TentaP Flashcards
(110 cards)
What are the key decisions for operations management?
- Design of goods and services
- Managing Quality
- Process and capacity strategy
- Location strategy
- Layout strategy
- Human resources and job design
- Supply-chain management
- Inventory management
- Scheduling
- Maintenance
At which levels can operations be analyzed?
Level of the supply chain
Level of operation
Level of processes
What are services characterized by?
Perishability (It is consumed the same time as it is produced)
Intangibility (Cannot touch)
Variability (All services are different depending on who provides them)
Inseparability (The inability to separate the provider from the actual service)
How do processes differ in their characteristics? (Four V’s)
Volume of their output
Variety of their output
Variation in the demand
Visibility of the production
Give examples of strategies for shifting demand to match capacity (strategies on the demand side)
- Use reservation systems (Ex. Restaurants)
- Vary the service offering to appeal a new market segment
- Communicate with customers (Ex. Gyms with busy days and times)
- Differentiate on price (offer discounts)
What are strategies for adjusting capacity to match demand? (Strategies on the supply side)
- Adjust capacity to match fluctuations in demand
Stretch time (Extend/reduce hours of operation,
Stretch labor (Ex. Temporary workers)
Stretch facilities (Rent additional space, share facilites)
Give examples of how the business environment is changing
More choice and variety
Demands for better service
Rapidly developing technologies
Increased ethical sensitivity
Environmental impacts (new chain in operations)
Legal regulations
Security awareness
Why is it more and more risky to keep no inventory? What should you do?
The world is getting more dynamic.
All of a sudden demands and supply change.
Build a safety stock
Supply chains is what determines success
Work closely with struggling suppliers
Reduce dependency (increase number of suppliers)
Name the three levels of operations performance
Societal level - operations sustainability
Strategic level - operations strategic impact
Operational level - operations performance objectives
Name the key factors in the societal level (for operations sustainability)
Social (People):
Employee satisfaction
Health and safety
Community programmes
Gender Balance
Economic (Profit)
Return on invested capital
Share price
Profitable growth
Planet:
Environmental obligations
CO2 emissions
Water usage
Ex: The CP oil disaster
- Cust cutting decisions and an inadequate safety system
- Lead to -> deaths of animals
Name the five operations performance objectives at the operations level
Quality – People pay more for higher quality products
Speed – People want things they ordered as fast as possible
Dependability – delivered when things are needed or promised
Flexibility – Being able to adapt to different changes. Has several disting meaning but is always associated with an operation’s ability to change.
- Product/ service flexibility. Ex. Introducing new treatments, models, routes and goods
- Mix flexibility. Ex. Wide range of treatments, options and goods stocked.
- Volume flexibility. Ex. The ability to adjust number of patients treated, cars manufactured, the frequency of services and customers served.
- Delivery flexibility. Ex. The ability to reschedule appointments, trips, to get out-of-stock items.
Cost – Being productive. Ex:
- Bought-in materials and services
- Technology and facilities costs
- Staff costs
What is single-factor productivity?
Output from the operation / One input to the operation = Single-factor productivity
What is multi-factor productivity?
Output from the operation / All inputs to the operation = Multi-factor productivity
Example: EasyJet
1. What do they base their competitive advantage on?
2. What are their operations strategy to support this competitive advantage?
3. To what extent has Easyjet limited its ability to perform well against the other operations performance objective?
- Price
Availability - Reduce costs by being very good at controlling costs
Limited service
Not focusing on the experience - Qualitive is sacrificed to be able to give the customers a better price.
What are polar diagrams?
Used as a profile to see which dimensions that are the most important for a company. Can be used to compare different companies, especially when looking into competitors.
Give examples of operations decisions
Facilities (location, size, specialization)
Capacity (Quantities, times, types)
Technology (equipment, automation)
Labor (Wage policies, level of specialization)
Organization
What are the four perspectives on operations strategy?
- Top down
Operations strategy should interpret higher-level strategy - Market requirements
Operations strategy should satisfy the organization’s market - Bottom-up
Operations strategy should learn from day-to-day experience - Operations resources
Operations strategy should build on operations capabilities.
What is the difference between the outside-in VS inside-out strategy
With the outside-in strategy, you first observe what the customer wants, then find and offer the solution.
In the inside-out strategy, however, you first develop the product or service, then you create desire for it in customers.
What are order-winning factors?
What makes them chose you (What they look at second)
What are Order-qualifying factors:?
relevant factors for the customer (what they look at first)
What do you use the importance-performance matrix for?
As a performance analysis to see:
1. Where resources should be spent
2 Where are we comparing to competitors
What are external customers and how do you satisfy them?
External customers – People and companies outside of the company
The only way to satisfy external customers is to ensure that the internal customers are satisfied
Who are the internal customers?
employees of the company
What can a delay in-time-to-market result in?
Increased development costs, reduced revenues