Chapters Summary

Chapter 2
WHY OPERATIONS IS VITAL IN AN ORGANIZATION?
- It can make or break
- Affects profits (Compare Company A and B)
- TBL
o EconomicBL – 5 Aspects with significant impact on economic performance
The Triple Bottom Line (or People, Planet, Profit) – SEE
 Social Bottom Line
 Environmental Bottom Line
 Economic Bottom Line
o Five aspects of performance have a significant impact on economic
performance – R3AF
Other than TBL – Stakeholders Perspective on Performance and CSR
Five Performance Objectives – QSDFC
 Quality
 Speed
 Dependability
 Flexibility (PMVD)
o Product Flexibility
o Mix Flexibility
o Volume Flexibility
o Delivery Flexibility
 Cost

Chapter 3
The 3 Key Attributes/Roles of Operations/Skills to Master in Operation - ISD
 Implementing Business Strategy
 Supporting Business Strategy
 Driving Business Strategy
Hayes and Wheelwright’s four stages of operations contribution – Four Stage Model – IEIE
 Internal Neutrality
 External Neutrality
 Internally Supportive
  Externally Suppotive

Perspectives on operations strategy – TBMO

 Top-down Perspective (CBF)
o Corporate Strategic Decision
o Business Strategic Decision
o Functional Strategic Decision
 Bottom-up Perspective
 Market Requirement Perspective
 Operations Resource Perspective
o Strategic resources and sustainable competitive advantage – SNmDi

The product/service life cycle influence on performance Objectives – IGMD

 Introduction Stage
 Growth Stage
 Maturity Stage
 Decline Stage

Process of Operations Strategy – FIMC

 Formulation – CCC
 Implementation – CMP
 Monitoring
 Control

Chapter 4

What is Process Design?

 Definition: Design, Process, Process Design
 Process Design and Product/Service Design are interrelated (Complement&Supplement)
 Objectives of Process Design
1. Performance Objectives (QSDFC);
2. Standardization of Process
3. Environmentally Sensitive Process Design and Ethical Issues Consideration
o Environmentally Sensitive Process Design Fundamental Issues – (SSWLE)

Process Types
- Manufacturing Process Types – PJBMC
- Service Process Types – PSM

Decision Tree 😊

Throughput = Sales – Raw Materials

Throughput Time = Inspection Time + Process Time + Move Time + Queue Time