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Manufacturing Organization
Produces physical products, characterized by low customer contact, capital-intensive operations, and long response times.
Service Organization
Offers intangible products, characterized by high customer contact, labor-intensive operations, and short response times.
High Volume (4 V’s)
Involves high repeatability, specialization, and economies of scale, resulting in low unit costs.
Low Volume (4 V’s)
Features varied roles for staff, less systematization, and higher unit costs.
High Variety (4 V’s)
Requires flexible operations to meet diverse customer needs, leading to higher unit costs.
Low Variety (4 V’s)
Involves standardized processes with routine outputs, resulting in lower costs.
High Variation in Demand (4 V’s)
Necessitates flexible capacity strategies to manage fluctuating demand.
Low Variation in Demand (4 V’s)
Characterized by predictable and stable operations, optimizing resource use and costs.
High Visibility (4 V’s)
Requires skills for effective customer interaction due to high customer contact.
Low Visibility (4 V’s)
Involves centralized, standardized processes with minimal customer interaction.
Top-Down Perspective
Aligns operations strategy with overall business objectives.
Bottom-Up Perspective
Utilizes operational learnings and improvements to inform strategy.
S-Shaped Curve of Innovation
Illustrates the typical lifecycle of an idea, from a slow start to rapid improvement, followed by natural limits.
Design Funnel
A process that narrows design options from concept to final specification.
Disintermediation
The removal of middlemen to facilitate direct interaction between customers and suppliers.
Functional Layout
Groups similar processes or functions in one location, such as in a library or hospital.
Line Layout
Arranges processes in a sequence, ideal for mass production.
Socio-Technical System (STS)
Integrates social and technical aspects within an organization.