Exam 2 Review Chapters 6 9 Equations on Exam Sight Selection X0 Sight Selection Y0 Process Capability Cp Process Capability Cpk Chapter 6 8 Service Facility Location o Center of Gravity Method X0 and Y0 minimize distance cost Coordinates Looks like a huge equation because of sums Issues are that it s just a suggestion exact coordinate may be in the middle of something such as Landis or I 10 o Site Selection using weighted factors Site Selection Site with highest score wins Problem is depends on the person rating it subjective Weights are also arbitrary Solution have a few people rate the sites and take the average of them o Site Selection Considerations o Strategic Considerations Competitive Clustering etc Competitive Clustering Among Competitors o e g Auto Dealers Motels o Off of highway many car dealerships together Car shopping area Saturation Marketing Same Firm o e g An Bon Pain Ice Cream Vendors Starbucks o Makes it harder for others to enter the market in that area Concentrated Regional Fill in Contiguous Regional followed by fill in o Same Demographics money seafood Contiguous Strategy Expands to states bordering each other o o o o Concentrated o Stays in one state same laws and regulations o Service Quality Dimensions 5 o Reliability Perform promised service dependably and accurately Example receive mail at same time each day Responsiveness Willingness to help customers promptly Example avoid keeping customers waiting for no apparent reason Assurance Ability to convey trust and confidence Example being polite and showing respect for customer Empathy Ability to be approachable Example being a good listener Tangibles Physical facilities and facilitating goods Example cleanliness o Perceived Service Quality o Service Guarantees a stated assurance that the customer will receive the intended service Unconditional L L Bean Our products are guaranteed to give 100 satisfaction in every way Return anything purchased from us at any time if it proves otherwise We do not want you to have anything from L L Bean that is not completely satisfactory Focuses on customers British Airways Sets clear standards FedEx Guarantees feedback Manpower Promotes an understanding of the service delivery system Bug Killer Builds customer loyalty by making expectations explicit Easy to understand and communicate Five minute lunch service vs prompt service pests vs pest control Meaningful Bennigan s 15 minute lunch service Easy to invoke Cititravel Easy to collect Manpower o Service Recovery addresses each customer s complaint individually but could lead to Service Recovery systems designed to ensure problems are corrected given that they occur Note Service Recovery Paradox Case by case perception of unfairness Systematic response identification of critical failure points and continuous updating Early intervention Substitute service customer attempts to fix problem before the customer is affected allows rival firm to provide service but could lead to loss of uses a protocol to handle complaints but needs prior Chapter 9 o Why supply chain management is important o Designing the SC Push system Pull system Dell Efficient supply chain Walmart efficient Responsive supply chain Apple Short shelf life company that sells innovative products GM or College Bookstore and a combination mainly push Produces goods in advance of customer demand using a forecast of sales and moves them through supply chain to points of sale where they are stored as finished goods inventory Produces only what is needed at upstream stages in the supply chain in response to customer demand signals from downstream stages o Performance Measurement Bullwhip Effect or Demand Amplification or Accelerator Effect states that variation in orders information increases as you go upstream in the supply chain i e towards the raw materials manufacturers The bullwhip effect results from order amplification in the supply chain a phenomenon that occurs when each member of a supply chain orders up to buffer its own inventory Many firms counteract but cannot eliminate this phenomenon by modifying the supply chain infrastructure and operational processes More variation the farther you move from the customer More common in o Causes Rational Decision Making Demand Forecast Updating Order Batching with Lead Times o Cures Operational Efficiency Price Fluctuations Shortage Gaming Channel Alignment Information Sharing Clockspeed States that the closer to the final customer you are the faster the rate of change in products and or technology you face Closer the product is to the end user the faster the rate of change o Cell phones have higher rate of change than airplanes Process Clockspeed processes o Process clockspeed Intel mfg processes vs Ford s mfg o Intel changes faster than building cars Product clockspeed commercial aircraft industry vs MICE industry i e multimedia information communications and electronics Organizational clockspeed considering the frequency of organizational restructuring o Google Apple would be faster than FSU o o Which of the following refers to the phenomenon of increasing variability as we move from the customer to the producer in the supply chain Bullwhip Chapter 7 o Walk through audit Why a manager may use it Managers may lose sensitivity to it because they get used to it from being there everyday o o Pareto Chart of Problems Tackle departure delays first because most number of problems o Statistical Process Control a methodology for monitoring quality of manufacturing and service delivery processes to help identify and eliminate unwanted causes of variation Common Cause unassignable Result of complex interactions of variations in materials tools machines information workers and the environment Common cause variation accounts for 80 to 95 percent of observed variation Only management has the power to change systems and infrastructure that cause common cause variation Front line employees can t effect it Special Cause assignable Arises from external sources that are not inherent in the process appear sporadically and disrupt the random pattern of common causes Special cause variation accounts for 15 to 20 percent of observed variation Front line employees and supervisors have the power to identify and solve specific causes of variation Controls Stable system a system governed only by common causes In control if no special causes affect the output of the process Out of control when special causes are present in the process Discrete