Chapter 1

● Productivity
Single Factor =
a) output b) output c) output
labour materials capital
Multifactor =
a) output
labour + materials + overhead
b) output
labour + energy + capital
Total Factor = goods & services produced
all inputs used to produce them
● Strategy Formulation
1. Define a primary task
2. Assess core competencies
3. Determine order winners & qualifiers
4. Positioning of the firm
- cost (waste elimination, structure, lean production)
- speed (adapt, internet, manufacturing, fashion/trends, service)
- quality (defects, design)
- flexibility (adjust to changes in product mix, volume, design, mass customization)

Chapter 10
● Supply-chain: source, make, deliver
● Service providers - more difficult; focus more on HR & support services
● Keys to effective SCM: info, comm, cooperation, trust
● Uncertainty & inventory:
- respond w/o creating extra costs
- can lead to lateness/incomplete orders
- can get insurance against
*factors:
- innaccurate demand forecasting
- long variable lead times
- late deliveries
- incomplete shipments
- product changes
- batch ordering
- price changes & discounts
- inflated orders
● “Green”
- sustainable
- cost effective & profitable
- encourages product & process innovation
● IT
- e-business
- EDI (comp to comp exchange) → less paperwork, increased production, improve billing process,
decrease bullwhip, increase service
- barcodes → instantaneous, inv records, identify trends, schedule & place orders, plan deliveries
- RFID → complete visibility of product location, continuous inv monitoring, decreased labour,
decreased inv costs, not standardized yet, difficult to track b/w systems
- internet → build to order
*results of IT
- decreased transaction costs
- decreased intermediary roles
- decreased response time
- increase branding/visibility
- increase choices & info
- increase service
- data collection & analysis
- access to global markets
● Measuring SCP
days of supply = ave aggregate value of inv (raw mat. + WIP + FG)
COGS/365
- lower means up-to-date supply
- disadvantage if price is high and bulk
- round!
● SCOR - tool (plan, source, make, deliver, return)
● Bullwhip effect - occurs when slight demand variability is magnified as info moves upstream
Chapter 12
● Demand behaviour

● Forecasting methods (quantitative)

● Qualitative
- MGMT, MKTG, purchasing, & enginerering
- Delphi - experts
● Accuracy Measures

Chapter 6
● Process Strategies
- vertical integration - the extent to which the firm will produce inputs and control outputs at each stage of the production
process
- capital intensity - mix of capital and labour
- process flexibility - ease of adjustment to changes in demand, tech, commodities, resources
- customer involvement
● Benefits of Outsourcing
- cost - speed
 - capacity - reliability
- quality - expertise
● Process Selection
- projects (custom order)
- batch
- mass
- continuous
● Sourcing Continuum

● Building a Flowchart
1. Determine objectives
2. Define process boundaries
3. Define units of flow
4. Choose type of chart
5. Observe process
6. Map
7. Validate
● Principles for Redesigning Process
- remove waste, simplify, consolidate
- link processes to create value
- let the most capable enterprise execute process
- flex
- capture info at the source
- fresh and richer info
- sensors & feedback loops
- analytic aspects
- connect, collect, create knowledge w/ others
- personalize
● Techniques for Generating Innovative Ideas
- vary the entry point to the problem
- analogies
- change perspective
- inverse brainstorming
- chain forward
- attribute brainstorming
● Capacity Strategies
- lead
- lag
- average
● Capacity Increase
- volume and certainty of anticipated demand
- best operating level
- capacity cushion
● Objectives of Facility Layout
- minimize movement & material handling costs
- use space & labour efficiently
- eliminate bottlenecks
- communication
- reduce service time and cycle time
- safety & security
● Process layout (group similar activities)
● Product (sequence, standardized demand, limited skills)
● Cycle Time