MGMT 4000 test 1 (Montgomery UGA)

phase 3: Design Detail

-Complete specification of the geometry, materials, and tolerances for all parts. -Identification of all the standard parts to be purchased from suppliers. -Process plan is established. -Tooling is designed. Output: Drawings describing the geometry of each part and its tooling, specifications of purchased parts. Process plan.

Phase 2: System-Level Design

-Definition of the product architecture -Decomposition of the product into subsystems and components -Final assembly scheme for the production system is usually defined output: -geometric layout of the product -functional specifications of each subsystem -preliminary process flow diagram

phase 0: planning

-Precedes project approval -Begins with corporate strategy -Includes assessment of technology developments and market objectives Output: the project mission statement

Phase 5: Production Ramp-Up

-Product is made using the intended production system -Need to train workers and resolve any remaining problems -Products may be supplied to preferred customers for evaluation Output: Transition to ongoing production is gradual

Phase 4: Testing and Refinement

-construction and evaluation of multiple preproduction versions of product (same geometry and material as production version, not necessarily fabricated with the actual production processes) Output: -prototypes tested to determine if the product will work as designed

services

-intangible -interaction with customer required -inherently heterogenous -perishable, time dependent -defined and evaluated as a package of features -difficult to inventory -provider (not product) is often transportable -quality is difficult to measure -reselling unusual -site of facility is important for customer contact

Phase 1: Concept Development

-needs of the target market are identified, -alternative product concepts are generated and evaluated -output: one or more concepts are selected for further development and testing

goods

-tangible -less interacting with customers -often homogenous -not perishable; can be inventoried -can be resold -selling is distinct from production -product is transportable -often easy to automate -site of facility is important for COST -some aspects of quality are measurable

innovation classification innovation need innovation support innovation alignment

4 implementation factors for idea innovation research

people, plants, parts, processes, planning and control

5 P's of OM

financial, organization, customer, market/industry, strategic

5 systematic factors for idea innovation research

break even analysis

A standard approach to choosing among alternative processes or equipment -seeks to determine the point in units produced (and sold) where we will start making a profit -seeks to determine the point in units produced (and sold) where total revenue and total cost are equal

External Development Strategies

Alliances, Joint Ventures, Purchase technology or expertise by acquiring the developer

assemble-to-order

Combine a number of preassembled modules to meet a customer's specifications (decoupling point=moved to components... there are significant adv. to this) -a primary task is to define a customer's order in terms of alternate components bc these are carried in inventory ***the way Dell makes desktop computers - one required capability: a design that enables as much flexibility as possible in combining components

order winner

Criteria used by customers to differentiate the products and services of one firm from those of other firms. Features that customers use to determine which product to ultimately purchase.

new challenges in OM

Global focus Supply-chain partnering Sustainability Rapid product development Mass customization Just-in-time performance Empowered employees, teams

6 phases of generic development process

Phase 0: Planning Phase 1: Concept development Phase 2: System-level design Phase 3: Design detail Phase 4: Testing and refinement Phase 5: Production ramp-up

introduction: fine tuning product

Product life cycle: -research -product development -process modification and enhancement -supplier development

pure services

Services provided to consumers without the involvement of any tangible product

ecodesign

The incorporation of environmental considerations into the design and development of products or services. -the whole life cycle is considered -the product is considered as a system -a multi criteria approach is used

work center layout

This process provides high flexibility to produce a variety of products in limited volumes. Customization tends to be high, while volume is low. Similar equipment or functions are grouped together and parts travel thru a sequence of processes. -Custom made furniture (job shop... process layout)

productivity measures

________: -need to be tracked over time -a relative measure (must be compared to something to be meaningful) -need to include all inputs -are difficult to compare between companies or industries -do not include measures of timeliness or quality

make to stock lean manufacturing

__________ firms should use _________ to achieve higher service levels for a given inventory investment

manufacturing cell

a dedicated area where products that are similar in processing requirements are produced -formed by allocating dissimilar machines to cells designed to work on similar products -moderate customization... moderate levels of volume widely used in metal fabrication, computer chip manufacturing (group technology)

process flow design

a mapping of the specific processes that must be followed as inputs are converted to outputs -focus should be on the identification of activities that can be minimized or eliminated (like movement and storage)

lean manufacturing

a means of achieving high levels of customer service with minimal investment

productivity

a measure of the effective use of resources, usually expressed as the ratio of output to input (output / input)

benchmarking

a process in which one company studies the processes of another company or industry to identify best practices

Distinctive/Core Competency

a strength that sets a business apart from is competition; a characteristic of a firm which gives the firm the ability to provide an order winner

Transformation Process

a user of resources to transform inputs into some desired outputs

assembly drawing

an exploded view of the product showing its component parts

Value Analysis/Value Engineering (VA/VE)

analysis with the purpose of simplifying products and processes by achieving equivalent or better performance at a lower cost

Revenue (sales) / total assets

asset turnover

platform products

built around a preexisting technological subsystem

sustainability and the triple bottom line

business strategy that includes social, economic, and environmental criteria

assembly chart

defines how parts go together, their order of assembly, and overall flow pattern

process flow chart

denotes what happens to the product as it progresses through the production facility

efficiency

doing something at the lowest possible cost

effectiveness

doing the right things to create the most value for your customer

similarity to current services similarity to current process financial justification

factors to consider when determining how different the new service is:

Base-Case Financial Model

financial model consisting of major cash flows... sensitivity analysis for "what if" questions

technology-push products

firm begins with new technology and looks for a market

Develop/Refine the Strategy

formulating an operations and SC strategy: -activity 1 -done at least yearly -define the vision, mission, objectives -conduct strategic analysis -define strategic initiatives

translate the strategy

formulating an operations and SC strategy: -activity 2 -updated as often as 4 times a year (quarterly) -define/revise initiatives -define/revise budgets -define/revise measures and targets

experienced consumed

high contact services are ________ whereas goods are ________

Make-to-Order/Engineer-to-Order

i.e. boeings process for making commercial aircrafts -customer DP = raw materials at manufacturing site or the supplier inventory -depending on how similar the products are, it may not be possible to pre-order parts

core services

integrate tangible goods; hotels, airlines, internet service providers

COGS/average inventory

inventory turnover

delivering

logistics processes such as selecting carriers, coordinating the movement of goods and information, and collecting payments from customers

make-to-order

make the customer's product from raw materials, parts, components

operations

manufacturing and service processes used to transform resources into products

labor productivity

measured by: net income per employee revenue (or sales) per employee

asset productivity

measured by: receivables turnover ratio inventory turnover asset turnover

total measure

measuring productivity: -Output / inputs -goods and services / all resources used

partial measure

measuring productivity: -one type of input under output -output/labor

multifactor measure

measuring productivity: -output/ (labor+capital+energy)

sustainability requirement

meeting value goals without compromising the ability of future generations to meet their own needs

internal development strategies

migrations of existing products, enhancements to existing products, new internally developed products

customized products

new products are slight variations of existing configurations

product design purchasing manufacturing service operations logistics distribution

operations and supply chain management involve:

corporate strategy planning process

overall direction and coordinates operational goals with those of the larger organization... can be viewed as part of the ____________ that coordinates operational goals with those of a larger organization

operations effectiveness

performing activities in a manner that best implements strategic priorities at minimum cost

competetive dimensions

price quality delivery speed delivery reliability coping with changes in demand flexibility and new product introduction speed

planning sourcing making delivering returning

process activities

planning

processes needed to operate an existing supply chain

supply chain

processes that move information and materials to and from the firm

making

producing the major product or service

maturity

product life cycle: -competitors now established -high volume, innovative production may be needed -improved cost control, reduction in options, pairing down of product line

growth

product life cycle: -product design begins to stabilize -effective forecasting of capacity becomes necessary -adding or enhancing capacity may be necessary

decline

product life cycle: -unless product makes a special contribution to the organization, must plan to terminate offering

project layout

product remains in a fixed location and manufacturing equipment is moved to the project -a high degree of task ordering is common -may be developed by arranging materials according to their assembly priority -airplanes being assembled in a hangar -customization is very high and volume is very low

process-intensive products

production process has an impact on the properties of the product -product design cannot be separated from process design

step 1: source the parts step 2: make the product step 3: deliver the product

production process steps

pure goods

products that do not include any services

core goods

provide a significant service component; appliances, data storage systems, automobiles

value

quality divided by price

Quick-build products

rapid modeling and prototyping enables many design-build-test cycles

annual credit sales/average accounts receivable

receivables turnover ratio

returning

receiving worn-out, excess, and/or defective products back from customers

sourcing

selection of suppliers that will deliver the goods and services needed to create the firm's product

make-to-stock

serve customers from finished goods inventory (decoupling point = finished goods) -TVs, clothing, packaged food products -essential issue in satisfying customers: balance the level of inventory against the level of customer service (trade offs b/w costs of inventory and level of customer service must be made)

idiosyncratic

services are ___________

Operation and route sheet

specifies operations and process routing

customer needs, corporate strategy, operations strategy, decisions on processes and infrastructure

strategy process

complex systems

systems must be decomposed into several subsystems and many components

high-risk products

technical or market uncertainties create high risks of failure

quality

the attractiveness of a product considering its features and durability

operations management

the design, operation, and improvement of the systems that create and deliver the firm's primary products and services

manufacturability

the ease of fabrication and/or assembly which is important for cost, productivity, and quality

present value [ PV= V/ (1+i)^n ]

the future payment must be discounted to determine the ___________

complexity

the number of steps involved in a service and the possible actions that can be taken at each step

divergence

the number of ways customer or service provider interaction can vary at each step according to the needs and abilities of each

concurrent engineering

the simultaneous development of project design functions with open and interactive communication existing among all team members for the purpose of: -reducing time to market -decreasing cost -improving quality and reliability (dangerous if not well organized)

lead time

the time needed to respond to a customer order

order qualifiers

those dimensions that are necessary for a firm's products to be considered for purchase by customers; features they will not forgoe

job

what an individual seek in a given circumstance -circumstances are more important than customer characteristics, product attributes, new technology, trends -never about function; have powerful social and emotional dimesions

Customer order decoupling point

where inventory is positioned to allow entities in the supply chain to operate independently

factors that affect productivity

work methods, capital, quality, training, technology, management

assembly line

work processes are arranged according to the progressive steps by which the product is made -low customization (high standardization) high volume

engineer-to-order

work with the customer to design and make the product (decoupling point = raw materials or supplier inventory)