Intro to Operations 3230 Midterm Exam Review Using Operations to Compete Chapter 1 1 Why is operations supply chain management important to business survival Because it translates materials and services into output a In your own words what is operations supply chain management about Operations Supply Chain Management is about making decisions to deal with problems and issues that affect RIGHT6 quality quantity place customer time cost 2 What are key inputs into any process that produces a product or a service Workers managers equipement facilities materials land and energy a What is a product What is a service Product any tangible output Service any intangible output b Can there be services without products No 3 How are manufacturing and service processes different Manufacturing processes output physical tangible goods and have a low degree of customer contact Also has a long response time and is capital intensive Quality is easily measured Service processes produce intangible outputs and have a high degree of customer contact Also is labor intensive and has a short response time Quality is not easily measured 4 What 4 core processes do operations supply chain managers obsess over Order fulfillment customer relationship supplier relationship and new product service development a What decisions do operations supply chain managers typically make Decisions pertain to process capacity inventory quality logistics and workforce Safety Quality Delivery Productivity Cost and People 5 What is an operations strategy What is a strategy Operations strategy the means by which operations implements a firm s corporate strategy and helps to build a customer driven firm 6 What are core competencies and what do they include Core competencies the unique resources and strengths that an organization s management considers when formulating strategy They include workforce facilities market and financial know how and systems and technology 7 What are the four competitive priorities and competitive capabilities Time flexibility quality and cost a How are competitive priorities and competitive capabilities different Competitive priorities are the critical dimensions that a process must possess to satisfy its internal or external customers while competitive capabilities are the dimensions a process actually possesses and is able to deliver 8 What is an order winner What is an order qualifier Order qualifier is what a firm must have to be in the business Order winner is what a firm must have to win customers sales and beat out competition a Are competitive capabilities order winners or order qualifiers A competitive capability is an order qualifier if competitors also have it and it is an order winner if the firm has it to win customers sales and beat out competitors Project Management Chapter 2 Project interrelated set of activities with definite starting and ending point which results in unique outcome for specific allocation of resources 1 o Project manager must define Project management systemized phased approach to dedining organizing planning monitoring and controlling projects Program interdependent set of projects that have common strategic purpose In order to ensure project success Scope and objectives of a project must be clearly defined this captures desired goals outcomes in the form of deliverables Project manager and team should b picked so qualities of manager aligned with roles the manager must play o Facilitator resolve conflicts ensure there are appropriate resources o Communicator progress and resources requests and must be communicated o Decision maker sensitive to how teams perform and ready to make tough decisions Roles of project team o Technical competence o Sensitivity0sensitive to interpersonal conflicts o Dedication help solve problemsof project not in their immediate expertise Organizational structure impact on project Functional project housed in specific department functional area Pure project members work exclusively for project manager Matrix combination of functional and pure project Project managers report to program managers who coordinate resources and tech across functional boundaries Planning projects 5 steps 1 Defining work breakdown structure statement of all work that has to be completed 2 Diagramming the network helps monitor and control projects a Program evaluation and review technique PERT created for us missile project b Critical Path method CPM developed to schedule maintenance shutdowns i Differences are very minor betwee3n two 4 methods for both ii Consider projects as networks which leads to ID interrelationships in activities iii Estimate completion time of project iv Reports highlight activites crucial to completing project on time v Analyze time and cost trade offs for resources 3 Establishing precedence relationships determines sequence for undertaking activities activity must finish b4 next one can start 4 Estimating activity times 5 Using Activity On Activity node Approach 2 a Activity on activity node network nodes represent activities and arcs re precedence relationships between them Developing the schedule Schedules help managers achieve objectives of projects 3 parts in them 1 Estimate completion and find critical path sequence of actitives between stat and finish that takes longest time to compelte ID start and finish times for each activity 2 a Earliest finish time EF activities earliest start estimated duration b Earliest start time ES earliest finish time of preceding activity Latest finish time LF latest start time that immediately follows c d Latest start time LS latest finish time estimated duration 3 Activity slack max length of time an activity can be delayed without delaying the entire project Activities on the critical path have zero slack Cost tradeoffs in project management Total project costs sum of direct costs indirects costs and penalty costs Direct costs labor materials other costs related to project activities Indirect costs administration depreciation financial Shorter duration of project lower cost Penalty sot cost if project extends beyond certain date Crashing shorten an activity to by using direct resources overtime to reduce overall project completion Other costs Normal time NT time necessary to complete an activity under normal conditions Normal cost NC activity cost associated with normal time Crash time CT shortest possible time to complete an activity Crash cost CC activity cost associated with crash time Grantt chart