opportunities
Reducing the time it takes to get a new or redesigned product or service to the market
Quality functional deployment
structured approach to defining customer needs or requirements and translating them into specific plans to produce products to meet those needs. The “voice of the customer” is the term to describe these stated and unstated customer needs or requirements.
Product life cycle
Feasibility analysis
Product specifications
Process specifications
Prototype development
Design review
Market test
Product introduction
Follow-up evaluation
Value analysis
Examination of the function of parts and materials in an effort to reduce the cost and/or improve the performance of a product
Common questions used in value analysis
Is the item necessary; does it have value; could it be eliminated?
Are there alternative sources for the item?
Could another material, part, or service be used instead?
Can two or more parts be combined?
Can specifications be less stringent to save time or money?
Do suppliers/providers have suggestions for improvements?
Can packaging be improved or made less costly?
Strategies
Leading
Build capacity in anticipation of future demand increases
Following
Build capacity when demand exceeds current capacity
Tracking
Similar to the following strategy, but adds capacity in relatively small increments to keep pace with increasing demand
Utilization formula
Actual Input/Design Capacity
Standard work impact
Standard work helps to ensure that every worker is executing tasks by following the specific set of rules and processes. This helps to reduce errors, waste and risks and also facilitates problem-solving
Internal and external inputs
Planning capacity
Service capacity planning can present a number of challenges related to:
The need to be near customers
Convenience
The inability to store services
Cannot store services for consumption later
The degree of demand volatility
Volume and timing of demand
Time required to service individual customers
Design capacity
The maximum output rate or service capacity an operation, process, or facility is designed for
Effective capacity
Design capacity minus allowances such as personal time and maintenance
