Exam1 Flashcards
Strategic decisions
Highes level of decisions
Longterm goals and the future
Tactical Decisions
Medium range medium significance
Support the strategic decisions
Operational Decisions
Everyday decisions regarding the operation support the tactical decisions
Little thought and highly structured
Competitive Dimensions
Cost Quality Delivery Speed Delivery Reliability Demand Managment Flexibility innovation
Flexibility Pros and cons
Flexible system is more expensive, but implies quicker response to uncertainties in the demand.
Order Winners
Criterion that differentiates one firm from another.
This is what seperates the men from the boys
Order Qualifiers
Criterion that permits the firm’s products to even be considered for purchase.
You can’t go to market without meeting the qualifiers
Productivity
Output/input
You can do partial measures too
output/(labor) output/capital
output/(labor+Capital+Energy)
its measures are relative they have to be compared to other firms
Overall Productivity
Revenue/Total Expenses
Product Development Process
Planning Concept Development System Level Design Detail Design Testing and Refinement Production Rampup
Planning
(resource allocation, project definition, goals, and constraints)
Concept Development
customer needs identification)
Design
(value engineering)
Market pull products
Market opportunity to technology, e.g. sporting goods, furniture
Uses generic process
Technology push products
Technology to market opportunity, e.g. teflon, gore-tex
Concept development takes technology as given
Platform products
Built around existing platform, e.g. consumer electronics, printers
Concept development assumes proven technology platform
Process intensive products
Product constrained by production process, e.g. semiconductors, chemicals
Product and process developed from start
Quick build products
Rapid modeling and prototyping, e.g. software, cell phones
Many design-build-test cycles
Complex systems
System includes many subsystems and components, e.g. airplanes, jet engines
System and subsystems developed by many teams working in parallel
Challenges of NPD
Trade-offs
Lightweight vs. costly
Dynamics
Technologies, customer tastes, competition change environment
Details
Screws vs. snap fits on enclosure of computer
Time pressure
Decisions made quickly and without complete information
Economics
Large investment – will it pay off?
Organizational realities
Team composition, empowerment, functional allegiance, resources
Sequential Vs Parallel Prototyping
Sequential is cheaper but more time consuming
Parallel is much quicker but more expensive
Throughput time
The amount of time each unit spends in the manufacturing process
Cycle Time
Average time between completion of successive units
Throughput Rate
is the output rate that the process is expected to produce over a period
of time. Obviously
1/cycletime
Work-in-Process (WIP)
number of units in the process at any given time
Littles Law
WIP/Throughput rate
push
make to stock
pull
make to order
