operation management Chapter 7_Service Processes

operation management Chapter 7_Service Processes -...

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11/19/10 Operations Management Chapter 7 Service Process Strategy Operations Management, 9e
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11/19/10 Strategy-Driven þ Operations may be responsible for return-on-investment (ROI) þ Analyzing capacity alternatives should include capital investment, variable cost, cash flows, and net present value
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11/19/10 Decision Trees and Capacity Decision -$14,000 $13,000 $18,000 -$90,000 Market unfavorable (.6) Market favorable (.4) $100,000 Large plant Market favorable (.4) Market unfavorable (.6) $60,000 -$10,000 Medium plant Market favorable (.4) Market unfavorable (.6) $40,000 -$5,000 Small plant $0 Do nothing
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11/19/10 Utilization and Break Even A plant was designed to bottle 7,000 bottles of beer per day, but output is only 6,000 due to equipment problems. What is utilization rate? You plan to open a copy shop to sell Xerox copies on campus at $.05 ea. Estimate fixed cost at $15,000 and cost per copy sold (variable) is $.01 ea. Breakeven (units) = total fixed cost divided by (price – variable cost).
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11/19/10 Discussion of Matthews Yachts Should Matthews Yachts stay in standard fixed design yacht business? If so, how should they continue? Breakeven (units) = total fixed cost divided by (price – variable cost). Breakeven ($$) = total fixed costs divided by [1-(variable cost ÷selling price)] Selling price: $380,000. Fixed cost: $70,000 ea. Variable cost: $185,000 each
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11/19/10 Notify customer the car is ready Customer departs Customer pays bill F F Service Blueprint Personal Greeting Service Diagnosis Perform Service Friendly Close Leve l #3 Level #1 Level #2 Figure 7.10 N o Notify customer and recommend an alternative provider Customer arrives for service Warm greeting and obtain service request F Direct customer to waiting room F Perform required work Prepare invoice Ye s Ye s F F Standard request? Determine specifics N o Can service be done and does customer approve? F F F= foolproof, poka-yoke Customer inspects car Customer approves bill Bell rings to alert staff
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Process Analysis Tools þ Flowcharts provide a view of the big picture þ Time-function mapping adds rigor and a time element þ Value-stream analysis extends to customers and suppliers þ Process charts show detail þ Service blueprint focuses on customer interaction
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11/19/10 Service Factory Service Shop Degree of Customization Lo w Hig h Degree of Labor Lo w Hig h Mass Service Professional Service Service Process Matrix
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operation management Chapter 7_Service Processes -...

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