Chapter 8
what are the elements of the supply chain
- Raw materials - Logistics (transportation, coordination, etc) - Warehouse/storage - Production - Warehouse/storage - Logistics - Distributors--marketing and sales
The United States is the ___ largest market for industrial robots
4th
Why are service providers more labor intensive
Because of the high level of customer contact, perishability of the output( must be consumed immediately) and high degree of inputs and outputs (customization)
what is an important process for the operations manager?
Being able to efficiently plan the organization's capacity
What are examples of high contract services
Health care, real estate, tax preparation and fast food
What are some common characteristics of services?
Intangibility, inseparability of production and competition, perishability, customization and customer contact
Supply chain management requires
Marketing managers to work with other managers in operations, logistics and procurement
For most businesses, the ultimate objective is for the
Produced outputs be more worth than the combined costs of the inputs
Who tends to be more labor extensive
Service providers
What are the effectively actions or performance that must be directed towards the customer that uses them
Services
Who is considered in the upstream of a supply chain
Suppliers
A major function of operations is
Supply chain management
What type of issues are becoming increasingly important to stakeholders and consumers
Sustainability
procurement involves
The processes to obtain resources to create value through sourcing, purchasing, and recycling materials and information
planning does not stop with
a blueprint it must also work out efficient production to ensure there's enough available to satisfy consumer demand
project organization
a company using a fixed-position layout because it is typically involved in large, complex projects such as construction or exploration
computer-integrated manufacturing (CIM)
a complete system that designs products, manages machines and materials, and controls the operations function
The nature of the service provider's product requires
a higher degree of customer contact and produces more intangible products
product layout
a layout requiring that production be broken down into relatively simple tasks assigned to workers, who are usually positioned along an assembly line
fixed position layout
a layout that brings all resources required to create the product to a central location
process layout
a layout that organizes the transformation process into departments that group related processes
International Organization for Standardization (ISO) has developed
a list of global standards that companies can adopt to assure stakeholders that they are complying with the highest quality, environmental, and managerial guidelines
inventory
all raw materials, components, completed or partially completed products, and pieces of equipment a firm uses
raw material inventory includes
all the materials that have been purchased to be used as inputs for making other products
why does standardization become more complex on a global scale
because different countries have different standards for quality
why is it an important decision to know where to locate the firms facilities
because the firm must live with it due to the high cost involved
Companies used cim to
boost productivity and quality and reduce costs
operations are used to describe those processes used in the making of
both tangible and intangible products
how can you solve this problem of countries having different standards for quality
by adopting the international organization for standardization
planning the operational processes for the organization involves two important areas which are
capacity planning and facilities planning
continuous manufacturing organizations
companies that use continuously running assembly lines, creating products with many similar characteristics
CAD helps engineers design
components, products and processes on the computer instead on paper
Supply Chain Management
connecting and integrating all parties or members of the distribution system in order to satisfy customers
before a company can produce any product it must first
decide what it will produce and for what group of customers
before a firm can begin product it must first
determine the appropriate method of transforming resources into the desired product
What are examples of low contract services
eBay
third party logistics involves
employing outside firms to move goods because they can transport them efficiently than the company itself
what creates major factors in decision making about operations
fair trade, organic food products, working conditions, child labor, sending jobs overseas, and regulatory mandates
what are the three basic types of inventory
finished goods, work in process inventorty and raw materials
outbound logistics follows the
finished products and information from the business customers and then to the final customers
the nature of manufacturer implies that a
firm makes tangible products
what are the three basic layouts for a facility
fixed-position, process and product
example of intangibility
going to a basketball game
example of inseparability of production and consumption
going to a chiropractor, traveling on an airplane
service operations must build their operations around
good execution
Example of customization
haircut
what happens if there is a failure in any part of the modular design usually mean
having to replace the entire component
marketing research can also
help gauge the demand for a product and how much consumers are willing to pay for it
what are different ways of differences between manufactures and service providers
how the output is used, uniformity of inputs and outputs, labor that is needed and measurement of productivity
what are the important parts of the transformation modes
inbound logistics, outbound logistics and third party logistics
what has been an increasingly important criterion in the recent years
inducements and tax reductions
maximum capacity can be stated in terms of
inputs or outputs provided
how are many modular designs produced as
integrated units
operations represent an
interest in viewing the operations function as a whole
once a company knows what processes it will use to create its products then
it can design and build an appropriate facility in which to make them
what are products that can be considered as customization
jewelry, furniture, custom artwork, photocopy services, repair services
products generally cost
less than custom designed products
what is another important reason for efficient capacity is the
long term commitment of resources
mass customization relates to
making products that meet the needs or wants of a large number of individual customers
customization
making products to meet a particular customer's needs or wants
computer assisted manufacturing (CAM)
manufacturing that employs specialized computer systems to actually guide and control the transformation processes
most companies use
marketing research to determine the kinds of goods and services to provide and the features they must possess.
the purchasing department aims to
obtain items of the desired quality in the right quantities at the lowest possible cost, Must be on the constant lookout for better deals
how do manufacturers and service providers differ in nature and consumption?
of their output
what function is often the most public and visible aspect of the supply chain
operations
om includes a wide range of
organizational activities and situations outside of manufacturing
in order to avoid situations where there is more capacity available than needed then
organizations must accurately forecast demand and then plan capacity based on those forecasts
intermittent organizations
organizations that deal with products of a lesser magnitude than do project organizations; their products are not necessarily unique but possess a significant number of differences
logistical concerns involve
physical distribution, and the selection of transportation modes
operation managers must
plan for the types and qualities needed to produce the product, the skills and quantity of people needed to make the product and the actual processes through which the inputs must pass in their transformation to outputs
production and operation management involves
planning and designing the processes that will transform those resources into finished products, manage the movement of those resources through the transformation process and ensuring that the products are of the quality expected by customers
when companies decide to relocate or open a new facility it must pay closes attention to factors like
proximity to market, availability of raw materials, availability of labor, community characteristics and taxes and inducements
what are the fundamental aspects of operations management
quality and productivity
modular designs allows products to be
repaired quickly which reduces the cost of labor but the labor itself is expensive
example of customer contact
restaurants
what is changing the landscape of operations
robotics, predictive analytics, driveless cars, internet of things, drones, network inventory optimization tools and automation in identification of inventory
example of perishability
seats at a speaker's presentation
the blockchain is a
secure, public database that records all transactions and is spread across multiple computers
to ensure that this process generates quality products efficiently, operation managers control the process by
taking measurements(feedback) at various points in the transformation process and comparing them to previously established standards
manufacturing and production are used interchangeably to represent the activities and processes used in making
tangible products
operations
the activities and processes used in making both tangible and intangible products
production
the activities and processes used in making tangible products also called manufacturing
manufacturing
the activities and processes used in making tangible products; also called production
purchasing
the buying of all the materials needed by the organization also known as procurement
modular design
the creation of an item in self-contained units, or modules, that can be combined or interchanged to create different products
computer assisted design (CAD)`
the design of components and processes on computers instead of an paper
operations management (om)
the development and administration of the activities involved in transforming resources into goods and services
flexible manufacturing
the direction of machinery by computers to adapt to different versions of similar operations
outputs
the goods, services and ideas that result from the conversion of inputs
standardization
the making of identical interchangeable components or products
capacity
the maximum load that an organizational unit can carry or operate
inbound logistics involve
the movement of raw materials, packaging, information and other goods and services from the supplier to the producers
inventory control
the process of determining how many supplies and goods are needed and keeping track of quantities on hand, where each item is, and who is responsible for it
inputs
the resources—such as labor, money, materials, and energy—that are converted into outputs
how do service operations build their operations around good execution
they hire and train excellent employees, develop flexible systems, customize services and maintain adjustable capacity to deal with fluctuating demand
work in process inventory consists of
thos e products that are partly completed or are in some stage of the transformation process
finished goods inventory includes
those products that are ready for sale
when is cad used
to develop a 3d image
what are examples of standardized products?
tvs, ballpoint pens, tortilla chips
companies must decide
where to locate their operations facilities, what layout is best for producing their product and what technology to apply to the transformation process
