SCM EXAM 2

describe the degree of customization as it applies to the dimensions of the service processes

- as customization increases the service packages become less predictable and more variable - as customization decreases, the service packages become more standardized

describe personal attention service in regards to different service approaches

- concept of mass-customization of service - each customer is treated as an individual - exact opposite of production line approach - maintain data base of customer likes/dislikes

describe assemble to order (ATO)

- customization occurs at the very end of the process - think of meatballs at subway - process where the company has all the component ready to assemble but the customer must make an order before the product is made

describe engineer to order (ETO)

- highest level of customization - products are designed and produced from the start to meet unusual customer needs - multiple parties working together to make a complex product a reality

Describe job shop manufacturing

- highly customized - wide variety products produced in quantities as small as one - product design is unique to specific customer wants/needs not standardized - examples include custom furniture, hospital, bank

Describe continuous flow manufacturing

- highly standardized - tightly linked steps - very high level of production - you cant see end of one product and beginning of another - examples include yarn, food products, gas, oil

Describe batch manufacturing

- items moved through manufacturing in groups or batches examples include bakery (cupcakes, cookies)

describe production line in regards to the different service approaches

- less emphasis on attendance to customer - more emphasis on efficiency of production ex: Mcdonalds

describe make to order (MTO)

- process that uses standard components but the final configuration of the components is customer specific - example includes wedding invitations - production can only begin after you receive an order

Describe fixed position layout manufacturing

- process where the position of the product is fixed - materials, equipment and people transported to and from the product - examples include construction project, traditional home

Describe production/assembly line manufacturing

- product based layout for high volume products characterized by similar design - steps linked by some system (conveyor belt) -used to produce narrow range of products with similar design - example include car manufacturing

describe make to stock (MTS)

- requires no level of customization - process where companies manufacture product based on their forecast of customer demand - costs more because company needs to ramp up production at this forecasted crucial/certain time (Christmas)

define a service guarantee

- think of money back guarantee - tool used to reduce customer risk perceptions and differentiate services - should avoid complexity - can't argue with customer if they try to invoke a guarantee need to be happy they did

what are the steps of the production process that correlate with the steps of customization

1) design 2) sourcing material 3) fabrication 4) assembly finishing 5) distribution

list the customization levels in order from highest level of customization to the lowest

1) engineer to order (ETO) 2) make to order (MTO) 3) assemble to order (ATO) 4) make to stock (MTS)

what are the different approaches to service

1) production line 2) self service 3) personal attention service

what are the three dimensions of service processes

1) the nature of the package 2) the degree of customization 3) the level of customer contact

MTS falls where

after assembly finishing

ATO falls where

after fabrication

MTO falls where

after sourcing material

describe self service in regards to different service approaches

allows customer to - accelerate experience - avoid human interaction - achieve exactly what they want - conduct business whenever convenient

Job shop is the exact opposite of which manufacturing process

continous flow manufacturing

assemble to order attempts to combine the benefits of which two customization levels

make to order and make to stock (MTO and MTS)

Describe hybrid manufacturing

process that seeks to combine characteristics and advantages of more than one classic process

give an example of a hybrid process

spinning yarn (continuous), fabric weaving (continuous), cutting/sewing t-shirt (batch)

What are the 5 types of manufacturing processes?

1) continuous flow 2) production/assembly line 3) job shop manufacturing 4) batch manufacturing 5) fixed position layout

What are the levels of customization?

1) Make to Stock (MTS) 2) Assemble to Order (ATO) 3) Make to Order (MTO) 4) Engineer to Order (ETO)

what is the most common manufacturing process

batch manufacturing

ETO falls where

before desgin

does does the level of customer contact deal with regarding the dimensions of service processes

front room and back room operations

batch manufacturing strikes a balance between which other two processes

the flexibility of job shop and the efficiency of production line

describe the nature of services as it applies to the dimensions of the service processes

the nature of a service package can either be physical or intangible physical- greater emphasis on physical activities (buildings, planes, trucks) intangible - greater emphasis on intangible assets like knowledge assets and skills of employees

what is the main way that assemble to order (ATO) is different from make to order (MTO)

the parts of an ATO are already pre-made before the customer even makes the order (subway)

describe the customer order decoupling point

the point where inventory is positioned to allow each manufacturing process operate independently