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Production system
a user of resources to transform inputs into some desired outputs
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supply chain
network flow of how that transformation takes place
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operations management
design, operation and improvement of the process system that create and deliver products (things and services)
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transformations
inputs into outputs
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6 types of transformations
physical, location, exchange, storage, physiological, information
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efficiency
maximizing productivity and minimizing costs
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effectiveness
doing those things that create the most benefit for the company
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value
customer perceived quality/unit price - satisfaction/dollar spent
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OP Management deals with three decision types
- Strategic (long term) Horizon III
- Tactical (Intermediate) Horizon II
- OP Planning and Control (short term) Horizon I
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a product is?
a service is?
- product: tangible
- service: intangible
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core services
basics that customers want from a product
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value added services
- characteristics that differentiates the product from its competitors; it's extra
- -customer information
- -customer problem solving
- -customer sales support
- -customer field support
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operations management
- design, operation and improvement of the process system that create and deliver products
- -continuous improvement
- -radical change (reengineering)
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mass customization
producing products to order in lot sizes of one
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pure goods industries
low-margin commodity businesses and in order to differentiate they are often adding some services
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straddling
match what a competitor is doing by adding new features, services, or technologies to existing activities
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competitive dimensions of operations and supply strategy (6)
- 1. cost vs. price
- 2. quality of reliability level
- 3. delivery speed
- 4. delivery reliability
- 5. flexibility
- 6. support product
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order qualifiers
the screening that allows product to become a candidate for customer purchase
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order winner
characteristics that differentiate a product from its competitors
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core capabilities
skills and abilities that differentiate the supplying firm from its competitors these capabilities are either product or process differentiators
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strategic fit
fitting operational activities to strategy
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activity system map
- diagram that shows how strategy is implemented through tailored supporting activities
- -red: ultimate goal
- -green: high ordered strategies
- -orange: linked activities
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productivity management
productivity measures how well resources are used. it is a ratio of product output value produced from units of resource value. productivity = output/input
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operations strategy:
setting policies and plans to support the firm's competitive position
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plant-within-a-plant (PWP)
different locations within a facility are dedicated to different product lines
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key performance indicators
a set o measures used to evaluate a firm's performance
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productivity
a measure of how well resources are used
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operations effectiveness
relates to the core business processes needed to run the business and related directly in the costs associated with doing business
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customer management
relates to better understanding an leveraging customer relationships
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product innovation
development of new products, markets, relationships to sustain growth
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