Comp Priorities: critical dimensions that a process or supply chain must possess to satisfy its internal or external customers, both now and in the future. Monitor and evaluate
Comp Capabilities: The cost, quality, time, and flexibility dimensions that a process or supply chain actually possesses and is able to deliver. results.
Order Winner: The criterion customers use to differentiate the services or products of one firm from those of another. Ex: Happy Meals. “We are this…”
Order Qualifier: The minimum level required from a set of criteria for a firm to do business in a particular market segment. Ex: Fast Service, Low Cost, Location.
Steps in Decision Making: Problem Recognition, ...view middle of the document...
A Layout puts these into tangible form. 2. Customer Involvement: Reflects the ways a customer becomes part of the process and the extent of their participation. 3. Resource Flexibility: The ease that employees and equipment can handle a wide variety of products, output levels, duties, and functions.
4. Capital Intensity: Mix of equipment and human skills in a process. The greater relative cost of equipment, the greater is the capital intensity.
Customer Involvement Decisions: Self-service, Product Selection, Time and Location.
Customer Involvement Adv: Inc net value to customer. Can mean better quality, faster delivery, greater flexibility, and lower cost. May reduce product, shipping, & inventory cost. May help coordinate across the supply chain. Processes may be revised to accommodate the customers’ role.
Customer Involvement Disadv: Can be disruptive. Managing time and volume challenging. Quality measurement difficult. Requires interpersonal skills. Layouts may be revised. Multiple locations may be necessary.
Flexible Workforce: Members are capable of doing many tasks, either at their own workstations or as they move from one workstation to another. Requires greater skill, and thus more education and training. Can be the best way to achieve reliable customer service. Helps to absorb workloads caused by divergent tasks, flexible flows, & fluid sched.
General Purpose Equipment: Has a range of uses. When volumes are low because customization is high, this is better choice. Low fixed cost, variable cost high=steep slope
Specialized Equipment: Better choice when volumes are high, customization low. Lower variable cost, high fixed cost, create flatter slope.
Capital Intensity: In manufacturing, substitute capital equipment for labor. Requires high volumes and costs are high. Might not align w/ a company’s competitive priorities.
Fixed Automation: Produces one type of part or product in a fixed sequence of simple operations. Requires large investment. Relatively inflexible. Max effiency, low VC.
Flexible Automation: Can be changed easily to handle various products. Industrial Robot: A versatile, computer-controlled machine that performs various tasks.
Three Production and Inventory Strategies: 1. Make-to-Stock: Involves holding items in stock for immediate delivery, minimizing customer delivery times. Feasible for standardized products with high volumes. Choice for line or continuous-flow processes. Low divergence. Competitive Priority: Cost & Time. Ex: Soda & Chemicals.
2. Make-to-Order: Involves making products to customer specifications in low volume. Uses job or small batch processes. High degree of customization. High divergence. Competitive Priority: Flexibility & High-end Quality. Ex: Specialized medical equipment & Expensive homes.
3. Assemble-to-Order: Assembling a wide variety of customized products from relatively few assemblies and components after customer orders are received. Uses a