- *Physical resources needed
- *Goods purchased/consumed
- *Explicit services (Dentist, medical exam)
- *Implicit (customer service)
- Service-system design matrix
- Sales increase as produce decreases
QUALITY FUNCTION DEPLOYMENT
AN APPROACH THAT INTEGRATES THE "VOICE OF THE CUSTOMER" INTO THE PRODUCT AND SERVICE DEVELOPMENT PROCESS
*MAIN TOOL: HOUSE OF QUALITY
REFURBISHING USED PRODUCTS BY REPLACING WORN-OUT OR DEFECTIVE COMPONENTS
- *REMANUFACTURING CAN BE SOLD AT 50% COST OF A NEW PRODUCT
- *REMANUFACTURING CAN USE UNSKILLED/SEMISKILLED LABOR
- *SOME GOVERNMENTS REQUIRE MANUFACTURES TO TAKE BACK USED PRODUCTS
- *APPS: AUTOS, PRINTER/COPIERS, PCS, CAMERAS
- *XEROX, KODAK, AND CATERPILLAR ARE LEADERS.
Bring together product design and manufacturing engineering people early in the design phase to Simultaneously Develop
- >"over-the-wall" approach
- >Breaking "us vs them" mentality
Dismantling and inspecting a competitor's product to discover product improvements
A strategy of producing basically standardized goods or services, but incorporating some degree of customization.
*Tactic #1: Delayed Differentiation (postponement until customer preferences are known.)
*Tactic #2: Modular Design (component parts are grouped into modules that are easily interchanged eg. computer towers)
Extent to which there is an absence of variety in a product, service or process.
- 1. Immediately available to customers
- 2. Interchangeable parts
- 3. e.g. GM's standardization on key components (brakes, electrical sys)
Product life cycle
- 1. Introduction
- 2. Growth
- 3. Maturity
- 3.5 Improving
- 4 Decline
Value Analysis Questions
- 1. Cheaper part/material be used?
- 2. Is the function necessary?
- 3. Two or more parts by performed by one for lower cost?
- 4. Be simplified?
- 5. Specifications be relaxed to result in lower price?
- 6. Standard parts be substituted for nonstandard?
Designing for Operations (DFO)
Taking into account the operational capabilities of the organization in designing goods and services.
- Failure to take this into account can:
- 1. Reduce productivity
- 2. Reduce quality
- 3. Increase cost
An examination of the function of parts and materials in an effort to reduce cost or improve the performance of product.
A few factors account for a high percentage of the occurrence of some event.
Total quality management
Balanced Score Card
-a top-down management system the organizations can use to clarify their vision and strategy and transform them into action
Principle of exception
Investigate what didn't compare to the standard.
Designing Efffective Control Systems
- 1. Establish valid performance standards
- 2. Provide adequate information
- 3. Ensure acceptabilility to employees
- 4. Maintain open communication
- 5. Use multiple approaches
The Strategic Management Process
- 1. Establishment of Mission, Vision, and Goals
- 2. Analysis of external oportunities and threats
- 3. Analysis of internal strengths and weaknesses including resources and core competencies
- 4. SWOT analysis and strategy formulation
- 5. Strategy implementation
- 6. Strategic control
- 1. Low cost
- 2. Scale-based strategies
- 3. Specialization
- 4. Flexible operations
- 5. High quality
- 6. Service
Managing for Competitive Advantage
- 1. Innovation
- 2. Quality
- 3. Service
- 4. Speed
- 5 Cost competitiveness
The Control Cycle
- 1. Setting performance standards
- 2. Measure performance
- 3. Compare performance against standard and determine deviations
- 4. Taking action to correct problems or reinforce successes.
Key differences between Goods and Services
- 1. Customer contact
- 2. Uniformity of input
- 3. Labor content
- 4. Uniformity of output
- 5. Measurement of Productivity
- 6. Production and Delivery
- 7. Quality Assurance
- 8. Amount of Inventory
- 9. Evaluation of Work
- 10. Ability to patent design
Operations Management Decision Making Tools
- 1. Models
- 2. Quantitative approaches
- 3. Analylsis of trade-offs
- 4. Systems approach
- 5. Establishing priorities
- 6. Ethics
The Basic Planning Process
- Step 1: Situational analysis
- Step 2: Alternative goals and plans using SMART goals
- Step 3: Goal and Plan evaluation
- Step 4: Goal and Plan selection
- Step 5: Implementation
- Step 6: Monitor and Control