Supply Chain Management Chap 5

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Early supplier involvement (ESI)

get involved in the early stages of product design Ideas can come from commpetitors

Service concept has 3 elements

physical element of service psychological benefits of the service sensual elements of the service

Facility layout

Deciding the physical layout of the production facility

Process Facility layout

many different types of products in low volume

Product Design process

1) idea development 2) product screening 3) preliminary design and testing 4) final design

Factors impacting product design decisions

- design for manufacture (DFM) - Product life cycle -concurrent engineering -remanufacturing

Facility Layouts

- fixed - process - product - cellular

processes can be grouped into two broad categories

- intermittent - repetitive DIFF in product volume and degree of product standardization

2 primary distinctions between the production of goods and the production of services

1) manufacturing organizations produce physical goods that can be stored in inventory 2) manufacturing organizations most customers have no direct contact with the operation

Facility location

Deciding on the best location for facilities

Repetitive processes - Line process - Continuous process

Line process - designed to produce a large volume of a standardized product for mass production Continuous process - operate continually to produce a very high volume of a fully standardized product

Transformation role

OM is a transformation role in the organization by converting a company's inputs into finshed goods and services.

7 types of OM decisions

Product design Process design Quality management Inventory management Facility layout Facility location Scheduling

Intermittent processes - project process - batch process

Project process - used to make one of a kind products exactly to customer specifications Batch process - used to produce small quantities of products in groups or batches based on customer orders or product specifications

Degree of product standardization

amount of product variety

Product Facility layout

arrange resource in sequence

Reverse engineering

buy competitors product then analyze its parts and features

Scheduling

creating schedules for workers, machines , and facilities

Process design

creating the production process to produce the designed products

Inventory managment

decisions on amounts of inventory to carry and when to order

Product design

designing unique product features

Process design

developing a production process that can create the exact product that has been designed

Cellular Facility layout

efficiency and repetition product layouts flexibility of process

Quality management

establishing and implementing quality standards

Operations Management (OM)

is the business function responsible for producing a company's goods and services in an efficient and cost effective way

Product Design

is the process of specifying the exact features and characteristics of a company's product

Repetitive Processes

produce one or a few standardized products in high volume

Fixed position Facility layout

product can't be moved during productions ( due to size)

Product volume

quantity produced and can range from making few one of a kind customized products to producing large quantities of products in batches

Concurrent engineering

requires all the functions to work together simultaneously to design and evaluate the product

Design for manufacture (DFM)

series of guidelines that should be followed to produce a product easily and profitably

Product Life Cycle

series of stages of changing product demand Four stages - introduction - growth - maturity - decline

Intermittent Process

used to produce a large variety of products with different processing requirements in lower volumes.

Remanufacturing

uses components of old products in the production of new ones


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