Operations Management Flashcards
Process Focus:
EXAMPLE: hospital - surgeries, sick patients, emergencies - uniquely treated patients
Volume: LOW
Variety: HIGH
Material: General purposes
Employee skills: Broad Education
Throughput time: LONG
Scheduling: Complex
Fixed Costs: LOW
Variable Costs: HIGH
MAKE-TO-ORDER: concerns customized products, e.g., tailored suits
Product Focus:
EXAMPLE: water, corn, steel etc - output variations in size, shape and packaging
Volume: HIGH
Variety: LOW
Material: Specialized
Employee skills: Low Education
Throughput time: SHORT
Scheduling: Relatively easy
Fixed Costs: HIGH
Variable Costs: LOW
MAKE-TO-STOCK: Concerns fast-moving consumer goods which are not being customized, e.g., toilet parper.
Repetitive focus:
EXAMPLE: Harley-Davidson - multiple engines, wheel modules - many combinations of motorcycles
Volume: Relatively HIGH
Variety: Standardized products with options
Material: Specialized
Employee skills: Average Education
Throughput time: Hours or Days
Scheduling: Build from modules to make planning easier
Fixed Costs: Reasonably HIGH
Variable Costs: AVERAGE
MAKE TO ORDER & PRODUCT FOCUS
Mass Customization:
EXAMPLE: Dell computer - chips, hardwares, softwares, cases - basically custom PCs because of many output versions.
Volume: HIGH
Variety: HIGH
Material: Flexibly specialized
Employee skills: Trained for tailor made products
Throughput time: SHORT
Scheduling: Complex
Fixed Costs: HIGH
Variable Costs: LOW
ASSEMBLE-TO-ORDER: (also called build-to-order) concerns products for which a balance is being sought between efficiency and variety, e.g., cars.
Exception messages
1) Reschedule in: computer asks for a shop order already released to the shop floor.
2) Reschedule out: computer notes a shop order already released to the shop floor is not needed at the receipt date
3) Planned order due for release:
4) Parameter violation: The MRP planner does not conform upon MRP logic
