Lecture 2.pdf - Operations and Supply Chain Strategies Lecture Two Performance Dimensions 2 Customers seek value in terms of four main performance

Lecture 2.pdf - Operations and Supply Chain Strategies...

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Operations and Supply Chain Strategies Lecture Tw o
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Customers seek value in terms of four main performance dimensions Quality Cost Flexibility Delivery (Time) 2 Performance Dimensions
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Quality ... Sub-dimensions Performance Quality addressing the basic operating characteristics of the product or service. Conformance Quality addressing whether the product was made or the service performed to specifications. Reliability Quality addressing whether a product will work for a long time without failing or requiring maintenance. The relative importance of these quality sub-dimensions will differ from one customer to another. Performance Dimensions ... Quality 3
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Performance Dimensions ... Time Time ... Sub-dimensions Delivery Speed the ability for the operations or supply chain function to quickly fulfill a need once it has been identified. Delivery Reliability The ability to deliver products or services when promised. Two important measures: delivery window - the acceptable time range in which deliveries can be made. accuracy of the quantity shipped. 4
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Flexibility how quickly operations and supply chains can respond to the unique needs of different customers. Flexibility ... Sub-dimensions Mix Flexibility The ability to produce a wide range of products or services. Volume Flexibility The ability to produce whatever volume the customer needs. Changeover Flexibility The ability to produce a new product with minimal delay. Performance Dimensions ... Flexibility 5
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Flexibility has become particularly valuable in new product development . Some firms compete by developing new products or services faster than their competitors.
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