Pom Study Guide
Service Processes – Session 1
The Lean Enterprise
Clear focus in operating decisions leads to superior performance
But, limits to flexibility, risk of (market or technical) obsolescence, or the routine
Operations Strategy is about deciding what solution to offer (product or service), to who, and how to deliver it.
[pic] [pic]
[pic] [pic]
[pic]
Manufacturing Process – Session 2
Distinct business processes are appropriate to create distinct value propositions
• Jumbled flow (job shop) for low volume and highly customized solutions • Disconnected line flow (batch) for multiple products in moderate volumes • Connected line flow (Assembly line) for high volume of major products • Continuous flow for commodity products
Important sources of cost differentials
• Operations strategy • Operational efficiency
The dynamics of the product-process matrix
• Positioning in the P-P matrix is not only driven by operations strategy but also by the product lifeline • Moving in the P-P matrix requires changing the entire mindset/culture of the organization
[pic] [pic]
[pic] [pic]
[pic]
Part II – Business Process Analysis and Improvement
Customer Response Performance in Services – Session 3
From parameters to performance
If s = 1 server
[pic]or use lookup table if s > 1
Parameters
s Number of Servers λ Frequency of arrivals -> x/day / x/hr / x/minute τ Average service time -> days / hrs / minutes μ=1/ τ Service rate ρ Utilization; ρ = λτ/s
CV Coefficient of variation; CV = σ/μ (stddev/mean)
CVS Variation of service time = στ/μτ, = 1 if Exponential, 0 if constant.
CVA Variation of arrival rate = σλ/μλ, = 1 if Poisson.
Average performance measures
Wq Waiting time
W Total throughput time
Lq Number of customers in the queue
L Number of customers in the system
Wq + τ Customer response time
Single Server
What are the parameters? λ,τ, CVA, CVS 1. Find ρ = λτ
The Lean Enterprise
Clear focus in operating decisions leads to superior performance
But, limits to flexibility, risk of (market or technical) obsolescence, or the routine
Operations Strategy is about deciding what solution to offer (product or service), to who, and how to deliver it.
[pic] [pic]
[pic] [pic]
[pic]
Manufacturing Process – Session 2
Distinct business processes are appropriate to create distinct value propositions
• Jumbled flow (job shop) for low volume and highly customized solutions • Disconnected line flow (batch) for multiple products in moderate volumes • Connected line flow (Assembly line) for high volume of major products • Continuous flow for commodity products
Important sources of cost differentials
• Operations strategy • Operational efficiency
The dynamics of the product-process matrix
• Positioning in the P-P matrix is not only driven by operations strategy but also by the product lifeline • Moving in the P-P matrix requires changing the entire mindset/culture of the organization
[pic] [pic]
[pic] [pic]
[pic]
Part II – Business Process Analysis and Improvement
Customer Response Performance in Services – Session 3
From parameters to performance
If s = 1 server
[pic]or use lookup table if s > 1
Parameters
s Number of Servers λ Frequency of arrivals -> x/day / x/hr / x/minute τ Average service time -> days / hrs / minutes μ=1/ τ Service rate ρ Utilization; ρ = λτ/s
CV Coefficient of variation; CV = σ/μ (stddev/mean)
CVS Variation of service time = στ/μτ, = 1 if Exponential, 0 if constant.
CVA Variation of arrival rate = σλ/μλ, = 1 if Poisson.
Average performance measures
Wq Waiting time
W Total throughput time
Lq Number of customers in the queue
L Number of customers in the system
Wq + τ Customer response time
Single Server
What are the parameters? λ,τ, CVA, CVS 1. Find ρ = λτ