Operation Managment

In: Business and Management

Submitted By salman555au
Words 5535
Pages 23
Chapter 4
Product and service design
It is the major factor in
- Cost

- Customer satisfaction

- Quality

- Competitive advantage

- Time-to-market
Objectives of Product and Service Design
 Main focus
- Customer satisfaction

- Understand what the customer wants

 Secondary focus
- Function of product/service

- Appearance

- Cost/profit

- Ease of production/assembly

- Quality

- Ease of maintenance/service

Product or Service Design Activities
1. Translate customer wants and needs into product and service requirements
2. Refine existing products and services
3. Develop new products and services
4. Formulate quality goals
5. Formulate cost targets
6. Construct and test prototypes
7. Document specifications

Reasons Design or Re-Design : The driving forces for product and service design or redesign are market opportunities or threats:
- Economic

- Competitive

- Social and Demographic

- Cost or Availability

- Political, Liability, or Legal

- Technological

Regulations and Legal Considerations
 Product Liability : A manufacturer is liable for any injuries or damages caused by a faulty product.
 Uniform Commercial Code : Products carry an implication of merchantability and fitness.
Designers Adhere to Guidelines
- Produce designs that are consistent with the goals of the company
- Give customers the value they expect
- Make health and safety a primary concern
- Consider potential harm to the environment
Other Issues in Product and Service Design
- Product/service life cycles

- Robustness of design

- Degree of standardization

- Degree of newness

- Mass customization

- Cultural differences

- Product/service reliability

- Global product design

Phases in Product Design and Development
1. Idea generation

3. Product specifications

2. Feasibility analysis

4. Process…...

Similar Documents

Operation Production Managment

... Financial analysis Initial investment Capital 80, 00000 Fixed Assets cost Registration of firm 17,500 Building 50, 00000 Equipment 2, 37,500 Other equipment 1, 00000 Cost of employee 3, 90,000 Total fixed cost 5745000 Variable cost Cost of inventory 22, 00000 Utility bills 30,000 Transportation cost 25, 000 Total variable cost 2255000 Total cost 8000000 TC = FC + VC 8000000 = 5745000 + 2255000 8000000 = 8000000 Production of product: Report has been sent to the concerned management for approval so that production and initiation of full scale operation could be undertaken. Glossary M&J salts Musadaq and junaid salt EBP Enterprise Buyer Professional Edition TC total cost VC variable cost FC Fixed cost...

Words: 2304 - Pages: 10

Operations Managment

...Melanie Vijarro BMGT 4345 Case #4 Page 847 #1,2,3 & 5 #1 Draw a diagram of OSP’s cash flow cycle. Explain the cash flow difficulties described by Josh Frey and Dave Burnett (refer to the Case-in-Case). Why did Frey’s strategy of more sales fail to improve OSP’s cash flow? [pic] The cash difficulties described between Josh Frey and Dave Burnett stated that if you have accounts payable due $3,000,000 and your accounts receivable is $5,000,000 but not for 30 days you have some big problems. Frey’s strategy failed for more sales to try to improve OSP’s cash flow is because of the reason stated previously. If you keep selling, which is a good thing but you do not request a percentage down from your customer you will be in the hole due to insufficient funds on hand to order the merchandise you need to fulfill your sales order that you have taken as well as payroll and other company related costs. This alone can bring a company down and keep it from ever being successful. #2 Discuss OSP’s “replicable sales process.” Why is this issue so important to OSP’s success? OSP’s replicable sales process is based upon how he runs his business. As he stated, “when OSP did accrue more cash, it was plowed into growth.” He knows how to sale and he has a good staff that he has trained very successfully. His theory is that there is an equation to sales, first phone calls, then emails and meetings leads to prospects then to sales. He is known for having such a......

Words: 644 - Pages: 3

Managment

...followers because of their influence and popularity and they have charismatic types of power to influence people. The very first thing we find in a great manager is a total commitment to building a team that functions in unison to reach their goals. Great managers realize they are a team. Their team is made up of individuals that have different beliefs, values, and ideals, but they all have to function in unison to reach the goals of the company. 1. Managers are not necessarily leaders: There are business leaders and there are business managers. In addition to that some leaders are managers and some managers are leaders, many times leaders and managers are very different. We fail to distinguish these differences in our businesses' operations. Hence, it is not necessarily to be that all mangers are leaders. 2. Sense of self: In a case of manager, it comes from perpetuating and strengthening existing institution and they feel as a part of the organization where as leaders it comes from struggles to deeply alter human and economic relationship and they feel separated from the organization. 3. Some Traits of leaders and managers. Leaders must have some traits like honesty, forward looking; competent, inspiring and intelligent skills etc. managers have some traits like Self-Motivation, Integrity and Trustworthiness, Being a Team Player and Conflict-Resolution Abilities etc. so it is very important to understand all these traits to become a competent leader......

Words: 591 - Pages: 3

Operations

...28-Feb-11 Operations MBA - MBA in Operations … M.B.A. Today Preparing for your future... today • Home • Distance Learning • Professional Networking • Salaries • Careers • Schools by Location Pick a State ==>> Operations Management MBA Programs R e que st inform a tion from the top O nline and Ca m pus O pera tions Mana ge m e nt schools in the country. Specialized MBA Programs General MBA Programs Accounting Programs Finance Programs Health Care Management Programs Human Resource Programs Marketing Programs Project Management Programs Public Administration Programs Operations Management Programs Technology Management Programs Operations MBA Programs Le arn wha t typica l sala rie s a re for O pe ra tions Ma na gem e nt ca re ers a cross the state s. Typical Career Salaries for MBA graduates With a Global marketplace increasing levels of competition, organizations need to be fiercely efficient and effective in their efforts to gain their share of profits. Operations Manager career prospects appear relatively bright. How ever, growth for this occupation should only mimic growth in the careers the Operations Managers oversee. Operations Manager salaries are going to be seeing the greatest rise. Along with competition in other industries comes a need for the most competent and highly trained. A valuable Operations Manager is current with technological advancement as well as skilled in the area of creating successful......

Words: 1341 - Pages: 6

Operations Managment Case Analysis - Nine West

...Structure: NWRS operates with separate merchandising and stores organizations with the former responsible for assortment, pricing, purchasing and store display decisions at each store while the latter is responsible for staffing the stores with appropriate people, controlling various selling expensed and customer service. The “retail directors” of NWRS were similar to both the buyers and merchandisers of other retail companies. However, retail directors, who were each responsible for 50 to 60 stores, reported to a merchandise manager who in turn reported to the president of NWRS. In the case of the operating organization, a single operations manager functioned in similar capacity to a merchandise manager and had six regional sales managers reporting into him with each looking after 50-60 stores. Reward Structure: Field personnel in the operations division were reviewed primarily on the achievement of total sales plan and corporate EPS (earnings per share) while retail directors and the merchandising organization was evaluated on basis of sales and gross margin performance. This is a small fallacy and will be discusses later on in our analysis. Forecasting: At NWRS, retail directors forecast demand on an aggregate level using historical data and trends and then break it down into store and SKU level forecasts. This forecast is then clubbed with fashion trend forecasting which consists of input from designers and NWRS merchandise managers who travel to Europe to view......

Words: 1656 - Pages: 7

Operation Managment

...[pic] Business plan: “CoffeeDrive” Course: Introduction to Operations Management Instructor: Yevgeniya Kim Bizhanova Korkem 20120882 Kokbayeva Aliya 20120410 Murzakhmetova Yuliya 20123246 Tursunova Aida 20121424 2014 Business Description The company is named ”Coffee Drive”. The main conception of this business is providing service to the place that is convenient for the clients. The type of operation of the business is food service. It is well known fact that Kazakhstan is developing country, that is why this type of business is an unexpended whereas in Europe coffee machines business. For establishing the business firstly, we have to register SP (Sole Trader). The main aim of this work is moving from one point of the city to another. These points are places with big pass ability such as business offices, parks, universities, malls, and hospitals. The next step is to get permission from administration of these companies where we are going to implement our service. The main aim of the business is to sell the products to people who have limited time for lunch. As we mentioned this business is new, we need to promote it through the partnership with centre of cellular communication (Activ or Kcell etc) by sms distribution with information about schedule of our location. This type of business has both strengths and weaknesses. We can face such problems as disability to make an agreement with some companies and this fact......

Words: 3091 - Pages: 13

Production and Operations Managment

...                  Production and Operations Management   Introduction  Improving the operations of a company that will enhance productivity and product quality may not only certainly benefit a company’s bottom line, but can also benefit national interests.  Marathon Oil, for example, is the United States’ “fifth largest transportation fuel refining company and the largest in the Midwest” (“Corporate Profile”).  This Findlay, Ohio based company’s operations “include a six-plant refining network, a comprehensive terminal and transportation system, and extensive wholesale and retail marketing operations” (“Corporate Profile”).  Marathon’s six refineries have a total refining capacity of 1.142 billion barrels per day and provide the United States with approximately seven percent of its total capacity (“About MPC”). Marathon sells 4.1 billion gallons of gasoline each year that are then distributed to over five thousand independently owned and operated Marathon locations (“About MPC”).  Marathon owns Speedway, the fourth largest convenience store chain in the U.S. Speedway not only sells gasoline but also sells food and beverages and a variety of other products in one of its 1350 locations scattered throughout the Midwest (“About MPC ”). To be sure, examining Marathon’s overall product process and identifying those phases which might be improved could result in more efficient refining and distribution of the United States’ life blood: transportation......

Words: 2695 - Pages: 11

Operation Managment

...product. number of college graduates is spawning a network of creative new suppliers. But OEMs that have outsourced purchasing and cut their own purchasing staffs might not be able to spot these up-and-comers. If a particular supplier shows promise, an OEM should consider retaining control over that relationship. While this might seem obvious, a lot of companies don’t do it—mainly because they are focused too much on bottom-line issues and too little on how suppliers could help them innovate. Managers should remember that the suppliers of important technology might not necessarily be those currently responsible for the highest-cost items on the BOM. A case in point is human-machine interface (HMI) technology, which makes the operation of products more intuitive. Five years ago the suppliers that delivered HMI-related software and design work did not represent a significant portion of a product’s total cost. But Apple, for one, felt that HMI technologies would play a strategic role in future products, so it maintained close relationships with companies in that domain. That was wise: HMI technologies now account for more than 40% of the iPad 2’s total cost, according to iSuppli, a market research firm. How can an OEM identify inventive lower-tier suppliers? One way is to look for suppliers that have been especially successful at reducing the cost of what they produce. Cost innovators usually are also technology innovators. Another is to look for......

Words: 3454 - Pages: 14

Operations Managment

...Problem Set: Introduction to Operations Management (IOM OS) IOM1 Differences between Goods and Services [20 pts] Explain differences between goods and services in terms of: * Customer contact for goods is low because a customer buying goods will never come in contact where the goods are being produced. Versus for services its high because the customer is usually present during the formation of the service. * Opportunity to correct problems for goods is high because they may be exchanged or tailored versus for a service low because you can’t reconstruct a service that has already been performed. * Variability of input is low because you can always fix or change the goods being produced and output is high because you can’t change the finished product. * Measurement of productivity for goods is simple because you can count the amount of finished goods and inventory, and for services difficult because you can’t keep track of all the services being given. * Evaluation of employees for goods is easy as you can monitor the outcome but for services it is difficult because you can’t supervise all services performed. IOM2 Customization [10 pts] Discuss the impact of higher customization on complexity of manufacturing or service processes, level of worker skills, and productivity. The impact of higher customization compared to standardized products and services is that it is more labor-intensive, and more time-consuming resulting in a slower workflow.......

Words: 1961 - Pages: 8

Managment

...Mission, Vision, Values, & Managment In today's post-recession workforce, gaining employment is so difficult that once hired, life has new meaning. The mission, vision, and values may mean different things to managers. With a closer look into an organization, from the newest employees up to the experienced senior management, it is found that many of the staff members do not have knowledge enough to recall the mission and vision statement. The military is used as an example, setting the standard for other public and private entities. In this case, let's examine a human resources unit in the United States Air Force. The Air Force Civilian Services mission and vision statement aim to "provide elite administrative, operation and technical support for the Air Force vision; Global vigilance, reach, and power" ('Our Mission & Vision', 2016). The mission and vision statement must work together to meet the organizational goals. In examining the core competencies, one must consider the true definition and rationale. Also, the Air Force has a set of strategic goals that determine the long-range direction of the organization. The attitudes, behaviors and goals of each Air Force civilian in the group are meant to demonstrate alignment with the vision, mission, values, and competencies. For a company to manifest values and a culture that leads to success, these vital mantras must be reiterated, exercised, memorized, and done by all employees. Mission Statment There is a......

Words: 1493 - Pages: 6

Production and Operation Managment

...Semester II Examination Papers IIBM Institute of Business Management Semester-II Examination Paper MM.100 Production and Operation Management Section A: Objective Type (30 marks) • This section consists of Multiple choice questions & Short Notes type questions. • Answer all the questions. • Part One questions carry 1 mark each & Part Two questions carry 5 marks each. Part One: Multiple choices: 1. If the number of restrictions on sources be ‘a’ and the number of restrictions on destinations be ‘b’ then with the use of ‘stepping stone procedure’, the number of ‘used cells’ will be a. a+b+1 b. a+b+2 c. a-b-1 d. a+b-1 2. Value of smoothing coefficient ‘α’ lies a. Between 1 and ∞ b. Between 0 and 1 c. Between -1 and 1 d. Between 1 and 2 3. Forecasting error is a. The difference between forecasted demand and actual demand b. The ratio of forecasted demand and actual demand c. The difference between the standard forecast demand and the evaluated forecast demand d. Ratio of standard forecast demand and the evaluated forecast demand 4. For forecasting the analyzers plot the demand data on a time scale, study the plot and then look for the consistent patterns. Now what does the high noise mean to these patterns a. Many of the point lie away from the pattern ...

Words: 1528 - Pages: 7

Operation Managment

...Product capacity 2. Blue print brought from world leader- microwave oven technology 3. Production capacity—three shifts; 24/7-365 Galanz has progressed through three distinct phases of business development in getting to where it is today. These are: Phase 1 Galanz started off as an original brand Manufacturer (OBM) manufacturing and selling own-branded microwave ovens in the domestic Chinese market. Production technology and key component parts were purchased from Japan. Phase 2 Galanz then incorporated contract manufacturing into its business operations undertaking original equipment manufacturing (OEM) of component parts for foreign microwave manufacturers and exporting them to their respective markets Phase 3 Galanz then expanded their original brand manufacturing (OBM) arm in the international market as well as building up an Original Design Manufacturing business. Over the years, Galanz’s operations objectives changed from a focus on customer service at low cost through to resource utilization and innovation. | | |VOC |VOB | | | |Cost |Quality |Service |Flexibility |Delivery | In addition to......

Words: 1369 - Pages: 6

Operations Managment - Kudler Fine Foods

...Running Head: OPERATIONS MANAGEMENT Operations Management MMBPL502 Patricia Schroeder January 23, 2012 Introduction Kathy Kudler, the Founder of Kudler Fine Foods, has decided to expand her business by contracting with local growers of organic produce. Kathy has requested that I report what steps need to be taken and what operational changes will be necessary if Kudler decides to pursue this business path. The report should identify those business processes at Kudler that could be affected by this decision and explain how they would be affected. It should describe how Kudler’s supply chain would be affected by this decision and finally, it should describe the quality control tools and performance standards that Kudler would need to put in place to ensure the effectiveness of its operations. Business Process It is useful to categorize processes to describe how a process is designed. By being able to quickly categorize a process, we can show the similarities and differences between processes. Make-to-order – this process is activated only in response to an actual order. Inventory (both work-in-process and finished goods) is kept to a minimum. Make-to-stock – this is a highly efficient process that produces standard products that can be delivered quickly to the customer. Hybrid – this process combines the features of both make-to-order and make-to-stock (Chase, Jacobs, Aquilano, 2005). Inventory Control Each of Kudler’s......

Words: 1349 - Pages: 6

Chapter06 Operation Managment

...Founded in 1989, Arnold Palmer Hospital is one of the largest hospitals for women and children in the U.S., with 431 beds in two facilities totaling 676,000 square feet. Located in downtown Orlando, Florida, and named after its famed golf benefactor, the hospital, with more than 2,000 employees serves an 18- county area in central Florida and is the only Level 1 trauma center for children in that region. Arnold Palmer Hospital provides a broad range of medical services including neonatal and pediatric intensive care, pediatric oncology and cardiology, care for high-risk pregnancies, and maternal intensive care. The Issue of Assessing Quality Health Care Quality health care is a goal all hospitals profess, but Arnold Palmer Hospital has actually developed comprehensive and scientific means of asking customers to judge the quality of care they receive. Participating in a national benchmark comparison against other hospitals, Arnold Palmer Hospital consistently scores in the top 10% in overall patient satisfaction. Executive Director Kathy Swanson states, “Hospitals in this area will be distinguished largely on the basis of their customer satisfaction. We must have accurate information about how our patients and their families judge the quality of our care, so I follow the questionnaire results daily. The in-depth survey helps me and others on my team to gain quick knowledge from patient feedback.” Arnold Palmer Hospital employees are empowered to provide gifts in value up to......

Words: 510 - Pages: 3

Operations Managment Paper

...Operations Management Paper An operations manager is someone who watches over the day to day process of a business and has a certain role in that business. In this paper I will define what the role of an operations manager would be in a company. I also want to talk about how the use of a project manager is useful in a business. I will also state some jobs that an OM should be doing in order to be successful. I also want to talk about how and what a manager is. They are first and foremost a leader. We will explore what a leader is and how they are good at their job and the tools that they need in order to be successful at their job. When we look at a business what do we see? We see roles that are clearly defined. So let’s look at job where we see those roles and how an OM would be someone who can manage these people. What is the main purpose of an operations manager? They are someone who enforces and upholds the management process and that consists of planning, organizing, staffing, leading, and controlling. (Heizer and Render. Pg 7). We will talk about this in further detail and I will explain how I do this in a company. The job of a manager is not just his duties and his roles within the company but it is his responsibility to be a good leader and there is a lot more to it than just giving orders and good leader is someone who inspires others to follow. What is a manager’s responsibility? Well they need to be able to accomplish certain tasks through their...

Words: 1912 - Pages: 8