MoE lecture 3
Operations process: the set of methods and technologies to produces goods or services.
This is classified by:
1. Transformation process
2. Analytic nature/ .. : breaks down raw material into components
3. ..Synthetic nature: converts raw material into finished goods. Grain, eggs, milk =
dough.
Worldwide impact of changes from making products or services for customers.
Trends in Production & Operation Management:
- Global competition
- Supply chain management
- Business progress reengineering
- Total quality management
- Lean manufacturing
- Worker’s involvement
- Cycle time reduction
Definition’s goods and services
Goods: a physical, tangible item that satisfies a human want or need. Radios, newspapers,
busses, textbooks.
Service: a valuable action to satisfy a human want or need; it is intangible. Entertainment,
transportation, education.
Utility is a products or service ability to satisfy a human want or need 3 types:
- Form utility: how people want them. Visible shape.
- Time utility: by making products available when customers want them.
- Place utility: by making products available where customers want them. Bar
Difference in process is related to…
… a difference in a make to order operations (custom made process) VS make to stock
operations (standardized products for mass consumption).
… a difference in low contact system (customer doesn’t need to be part of process, mail) VS
high contact system (you are part of the process, hairdresser).
Part 2
Business strategy as a driver of operations
You want to get from ‘A’ to ‘B’ what do you do?
1. Determine where you are. Gather facts and figures. Analyze!
2. Determine where you want to go to. Develop long term goals and a strategy
3. Determine how you are going to get there. Develop a tactical plan and operationalize
activities.
4. Assess whether you could have done thing differently. Control!
Operations process: the set of methods and technologies to produces goods or services.
This is classified by:
1. Transformation process
2. Analytic nature/ .. : breaks down raw material into components
3. ..Synthetic nature: converts raw material into finished goods. Grain, eggs, milk =
dough.
Worldwide impact of changes from making products or services for customers.
Trends in Production & Operation Management:
- Global competition
- Supply chain management
- Business progress reengineering
- Total quality management
- Lean manufacturing
- Worker’s involvement
- Cycle time reduction
Definition’s goods and services
Goods: a physical, tangible item that satisfies a human want or need. Radios, newspapers,
busses, textbooks.
Service: a valuable action to satisfy a human want or need; it is intangible. Entertainment,
transportation, education.
Utility is a products or service ability to satisfy a human want or need 3 types:
- Form utility: how people want them. Visible shape.
- Time utility: by making products available when customers want them.
- Place utility: by making products available where customers want them. Bar
Difference in process is related to…
… a difference in a make to order operations (custom made process) VS make to stock
operations (standardized products for mass consumption).
… a difference in low contact system (customer doesn’t need to be part of process, mail) VS
high contact system (you are part of the process, hairdresser).
Part 2
Business strategy as a driver of operations
You want to get from ‘A’ to ‘B’ what do you do?
1. Determine where you are. Gather facts and figures. Analyze!
2. Determine where you want to go to. Develop long term goals and a strategy
3. Determine how you are going to get there. Develop a tactical plan and operationalize
activities.
4. Assess whether you could have done thing differently. Control!
