Sustainability means meeting the needs of the present without compromising the ability of future generations to meet their

needs, LCA is a formal evaluation of the environmental

impact of a product. Product Development Continuum: Product life cycles are becoming shorter and the rate of technological change is increasing, Developing new products faster
can result in a competitive advantage, Time-Based Competition. External Development Strategies: Alliances, Joint ventures(Purchase technology or expertise by acquiring the
developer);Internal Development Strategies: Migrations of existing products, Enhancements to existing products(New internally developed products), Purchasing technology by
acquiring a firm(Speeds develop, Issues concern the fit between the acquired organization and product and the host), Joint Ventures( Both organizations learn, Risks are shared),
Alliances(Cooperative agreements between independent organizations, Useful when technology is developing, Reduces risks). Defining a Product: First definition is in terms of
functions, Rigorous specifications are developed during the design phase, Manufactured products will have an engineering drawing, Bill of material (BOM) lists the components of a
product. Group Technology: Parts grouped into families with similar characteristics, Coding system describes processing and physical characteristics, Part families can be produced
in dedicated manufacturing cells. Group Technology Benefits: Improved design, Reduced raw material and purchases, Simplified production planning and control, Improved layout,
routing, and machine loading, Reduced tooling setup time, work-in- process, and production time. Documents for Production: Assembly drawing, Assembly chart, Route sheet, Work
order, Engineering change notices (ECNs). Assembly Drawing: Shows exploded view of product, Details relative locations to show how to assemble the product Ex:IKEA.
Assembly Chart: Identifies the point of production where components flow into subassemblies and ultimately into the final product. Route Sheet: Lists the operations and times
required to produce a component, what are the sequence of production of product. Work Order: Instructions to produce a given quantity of a particular item, usually to a schedule.
Engineering Change Notice (ECN):A correction or modification to a product’s definition or documentation(Engineering drawings,Bill of material), Quite common with long product
life cycles, long manufacturing lead times, or rapidly changing technologies. Product Life-Cycle Management (PLM): Integrated software that brings together most, if not all,
elements of product design and manufacture(Product design,CAD/CAM, DFMA;Product routing, Materials, Assembly, Environmental). Documents for Services: High levels of
customer interaction necessitates different documentation, Often explicit job instructions, Scripts and storyboards are other techniques, Flowchart or service blueprint. Application of
Decision Trees to Product Design: Particularly useful when there are a series of decisions and outcomes which lead to other decisions and outcomes. Sustainability: Meeting the
needs of the present without compromising the ability of future generations to meet their needs; More than “going green”; Includes employees, customers,community, and company
reputation. Corporate SocialResponsibility: How products and services affect people and the environment; Stakeholders have strong opinions about environmental, social, and ethical
issues; Doing what’s right can be beneficial to all stakeholders; Corporate social responsibility (CSR). Triple Bottom Line: economic Prosperity, social responsibility, Environmental
stewardship. 3P Sustainability Strategy – People, Planet and Profit. Sustainable supply chain:Design for sustainability; Incorporate sustainability at every stage in the supply chain;
Incorporate the 3Rs into product design Reduce,Re-use,Recycle. Adding Service Efficiency: Service productivity is notoriously low, inpart because of customer involvement in the
design or delivery of the service or both. Ways to increase efficiency: Limit the options:( providing a list of options(funeral) or series of photos (hairstyle) ambiguity can be reduced.
An early resolution of the product definition can aid efficiency as well as customer expectations). Delay Customization( Design the product so that customization is delayed as late
in the process as possible. EX:Hair saloon, shampoo conditioner done in low cost standard way, the color and styling customization done last. Also in restaurants how you want the
meat), Modularization( Modularize the service so that customization takes the form of changing modules. This services allow for custom services to be designed as standard modular
entities Ex: meals, clothes, education, insurance, investment), Automation( divide the service into small parts, and identify those parts that lends themselves to automation Ex; ATM
instead of checks, amazon go store, Airline ticket d=service via kiosks).
Process Strategy: The objective is to create a process to produce products that meets customer requirements within cost and other managerial constraints. How to produce a product
or provide a service that (Meets or exceeds customer requirements,Meets cost and managerial goals), Has long term effects on(Efficiency and production flexibility, Costs and
quality). Lead time – the time needed to respond to a customer order. Customer order decoupling point – where inventory is positioned to allow entities in the supply chain to operate
independently. Four basic strategies: Process focus, Repetitive focus, Product focus, Mass customization. Process Focus: low-volume, high-variety, intermittent processes, Facilities
are organized around specific activities or processes, General purpose equipment and skilled personnel, High degree of product flexibility, Typically high costs and low equipment
utilization, Product flows may vary considerably making planning and scheduling a challenge Ex: projects, job shops(machine, print, hospitals, restaurants, Arnold Palmer Hospital),
Repetitive Focus: modular, Facilities often organized as assembly lines, Characterized by modules with parts and assemblies made previously, Modules may be combined for many
output options, Less flexibility than process-focused facilities but more efficient. Ex; Harley Davidson. Product Focus: High Vol. low variety, continuous process, Facilities are
organized by product, High volume but low variety of products, Long, continuous production runs enable efficient processes, Typically high fixed cost but low variable cost,
Generally less skilled labor Ex: Frito Lay. Mass Customization: High Vol. High Variety, The rapid, low-cost production of goods and service to satisfy increasingly unique customer
desires, Combines the flexibility of a process focus with the efficiency of a product focus, Imaginative product design, Flexible process design, Tightly controlled inventory
management, Tight schedules, Responsive supply-chain partners ex: Dell computer. Comparison of Processes: PROCESS FOCUS(LOW-VOLUME,HIGH-VARIETY, Small
quantity and large variety of products, Broadly skilled operators, Instructions for each job, High inventory, Finished goods are made to order and not stored, Scheduling is complex,
Fixed costs are low and variable costs high), REPETITIVE FOCUS(MODULAR, Long runs, usually a standardized product from modules, Moderately trained employees, Few
changes in the instructions, Low inventory, Finished goods are made to frequent forecasts, Scheduling is routine, Fixed costs are dependent on flexibility of the facility), PRODUCT
FOCUS (HIGH-VOLUME,LOW-VARIETY, Large quantity and small variety of products, Less broadly skilled operators, Standardized job instructions, Low inventory, Finished
goods are made to a forecast and stored, Scheduling is routine, Fixed costs are high and variable costs low), MASS CUSTOMIZATION (HIGH-VOLUME,HIGH-VARIETY, Large
quantity and large variety of products, Flexible operators, Custom orders requiring many job instructions, Low inventory relative to the value of the product, Finished goods are
build-to-order (BTO), Sophisticated scheduling accommodates custom orders, Fixed costs tend to be high and variable costs low). Crossover chart: Fixed cost+var.cost*v1= Fixed
cost+var.cost*v1. Focused Processes; Focus brings efficiency, Focus on depth of product line rather than breadth, Focus can be Customers, Products, Service, Technology. Selection
of Equipment: Decisions can be complex as alternatemethods may be available, Important factors may be Cost, Cash flow,Market stability, Quality, Capacity,Flexibility. Equipment
and Technology: Possible competitive advantage, Flexibility may be a competitive advantage, May be difficult and expensive and may require starting over, Important to get it right.
Process Analysis and Design: Flowcharts(Shows the movement of materials,Harley-Davidson flowchart),Time-Function Mapping(Shows flows and time frame), Value-Stream
Mapping( Where value is added in the entireproduction process, including the supply chain, Extends from the customer back to the suppliers), process chart( Identify different
processes), Service Blueprinting(Focuses on the customer and provider interaction, Defines three levels of interaction, Each level has different management issues, Identifies
potential failure points). Poka Yoke: mistake proofing. Techniques for Improving Service Productivity: Separation(Structuring service so customers must go where the service is
offered Ex:Bank customers go to a manager to open a new account, to loan officers for loans, and to tellers for deposits), Self-service(Self-service so customers examine, compare,
and evaluate at their own pace, ex: Supermarkets and department stores), Postponement(Customizing at delivery ex: Customizing vans at delivery rather than at production),
Focus( Restricting the offerings, ex: Limited-menu restaurant), Modules( Modular selection of service,Modular production ex: Investment and insurance selection, Prepackaged food
modules in restaurants), Automation(Separating services that may lend themselves to some type of automation ex: ATM), scheduling(Precise personnel scheduling ex: Scheduling
ticket counter personnel at 15-minute intervals at airlines), Training(Clarifying the service options,Explaining how to avoid problems, ex: Investment counselor, funeral directors,
After-sale maintenance personnel). Production Technology: Machine technology – Computer Numerical Control, Automatic identification systems (AISs) and RFID, Process
control, Vision systems, Robots, Automated storage and retrieval systems (ASRSs), Automated guided vehicles (AGVs), Flexible manufacturing systems (FMSs), Computer-
integrated manufacturing (CIM). Machine Technology: Increased precision, Increased productivity, Increased flexibility, Improved environmental impact, Reduced changeover
time, Decreased size,Reduced power requirements. Automatic Identification Systems (AISs): Improved data acquisition, Reduced data entry errors, Increased speed, Increased scope
of process automation, ex: Bar codes and RFID. Process Control: Real-time monitoring and control of processes(Sensors collect data, Devices read data on periodic basis,
Measurements translated into digital signals then sent to a computer, Computer programs analyze the data,Resulting output may take numerous forms. Vision Systems: Particular aid
to inspection,Consistently accurate,Never bored, Modest cost,Superior to individuals performing the same tasks. Robots:Perform monotonous or dangerou tasks, Perform tasks
requiring significantstrength or endurance, Generally enhanced consistency and accuracy. Automated Storage and Retrieval Systems (ASRSs): Automated placement and withdrawl
of parts and products, Reduced errors and labor, Particularly useful in inventory and test areas of manufacturing firm. Automated Guided Vehicle (AGVs): Electronically guided and
controlled carts, Used for movement of products and/or individuals. Flexible Manufacturing Systems (FMSs): Computer controls both the workstation and the material handling
equipment, Enhance flexibility and reduced waste, Can economically produce low volume at high quality, Reduced changeover time and increased utilization, Stringent
communication requirement between components. Computer-Integrated Manufacturing (CIM):Extend flexible manufacturing, Backwards to engineering and inventory control,
Forward into warehousing and shipping, Can also include financial and customer service areas, Reducing the distinction between low- volume/high-variety, and high-volume/low-
variety production. Examples of Technology’s Impact on Services : Financial Services(Debit cards, electronic funds transfer, ATMs, Internet stock trading, on-line banking via cell
phone), Education(Electronic bulletin boards, on-line journals,WebCT, Blackboard, and smart phones), Utilities and government(Automated one-man garbage trucks, optical mail
and bomb scanners, flood warning systems, meters allowing homeowners to control energy usage and costs), Restaurants and foods(Wireless orders from waiters to kitchen, robot
butchering, transponders on cars that track sales at drive-throughs),Communications(Interactive TV, e-books via Kindle), Hotels(Electronic check-in/check-out, electronic key/lock
systems, mobile Web bookings)Wholesale/retail trade(Point-of-sale (POS) terminals, e-commerce,electronic communication between store andsupplier, bar-coded data,
RFID)Transportation(Automatic toll booths, satellite-directed navigation systems, Wi-Fi in automobiles)Health care(Online patient-monitoring systems, online medical information
systems, robotic surgery)Airlines(Ticketless travel, scheduling, Internet purchases, boarding passes downloaded as two-dimensional bar codes on smart phones ). Process Redesign:
The fundamental rethinking of business processes to bring about dramatic improvements in performance, Relies on reevaluating the purpose of the process and questioning both the
purpose and the underlying assumptions, Requires reexamination of the basic process and its objectives, Focuses on activities that cross functional lines, Any process is a candidate
for redesign.