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Operations Midterm #1
Intro to Supply Chain and Operations
105
Management
Undergraduate 2
02/13/2011

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Term
PWP (plant-within-a-plant)
Definition
setting up process for one product or product line separately from other processes within same facility
Term
DFM
Definition
(Design for Manufacturing) -- approach that consists of (1) simplification of products and (2) manufacture of multiple products using common parts, processes and modules
Term
TR (throughput ratio)
Definition
(total processing time for job)/(total time in ops) * 100%
- measure efficiency
- processing time: only time othe job actually spends being processed by machines or labor, excluding any watiign time
- denominator: total time in ops including waiting
Term
types of customer-introduced variability
Definition
- arrival variability
- request variability (what customers will ask for)
- capability variability (ability of custs to participate in service)
- effort variability (uncertainty in willingness of customers to perform appropriate actions)
- subjective-preference variability (uncertainty in intangible preferences of customers in how service carried out)
Term
global corporation
Definition
- facilities and plants located on WW basis
- divisions are global
- interconnected
- product fits global tastes
- products and services can be shifted back and forth between countries
- best WW source of supply is found
- global supply chain
Term
service characteristics
Definition
- intangibility
- simultaneous production and consumption (front office)
- no resale
- cannot be stored
- buyer can perform part of production
Term
process classifications
Definition
- product flow (continuous, assembly, bath, job shop and project)
- order fulfillment (MTO, ATO, MTS)
Term
performance measures for MTS
Definition
- service level (fill rate)
- length of time to replenish
- inventory turnover
- capacity utilization
- time takes to fill back order
Term
Product Design Phase
Definition
- specs and drawings
- process design should be happening concurrently
Term
service-product bundle elements
Definition
- tangible service (explicit service)
- intangible or psychological benefits of service (implicit service)
- physical goods (facilitating goods)
Term
process layout vs. product layout
Definition
-process: machines and labor organized by process types into work centers (ie batch)
- product layout: machines and labor are organized by product flow (ie assembly line)
Term
pilot production/testing
Definition
-prototypes
-test with consumers
Term
Three Points of Operations Def
Definition
1. Decisions 2. function 3. Process
Term
Process Selection Decision Factors
Definition
1. Market Conditions
2. Capital Requirements
3. labor
4. technology
Term
major supply chain strategies
Definition
1. imitation (low cost) 2. innovation (differentiate product)
Term
forms of mass customization
Definition
1. modular production and ATO
2. fast changeover (zero setup time between orders)
3. postponement of options
Term
Unifying feature of operations in service and manufacturing
Definition
Both are transformation process inside orgs that are embedded within supply chain
Term
NPD phases
Definition
Concept Development, Product Design, Pilot Production/Testing
Term
Concept Development Phase
Definition
Idea generation and evaluation of alternative ideas for the new product (physical product not actually designed)
Term
Strategies for New-Product Introduction
Definition
Market Pull, Tech Push, Interfunctional View
Term
NPD
Definition
New Product Development
Term
(4) major operations decisions
Definition
Process
Quality
Capacity
Inventory
Term
service recovery
Definition
actions necessary to compensate for failure and restore service requested by customer
Term
Quality Decisions
Definition
affect quality, determine whether and to what extent customer specs can be satisfied (training, standards, inspection, monitoring)
Term
Capacity Decisions
Definition
aimed at providing right amount of resources at the right place and right time (facility locations, how many shifts should be operated, queues, outsourcing)
Term
external service value
Definition
benefit customers receive minus cost incurred in obtaining service
Term
concurrent engineering
Definition
combined effort of marketing, engineering and ops during NPD... draw graph
Term
operations objectives
Definition
common objectives (cost, quality, delivery, flex) derived from mission and LT oriented (5-10 years)
Term
benchmarking
Definition
comparison to world-class competitor
Term
operations mission
Definition
connected to biz strat and is in agreement with other fnc'l strats
Term
operations strategy
Definition
consistent pattern of decisions for the transformation system and associated supply chain that are linked to the biz strategy and other fnc'l strategies, leading to a comp adv for the firm
Term
transformation system
Definition
converts inputs (energy, materials, labor, capital, information) into outputs using process technology (methods, procedures, equip)
Term
operations objectives
Definition
cost, quality, delivery, flexibility
Term
key to revenue growth and profitability
Definition
customer loyalty
Term
voice of the customer
Definition
customer requirements (customer can be a powerful driver for reducing waste and improving efficiency of all processes)
Term
self-service
Definition
customers serving as labor at key points in process (customers must be willing and able)
Term
customer-routed services
Definition
customers want unique, highly customized experience
- customers have great deal of decision making power
Term
corporate strategy
Definition
defines business that company is pursuing
Term
business strategy
Definition
defines how each particular business will compete (product imitator, product innovator)
Term
Process decisions
Definition
determine physical process or facility used to produce the product or service and associated workforce policies and practices (equip, tech, materials, layout, tasks, shift changes)
Term
inventory decisions
Definition
determine type and level of inventory to be held against uncertianties (type of materials, monitoring, replenishment, who should hold inventory)
Term
Lean
Definition
eliminating waste activities in every part of business (Just in time etc)
Term
internal service quality
Definition
employee selection process, workplace design, job design, reward systems, tech used to support service workers
Term
service guarantee
Definition
ensure satisfactory delivery to customer
must: promise what service will be delivered and what payout will be if promise not fulfilled
Term
productive employees
Definition
essential in delivering value to customer... lower costs of ops and ensure satisfied customers when supported by mgmt and appropriate tech and systems
Term
offshoring
Definition
export of services to other countries
Term
potential inefficiency = ?
Definition
f(degree of customer contact)
Term
recycling outputs
Definition
finding uses for by-products
Term
Interfunctional View
Definition
fit market needs but also have tech adv, usually most successful, but difficult
Term
information package
Definition
for a finalized product that includes product specs, design specs, training procedures for operators and test results
Term
management tasks for MTS
Definition
forecasting, inventory mgmt, production planning
Term
focused factory
Definition
having factory being focused on one type of process/product so strategies don't interfere
types of focuses: product, process, technology, volume of sales, MTS vs MTO, new products vs. mature products
Term
economies of scope
Definition
high variety of products from a single process
Term
economies of scale
Definition
high-volume standardization product with few options
Term
ATO (assemble-to-order)
Definition
hybrid of MTO and MTS. subassemblies MTS, but final assembly, MTO
Term
Value Analysis
Definition
improving usefulness of product without increasing cost or reducing cost without reducing usefulness
Term
strategic decisions
Definition
indicate how ops objectives will be achieved (quality, process, inventory, capacity)
Term
MTO (Make-To-Order)
Definition
individual's orders can be identified during production. Cycle beings with order
Term
supply chain management
Definition
integratino of suppliers, producers and customers
Term
performance measures for MTO
Definition
lead time and percentage of orders completed on time (date promised to customer)
Term
lead time
Definition
lenths of time it takes to design, make and deliver the product
Term
Assembly-Line Flow
Definition
linear sequence of operations (efficient but inflexible)
- high volume, standardized
Term
Job Shop
Definition
makes products to customer order by using process layout
- special case of batch process
- product made to customer order
- gen purpose equip
Term
Market Pull
Definition
market primary basis for detmining products a firm should make, little regard for existing tech
Term
sustainability
Definition
minimizing or eliminating enviro impact of operations
Term
components of ops strategy
Definition
mission
distinctive competence
objectives
strategic decisions
Term
co-routed services
Definition
moderate number of choices to customers, using moderately standardized processes
Term
key to mass customization
Definition
modular design
Term
supply chain
Definition
network of manufacturing and service ops that supply one another from raw materials through manufacturing to the ultimate customer (physical flow of materials, money and info along entire chain of purchasing, production and distribution)
Term
order winners
Definition
objective that will win orders from the customers in a particular segment that marketing has selected as the target market
Term
outsourcing of services
Definition
org outside your own firm perform service activities such as workforce recruiting, payroll mgmt, etc
Term
order qualifiers
Definition
other obejctives that help to get order winner... insufficient levels of performance on order qualifiers can lose order but higher performance on order qualifiers cannot by themselves win the order
Term
service level
Definition
percentage of orders filled from inventory
Term
Continuous Production
Definition
process industried (ie sugar, paper, oil, elec) where output is made in continuous fashion and tends to be highly standardized with high volumes of production
Term
provider-routed services
Definition
processes that allow few options during service delivery and are matched with customers whose needs are very similar to one another
Term
fast changeover
Definition
production is computer controlled and each order is uniquely identified by a bar code that specifies customer's options
Term
Batch
Definition
production of product in batches or lots
- lower volume
- general purpose equipment
- flexibility
- labor more skilled
Term
pollution prevention
Definition
reduce/eliminate pollutants from the production process
Term
house of quality
Definition
relationship matrix with cust/engineering specs and relative importance of characteristics
Term
modular design
Definition
relatively high product variety and low component variety
Term
logistics function
Definition
responsible for actual movement of goods/services across orgs
Term
remanufacturing
Definition
restoring and reusing some product components in production of new products
Term
Secondary Function
Definition
result of way the product is designed and permits accomplishment of basic function
Term
competing through quality
Definition
satisfying customer specs
Term
key difference in service process and product-process design/matrix
Definition
service process design generally doesn't vary with customer volume
Term
production-line approach to service
Definition
services should be standardized and the service facility itself should be designed to minimize mistakes or deviations from standards
Term
product process matrix
Definition
shows life cycle of typical product (usually evolves from left to right side). represents strat choices available to firms in both product and process dimensions
Term
distinctive competence (operations capability)
Definition
something ops does better than anyone else (resources, tech, innovation)
- should match mission of ops
Term
purchasing function
Definition
sources inputs into transformation process of org from other orgs
Term
MTS (make-to-stock)
Definition
standard product line specified by producer... begins with producer specifying and producing product
Term
mass customization
Definition
strategy to provide products in lot sizes of one in high volume
Term
supply chain strategy
Definition
takes into account not only ops strategy of firm but also the strategies of the suppliers and customers in the firm's supply chain
Term
value
Definition
tangible and intangible benefits that customers can derivce from consuming a good or a service at a price they are willing to pay (always in eye of customer)
Term
Tech Push
Definition
tech primary determinant of products firm makes, little regard for market
Term
Quality Function Deployment (QFD)
Definition
tool for linking customer requirements as defined by customer to technical specs
Term
Project form
Definition
unique/creative products
- buildings, aircrat
- materials and labor brought to product site
- highly skilled labor
Term
postponement
Definition
used to defer a portion of the production until the point of delivery (customize at last minute)
Term
pollution control
Definition
used to treat or dispose of pollutants and harmful by-products that are outputs from the process. Extends process by adding another step to deal with waste by-products
Term
recycled inputs
Definition
using materials from other processes as inputs into a process
Term
modular production
Definition
variety of options using ATO process (ie Dell)
Term
service matrix
Definition
vertical: operations service system Process Design
Horizontal: customer wants and needs in service package
Term
customer contact matrix
Definition
vertical: sales opportunity (high to low on left side) & production efficiency (low to high on right side)
horizontal: degree of customer contact(buffered to reactive L to R)
Term
misalignment (in ops)
Definition
when product designed by engineering cannot be made by operations
Term
supply chain collaboration
Definition
working with customers (NPD input and feedback) and suppliers (tech expertise, capability, capacity, risk)
Term
Basic Function
Definition
would render product useless in therms of its stated objective
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