Chapter One:Operations FunctionDefinition:1.mgnt of production of goods and services 2. Design, operation and improvement of systems that create and deliver the firm’s primary products and services. 3. Funct responsible for production and distribution of goods and services.Operation as functional area addresses the gap based on the prevailing: - stage of growth – type of the business – business climateOperation as system: challenges coordination & integration strategies: cross functional team, shared KPIOperation as set of decisions: - do you know your priorities – is your priority correct – resources are limited.Managerial function: Planning conversion system:forecast, product choice, op strg, op capacity,location, layout, scheduling Orginizing for conversion:job design, project management Controlling:material and quality/competition.Life Cycle: Birth (goals) Design (product, process, capacity, lation, layout, quality, forcast, job assgn Startup (implement,meet target cap,quality) Steady State (maintain, improve,cope changes) Termination (phase-out,redeploy,salvage)Decision Categories: Process: determine physical process and facility to produce/service Inventory: Determina what, when, how much to order/store Capacity: provide right capacity at right time and place Workforce:schedule,motivate,train labourQuality:ensure quality standard and performance.Current Competitive Challenges :demanding customer competition cost quality shorter delivery customizationcomplex global supply chain IT knowledge based comp environmental governance business cyclesOperation Management: solve problem to improve production, problem focused, need to understand function Operation Research: use methodology to model and solve problem, method focused.Operations Objectives:1. Cost: produce and/or distribute product/service. Metrics:cost of good sold, inventory, productivity 2. Quality: value, usefulness as perceived by customer. Conformance:Meet specs. Performance:performing a task. Metric:Internal/external failure cost, incoming supply quality, product features. 3.Delivery: i. dependability to meet delivery schedule and due dates. Metrics: % of order ontime, % of item ontime. Ii. Speed: deliver quickly to customer orders: metric lead time of delivery. 4.Flexibility: ability to react to changes in product mix and volume. i. PMF:react quickly to product change. Setup time between products, # of products supported by process, skill sets ii.VF: time to changes by x%, slack capacity

Chapter Two:Operations and Supply Chain StrategyOperation strategy: blue print that sets the vision and overall direction for operations decision making consistent pattern of operations decisions derived from business/corporate strategy inline with mark, fin stgs.Strategy elements: 1. Missions : purpose of operation in relation to business strategy; priorities objectives, realistic, focus. 2. Distinctive competence: unique, cooperation capability, niche over competitors. Never outsourced, Protect, Nurture, Exploit for growth. 3.Objectives: op. obj in measurable terms. 4. Strategic Decisions (Policies): P : span of process,automation,process flow, I:amount, dist,control C:facility size;location,investment. W: specialization,supervision,wage,staffing Q: approach, training,suppliers

Why Ops Strg:focus for decision making,help in competition,cope with changing, long-term view, accountability, communication & priorities, enhance role.Bus. strg: Michael Porter, diff, low cost, focus. Operation Objectives: CQDFMarketing and OperationOrder Qualifiers: attribute to be shortlisted as potential supplier (to qualify as competitor) Order Winners:criteria that win orderse.g.:Price, delivery speed, quality (performance, features, reliability, conformance, durability, aesthetics, perceived quality), variety, green, rapid response to customer changes, design leadership, pre/after sales support.

Chapter Three:Product DesignResponsibility:ENG R&D: specs Marketing:sell Ops: manufg. Strg/motivation new prods:Market pull:make what you can sell Tech push sell what you can make interfunctionalDev. Process:concept dev (diff approach defining and meeting market need)prod design (design physical prod,consider many tradeoffs cost, Q, schedule, result:visual prototype). Process design parallel, changes made to accommodate process pilot prod/testing (perform test, proc is finalized. Information package contains prod specs, proc design specs, training procedure, test result)Cross func prod design: 1. Sequential process 2. Concurrent engineeringSupply Chain Collaboration: 1. Customer:ask the right question, align incentive for customers, create collaborative tech platform,include cust as advisor. 2.Supplier:technical expertise, capability, capacity, low risk.PRODUCT DESIGN TECHNIQUES:1.Quality Function Deployment: links customer req. to design specs. House of Quality 2.Value Analysis: Design for Mfg consist: (1) simplification of prod (2) mfr of many prods using common parts,proc, modules. Improve value, reduce features. 3. Modular Design increase product variety without substantial cost increase. Use common comp/modules to create many prods. 4. Robust design – online (during prod QC) vs offline (before prod) QC. Taguchi Method did series of exp to find design that was not affected by the imperfect of prod equip.

Chapter Four:Process Type & SelectionClassification by flow of materials: Line flow (1) Cont process (2) Assembly lines ; Intermittent flow (3) Batch flow (4) Job shop; (5)Project.

Line flow:linear flow;sequences of ops;std prods; cont flow or assembly line;layout of processing/work centers; Challenges:material availability;dependent setup time/cost;maintenance;quality inspection, before irreversible ops or before high value added ops, safety/motivation, balancing.Objectives:speed, throughput, time, min inventory, min cost of carried inv. Int flow:humbled flow; non std prods; furniture,

restaurant. Challenges:scheduling,decide which order to proc next,long queue, sch rules (first come first served,earliest due date,shortes process time) capacity allocation(temp staff,X-train) Objective:PMF. Project:Unique flow;no flow;high stakes;Challenges:cost control & planning, quality, scheduling, organizational (functional, project, or matrix)

Class by type of customer order: a.MTS: Product (prod specified;low variety;inexpensive) Objectives (Balance inv, capacity, and service) Main operations problems (forecasting, planning, control inv) b. MTO: Product (cust spec.; high variety;expensive) Objectives (manage delivery lead times and capacity) Main ops prob (delivery promises/time)

Project: UniqueBuilding.Job Shop:Low volume;low standardizationPrintingBatch:Low volume; multiple productsheavy equipment. Assembly line:Higher vol;few major productsauto assembly. Continuous;high volume;high stand.commoditySugar RefineryOrder Penetration Point:(MTO)Supplier(MTO)Fab(ATO)Assy(MTS)DistProcess Selection:1.Market condition 2. Capital req 3. Labor 4. TechnologyMass Customization:1.modular prod 2. Fast changeover (zero setup time bet. Orders) 3. Postponement of options

Chapter Five:Service Process DesignMajor challenges (1)customer contact; good imm feedback,coproduction, imm recovery; Badsetup cost,diff to plan;uncertainty (2) lack of standard (3) measurement of output (4) quality diff to define, rework, inspection (5) non-inve output under utilization of physical capacity (5) Amount of service Service-Product Bundle:(1) Tangible/explicit service (2)intangible/implicit service (2) physical/facilitating goods.(4)supporting facilityMajor challenges (1)customer contact; good imm feedback,coproduction, imm recovery; Badsetup cost,diff to plan;uncertainty (2) lack of standard (3) measurement of output (4) quality diff to define, rework, inspection (5) non-inve output under utilization of physical capacity (5) Amount of service Service-Product Bundle:(1) Tangible/explicit service (2)intangible/implicit service (2) physical/facilitating goods.(4)supporting facility

Nature of the Service Act / Direct Recipient of Service :Tangible act / People bodies:(Health car, passe transport, salons) Tangible act /Things –physical possesion: (Freight&trans;repair maint;veteri) Intang act/People mind: (Edu’Broacast;IS;Theather;Museum) Intang act/Intang assets (banking,legal serv, accounting)Nature of Serv Delivery / Relationship bt Serv Org and Its CustomersContinuous serv / Membership: (Insurance;tel sub; elec; banking) Continuous serv / No formal : (radio; police; lighthouse; highway) Discrete trans/ membership:(long distance call, theater, transit pass, airline ff) Discrete trans/no formal: (restaurant, pay phone, toll high way)Extent to which Supply is constrained / Extent of Deman Fluctuation over TimePeak demand can usually be met without major delay/Wide (Elec, tel police emergency, hospital maternity unit) /Narrow (Insurance, legal services, banking laundry)Peak demand regularly exceeds capacity/Wide (Tax preparation, passenger transportation, hotels motels) /Narrow (fast food;movie theater;gas station)Method of Service Delivery

Classification of Service Firms by Capital Intensity and Labor Skill