Operational Management and Logistics - Radboud University
Chapter 1:
Operations = transformation of input into output
OSCM -> operations and supply chain management
Success of producing at low costs: strategy -> processes -> analytics
Batch-base (or functional-based) workflow= You switch between making product A or B
Simultaneously (or product-based) workflow = Product A & B are made at the same time
Operations and supply chain processes -> Transform inputs into outputs
- Planning
- Sourcing
- Making
- Delivering
- Returning
Product related service: adding service to the product
System of services and products: combination of physical and intangible elements
Service- related products: Products are extra so the service is the main thing
Efficiency = doing something at the lowest possible cost
Effectiveness= create the most value for the company
Value = quality/price
Service is an intangible process which requires interactions with the customer, they are
heterogeneous (differ from day to day). They are time dependent and cannot be stored
Chapter 2:
Triple bottom line:
- Social responsibility ( fair and beneficial business practices )
- Economic responsibility ( compensate shareholders)
- Environmental responsibility ( impact of the firm to the environment )
Supply chain risk -> day to day management
Disruption risk -> natural or manmade disasters
Risk management framework:
- identify the sources
- Assess the potential impact of the risk
- Develop plan to soften risk
Productivity = how well resources are used (output/input)
- Practical productivity measure = ratio of output to a single input
- Multifactor productivity measure = ratio of some output to a group of inputs
, - Total factor measure of productivity = ratio of all outputs to inputs
Corporate strategy provides overall direction
Operations effectiveness is about performing activities at a minimum cost
Order qualifiers = dimensions that are necessary for a firm's product to be considered by
customers
Order winners = criteria from customers to differentiate the products and services of one firm
from those of other firms
Chapter 3:
Product innovations = companies continuously bring products to markets -> long term
success
Product design = an element of product innovation , it consists of the concept and the
prototype development -> crucial for success of new products
Core competency -> a firm is doing something better than another firm (VRIO)
System architect = a firm outsources product component design
Contract manufacturer = you hire a different manufacturer to deliver a finished product
Product development:
- Planning
- Concept development ( target is identified, alternative product concepts are
generalized and evaluated & concepts are developed and tested)
- System-level design ( product architecture into subsystems and components
- Design detail (specifications )
- Testing and refinement (prototypes are tested)
- Production ramp-up (product is made)
On hold, no go stage -> What to do?
Market pull products -> customer demand is the starting point
Technology push products -> organization starts with new technology an looks for a market
Platform products -> built around pre existing technological subsystems
Process intensive products -> product design can not be seen in isolation with production
design
Customized products -> new products with a little bit of existing product
High-risk products -> products with high chance of failure
Quick-build products -> many test cycles
Complex systems -> need subsystems
QFD = quality function deployment -> customer requirements -> which technology -> look at
competitors
Value engineering = to cut costs while meeting customer requirements (avoid costs in
producing products ) (( improving performance while trying to cut costs))
Value analysis = reduce costs while improving performance
, Modular products = products composed of interchangeable components
Non-modular products = about the ingredients
Fluid states = not about the bottle but about the fluid inside
Designing products for manufacture and assembly (DFMA)
- Traditional approach -> save on costs but lose on demand (we design, you built (over
the wall approach))
- Concurrent engineering -> working together
Modular product criteria:
- does the part move
- must it be of different material of be isolated
- must it be separated from other parts
DFMA: certain parts are integrated to have less parts and time to assembly and use less
material
Eco-design: incorporation of environmental considerations
service products require a lot of steps
Product development performance:
- time to market (offer products timely -> consequences for logistics)
- Productivity (costs or hours of employees)
- Quality (reliability of the product)
- Economic analysis of project = NPV
Chapter 4:
Pure projects: A self-contained team works full-time
Functional project: Responsibility lies within one functional area of the firm and employees
work part time on the project
Matrix project: people with different backgrounds are involved in the new project
Statement of work (SOW) = a written description of the objectives to be achieved
The work breakdown structure (WBS) defines the hierarchy of project tasks, subtasks and
work packages (groups of activities)
Gantt charts -> Shows the amount of time involved and the sequence of activities in a
graphic manner
Earned value management = used to evaluate project progress and identifies the activities to
be accomplished
Critical path = the path taking the longest time
PERT technique = using data to calculate the probability estimate of completion time
a= optimistic time
m = most likely time
b = pessimistic time
Chapter 1:
Operations = transformation of input into output
OSCM -> operations and supply chain management
Success of producing at low costs: strategy -> processes -> analytics
Batch-base (or functional-based) workflow= You switch between making product A or B
Simultaneously (or product-based) workflow = Product A & B are made at the same time
Operations and supply chain processes -> Transform inputs into outputs
- Planning
- Sourcing
- Making
- Delivering
- Returning
Product related service: adding service to the product
System of services and products: combination of physical and intangible elements
Service- related products: Products are extra so the service is the main thing
Efficiency = doing something at the lowest possible cost
Effectiveness= create the most value for the company
Value = quality/price
Service is an intangible process which requires interactions with the customer, they are
heterogeneous (differ from day to day). They are time dependent and cannot be stored
Chapter 2:
Triple bottom line:
- Social responsibility ( fair and beneficial business practices )
- Economic responsibility ( compensate shareholders)
- Environmental responsibility ( impact of the firm to the environment )
Supply chain risk -> day to day management
Disruption risk -> natural or manmade disasters
Risk management framework:
- identify the sources
- Assess the potential impact of the risk
- Develop plan to soften risk
Productivity = how well resources are used (output/input)
- Practical productivity measure = ratio of output to a single input
- Multifactor productivity measure = ratio of some output to a group of inputs
, - Total factor measure of productivity = ratio of all outputs to inputs
Corporate strategy provides overall direction
Operations effectiveness is about performing activities at a minimum cost
Order qualifiers = dimensions that are necessary for a firm's product to be considered by
customers
Order winners = criteria from customers to differentiate the products and services of one firm
from those of other firms
Chapter 3:
Product innovations = companies continuously bring products to markets -> long term
success
Product design = an element of product innovation , it consists of the concept and the
prototype development -> crucial for success of new products
Core competency -> a firm is doing something better than another firm (VRIO)
System architect = a firm outsources product component design
Contract manufacturer = you hire a different manufacturer to deliver a finished product
Product development:
- Planning
- Concept development ( target is identified, alternative product concepts are
generalized and evaluated & concepts are developed and tested)
- System-level design ( product architecture into subsystems and components
- Design detail (specifications )
- Testing and refinement (prototypes are tested)
- Production ramp-up (product is made)
On hold, no go stage -> What to do?
Market pull products -> customer demand is the starting point
Technology push products -> organization starts with new technology an looks for a market
Platform products -> built around pre existing technological subsystems
Process intensive products -> product design can not be seen in isolation with production
design
Customized products -> new products with a little bit of existing product
High-risk products -> products with high chance of failure
Quick-build products -> many test cycles
Complex systems -> need subsystems
QFD = quality function deployment -> customer requirements -> which technology -> look at
competitors
Value engineering = to cut costs while meeting customer requirements (avoid costs in
producing products ) (( improving performance while trying to cut costs))
Value analysis = reduce costs while improving performance
, Modular products = products composed of interchangeable components
Non-modular products = about the ingredients
Fluid states = not about the bottle but about the fluid inside
Designing products for manufacture and assembly (DFMA)
- Traditional approach -> save on costs but lose on demand (we design, you built (over
the wall approach))
- Concurrent engineering -> working together
Modular product criteria:
- does the part move
- must it be of different material of be isolated
- must it be separated from other parts
DFMA: certain parts are integrated to have less parts and time to assembly and use less
material
Eco-design: incorporation of environmental considerations
service products require a lot of steps
Product development performance:
- time to market (offer products timely -> consequences for logistics)
- Productivity (costs or hours of employees)
- Quality (reliability of the product)
- Economic analysis of project = NPV
Chapter 4:
Pure projects: A self-contained team works full-time
Functional project: Responsibility lies within one functional area of the firm and employees
work part time on the project
Matrix project: people with different backgrounds are involved in the new project
Statement of work (SOW) = a written description of the objectives to be achieved
The work breakdown structure (WBS) defines the hierarchy of project tasks, subtasks and
work packages (groups of activities)
Gantt charts -> Shows the amount of time involved and the sequence of activities in a
graphic manner
Earned value management = used to evaluate project progress and identifies the activities to
be accomplished
Critical path = the path taking the longest time
PERT technique = using data to calculate the probability estimate of completion time
a= optimistic time
m = most likely time
b = pessimistic time
