TOM - ALL Flashcards

(76 cards)

1
Q

volume-variety (product-process) matrix

A
Hayes and Wheelwright 1979
continuous (high vol low var)
line
batch
jobbing
projects (low vol high var)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

mass customization definition

A

Davis 1987

individually customizing goods and services for the mass mkt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

modularity definition and how it can be used to avoid vol var tradeoffs
(and example!)

A

companies can mitigate the vol var tradeoffs by pursuing modularity in products by mixing and matching standard components

Economist 2001 - secret behind Dell’s built to order success is the restriction of its components to several key modules and stocking a variety of each

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

tech driving mass customization?

online adults and purchases

A

Economist 2001: tech reduces product life cycles and increases demand in product varieties

Ambrovich 2014: 75% of online adults had ordered products and services online for the reason of more options

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

visionary definition of mass customization

and da trap. . . . . . . . . . .

A

Hart 1995
give customers when they want where they want when they want it

This can cause a fall back into the volume-variety trap with rising costs and complexity (Economist 2009)

trying to be all things to all people will lead to competitive mediocrity, not CA (Kotha 1995)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

do customers want variety?

stage of customer input

A

Yes!! Starr 1965

the earlier the involvement in the value chain, the more personalized the product is (Duray, 2003) - true?? iPhone

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

mass customization and mass production

A

Pine 1993
these are incompatible due to differences in organizational structure, management thought, methods of learning and customer interaction

MC requires transforming the industry from a push to a pull system (Economist 2001)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

customer involvement at design versus assembly EXAMPLES

A

Lutron electrics: Lighting is made to order with systems and colors due to programming of the system

IKEA: because they are self assembly construction options are included that show different ways to produce variety

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

failures in mass customization

A

P&G: sell personalized women’s cosmetics, fragrances, shampoos called “Reflect”
“10,000 shades of lipgloss” - stretched company too thin and raised costs - failed after 6 years and 600million invested

Levi’s: customer order customized jeans delivered straight to door,,, unfeasible with the supply chain and too costly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

success in mass customization

A

Dell and Swatch and Custom-Ink - modular approach, don’t offer infinite choices

Coca-Cola: invested 100million into Freestyle vending machine that allows customers to personalize their drink with over 150 sparkling and still options - success due to brand loyalty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

benefits of data with mass customization

A

early feedback on shifting customer preferences, ideas for new products, less waste, strong loyalty with customers
helps retailers and manufacturers predict what combinations will be sold the most (Rijmenam 2017) (Boyd and Crawford 2012)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

customer generated intellectual property (MC)

A

Berthon 2015
much of the value is added by the consumer .. firms exchange info with customers and base services off the information they provide (Loreal Makeup Expert, NikeID)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

McKinsey presentation on MC Tech and big data

A

Gandhi et al 2013

previously modular approach but now individualized customization is in reach (visionary def a reality??)

social tech: social media paving way for better customization by allowing companies to analyze value customers attach to proposed or existing products
- Starbucks unicorn frappe - boosted sales greatly and ran out in store .. customers want an “instagrammable” drink

controlling for manufacturing costs: dynamic programability of robotic systems can switch between models and variants with little efficiency lost
use of JIT by software companies enables tracking individual orders and updating customers with realistic times

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

exchange of data? benefit or cost to consumers

A

Forbes (2016) people are increasingly more willing to hand over their data in exchange for a more personal product or service

but threat of data privacy - cyber security threats are large and the greatest ones are internal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

mass made to order

A

Pine 2016
smartphones are the ultimate form of mass customization: the customer adds their own contacts, apps, and data and this becomes part of their identity
mass produced but then mass customized by the consumer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Supply chain (definition, directions things flow)

A

a network of the organization that link together to deliver goods and services to the customer

goods flow downstream
money (should) flow upstream
info flows both ways

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

MRP
MRP II
ERP

A

MRP - Material Requirement Planning - intended to understand the forecasted demand in the Master Production Schedule
MRP II - add in resource scheduling

ERP - Enterprise Resource Planning
info across the whole enterprise including online sales and procurement
organizations can easily exchange data along supply chain - need greater integration and management of resources
supports automated SCM but human resources needed to control for error

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Toyota production system advantages and disadvantages with supply chain

A

advantages: mutual respect and knowledge
first their suppliers involved in product development and integrated into the JIT system

disadvantages: if break in supplier manufacturing, focal company suffers and suppliers are heavily invested so may be held at ransom

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

trust in supply chain relationships TPS

A

Kwon and Suh 2004
reduces transaction costs - less need to check and verify
the reputation of the partner affects the level of trust

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Keiretsu

A

kito et al 2011

TPS relational orientation of the supply chain

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

business to business transactions

A

using the internet makes identifying and handling suppliers easier and companies are more likely to find niche suppliers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

risks to global supply chains

A

rely on transport, bulk deliveries may cause delays, transit issues, and long lead times

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

vertical integration of supply chain examples

A

Ferdows et al 2004
Zara fast fashion: spain .. two weeks from design to sale
highly integrated to have control over schedule and capacities
JIT system: postponements to gain speed and flexibility (50% of cloth undyed)
short lifespan in stocks so customers are pressured to buy
They use technology and data to understand what is selling and remain on top of fads .. if something doesn’t sell well it isn’t a problem because they do not produce a ton and can just move stock later

Ford even owned the iron ores for the model T

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

innovations - supply chain

A

delivery: to door and fast (Amazon and M and S)
virtual products for online delivery: TV, news, tickets
3D printing: you might not even need supply chains
driverless vehicles: allows for autonomous delivery without people
shrinking supply chain: hyperlocal - useful in remote areas
movable factories: allows for wealth generation in areas that lack manufacturing skills and infrastructure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Tripple A supply chain
Lee 2004 Agile Adaptable Aligned (Clear knowledge sharing and incentives)
26
greening the supply chain BandQ
Green et al 1998 500 suppliers - aligned with qualities and lean ideas of waste reduction and could de-list noncompliant suppliers green: strategy, procurement, tech, etc
27
circular supply chain
Dora et al 2016 | recycle essential materials: one organization's waste man be another's resources
28
drivers of green supply chain
DiMaggio and Powell 1983 coercive: governments can make laws normative: pressure from markets and customers mimicking: behavior of successful companies
29
shift from vertical to .....
Christopher 1992 | optimizing supplier networks: making them compete
30
effective SCM and uses a ______ approach .. and how to get it?
pull (Donovan, 2000) to get this managers must view SCM as a strategic concern .. pick leaders with SCM experience and align employee incentives with firm, understand tech (Slone et al 2007)
31
bullwhip effect and example
Lee et al 1997 larger swings in inventory occur up the chain in responses to changes in demand at one end or inaccurate demand forecasting (solved by information sharing so links in supply chain can understand what's happening on the client end Volvo: glut of green cars.. ran sales promo and managed to sell but suppliers thought it was demand for them that rose so produced more
32
single supplier?
Hugos 2003 | better relations and quality but more vulnerable to disruption
33
why do companies need to be responsible?
New 2010 - the transparent supply chain!!! customers care more about ethics so firms should use transparent supply chains to establish trust stakeholders are explicitly asking organizations to consider the environment ....... but what metrics measure greenness..?
34
partnerships
Handfield and Nichols 1999 partnerships increase supplier reliability and loyalty JV: starbucks and pepsi.. Sbux sources the coffee and checks for quality and pepsi has superior distribution networks: strategic advantage to both
35
supply chain future report
By global commerce initiative delight shower sustainable supply chain turn data into info to drive improvement on demand collaborate to make more efficient models
36
iPhone supply chain
purchase raw materials from all over the world and apple uses prepayment to reserve raw materials all raw materials ship to china where assembled then logistic companies store then ship directly to online buyers or ship to USA where sent to store iPhones can be recycled to store seasonal shipping methods (Christmas use air to get there faster)
37
GREEN SUPPLY CHAINS NEEDED EXAMPLE
nike NGO "press for change" organizes protests at the barcelona olympics in 1992 which brough in mainstream media attention By 1998 there is week demand and have to kay off workers so the CEO makes a speech acknowledging that NIKE needs a change 1999 establish the Fair Labor association for independent monitoring, codes of conduct and encourages other brands to join Human rights groups acknowledge improvements and from 2005 they have continuously updated progress in CSR reports (NILSON 2013) true cost example - fast fashion Zara - bangladeshi women attempting to Unionize.. (cheap fashionable dress to deprave conditions)
38
history of projects
1950s: 1 best way - started in the USA and based on numericals 1990s: projects based on strategy 2000s: projects as and organization
39
4 phases of project management
``` maylor 2005 define it: project, strategy, goal design it: model, plan, estimate deliver it: leadership, decision-making develop it: assess project, make evaluations ```
40
how project management differs from general management
``` (Hughes et al 2016) you oversee change cross-functional activity changing tasks managing innovation lots of uncertainty communication to many stakeholders ```
41
spiral model for software development | Principles of agile software
Beck et al 2001 encourages constant improvement and analysis - satisfy customer through early delivery - welcome change requirements anywhere in the process - simplicity is essential
42
control versus commitment based approach
Katri et al 2008 control: constant monitoring (Taylorism): low morale and adverse working relationship commitment: intrinsically motivated by giving responsibility (Andon cords) think of McGregor's theory x and y align incentives of workers with project goal!
43
if unexpected events occur with projects
``` Laufer et al 2015 plan review reduce interdependency with tasks communicate with all stakeholders ```
44
project as conversion process
Inputs; want/need constraints: financial, legal, ethical, environmental mechanism: people, knowledge, tech, capital output: satisfied need
45
project as organization
in the middle of culture tech social structure physical structure all within the environment conflict, politics and stakeholders - recognize there is a social context
46
why are projects so hard to end?
believers - need to check data and assign an exit champion to give an unbiased view (me: hubris)
47
seven S's of project management
``` Maylor 2005 strategy structure systems staff skills style stakeholders ```
48
mega projects> why do them? and are they doomed to fail
they are in response to large challenges population growth: housing, roads, railways, transport there are many strategic objectives, uncertainty, multiple stakeholders with differing agendas and a dynamic political environment for transport mega projects 9 out of 10 have cost overrun and cost projections aren't improving (Flyvbjerg 2007) Commonwealth games Delhi 2010 Forecast 270 mil actual 4.1 bit Edinburgh Tram Forecast 550m now 1.5bil
49
gaming behavior in projects
underestimate cost and overestimate benefits mean you are more likely to receive funding
50
explanations for project and poor estimations
ivory and alderman 2005 1. technical: better forecasting with data 2. psychology: optimism bias 3. political/economic: need accountability 4. periods of failure: need intervention
51
Project definition
Browning 2010 a project is a temporary endeavor undertaken to create a unique project, service or result (in volume variety matrix this is a low repetition activity
52
management psychology leading to failure (delusion deception)
delusion: Grenny et al 2007 unrealistic deliverables: 85% of project leaders do not base plans on facts (ANCHORING BIAS) irrational escalation of commitment don't weigh gains and losses and probabilities (availability and representative bias - heuristics Tversky and Kahnman 1973) deception: Flyvbjerg et al 2009 strategic manipulation: principle-agent problem where the agent exploits info asymmetry by overstating benefits and understating costs to make sure they are selected
53
projects collaboration with 3rd parties
Pistes et al 2003 | project more likely to fail due to coordination difficulties
54
paradox of film industry
sustained by temporary enterprises - projects are prone to failure and directors are held accountable
55
Quality - statistical process control
process monitoring in real time and understanding statistical variation
56
Deming (Quality)
variation is inherent in all processes: it is the role of management to understand and control the causes of undue variation management is responsible for 85% of quality problems and shop floor employees only control 15% Plan - Do - Check - Act (set goal and plan improvement, plot implementation, evaluate results, propose wider implementation and changes)
57
Joseph JURAN - cost of poor quality cost of quality failure cost of poor quality prevention
Internal: scrap, rework External: complaint adjustment, warranty charges, loss of future business Prevention: planning, process control, data analysis appraisal: incoming materials inspection, calibrating test equipment
58
quality definition product vs service
product: quality as conformance to standards generally defined by producer service: quality as customer satisfaction usually defined by the consumer
59
principles of TQM
``` customer focus management leadership reasoning with factual data organization-wide involvement teamwork and training ```
60
definition of TQM
Chase et al 2004 this is managing the organization so that it excels in all dimensions of products and services that are important to the customer focus not on cost of quality but spirit of quality
61
criticism of TQM
measurable results? online WOM? gap in TQM principles and practice how do you implement a philosophy? Ground in culture (Kotter 1995)
62
Quality awards quality standards
deming prize euro quality award british Quality award British standards institute international standards organization (ISO)
63
ISO
costly,, formal application, pre-assessment, assessment, certificate which lasts 3 yrs, and check ins every 3mo ``` why do it? legal requirement for toy and construction required by customer internal improvements legal concern ```
64
Six Sigma
Linderman et al 2003 QUALITY organized method for strategic process improvement and new product development that relies on statistical methods and the scientific method to make drastic reductions in the customer defined defect rates goal is to increase improvement and decrease quality variability, but lacks theoretical underpinnings and is a bit faddish and stifles innovation
65
Andom
pull cord philosophy from JIT Cole 1998 believed there was not radeofs between cost and quality with JIT
66
the spread of TQm
Powell 1995 rapid spread since 1980s 93% of USA firms have adopted it in one form or another...... but rather than imitating TQM procedures firms should focus on creating a culture within which these procedures can thrive
67
psychological safety
Edmonson 2008 employees need this to speak out success in healthcare at Minnesota Childrens hospital to improve quality: data on adverse events captured as inputs to learning process will decrease project losses if free flow of info (TPS idea)
68
TQM and lean
Liker 2008 both share challenge of producing highest quality products within environment of constrained resources and complex business operations the pull system is different to the western push system - resources are allocated to areas of expected demand (New has shown that pull can work in hospitals)
69
institute of medicine and deaths from errors NHS stats
spear 2005: 98k ppl die annual in US hospitals from medical errors .. 2/3 of which are due to poor organization and management of the system Press association: 6 months in 2013 saw 150 NHS patients harmed by "never events" - foreign objects left in 69 ppl
70
early vs late adopters (hospitals) of TQM
Westphal et al 1997 sample of 2700 US hospitals - early adopters customized TQM practices for efficiency gains and were able to integrate it late adopters gained legitimacy and did it due to external social pressure but saw no real change in statistics
71
definition for operations management and history
Starr - the systematic planning and control of operations 1940s to 60s - statistical quality control based on maths 1970s to 90s - JIT TQM Lean MRP SCM 1990s: agile manufacturing and mass customization 2000s: global networks, internet sourcing, greening
72
TPS
Ohno 1912-1990 focus on eliminating hidden cost using JIT and TQM respect for humans - listen to employees and guarantee job for life eliminate waste pull system
73
JIT philosophy
way of working: producing goods and services exactly when needed, not too little, not too late 1 eliminate waste (Muda) 2 continuously improve (Kaizen) 3 total employee involvement (Andon)
74
push v pull
push based on forecasted demand | pull based on actual demand (Kanban)
75
does TPS work outside of japan
Hofstede 1980 - cultural element
76
lean
Clegg and Pepper 2010 a direction, rather than a state to be reached after a certain time Therefore the focus lies in the changes of the determinants, rather than their actual valu