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Manufacturing Organization
Produces physical products that can be inventoried and typically has low customer contact.
Service Organization
Offers intangible products that cannot be stored or inventoried and requires high customer contact.
High Volume
Associated with high repeatability, specialization, and capital intensiveness, resulting in low unit costs due to economies of scale.
Low Volume
Each staff member performs varied roles, leading to less systematization and higher unit costs.
High Variety
Operations need to be flexible to match customer needs, which can result in higher unit costs.
Low Variety
Processes are well-defined and routine, leading to standardization and lower costs.
High Variation in Demand
Requires changing capacity and flexible anticipation strategies to align with fluctuating demand.
Low Variation in Demand
Operations can remain stable, predictable, and routine, optimizing resource utilization and minimizing costs.
High Visibility
Operations need to focus on customer interaction skills due to high customer visibility and expectations.
Low Visibility
Time lag between production and consumption allows for standardization and centralization, reducing contact skills requirements and unit costs.
Quality - Being RIGHT
Focuses on accuracy and high standards of output, ensuring products or services meet specifications and customer expectations.
Speed - Being FAST
Emphasizes quick processing and response times, enhancing customer satisfaction by reducing order to delivery duration.
Dependability - Being ON TIME
Relates to the reliability of delivering products or services when promised, maintaining trust with customers.
Flexibility - Being ABLE TO CHANGE
The ability to adapt to changes in product design, process adjustments, or variations in demand.
Cost - Being PRODUCTIVE
Involves managing and optimizing costs to achieve high productivity, enabling competitive pricing while maintaining profitability.
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