Chapter 1 summary. Summarizes important aspects PDF

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Summary

Chapter 1 summary. Summarizes important aspects of the book...

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Operation Management Create goods services Practce – Materials+Labors  goods/services with Highest efciency Supply Chain Actvites + org involved in producing  delivering customer Value/price of product - Cost of inputs = Value added (+ve/-ve, avoid adding non value) P of goods vs P of services

Deg of customer contact

Labor content of jobs – High Wages Uniformity of input Measure of productvity Quality assurance Inventory Ability to patent

Services  High  Server to customer interacton = “moment of truth”.  Sometmes low such as ISP, mail service. High – Excepton – (automated channel) High wage variaton Low. High variability Difcult. Difcult coz high variability Low use. No saving Difcult. Some service cannot

Lead time – Time between ordering and receiving Process – Actons that converts inputs  outputs Managing process – central of OM Process management types 

Upper management – Org governance

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Operatonal – Purchasing

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Supportng – Act

Process variation 

Variety of goods/services

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Structural variaton in demand

Goods Low

Low Low wage variaton High. Relatvely easy Easy. High usage, saving available Easy

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Random

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Assignable

Model – Abstracton of reality, Simplified representaton of something 

Physical – Abstract, visually matched with reality

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Schematc – More abstract – Graphs, charts, bluieprints, pictures, drawings -

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Mathematcal – Most abstract. No visually matchable with reality. Easiest to do. Good for pc

Quantatve approaches -

Use maths, linear programming

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Good for large measures bcoz pc and calculator can calculate

Performance metrics -

Use metrics to manage and control operaton. Eg – profit, cost, productvity, assets etc

Analysis of Trade offs -

Eg- want to store inventory, tradeoffs between increased customer service that would generate vs the cost of storing the inventory

Degree of Customizaton -

Decide how much customized or standardized product to offer. Too customized – high cost, standardized – low cost

System approach -

System – imterrelated parts that must work together

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Emphasize on interrelaton of subsystems

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Outputs and obj of the whole org > single subsystem outputs

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Good – design, redesign, implement, improved.

Pareto Phenomenon – Emphasize on issues or items that are more important. Those issues if fixed  greater impact Craft producton – high skilled labor + uses simple flexible tools = small quantty customized good Mass producton – low skilled labor + specialized machine = high volume standardized good Interchangeable parts – made with precision + universally fitted – eg – Ethernet cable Division of labor – Break producton process to small tasks  each worker does small porton of overall Six Sigma – Reduce cost + Improve quality + increasing Customer satsfacton Agility – Ability to respond quickly

Lean system – minimal resource  high volume + quality product + some variety...