Operations Environment correct answers Gov reg, economy, competition, customers, quality
Gov Reg correct answers environ, safetly, liability, tax
Econ correct answers demand and shift in marketbase; Shortages and surpluses
Competition correct answers world comp for manuf; transport inc eff and dec costly; communication
worldwide=fast, eff,cheap,internet
Reduced costs of transportation
Communications, reduced costs, and increased speed
Customers correct answers more demanding (Lower prices
Improved quality
Reduced lead time
Improved pre-sale and after-sale service; edu before buy and warranty all kinds of products
Product and volume flexibility)
Quality correct answers must exceed expectations
Wealth correct answers Manufacturing creates wealth
What is it? (Gross National Product - output of goods and services produced by the nation in a given
time)
Where does it come from? (Mineral deposits, farmland and forests - potential sources of wealth)
Adding value (Each state in the development of final product value is added thus creating more wealth)
Designing the process (to get most value out of resources, production processes must be so designed that
they make products efficiently)
Managing the process (once the processes exist, operations are managed so they product goods most
economically)
,Natural resources (Mineral deposits, farmland and forests - potential sources of wealth)
Transformation (extraction and then using these resources to manufacture useful products)
Conversion (transform these resources into useful products thru production function)
Managing the process (planning for and controlling resources used (labor, capital and material) in the
process)
Services (nontangible, performance of some useful function - banking, medical care, restaurants, clothing
stores, social services, ...)
Order qualifiers correct answers Customer requirements for price, quality, delivery, etc.
A company must meet or exceed minimum level to qualify for order to be competitive in the market;
doesn;t win orders
Order Winners correct answers Characteristics that persuade customers to select a product/service from a
qualifying company
"Today's order winners are
tomorrow's order qualifiers"
Manu Strat correct answers Engineer to order
make to order
configure to order
assemble to order
Make to stock
Engineer to Order correct answers Manufacturer does not start until the order is received
Custom designs
Unique products
Long lead time
Inventory purchased after order is received
customer involved
, Make-to-Order correct answers Manufacturer does not start until the order is received
Often uses standard components
Little design time
Lead time is reduced
Inventory held as raw materials; have inv then make
Configure-to-Order correct answers Customer allowed to configure product based on features and options
May be an entirely new configuration
Since features and options often available, no significant design time required
Typically implies shorter delivery time
Similar characteristics to Make-to-Order; more specialization
Assemble-to-Order correct answers Manufacturer inventories standard components
No design time required
Assembly only required
Shorter lead time
Inventory held as standard components already have manufacturers
customers select assembly option
Make-to-Stock correct answers Manufacturer produces the goods in anticipation of customer demand
Little or no customer involvement with design
Shortest lead time
Inventory held as finished goods; predict using forecasting
Postponement correct answers Shift differentiation in product as close to customer as possible; paint dept
@
It is another application of assemble to order