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| Goods that are insensitive to external sources of variation |
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| The probability that a manufactured good, piece of equipment, or system performs its intended function for a stated period of time under specified operationg conditions. |
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| Quality function deployment |
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Definition
| both a philosophy and set of planning and communication tools that focus on customer requirements in coordinating the design, manufacturing, and marketing of goods or services. |
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| Customer requirements, as expressed in the customer's own terms |
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| process by which a model is constructed to test the good's physical properties or use under actual operating conditions, as well as consumer reactions to the prototypes. |
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| A process of designing quality into a manufactured good based on a prediction of potential quality problems prior to production. |
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| Cost avoidance or cost prevention before the good or service is created. |
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| Cost reduction of the manufactured good or service process. |
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| Failure-mode-and-effects analysis |
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Definition
| a technique in which each componento fo a product is listed along with the way it may fail, the cause of failure, the effect or consequence of failure, and how it can be corrected by improviing the design. |
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| Product and process simplification |
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| Process of trying to simplify designs to reduce complexity and costs and thus improve productivity, quality, flexibility, and customer satisfaction |
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| green manufacturing/practices |
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| Focusing on improving the environment by better good or service design |
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| Assumes that the smaller the variation about the nominal specification, the better is the quality. |
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| Expresses the cost of the variation from the target value in monetary terms. |
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| The explicit consideration of environmental concerns during the design of goods, services and processes and includes such practices as designing for recycling and disassembly. |
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| Service delivery system design |
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Definition
| includes facility location and layout, the servicescape, service process and job design, technology and information support systems, and organizational structure. |
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| The physical evidence a customer might use to form an impression. It also provides the behavioral setting where service encounters take place. |
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| Lean servicescape environment |
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Definition
| Very simple structures and service systems |
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| Elaborate servicescape environments |
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Definition
| More complicated structures and service systems |
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| Activity of developing an efficient sequence of activities to satisfy both internal and external customer requirements |
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| Focuses on the interaction, directly or indirectly, between the service-providers and the customer. |
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| physical or virtual presence of the customer in the service delivery system during a service experience. Measured by the percentage of time the customer must be in the system relative to the total time it takes to provide the service. |
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| Systems in which the percentage of customer contact is high |
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| Systems where the customer contact is low |
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| Customer-contact Requirements |
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| Measurable performance levels or expectations that define the quality of customer contact with representatives of an organization. |
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| Giving people authority to make decisions based on what they feel is right, to have control over their work, to take risks and learn from mistakes, and to promote change. |
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| Any problem a customer has with the service delivery system and includes terms such as service failure, error, defect, mistake or crisis. |
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| Process of correccting a service upset and satisfying the customer. |
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| promise to reward and compensate a customer if a service upset occurs during the service experience. |
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| Quality function deployment |
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Definition
| focuses on turning the voice of the customer into specific technical requirements that characterize a design and provide the "blueprint" for manufacturing or service delivery. |
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| Methods for designing goods |
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Definition
| begins by determining marketing and technical specifications which involves engineers who translate a concept into bluerints and select materials or purchased components. Key ones include engineering, FMEA, product and process simplification and design for environmental quality. |
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| includes facility location and layout, servicescape, service process and job design, technology and information support systems, and organizational structure. |
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| Ambient conditions (Dimension of servicescape) |
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Definition
| Manifest by sight, sound, smell, touch, and temperature |
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| Spatial layout and functionality (Dimension of Servicescape) |
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Definition
| how furniture, equipment, and office spaces are arranged |
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| Signs, Symbols, and Artifacts (Dimensions of Servicescape) |
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| The more explicit signals that communicate an image about a firm. |
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| the pricipal elements are customer contact behavior and skills; service-provider selection, development, and empowerment; recognition and reward; and service recovery and guarantees. |
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| Goods or services that are generally produced and delivered as one-of-a-kind or in small quantities, and are designed to meet specific customer's specifications. |
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| Option/ assemble-to-order |
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Definition
| Goods or services that are configurations of stadard parts, subassemblies, or services that can be selected by customers from a limited set. |
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| Goods or services that are made according to a fixed design, and the customer has no options from which to choose. |
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| Large-scale, customized initiatives that consist of many smaller tasks and activities that must be coordinated and completed to finish on time and within budget. |
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| Are organized around particular types of general-purpose equipment that are flexible and capable of customizing work for individual customers |
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| Are organized around a fixed sequence of activities and process steps, such as an assembly line to produce a limited variety of similar goods or services. |
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| Create highly standardized goods or services, usually around the clock in very high volumes. |
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| model that describes the alignment of process choice with the characteristics of the manufactured good. |
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| unique route through a service system. |
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| those that offer customers broad freedom to select the pathways that are best suited for their immediate needs and wants from many possible pathways through the service delivery system. |
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| constrain customers to follow a very small number of possible and predefined pathways throught he service system. |
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| Explain Product-Process matrixs |
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Definition
| The most appropriate match between type of product and type of process occurs along the diagonal in this. |
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| Projects, job shop processes, flow shop processes, and continuous flow processes |
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Definition
| These are the types of processes used to produced goods and services. |
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| Process and value stream mapping for process design includes |
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Definition
| Defining the purpose and objectives of the process, creating a process of value stream map that describes how the process is currently performed, Evaluate alternatives, Identify and define appropriate performance measures for the process, select the appropriate equipment and technology, Develope an implementation plan to introduce the new process design. |
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| Explain service-positioning matrix |
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Definition
| focuses on service encounter level and helps design a service system that best meets the technical and behavioral needs of customers. (staying along diagonal) |
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| Service encounter activity sequence |
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Definition
| Includes all of the process steps and associated service encounters necessary to complete a service transation and fulfill a customer's wants and needs. |
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| characterization of product growth, maturity, and decline over time. |
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A specific unit of work required to create an output
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| A group of tasks needed to create and deliver an intermediate or final output. |
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| is a network of processes |
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| Describes the sequence of all process activities and tasks necessary to create and deliver a desired output or outcome. |
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| All value-added activities involved in designing, producing, and delivering goods and services to customers. |
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| The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed. |
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| the fraction of time a work station or individual is busy over the long run. |
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| The average number of entities completed per unit time(The output time) from a process. |
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| Average time it takes to complete one cycle of a process. |
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| work activity that effectively limits throughput of the entire process |
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| =Resources Used/Resources Available, or =Demand Rate/(Service rate X Number of Servers) |
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Definition
simple formula that explains the relationship among flow time(T), throughput (R), and work in process (WIP)
WIP=R X T |
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| An Arrangement based on the sequence of operations that is performed during the manufacturing of a good or delivery service. |
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| consolidates the resources necessary to manufacture a good or deliver a service, such as people, materials, and equipment, in one physical location. |
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| horizontal expansion of the job to give the worker more variety. |
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| Consists of a functional grouping of equipment or activities that do similar work. |
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| management of all activities that facilitate the fulfillment of a customer order for a manufactured good to achieve satisfied customers at reasonable cost. |
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| Occurs when a work center completes a unit but cannot release it because the in-process storage at the next stage is full. |
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| Occurs whenever one stage completes work and no units from the previous stage are awaiting processing. |
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| product layout dedicated to combining the components of a good or service that has been created previously |
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| Technique to group tasks among workstations so that each workstation has the same amount of work. |
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| Interval between successive outputs coming off the assembly line. |
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| Concerned with improving productivity and safety by designing work-places, equipment, instruments, computers, workstations, and so on that take into account the physical capabilities of people. |
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set of tasks an individual performs.
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| raw materials, work-in-process, or finished goods that are maintained to support production or satisfy customer demand. |
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| vertical expansion of job duties to give the worker more responsibility. |
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| warehouses that act as intermediaries between factories and customers, shipping directly to customers or to retail stores where products are made available to customers. |
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| Based on five basic functions involved in managing a supply chain: plan, source, make, deliver, and return. |
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| firm that specializes in certain types of goods-producing activities, such as customized design, manufacturing, assembly, and packaging, and works under contract for end users. |
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| Designed for low cost by minimizing inventory and maximizing efficiencies in process flow. |
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| focus on flexibility and responsive service and are able to react quicly to changing market demand and requirements. |
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| Produces goods in advance of customer demand using a forecast of sales and moves them through the supply chain to points of sale where they are stored as finished goods inventory. |
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| produces only what is needed at upstream stages in the supply chain in response to customer demand signals from downstream stages. |
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| The point in the supply chain that separates the push system from the pull system. |
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| Process of delaying product customization until the product is closer to the customer at the end of the supply chain. |
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| Process of managing geographically dispersed service-providing facilities. |
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| Phenomenon that occurs when each member of a supply chain "orders up" to buffer its own inventory |
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| determines the X and Y coordinates (location) for a single facility. |
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| Where the (example: a consumer goods manufacturer) monitors and manages inventory for the customer (ex: grocery store) |
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| Supply Chain Operations Reference model |
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Definition
| is based on 5 basic functions: plan, source, make, deliver, and return. |
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