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OM - Ch5 Cheat Sheet (DRAFT) by

Operational Management

This is a draft cheat sheet. It is a work in progress and is not finished yet.

Goods & Services Selection

great products are the key to success.
to maximize the potential for success, many companies focus on only a few products and then concen­trate on those products.
an effective product stategy links product decisions with investmen, market share, and product life cycle, and defines the breadth the product line.
product decision objective is to develop and implement a product strategy that meets the demands of the market­place with a compet­itive advantage
1. Product Strategy Options Support Compet­itive Advantage >op­tions exist in the selection, definition and design of the products. example; rapid response & low-cost strategy
2. Product life cycles 4 phases of product's life cycles: introd­uction, growth, maturity, decline | product life cycle periods: few days, months, years, decades
3. Life Cycle & Strategy 1. Introd­uctory phase warranting unusual expend­itures in research, product develo­pment, process modifi­cation and enhanc­ement. 2. Growth phase product design has begun to stabilize. Foreca­sting, adding­/en­hancing capacity to accomodate the increase in product may be necessary. 3. Maturity phase compet­itors are establ­ished. High volume­-in­nov­ative production may be approp­riate; improved cost control, reduction in options, and paring down of the product line may be effective or necessary for profit­ability and market share. 4. Decline phase ruthless manage­ment. dying products are poor products in which to invest resources and managerial talent.
4. Produc­t-b­y-value Analysis list products in descending order of their individual dollar contri­bution to the firm. Also lists the total annual dollar contri­bution of the product. Low contri­bution on a per-unit basis by a particular product may look substa­ntially different if it represents a large portion of the company's sales.

Generating New Products

knowing how to sucess­fully find and develop new products is a requir­ement.
aggresive new product develo­pment requires that organi­zations build structures internally that have open commun­ication with customers, innovative product develo­pment cultures, aggresive R&D, strong leader­ship, formal incent­ives, and training.
Then, a firm can profitably and energe­tically focus on specific opport­uni­ties; 1. unders­tanding the customer, 2. economic change, 3. sociol­ogical and demogr­aphic change, 4. Techno­logical change, 5. Political and legal change, 6. etc (market practice, profes­sional standards, suppliers, & distri­butors

Product Develo­pment

1. System, effective product strategy links product decisions with other business functions; R&D, engine­ering, marketing & finance
optimum product develo­pment depends on: 1. determ­ining what will satisfy the customer, 2. Successful integr­ation of all the 10 OM decisions
2. QFD ( Quality Function Deploy­ment): 1. determ­ining what will satisfy the customer, 2. Transl­ating those customer desires into the target design the idea is to capture a rich unders­tanding of customer wants & to identify altern­ative process solutions
tools: house of quality
3. Organizing for product develo­pment: 1. research &d­eve­lopment depart­ment, 2. Assign a product manager to "­cha­mpi­on" the product (Product develo­pment system & related organi­zat­ions), 3. Product develo­pment teams, 4. Nation's culture & management styles
4. Manufa­ctu­rab­ility & value engine­ering: >ac­tiv­ities: concerned w/ improv­ement of design & specif­ica­tions at the resear­ch,­dev­elo­pment, design, and prepro­duction stages of product develo­pment
 

Issues for product design

1. Robust Design, a desig that can be produced to be required even with unfavo­rable conditions in the production process
2. Modular design, a design in which parts or components of a product are sub-di­vided into modules that are easily interc­han­ged­/re­placed.
3. Comput­er-­Aided (CAD) & Comput­er-­Aided Manufa­cturing (CAM), intera­ctive use of a computer to develop and document a product
4. Virtual reality techno­logy, a visual form of commun­ication in which images substitute for the real thing but still allow the user to respond intera­ctively
5. Value analysis, seeks improv­ements that lead to either a better product, or a product made more econom­ically, or a product w/less enviro­nmental impact
6. Sustai­nab­ility & Life cycle Assessment (LCA), sustai­nab­ility, meeting the needs of the present w/o compro­mising the ability of future genera­tions to meet their needs

Product Develo­pment Continuum

A time based compet­ition, meaning rapidly developing products & moving them to market
External develo­pment strate­gies: 1. Purchasing techno­logy, 2. Joint Ventures, 3. Alliances

Defining a Product

1. Produc­t/S­ervice is designed in terms of it's functions
2. Produc­t/S­ervice is designed accord­ingly
3. Firm determines how the functions are to be achieved
Specif­ica­tions: equipment, layout­,human resources cannot be determined until the product is defined, designed & documented
Engine­ering drawing: shows the dimesn­ions, tolera­nces, materials, and finishing of a component
Bill of Material (BoM): lists the hierarchy of component, their descri­ption & the quantitiy of each required to make one unit of a product.
Types of Product Defining:
1. Make or Buy Decisions, distin­guishes what the firm wants to produce & what it wants to purchase. Variations in quality, cost & delivery schedules, the make-o­r-buy decisions is critical to product defini­tions
2. Group Techno­logy, Identifies components by a coding scheme that specifies size, shape, and type of proces­sing. Standa­rdizing of materials, compon­ents, and processes as well as the identi­fic­ation of families of parts

Documents for Production

Assembly drawing, exploded view of the product
Assembly chart, schematic form how a product is assembled
Route Sheet, lists the operations necessary to produce the component w/ the material specified in the bill of material
Workorder, is an instru­ction to make a given quantity of a particular item, usually to a given schedule
ECNs, change some aspect of the product's definition or docume­nta­tion; an engine­ering drawing or a bill of material
 

Service design

1. PCN Analysis, (Process Chain Network), Process Chain is a sequence of steps that accomp­lishes an activity: Building a home
Each Partic­ipant, Process Domain is the set of activities over which it has controls
Encomp­asses 3 Process Regions: 1. The Direct Intera­ction Region, Includes Process Steps that Involve Intera­ction Between Partic­ipant, 2. The Surrogate (Subst­itute) intera­ction region, includes process steps to which one partic­ipant is acting on another partic­ipant's resources; their inform­ation, materials, or techno­logies, 3. The Indepe­ndent Processing region includes steps in which the sandwich supplier and.or the sandwich customer is acting on resources where each has maximum control.
2. Adding Service Effici­ency: 1. Limit Options, 2. Delay Custom­iza­tion, 3. Modula­riz­ation, 4. Automa­tion, 5. Moment of Truth