final Flashcards
(53 cards)
services, operations, service operations
services: stuff we buy that we don’t get physical stuff in return; if customer is not present, something belongin to the customer is present
operations: business processes involved with creating/delivering/providing a product and/or a service
service operations: business processes involved with creating/delivering/providing a service
3 sectors of the economy
how did this change over time?
primary— agriculture, fishing, mining; extraction of raw materials
secondary — manufacturing, construction; processing of raw materials/semi-finished goods
tertiary — services
over time, went from primary (agrarian society), secondary (industrial revolution) to tertiary (service focused)
characteristics of services
simultaneity — you are receiving/consuming the service at the same time it is being provided to you
* ex. haircut
* ops challenges: slow times between meals
perishability— services perish instantly because they are time-based
* if you are not providing a service, you can never get that time/capacity back
* ex. empty airplane seats
intangibility —nonphysical
* ops implications: hard to convey the quality
OM triangle for services
capacity
information
queues (not inventory!)
metrics
metric, utilization
are OEE and TEEP good for services?
metric: measure of an aspect of a business process; usually related to strategic, tactical, or operational goals
utilization: amount made / total amount that could be made; can go over 100% in services
no bc demand fluctuates
metics
OEE + how it can be manipulated
how to make it better? what does speeding up processes do?
OEE: overall equipment effectivenesss; availability * performance * quality = A * P * Q
availability= operating time (actual) / scheduled time (predicted)
performance = theoretical time (units made / cap rate) / operating time
quality = good units * total units
failing to add scheduled overtime makes A look better, making OEE bigger
add overtime to make A better; speed up makes op time decr but more defe
metrics
TEEP
adv of TEEP over OEE
total effective equipment performance
TEEP = loading * OEE
loading = scheduled time / calendar time
calendar time = 24 * 7 * 60
harder to manipulate bc scheduled time is canceled out
metrics
profit-per-partner
= margin * productivity * leverage
margin = profit / fees (revenue)
productivity = fees / staff (excl partners)
leverage = staff / partners
= profit / partners
process analysis
flowcharting: 🔵 ⬜️ 🔷 🔻 →
swim lane flowchart?
🔵 start/end
⬜️ operation
🔷 decision
🔻queue/buffer
→ flow
swim lane: columns represent departments/employees/resources
why do we prefer a smaller buffer?
link to JIT
- might have a space constraint
- smaller buffers decrease total time
- less mistakes to correct within a single smaller buffer
- why manufacturing companies move towards JIT
process analysis
job shop
service examples, challenges
custom orders
- different requirements and different paths through the system
- a lot of flexibility, variety
- resources organized by specialty/function
- ex. surgery
- challenges: variability in supply, balancing resource utilization, guiding customers through process
process analysis
project, continuous flow
project: individual, one-time; one of a kind
* challenges: scheduling deadlines, assigning resources
* ex. IT project, construction
continuous flow: not individual units; uninterrupted delivery
* ex. internet, cell data
* challenges: capacity planning
process analysis
batch flow
things done in batches; served in groups
* less customization
* not as efficient as assembly line
* ex. rollercoaster, movies, transportation
* challenges: pricing per person, creating the batches
process analysis
assembly line
identical products + processes; cutsomers follow the same sequence
* challenges: balancing resource utilization along the line, meeting demand during peaks, not much flexibility
* ex. fast food restaurants, car wash
what questions to consider when collecting data to create a forecast? what to consider when doing forecasting?
data collected:
* how specific/detailed/aggregated?
* quantitative, qualitative
* time scales -> ordering cycles, staffing, hourly, weekly, monthly, yearly
things to consider:
* what it will be used for
* other info needed
* info you can ignore
processes that generate demand
mkt forces, trends, weather/external factors, competitors’ actions, price changes, illness (in health fields)
explain the challenge of censored demand
retail example, transit example
past data often has a cut off, pieces missing
data that wasn’t collected/wasn’t satisfied
retail: what people wanted but couldn’t find isn’t recorded
transit: people who don’t get on the bus isn’t recorded
EOQ assumptions, when we use EOQ, insights
assumptions: stable, predictable demand
use when: relatively flat demand, fairly long shelf life
insights: tradeoff between FC and VC
newsvendor assumptions, when to use, insights
assumptions: short shelf life, variability in demand w a known distribution
when to use: perishable products, or when we have to decide how much to order and can’t make any adjustments to that cycle
insights: trade-off between ordering too little and too much
forecasting and inventory: things to consider
- how do these activities affect each other? -> forecast is an input into inventory planning
- what if the forecast is wrong?
- substitutable products complicates inventory
ezza: operations challenges
- variability: chipping
- variability: seasonality of demand
- expand to pedicures? > changes their model/reputation
- staffing > takes a long time to become a nail tech
ways to adjust supply: short-term capacity changes
healthcare, sushi, hotel examples
- add production time
- remove producton time
- shift capacity from/to other products
- outsourcing
outsource; more empl/move tables; change room types/staff/outsource
adjusting demand
healthcare, sushi, hotel examples
managing demand: changing what demand is; affect demand using promotion, advertising, cross-selling
* ex. happy hours
planning for unsatisfied demand (choosing to not be able to meet all demand); can choose who you satisfy
prioritize severe injuries, happy hours, promotions/dynamic pricing
asynchronicity
healthcare, sushi, hotel examples
inventory: supply occurs before demand; made in advance
backorders: demand occurs before supply, ex. pre-orders
* services: queues
hospital scheduling/waitlists; reservations; vouchers