lecture 1 & 2 Flashcards
characteristics of core goods
- tangible
- can be inventoried
- longer lead time
- little customer contact
- often capital-intensive
- quality easily assured
- materials are transformed
characteristics of core services
- intangible
- cannot be inventoried
- shorter lead times
- a lot of customer contact
- labor-intensive
- quality is harder to assess
- information or customer is transformed
relationship between MO and SO
manufacturing orientation and service orientation –> there is a continuum between them, either fully, mostly, or half
service product bundle
goal : add value to the customer
4 elements : business, core, non-core good, non-core service
ex : business (automobile), core (cars), non-core good (liquid car cleaner), non-core service (warranty)
total product experience
refers to all of the output of an operation (both goods and services), includes all aspects of purchasing, consuming, and disposing of the product
operations management is
the management of processes used to design, supply, produce, and deliver valuable goods and services to customers
a process is
a system of activities that transform inputs (such as materials, capital, labor, knowledge, and customer demands) into valuable outputs (goods and services)
challenges for operations management
- lowering costs (economic value)
- improving quality (functional value)
- enhancing product desirability (psychosocial value)
- aligning OM with company’s competitive strategy
- evolving with the needs of customers, competition, and technology
why is OM important?
OM involves using resources (like HRM) and managing organization relationship
effective OM can
- Use resources more efficiently
- Improve business processes effectiveness
- Improve relationship between business entities
- Help meet strategic goals (increase economic wellbeing of the company)
- Increase customer service (by meeting customer’s expectations)
design and development
- new product design and development
- transforming market opportunities and new technology into products design spesifications - new process design and development
- transforming product design spesifications and technology into revised production strategy/system
product life cycle
- launch : introduction to the market, intense design and development, and may require supply chain process innovation
- growth : increasing demand, flexible supply chain, more data from customers, increasing standardization, process innovation postponed
- maturity : product and demand stabilization, increasing importance of cost, process innovation to increase supply chain efficiency
- decline : changing technology or customer needs, decreasing demand –> decrease in cost and capacity, possible phase out for replacement product
design and development in product life cycle
- major product innovation + initial process innovation = launch and growth
- major process innovation + incremental (additional) product innovation = maturity and decline
production strategies
- Most customized (no stocked finished goods, require engineering, long lead time)
a. engineer to order (ETO) –> unique, customized products
–> no initial blueprint + when order, start drafting/desigining stage
b. make to order (MTO) –> customized when production
–> have initial blueprint + when order, start production
c. assemble to order (ATO) –> produced from standard components and modules
–> modules already completed, start from assembly
d. make to stock (MTS) –> goods made and held in inventory in advanced to customer orders
–> based on demand, produce in advance - Nearly no customization (finished goods are stocked, engineering is completed, short lead time)
product/process design and development stages
concept development –> product and process planning –> detailed design and development –> product and market testing –> commercialization –> market introduction
