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by: Ms. Vergie Ledner


Marketplace > James Madison University > Science > ISAT 211 > MODERN PRODUCTION ISSUES IN SCIENCE TECHNOLOGY
Ms. Vergie Ledner
GPA 3.66

Abdelrahman Rabie

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Abdelrahman Rabie
Class Notes
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This 7 page Class Notes was uploaded by Ms. Vergie Ledner on Saturday September 26, 2015. The Class Notes belongs to ISAT 211 at James Madison University taught by Abdelrahman Rabie in Fall. Since its upload, it has received 19 views. For similar materials see /class/214015/isat-211-james-madison-university in Science at James Madison University.




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Date Created: 09/26/15
Chapter 1 Operations and Supply Chain Management Operations and supply chain manaqement OSCM the design operation and improvement ofthe systems that create and deliver the rm s primary products and services operations manufacturing service and healthcare processes that are used to transform the resources employed by a firm into products desired by customers suppy chain processes that move information and materials to and from the manufacturing and service processes ofthe rm includes the processes that physically move products and the warehousing and storage processes that position products for quick delivery to the customer Sustahabe strategy is criticai must meet the needs of shareholders and employees while also preserving the environment Operations and supply chain processes Planning processes needed to operate an existing supply chain strategically a A firm must determine how anticipated demand will be met with available resources Sourcing involves the selection of suppliers that will deliver the goods and services needed to create a rm s product Making the major product is produced or the service is provided scheduling processes for workers and the coordination of material and other critical resources such as equipment to support producing or providing the serVIce Delivering also referred to as logistics processes Carriers are picked to move products to warehouses and customers coordinate and schedule the movement of goods and services develop a network of warehouses run the systems that collect receipts oforders and invoicing systems to collect payments Returning involves the processes for receiving wornout defective and excess products back from customers as well as support for customers that have problems with delivered products l A m A 01 Differences between services and goods 1 Services are intangible 1 Services require some interaction with the customer 2 Services are inherently heterogeneousvary with the attitudes of customer 3 Services are perishable and time dependent 4 Services are de ned and evaluated as a package of features Pure goods ex food products Core goods ex automobiles Core services ex hotels Pure services ex teaching Servitization when a company gives service activities along with its products ex maintenance spare parts training etc Efficiency Doing something at the lowest possible cost Effectiveness Doing the right things to create the most value for the company Value Quality divided by price Historical Development of Operations and Supply Chain Management Lean Manufacturing JIT and T00 J7T39 Justin77h79 producton an integrated set of activities designed to achieve highvolume production using minimal inventories of parts that arrive at the workstation exactly when they are needed 73900 Total Quality Confro aggressively seeks to eliminate causes of production defects Lean Manufacturing used to referto the set of conceptsquot Manufacturing Strategy Paradigm empasized how manufacturing executives could use their factories capabilities as strategic competitive weapons create a focused factory that performs a limited set of tasks extremely well Service Quality and Productivity how to deliver highvolume standardized servicesex McDonald s Total Quality Management and Quality Certification the focus on total quality management TQM awards and certification that recognizes companies each year for outstanding quality management systems Business Process Reengineering seeks to make revolutionary changes as opposed to evolutionary changes eiminates nonvalueadded steps and computerizing the remaining ones to achieve the desired outcome SixSigma Quality originally developed as part oftotal quality managementan extensive set of diagnostic tools Supply Chain Management apply a total system approach to managing the flow of information materials and services from raw material suppliers through factorieswarehouses to the end customer opitimizing core activities to maximize the speed of response to changes in customer expectations Electronic Commerce refers to the use ofthe internet as an essential element of business activity changed the way people collect information and the way operations managers coordinate Service Science aims to apply the latest concepts in information technology to continue to improve service productivity oftechnologybased organizations the service sector is very diverse and becoming more so everyday Current Issues in Operations and Supply Chain Management Coordinating the relationships between mutually supportive but separate organizations Optitimizing global supplier production and distribution networks Managing customer touch points Raising senior management awaress of operations and supply chain management as a signi cant competitive weapon Sustainability and the triple bottom line a Sustainability the ability to maintain balance in a system Apoix A 01 Mass customization producing products to irder in lot sizes ofone Tripe bottom line relates to the economic employee and environmental impact of the rm s strategy The pipelinelike movement of the materials and information needed to produce a good or service Supply chain network A strategy that meets the needs of shareholders employees and preserves the environment Tripe bottom line strategy The processes needed to determine the set of future actions required to operate an existing supply chain Planning The selection of suppliers Sourcing A type of process where the major product is produced or service provided Making A type of process that moves products to warehouses or customers Delivery Processes that involve the receiving of wornout defective and excess products back from customers and support for customers who have problems Returning A business where the major product is intangible so that it cannot be weighed or measured Servitization Refers to when a company builds service activities into its product offerings N5 9 N 9 01 P 005 to a Efficienty 10 Means doing something at the lowest possible cost a Efficienty 11 Means doing the right things to create the most value forthe company a Effectivey 12 Metaphorically defined as quality divided by price a Value 13 A philosophy which aggressively seeks to eliminate causes of production defects a Total quality control 14 An approach that seeks to make revolutionary changes as opposed to evolutionary changes which is advocated by total quality management a Business process reengineering 15 An approach that combines TQM and JIT a Lean manufacturing 16 Tools that are taught to managers in Green and Black Belt Programs a SIXSigma Quality 17 A program to apply the latest concepts in information technology to improve service productivity a Service science Chapter 2 Strategy and Sustainability Competitive strategy is about being different it means o elberatey choosing a different set of activities to o eivera unique miX of value this is the essence ofoperations supply chain management creating great value to the customer while reducing the cost of delivering the good or service Shareholders those individuals or companies that legally own one of more shares of stock in the company Stakeholders those individuals or organizations who are in uenced either directly or indirectly by the actions of the firm The Triple Bottom Line considers evaluating the rm against social economic and environmental criteria Sociat pertains to fair and bene cial business practices toward labor the community and the region in which a firm conducts its business Economic the firm s obligation to compensate shareholders who provide capital via competitive returns on investment Environmental the firm s impact on the environment Operations and supply strategy setting broad policies and plans for using the recourses of a firm to best support its longterm competitive strategy part of a planning process that coordinates operational goals with those of the larger organization Closedloop strategy process 1 Developrefine the strategy yearly a vision eX graduate b mission eXget good grades now c objectives what to do practically to achieve the visionsmissions conduct strategic analysis define strategic initiatives 1 Translate the strategy quarterly a definerevise initiatives b definerevise budgets c definerevise measures and targets 1 Plan operations and supply monthly a develop sales and operations plan b plan resource capacity c evaluate budgets Price make the product or deliverthe service cheap Quality make the product or deliver the service quickly Delivery speed make the product or deliver the service quickly Delivery reliability deliver it when promised Coping with changes in demand change its volume Flexibility and new product introduction speed change it Order qualifiers the basic criteria that permit the firms products to be considered as candidates for purchase by customers Order winners the criteria that differentiates the products and services of one firm from another Productivity common measure of how well an organization is using its resources productivity can be considered as outputs divided by inputs want to make this ratio as large as practical Partial Measure output or output or output or output labor capital materials energy Multifactor Measure Oumut or Output Labor Capital Energy Labor Capital Materials Total Measure Output or Goods and Services Produced Inputs All Resources Used A strategy that is designed to meet current needs without compromising the ability of future generations to meet their needs sustainable The three criteria included in a triple bottom line social economic environmental It is probably the most dif cult to compete on this major competitive dimension Cost Name the seven operations and supply competitive dimensions Cost quality delivery speed delivery relability coping with changes in demand feXblity and newproduct introduction speed other product spectic criteria This occurs when a company seeks to match what a competitor is doing while maintaining its existing competitive position Straddling A criterion that differentiates the products or services of one firm from those of another Order Winner A screening criterion that permits a firm s products to be considered as possible candidates for purchase a Order qualifier 8 A diagram showing the activities that support a company s strategy a Activitysystem ma 9 a P PP WP NP mm 01 9 A measure calculated by taking the ratio ofoutput to input Productivity Chapter 3 Product Design and Development Contract manufacturer an organization capable of manufacturing andor purchasing all the components needed to produce a nished product eX One company custom produces seats for a car As a result the client does not have to maintain manufacturing facilities purchase raw materials or hire labor in order to produce the nished goods Core competency the one thing a company can do better than its competitors 1 provides potential access to a wide variety of markets 2 increases perceived customer benefits 3 hard for competitors to imitate 6 Phases ofthe Generic Develomient Process Phase 0 Planning project mission statement speci es target market business goals constraints etc Phase 1 Concept Development the needs of the target market are identified product concepts are generated and evaluated and one or more are selected for further testing Phase 2 SystemLevel Design the product is broken down into components a geometric layout and ow diagrams are formed Phase 3 Design Detail drawings or computer les that specify the geometry materials and plans for assembly Phase 4 Testing and Refinement prototypes are tested to determine whether the product will work as designed Phase 5 Production RampUp train the workforce and work out any remaining problems in the production process at some point the product is launched How the Product Performs Reliability the probability that a product performs how it was intended to for a certain length of time when used under specific conditions Maintainability ease andor cost of maintaining and repairing products Technologypush products team begins with a new technology then nds an appropriate market distinct feature planning phase involves matching technology and market concept development assumes a given technology eX GoreTex rainwear Tyvek envelopes Platform products team assumesthat the new product will be built around an established technological subsystem distinct feature concept development assumes a proven technology platform eX consumer electronics computers printers Chapter 3 Quiz 1 A basecase nancial model includes 2 NPV refers to 3 It is considered an in ow cash flow 4 Core competency yields 5 Sensitivity analysis is used to 6 Its objective is to achieve better performance at a lower cost while maintaining all functional requirements 7 A process that helps a company s product design team translate customer requirements into operating and engineering goals 8 A process that helps a company determine the product characteristics important to the customer 9 When the discount rate increases the NPV increases False 10 Concurrent engineering is part of value engineering False 11 One of the purposes ofthe rampup phase is to train the workforce m


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