Design of Goods and Services, Process Design, and Facility Layout

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Flashcards related to goods and service design, process design, and facility layout.

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32 Terms

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Process Design

A method used to understand and improve organizational processes, especially during expansion or when reaching new customers.

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Direct Interactions

Assist development teams to consider customer interactions with a product or service, ensuring customer satisfaction.

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Important Value

Understanding how a product or service enhances the market to increase customer engagement and satisfaction.

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Team Collaboration

Essential for efficiently managing product or service development, involving multiple individuals or teams.

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High Quality

Maintaining high standards in a product or service to compete effectively in the market, considering factors like effectiveness, safety, and usability.

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Specific Boundaries

Providing crucial safety or usage information to customers, targeting processes for each customer segment.

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Legal Compliance

Ensuring that a company’s products and operations meet all applicable legal standards at both state and national levels.

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Continuous Testing

Assessing a product or service continuously to understand customer perceptions and refine processes, incorporating feedback for improvements.

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Informed Revisions

Using feedback from testing to identify and implement necessary revisions to a product or process, enhancing operations.

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Product Variety

Whether a product is highly standardized or customized.

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Volume of Output

Whether a business is set up for large or small production volumes.

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Make-to-order

Made after the order is received and allows customization.

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Make-to-stock

Goods produced in anticipation of customer demand based on sales forecast, stored until order.

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Project (Process Type)

A one-time event with high customization, resource use, and complex activities, resulting in a single output.

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Job Shop

Used when each product is unique, production is intermittent, workers are highly skilled, and output is low.

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Batch

Identical products are grouped and processed in batches, with general-purpose equipment.

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Repetitive

Produces standardized products with high output, specialized equipment, and lower skill level employees.

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Continuous

High-volume production of non-discrete products like liquids or materials such as sugar or steel.

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Hybrids/Mass Customization

Combines low-cost, high-volume production with customer-specific customization, often using computer-aided manufacturing.

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Facility Layout

The way organizations arrange equipment, departments, or work centers, to streamline production, reduce waste, and improve safety.

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Fixed Position Layout

Workers, tools, & equipment brought to a stationary product site; common in construction and major repairs

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Process Layout

Departments are arranged by function; common in manufacturing and retail; products move through departments

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Product (Line) Layout

Assembly or production lines with equipment laid out sequentially; used for high-volume products; workstations add to or modify product.

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Cellular Layout

Hybrid layout with process and product layout elements; grouped into cells using group technology for efficiency and flexibility.

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Office Layout

Employees are grouped by tasks or teams; emphasizes collaboration and open concept with less paper and furniture.

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Retail Layout

Maximizes sales per square foot by studying traffic patterns to increase exposure to product.

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Warehouse Layout

Planned design to streamline operations in production & distribution: optimizes space, increases productivity, and utilizes resources effectively.

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Throughput time

Time from the start to the end of a process, including process, waiting, inspection, rework, and movement times.

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Lead time

Time between customer's order and when product is ready to ship.

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Cycle time

Rate at which operation produces each unit; time between completion of each product.

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Takt time

Rate at which a firm needs to process product to meet demand;

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Process Flowcharting

Diagram showing process steps and decisions; team members have a clear understanding of current process.