Processes

E.g. crude oil producers are concerned almost exclusively with their product. However, they might offer some services like technical advice. These are facilitating services.

An information systems provider may produce software produts, but primarily it is providing a service to its customers, with facilitating products.

Input - Transformtion - Output

Low price, high quality, fast delivery, reliable delivery, innovative products and services, wide range of products and services, the ability to change the timing or quantity of products and services

Cost, quality, speed, dependability, flexibility (product/service), flexibility (mix), flexibility (volume and/or delivery)

Those things which directly and significantly contribute to winning business

Those aspects of competitiveness where the operation's performance has to be above a particular level just to be considered by the customer.

concept, package, process

Taking apart a product to understand how a competing organisation has made it

standardisation, commonality, modularisation

from pure functional to pure project forms

Project/Jobbing/Batch/Mass/Continuous processes

Professional services, service shops, mass services

throughput time = work-in-process x cycle time

average time between units of output emerging from the process

units waiting to be processed

work-in-process x cycle time

longest stage in the process

(work content / throughput time) x 100

restricts work content to only those tasks that are actually adding value to whatever is being processed

wages

labour cost per unit of production

Fixed-position / Functional / Cell / Line layout

Setting an operation in the context of all the customers and suppliers that interact with it. (Materials, parts, information, ideas, people)

Outsourcing to a specialist logistics company

• All the players in the supply network, whether they are customers, suppliers, competitors or complementors, can be both friends and
• enemies at different times.

B2B (Business to Business), B2C (Business to Consumer), C2B (Consumer to Business), C2C (Consumer to Consumer or peer to peer [P2P])

• Do little themselves, rely on network of suppliers that can provide services and
• products on demand.

Source each individual product or service from one supplier

Source each individual product or service from more than one supplier

Using two suppliers for similar good or services. They are required to cooperate, but through adjusting the percentage of the contract according to previous performance competition can be achieved at the same time.

A small disturbance at the downstream end of a supply network cases increasingly large disturbances, errors.

• Misunderstanding and miscommunication, errors in forecasting, long or variable lead times, order batching, volatility in demand
• caused by price fluctuations or promotions, panic ordering, perceived risk of
• other’s bounded rationality within a supply network.

Use of electronic methods in every stage of the purchasing process.

Discover, Analyse, Material flow design, Work and information flow design, Implementation planning.

fixed volume of a container or the space in a building

fixed volume + time --> the maximum level of value-added activity over a period of time

parts of the operation that are operating at their capacity ceiling

Climatic, festive, behavioural, political, financial, social

time, quality, speed

use the capacity of the operation for generating revene to its full potential

over-booking capacity, price discounting, varying service types

stored accumulation of (transformed) resources in a transformation system

how much to order, when to order, how to control the system

Large quantities of inventory are delivered to the customers to store, but they will only be charged for the goods as and when they are used.