123456789101112131415161718Course Outline, 15.760A Introduction Course Introduction Trial by Fire, powerpoint on Ops Strat Product Dev Dreamcast/Sega Chap 8 in Clkspd on 3-DCE, ABC's of CPM Operations Burger King Types of Processes, EOQ, Newsvendor Strategy Inventory Mgmt Inven probs, Relevant costs, Whirlwind/Web, Dell/Conqueror, Laptop KingProcess Alaska Airlines Levitt Technology Webvan They've got mail. Cisco MRP note, ERP Technology Note Process Process Flow Models Queueing Note & Inventory Buildup Analysis National Cranberry Univ Health Service Process Quality Mgmt Deming, Juran, Crosby; 6sig, Berwick, Memory Jogger Quality Toyota Lean Production, Karmarkar The Goal Bank of America Hammer & Cole Articles Supply Hewlett-Packard SMR paper Chain Barilla SPA Sport Obermeyer Wrap-Up Wrap-upThree Foundational Components of Operations Management Product Development (Sega, #2) Supply Chain (Nokia, #1, Dell, #4) Process Design & Management (Burger King, #3)15.760: Burger King 1. What are the operations objectives for Burger King? 2. Process flow diagram for hamburger sandwich production. 3. Where are the inventories? Why? 4. Peak hourly capacity vs. peak hourly demand for burger patties. 5. How does the management of operations relate to the company's method of competing in the marketplace? 6. What are the fastest clockspeed components of theBurger King value chain? 7. How well integrated are BK’s product, process, andmarket?BK: Process Flow Diagram for Sandwiches RAW BURGERS RAW BUNS BROILER BROILER MATE BUNS & BURGERS STEAMER CHEESE CONDI-MENTS TOMA-TOES SANDWICH ASSEMBLY FIN-ISHED SAND-WICHES ORDER DELIVERY MICRO-WAVEBK: Peak Load Demand vs. Capacity 34227 Sandwiches ÷ 4.3 weeks x 18% (Fridays) x 17.9% = month month (noon hour) 256 sandwiches , of which 48 are hamburgers peak hour 51 are cheeseburgers 24 are double cheeseburgers => peak demand = 147 burger patties/hour Each broiler chain cooks 8 patties => 480 patties minute hour (Assume other chain used for Whoppers) Case fact: max assembly rate = 200 burgers/hour 100 specialty sandwiches/hr Broiler utilization = 147/200 = 74%Bottleneck is assemblyRestaurant Operations Management 1. What are the key DESIGN parameters for Burger King? A. Product B. Process Technology C. Facility D. Work System/HR System 2. What are the key PLANNING tasks for Burger King? A. Supply B. Demand C. Capacity/Workload 3. What are the key CONTROL processes for Burger King? A. Production Control B. Quality Control C. Process Control 4. What are the key IMPROVEMENT processes for BK? A. Quality Improvement B. Productivity Improvement C. Technological Improvement D. Systems ImprovementSome Characteristics of Services (vs. Manufacturing) – Intangibility - explicit and implicit intangibles • “We manufacture perfume; we sell hope.” – Perishability - an hour of non-production is an hour lost • Airplane w/o spare part costs > $10K/hr – Heterogeneity - inherent variability of service • Each doctor’s bedside care is unique – Simultaneity - services are simultaneously produced and consumed • A poor attitude by the server cannot be recalledINDUSTRY CLOCKSPEED IS A COMPOSITE: OF PRODUCT, PROCESS, AND ORGANIZATIONAL CLOCKSPEEDS Mobile Phone INDUSTRY CLOCKSPEED THE Mobile Phone product technology THE Mobile Phone PRODUCTION PROCESS process technology THE Mobile Phone MANUFACTURING COMPANY organizationMobile Phone SystemCLOCKSPEED is a mix of Transmission Standards, Software and Handsets Mobile Phone System TRANSMISSION STANDARD SOFTWARE APPLICATIONS HAND SETslow clockspeed medium clockspeed fast clockspeedOPERATING SERVICES SYSTEM fast clockspeedslow clockspeed ISSUE: THE FIRMS THAT ARE FORCED TO RUN AT THE FASTEST CLOCKSPEED ARE THE MOST LIKELY TO STAY AHEAD OF THE GAME.Product Design Architect. Detailed Modular Perform. vs. Specs Integral &Funct. Process Unit Mfg.Syst Processes Functnl Tech. Cellular. & Equip. Supply Chain S.C. Logistics Architect. &Coord Orgs Set System & Alloc. Auton vs. of Tasks Integrated - Focus -Architecture - Technology A 3-D CE decision model illustrating the imperative of