Once an operations strategy is adopted and articulated, the primary emphasis becomes
perfecting the system of activities that make up the strategy through detailed
refinements over a long period of time.
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In contrast to careers in finance and marketing, careers in OSCM involve hands-on
involvement with people and processes.
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Fixed-order quantity systems assume a random depletion of inventory, with less than an
immediate order when a reorder point is reached.
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A financially-driven reason for outsourcing is that it can turn fixed costs into variable
costs.
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A tellers’ window in a bank is an example of a single channel, multiphase queuing
system.
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Subcontracting is viewed as a risky strategy because the firm may lose control of
product design and pricing.
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A department of 25 machines is kept running by three operators who respond to
randomly occurring equipment problems. When an operator is absent, the amount of
production being lost by machines waiting for service increases. The analyst can use
queuing theory analysis to determine whether to pay overtime to an operator from a
different shift or not.
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MRP is least valuable in industries where a number of products are made in batches
using the same productive equipment.
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In conducting a Total Cost of Ownership analysis, it is probably best to use a team
representing the key functional areas.
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Dependent demand inventory levels are usually managed by calculations using
calculus-driven, cost-minimizing models.
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Productivity is a relative measure.
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A high-level map or diagram of a supply chain process can be useful to understand how
material flows and where inventory is held.
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A production facility develops virtuosity and works best when it focused on a widely
varied set of production objectives.
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Ideally in waiting line or queuing Analyze we want to balance the cost of service
capacity with the cost of waiting.
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An operations strategy must resist change because of the long term nature of equipment
and personnel investments.
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The least total cost method (LTC) lot-sizing technique calculates the order quantity by
comparing the carrying cost and the setup (or ordering) costs for various lot sizes and
then selects the lot in which these are most nearly equal.
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A service system with a high degree of customer contact is less difficult to control than
a low degree of customer contact service system.
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A capacity cushion is the amount of capacity less than expected demand.
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