Week 2 Flashcards
Strategy and design of product, service and capacity
Success Depends upon
Strategy, process to deliver and analytics to support the descisons needed to manage the firm
Operations?
Processes used to transform resources into products
Supply chain
Processes that move information and material to and from the firm
Triple bottom line?
Economic, Environmental, Social
OSC Strategy Competitive dimension
Price, quality, delivery speed, delivery reliability, coping with changes in demand, Flexibility and new product-introduction speed
Process Activities?
Planning, sourcing, making, delivering, returning
Efficency?
Doing the things right
Effectiveness
Doings the right things
Create most value for customer
Value
Attractiveness of a product = cost
Supply Chain Risk Examples
Covid,, Japanese tsunami, 2010 Toyota recalla
How to do Risk mitigation Framework
Identify the sources of potential disruptions.
- focus on highly unlikely events that would cause a significant disruption to normal operations
Assess impact, plan to mitigate.
Productivity measurement
How well are resources used. Outputs/inputs
Partial productivity
Multifactor productivity
Total productivity
Six phases of developnent process
Planning
Concept development
System level design
Design detail
Testing and refinement
Production ramp up ->product is launched
Capacity
The ability hold, receive, store or accommodate
Need to consider outputs and inputs!
Capacity utilization rate
Capacity used/best operating level
What is economies of scale?
Idea that as a plant gets larger, and volume increases- average cost per unit tends to drop
Diseconomies of scale
At some point the plant becomes too large and average cost per unit begins to increase
What do we mean by capacity flexibility? And what are the three types of flexibility?
Flexible plants - Quickly adapt to change, zero-changeover time
Flexible Processes - Manufacturing - simple, easily setup
Flexible workers - switch from one kind of task to another quickly
CAPACITY Cushion
forecasting to demand sales - calculate labor and equipment to meet forecast
Project labor and equipment
Differences between service and manufacturing capacity?
goods can be stored for later, services cannot
Location - goods can be shipped
Volatility low in manufacturing, volatility higher in services
