Chapter12 - Chapter12 Operations&Services Management...

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Chapter 12 Operations & Services  Management
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Operations Management The process of managing productive  systems that transform resources into  finished products.
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Productivity Productivity is the efficiency with which  inputs are transformed into outputs: Productivity = Output/Input Microsoft study Average work week = 47 hours Unproductive for 17 of those hours 69% said time meetings were unproductive
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Competitive Advantage The ability to outperform competitor’s due  to a core competency that is difficult to  imitate Innovation--Apple Customer service--FedEx Speed to market--Hybrid autos (Toyota) Manufacturing flexibility--Dana  (Corvette/Explorer axles) Product or service quality--Lexus
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Manufacturing Technology Technology is the combination of knowledge,  skills, equipment, and work methods used to  transform inputs into outputs Mass production (Schwinn bicycles) Large number of uniform products Assembly-line system Small-batch (Lance Armstrong’s bicycle) Variety of custom-fit products
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Manufacturing Technology,  cont. Continuous process production Continuously feed raw material through a  highly-automated system with computer  controls E.g., Liquids, solids, gases, electric current Oil refineries Electric power plants Extensive use of robotics Flexible manufacturing (“mass customization”)
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Manufacturing Technology,  cont. Cellular layouts place machines doing  different work together for better  teamwork. Minimizes movement of materials Lean manufacturing Best practices (Toyota’s JIT) Design for disassembly considers  recycling Remanufacturing may save up to 30% on  costs
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Value Chain Analysis Value Chain Specific sequence of activities that creates  products & services with value for the  customer Amazon Career value chain
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Generic Value Chain
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Automobile Industry Global Value Chain ( Duke )
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Automobile Industry Global Value Chain,  cont. Design (High Value Added)   - After researching consumer wants and  needs, automakers begin designing models which are tailored to the  public demand. In the past, this design process has  taken up to five  years . Today, however, through the 
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This note was uploaded on 05/26/2011 for the course MGMT 3000 taught by Professor Roberthirschfeld during the Spring '08 term at University of Georgia Athens.

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Chapter12 - Chapter12 Operations&Services Management...

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