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Operations Mgmt
Prof. Fandel: Chapter 7 Process Selection, Design, and Analysis
| Question | Answer |
|---|---|
| Process Design | An important operational decision that affects the cost of operations, customer service, and sustainability. |
| Custom (make-to-order) goods and services | Generally produced and delivered as one-of-a-kind or in small quantities, and are designed to meet specific customers' specifications. ex) ships, weddings, certain jewelry, surgery, etc. |
| Option (assemble-to-order) goods and services | Configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set. Ex) Dell computers, subway sandwiches, machine tools, etc |
| Standard (make-to-stock) goods and services | Made according to a fixed design, and the customer has no options from which to choose. ex) Appliances, shoes, sporting goods, credit cards, etc. |
| Projects | Large scales, customized initiatives that consist of many smaller tasks and activities that must be coordinated and completed to finish on time and within budget. ex) Legal defense preparation, construction, software development, etc. |
| Job Shop Processes | Organized around particular types of general purpose equipment that are flexible and capable of customizing work for individual customers. ex) Hospitals, legal services, and some restaurants. |
| Flow Shop Processes | Organized around a fixed sequence of activities and process steps, such as an assembly line, to produce a limited variety of similar goods or services. ex) Assembly lines that produce automobiles, production of insurance policies, etc. |
| Continuous Flow Processes | Creates highly standardized goods or services, usually around the clock in very high volumes. ex) Chemical, gasoline, paint, toys, steel factories, etc. |
| Product-Process Matrix | A model that describes the alignment of process choice with characteristics of the manufactured good. |
| T/F: The most appropriate match between type of product and type of process occurs along the diagonal in the product-process matrix. | TRUE. |
| Pathway | Unique route through a service system. Can be customer - or provider- driven, depending on the level of control that the service firm wants to ensure. |
| Service Encounter Activity Sequence | Consists of all the process steps and associated service encounters necessary to complete a service transaction and fulfill customer's wants and needs |
| Customer-routed Services | Those that offer customers broad freedom to select the pathways that are best suited for their immediate needs and wants from many possible pathways through the service delivery system. ex) searching the internet, museums, health clubs, etc. |
| Provider-routed Services | Constrain customers to follow a very small number of possible and predefined pathways through the service system. ex) Newspaper dispenser and logging onto a secure online bank account. |
| Process Design - Four Levels of Work | 1) Task 2) Activity 3) Process 4) Value Chain |
| Task | A specific unit of work required to create an output. |
| Activity | A group of tasks (sometimes called a workstation) neede3d to create and deliver an intermediate or final output. |
| Process | Group of activities. |
| Value Chain | A network of processes. |
| Process Map (flowchart) | Describes the sequence of all process activities and tasks necessary to create and deliver a desired output or outcome. |
| T/F: Process maps document how work either is, or should be, accomplished, and how the transformation process creates value. | TRUE. |
| Process Boundary | The beginning or end of a process. |
| T/F: In Service applications, flowcharts generally highlight the points of contact with the provider and are often called service blueprints. | FALSE. They highlight points of contact with customers. |
| Utilization | The fraction of time a workstation or individual is busy over the long run. |
| Utilization equation: | = Resources used/Resources Available or = Demand Rate/(Service Rate x Number of servers) |
| Throughput | The average number of entities completed per unit of time - the output rate. Might be measured as parts per day, transactions per minute, or customers per hour, depending on context. |
| Bottleneck | The work activity that effectively limits throughput of the entire process. |
| T/F: Identifying and breaking bottlenecks is an important part of process design and improvement and will increase the speed of the process, reduce waiting and work-in-process inventory- and use more resources efficiently. | TRUE. |
| Flow Time (or cycle time) | The average time it takes to complete one cycle of process. |
| Little's Law | Simple formula that explains the relationship among flow time (T), throughput (R), and work-in-process (WIP). WIP = R x T |
Created by:
KAzetapi