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Summary Operations Management Chapter 3 - brought me 8.7 $3.26   Add to cart

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Summary Operations Management Chapter 3 - brought me 8.7

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  • March 13, 2016
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  • 2015/2016
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Operations hoofdstuk 3

Operations strategy specifies the pattern of decisions made in managing
processes so that the processes will achieve their competitive priorities.
Process structure determines the process type relative to the kinds of
resources needed, how resources are partitioned between them, and their key
characteristics. A layout (the physical arrangement of operations created by the
various processes) puts these decisions into tangible form. Customer
involvement reflects the ways in which customers become part of the process
and the extent of their participation. Resource flexibility is the ease with which
employees and equipment can handle a wide variety of products, output levels,
duties, and functions. Capital intensity is the mix of equipment and human
skills in a process.

Process structure in services
Customer contact is the extent to which the customer is present, is actively
involved, and receives personal attention during the service process. The
customer-contact matrix brings together three elements: the degree of
customer contact, customization and process characteristics. Process
divergence is the extent to which the process is highly customized with
considerable latitude as to how its tasks are performed. A flexible flow means
that the customers, materials, or information move in diverse ways, with the path
of one customer or job often crisscrossing the path that the next one takes. A
line flow means that the customers, materials, or information move linearly from
one operation to the next, according to a fixed sequence. A front office process
has high customer contact where the service provider interacts directly with the
internal or external customer. A hybrid office process has moderate levels of
customer contact and standard services, with some options available from which
the customer chooses. A back office process has low customer contact and little
service customization.

Process structure in Services
The product-process matrix brings together three elements:
- The dregree of customer contact
- Customization
- Process characteristics
process characteristics. A good strategy for a manufacturing process depends
first and foremost on volume. Process choice is the way of structuring the
process by organizing resources around the process or organizing them around
the products. A job process creates the flexibility needed to produce a wide
variety of products in significant quantities, with considerable divergence in the
steps performed. A batch process differs from the job process with respect to
volume, variety, and quantity. A line process lies between the batch and
continuous processes on the continuum; volumes are high and products are
standardized, which allows resources to be organized around particular products.
A continuous flow process is the extreme end of high-volume standardized
production, with rigid line flows.

, Design-to-order strategy A firm uses it when it can design new products that
do not currently exist, and then manufacture them to meet unique customer
specifications.
Make-to-order strategy use manufacturers that make products to customer
specifications in low volumes.
The assemble-to-order strategy is an approach to producing a wide variety of
products from relatively few subassemblies and components after the customer
orders are received, also called mass customization: where highly divergent
processes generate a wide variety of customized products at reasonably low
costs. Postponement is used whereby the final activities in the provision of a
product are delayed until the orders are received.
Make-to-stock strategy is feasible for standardized products with high volumes
and reasonably accurate forecasts. Combining a line process with the make-to-
stock strategy is sometimes called mass production.


An approach to layout design that seeks to give form to process structure needs
thee basic steps: gather information, develop a block plan and design a detailed
layout with OBM (office of budget management). A Block plan allocates
space and indicates placement of each operation. OBM’s closeness matrix
gives a measure of the relative importance of each pair of operations being
located close together. Three solutions for this: trial and error, weighted-
distance method (called load-distance method), Euclidean distance (straight
line distance) and rectilinear distance (90 degree turns).

Customer involvement
Disadvantages: disruptive, making the process less efficient and to divergent.
Advantages: a more customer-focused process might increase the net value to
the customer. More customer involvement can mean better quality, faster
delivery, greater flexibility, and even lower cost. Customer involvement can also
help coordinate across the supply chain.

Resource flexibility
Members of a flexible workforce are capable of doing many tasks, either at
their own workstations or as they move from one workstation to another.

Capital intensity
Automation is a system, process, or piece of equipment that is self-acting and
self-regulating. Fixed automation produces one type of part or product in a
fixed sequence of simple operations (used when demand volumes are high).
Flexible (or programmable) automation can be changed easily to handle
various products. An industrial robot is a versatile, computer-controlled
machine programmed to perform various tasks, is a classic example of flexible
automation. Economies of scope reflect the ability to produce multiple products
more cheaply in combination than separately.

Plants within plants (pwp’s) are different operations within a facility with
individualized competitive priorities, processes, and workforces under the same
roof.
Focused factories: splitting large plants that produced all the company’s
products into several specialized smaller plants.

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