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SCM 352-1004 > Session 2 - > Flashcards

Session 2 - Flashcards

1
Q

In product design, what can new products provide?

A

New products can provide growth opportunities

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2
Q

What do new products realize?

A

New products realize firms business strategy and operations strategy

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3
Q

What is a strength of New Products?

A

Distinctive Competence

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4
Q

The introduction of new products affects what?

A

Affects operations Strategic Decisions:
- Process
- Quality
- Capacity
- Inventory
- Supply Chain

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5
Q

What are the strategies for New Product Development (NPD)?

A

1) Market Pull
2) Technology Push
3) Inter-functional view (a balanced approach)

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6
Q

What is Market Pull?

A
  • “Make what we can sell”
  • Fulfill customer needs
  • “Jobs-to-be-Done” theory by Clayton Christensen
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7
Q

What is Technology Push?

A
  • “Sell what we can make”
  • Utilize superior technologies
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8
Q

What is Inter-functional view?

A
  • A balanced approach
  • Not only fit the market needs, but also have a technical advantages
  • Most appealing but most difficult to implement
  • Cross-functional team involvement
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9
Q

What are the two categories in the New Product Development (NPD) process and what are their elements?

A

1) Product
- Concept Development
- Product Design
- Pilot Production / Testing

2) Process
- Preliminary Process Design
- Final Process Design

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10
Q

What is the main goal of the “funnel” view?

A

To eliminate design mistakes before too much money is spent

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11
Q

What part of the design is the Sequential Approach part of?

A

Cross-Functional Design

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12
Q

What is the Sequential Approach?

A

Technology is transferred in stages as a hand off between marketing, engineering, and operations occurs

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13
Q

What are the benefits of the Sequential Approach?

A
  • Functions work independently
  • Less demand on inter-team communications
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14
Q

What are the shortcomings of the Sequential Approach?

A
  • Results in misalignment of market needs, design, and production process, increased potential for rework
  • Time sensitive as each function must wait for the previous function to complete their work
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15
Q

What part of design is Concurrent Approach part of?

A

Cross-Functional Design

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16
Q

What is the Concurrent Approach?

A

All functions work together over the same time frame as soon as the concept development is started

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17
Q

What are the benefits of the Concurrent Approach?

A

Avoids misalignment between functions as process design is developed concurrently with product design

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18
Q

What are the shortcomings of the Concurrent Approach?

A
  • Not always effective
  • Projects with high uncertainty will likely suffer under this arrangement
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19
Q

What are some challenges faced in Cross-Functional Cooperation?

A

1- Terminology
(Do not use a uniform set of terms)

2- Personality / Ethos
(Different thought processes/personal differences, Defensive about their own turf, time commitment)

3- Location
(Different physical locations)

4- Culture
(Psychological Safety)

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20
Q

What is Supply Chain Collaboration?

A

1) Collaboration with Customer
(Include customers as advisors, Ask right questions, Provide motivation and facilitator)

2) Collaboration with Suppliers
(Technical tools expertise, Competencies in cost & time & quality & flexibility, Capacity Availability)

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21
Q

What is Quality Function Deployment (QFD)?

A

Converting customer requirements into measurable engineering characteristics

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22
Q

What tool is used to help assist in QFD?

A

House of Quality

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23
Q

What are the 4 components of “House of Quality”

A

1) Customer needs and benefits
2) Relationship
3) Engineering Characteristics
4) Technical Correlation

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24
Q

What defines the Trade-off attribute in House of Quality?

A

Understand how engineering characteristics are related to each other

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25
What defines the Customer Requirements attribute in House of Quality?
Determined through market research in conjunction with potential customers
26
What defines the Engineering Characteristics in the House of Quality?
Specific measures that can be quantitatively tested
27
What defines the Relationship attribute in the House of Quality?
Fulfillment of engineering characteristics on customer needs and benefits
28
What two things make up Mass Customization?
Common Components (lower cost) + Customized Products
29
What makes up Mass Customization through Modular reconfigurations?
Common Components + Reconfiguration
30
What are the benefits of Modular Design?
- Develop a series of basic product components - Allow for greater variety through mixing and matching of modules - Reduce complexity and costs associated with a large number of product variations
31
What are the shortcomings of Module Design?
- Modular Designs require a great deal of planning to ensure that parts can be optimized given various configurations - Testing can become complicated as modules must be tested in different configurations to understand each configurations durability and performance
32
What is the purpose of Process?
"Process is Central" to operations management - Differentiate product characteristics - Implement different processes
33
What are the two key dimensions of Product characterstics?
- How much product variety will the system need to handle? - What is the expected output product volume?
34
What are two operations managerial questions?
- How do companies decide on the right process to achieve a strategic advantage? - What are the considerations and trade-offs?
35
What are the Five Types of Processes?
1) Project 2) Job Shop 3) Batch Flow 4) Assembly Line 5) Continuous Process
36
What is Continuous Process?
A continuous flow of process treatments
37
What types of product under Continuous Process?
- Commodity Products (paper, oil, chemicals) - Low Variety (highly standardized) - High Volume of products
38
What are the operation details in the Continuous Process?
- Highly automated equipment (little to no flexibility) - High capital investment (Large set-up costs) - A few highly skilled workers (around the clock operations)
39
What is the operation strategy in the Continuous Process?
Huge plant utilizing economies of scale
40
What is Assembly Line?
Linear sequence of operations (limited process variability)
41
What types of products in Assembly Line?
- Mass-produced (discrete) consumer products (auto assembly, car wash, computer assembly) - Highly standardized products - High Volume of products
42
What are the operation details in the Assembly Line?
- Use of dedicated automated equipment (Limited flexibility to product changes, Products usually move via conveyer system) - High Capital Investment (high volume justifies the investment) - More workers (Some not as highly skilled, Workers can stop the line)
43
What is Batch Flow?
Jumbled and intermittent product flow - large process variability
44
What type of product under Batch Flow?
- Products with large variety - Low volume of products (medicine, furniture, boats, heavy equipment, electronic devices) - Batches flow as a unit (set)
45
What are the operation details in Batch Flow?
- General Purpose Equipment (High equipment capacity utilization, frequent batch change over, Scheduling is difficult, More inventory) - Lower Capital Investment (smaller plants) - Flexible Labor
46
What is Job Shop?
Jumbled and Intermittent product flow - A special case of batch production - A batch process that is make-to-order
47
What products under Job Shop?
- High Variety - Low volume of products (small batches or lots) - Orders are customized to meet specific customer needs (custom furniture, custom printing, company souvenir, machine components, artificial limbs)
48
What is the operation details in Job Shop?
- General Purpose Equipment (Sometime utilization is only 50-70%, Equipment layout is similar to Batch Flow) - Flexible Labor (Skilled Labor, Higher capital cost relative to Batch Flow)
49
What is Project?
A process with complex planning and scheduling challenges
50
What products under Project?
A unique one of a kind product / service - A customized single unit like an office building or Casino - Product does not flow in a project
51
What are the operations detail for Project?
- General Purpose equipment (Little automation, high unit cost) - Labor and materials frequently brought to site - Flexible, highly skilled labor - Project cycle time can be years
52
Process decisions must consider what?
Product Characteristics and Process Capabilities
53
What did Hayes and Wheelwright in 1984 claim about the strategic process selection?
Competitive Operations are on the diagonal (product and process match)
54
What does it mean investments move down on the diagnol?
Can mean capturing market share before competitors make similar moves
55
When do we call Process an Art?
When: - It involves the tacit knowledge of experts to determine whether the process creates high-quality products or services - It usually involves judgement-based work, craft work, or professional work - It has high variability in the process, its inputs, and its outputs
56
We call process a science when?
When: - The knowledge is explicit and codified in some form - The goal of science processes is to sufficiently control variability - Science processes are easier to design, manage, and improve
57
What are the stages of Process Knowledge Taxonomy going from art to science?
0 - Total Ignorance 1- Qualitative Ability to separate good from bad (but don't know why) 2 - List of possibly relevant variables 3- Ability to set priorities 4- Ability to measure variables 5 - Procedures that give some degree of repeatability 6- Changeable procedures to compensate for environmental conditions and/or other contigencies that arise 7- Precise quantitative models that relate controls and environment to output 8- Completely proceduralise knowledge
58
What are the three phases in the Process Evolution with Product Life Cycle?
1) Market Development 2) Growth 3) Maturity
59
What are other considerations for process improvement?
- Capital Requirements - Availability and cost of labors - Market competition - Product Evolutions - Technology Possibilities
60
What is the Order Fulfillment process?
When should you begin producing products for an order?
61
What is Make-to-stock (MTS)?
Produce the products before orders arrive - Start production according to forecast - Customer buys from inventory - Standardized products
62
What is Make-to-Order (MTO)?
Produce the products after orders arrive - Start production after receiving customer orders - Customized, flexible, higher cost
63
What is Assemble-to-Order (ATO)?
Assemble the products after orders arrive - Hybrid of MTS and MTO - Build stock of subassemblies based on demand forecast (MTS) - Assemble final product per customer order (MTO)
64
What is the advantage of MTS?
- Faster fulfillment of customer demand - Lower cost - Smooth production rate
65
What are the disadvantages of MTS?
- Higher inventory holding costs - Slower to respond to changes
66
What is the performance measure for MTS?
- Fill Rate: percentage of orders filled from inventory - Production capacity utilization - Time to fill back order
67
What is an advantage or MTO?
- Higher flexibility to customize order - No finished goods to inventory costs
68
What are the disadvantages of MTO?
- Intermittent production (lumpy demand pattern) - Slower response to customer demand
69
What is the performance measure for MTO?
- Lead time: time taken to fulfill the order - Percentage of orders completed on time
70
What are the advantages of ATO?
- Reduction in finished goods inventory - Faster fulfillment of customer order (shorter lead time)
71
What are the disadvantages of ATO?
Work-in-process inventory

SCM 352-1004 (7 decks)

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