Operations Management 3230 Chapters 7 and 9: Manufacturing and Service Processes

What are manufacturing processes?

They're used to make everything that we buy ranging from apartment buildings to the ink pens we write with.

3 steps:

1) Sourcing the parts we need

2) Making the item

3) Send to customer

what is lead time?

the time needed to respond to a customer's order

what is the customer order decoupling point?

where inventory is positioned in the supply chain.

Example: In a fast-food restaurant, some food is made ahead (like cooked patties), but it's only put together when you order.

The decoupling point is where they stop preparing in advance and start making your specific order. So the decoupling point is the moment they start making it just for you.

make to stock process:

products are pre-made, on demand service from finished goods inventory

assemble to order:

company keeps the parts ready but doesn't put it together until YOU/customer orders.

make to order:

company makes order from scratch AFTER the customer orders

lean manufacturing:

focuses on reducing waste, making things more efficient. Achieve higher customer service with minimum levels of inventory investment.

product-process matrix

It's a chart that shows which type of production process to use based on how many products you make and how similar (standardized) they are.

continuous process is:

Converts raw materials into finished product in one continuous process. Production never stops cause it's always flowing.

Assembly line

product is made step by step as it moves down a line. Every worker does a small part until the product is finished.

For a service the customer should be

the focal point of all decisions and actions of the service organization

a service package is...

A bundle of goods or services that is provided in some environment. Every service has this.

What are the features of a service package?

1) supporting facility: the physical place or equipment needed

2) facilitating goods: the materials consumers USE

3) information: data used to provide the service

4) explicit services: the thing you can clearly see/experience

5) implicit services: the feelings/atmosphere/vibes you get

Services are generally classified according to...

who the customer is

high and low degrees of customer contact mean...

high degree is when the customer is directly involved in the service process.

low degree is when the customer is not directly involved while the service is being done.