1.

Why sustainable strategy is critical:

- Meets the needs of shareholders and employees
- Preserves the environment
2. Supply: processes that move information and material to and from the manufacturing and
service processes of the firm.
3. Efficiency, Effectiveness, and Value:
- Efficiency: Doing something at the lowest possible cost
- Effectiveness: doing the right things to create the most value for the company
- Value: Quality divided by price
4. Sustainability of a business consist of 3 aspect that created a triple Bottom Line theory:

- Social: pertains to fair and beneficial business practices toward labor, the community,
and the region in which a firm conduct is business
- Economic: Company’s objective. The firm’s obligation to compensate shareholders who
provide capital via competitive returns on investment
- Environmental: The firm’s impact on the environment

5. Operations and supply strategy: setting broad policies and plans for using the recourses of a
firm to best support its long-term competitive strategy

6. Develop/ refine the strategy (yearly)

This activity performed yearly and where the overall strategy is developed
- Define vision, mission, and objectives
- Conduct strategy analysis
- Define strategies initiatives

Translate the strategy (quarterly)

- Define/revise initiatives
- Define/revise budgets
- Devine/ revise measures and targets

Plan operations and supply (monthly)

Operational plans hat relate to functional areas such as marketing, manufacturing and so on
are coordinated.

- Develop sales and operations plan

- Plan resource capacity
- Evaluate budgets
7. Competitive Dimensions
Price: How to deliver the cheap product or deliver the cheap service
Quality: make a great and better product and/or services
Variety: There is a part of the market that value the opportunity to choose from a wide
variety of products.
Delivery speed: make the delivery quicker
Dependability: on time as its scheduled
After sales: after service are perceived by customer as a value-added

8. The Trade offs

If we reduce costs by reducing product quality inspections, we might reduce product quality

9. Fitting operational activities to strategy

To be efficient, a company must minimize total cost without compromising on customer
needs.
Notes: The responsiveness side can translate into responsive supply chain to efficient supply
chain. The Certainty side can translate into uncertain demand to certain demand.
For procurement this graph is often remain as identifying supply demand at the lowest
possible cost.

10. Vision-mission-strategy-activity map

Vision: outlines the goals and objectives of the organization
Mission: focus statement that interpret how a company/organization achieve their vision
Strategy: the set of activities that make every single mission clear. This statement should
align with the vision
Activity map: map that will helps your strategy seem more meaningful, doabl and actionable
for your employees.
11. Productivity measurement: Productivity is the ratio of outputs divided by the inputs
Outputs: Goods and services
Inputs: Resources such as labor and capital

12. Productivity may be expressed as:

- Partial Measures: output to one input
- Multifactor Measures: Output to a group of inputs
- Total measures: Output to all inputs

1. Six Phases of the Generic Development Process (Formal Process)

Phase 0: Planning
- Begins with corporate strategy
- Output is the project mission statement
- Important things to do in planning:
a. Target market
b. Evaluate existing products
c. Functionality
d. SWOT analysis

Phase 1: Concept Development

- Needs of the target market are identified

- Alternative product concepts are generated and evaluated
- One or more concepts are selected for further development and testing
- Concept: a description of the form, function, and features of a product

Phase 2: System-Level Design

- Set target sales price point(s)

- Identify suppliers for key components
- Define final assembly scheme
- Output:
a. Geometric layout of the product
b. Functional specifications for each subsystem
c. Preliminary process flow diagram
 Phase 3: Design Detail

- Develop marketing plan

- Complete specification of the geometry, materials, and tolerances for all aspect/parts
- Identification of all the standard parts to be purchased from suppliers
- Complete industrial design control documentation
- Process plan is established
- Define quality assurance processes
- Output:
a. Drawing to describing the geometry of each part and its tooling
b. Specifications of purchased parts
c. Process plan

Phase 4: Testing and Refinement

- Facilitate field testing

- Reliability testing
- Prototypes tested to determine if the product will work as designed

Phase 5: Ramp-up

- Begin operation of entire product system

- Train workers and resolve any remaining problems
- Place early production to key customers
- Evaluate early production output

2. Variants of generic product development process:

a. Generic (Market-pull products): based on fulfil market needs
b. Technology-push products: company have new technology
c. Platform products: use technology that already exist and possible to do it
d. Process-Intensive products: highly constrain to the process of producing
e. Customized products: variations. Usually based on customer order
f. High-risk products: high technical goods/services.
g. Quick build products: example: software, cellular phones
h. Complex system: System must be decomposed into several subsystem and many
components
3. Designing for the customer
a. Quality Function Deployment
Is a process and set of tools used to effectively define customer requirements and
convert them into detailed engineering specifications and plans to produce the product.
b. House of Quality
Usually to find and measure QFD, the producer needs to use House of Quality
c. Value analysis/Value Engineering
 The purpose is to simplify product and processes
 Objective is to achieve better performance at a lower cost while maintaining all
functional requirements defined by the customer
4. How to do House of quality:

Step 1: Define every aspect of customer needs (placed on left of diagram)

Step 2: Score the importance. Usually, 1 to 5
Step 3: Calculate the percentage: The aspect score divided by Total of all importance score
Step 4: Define the measurement parameters (placed on upper of the diagram)
Don’t forget to define it decrease or increase parameter
Step 5: put the interaction between each parameter with +, ++, -, - -
Step 6: Define the association between customer needs and parameters:
Circle with dots = 9
Circle = 3
Triangle = 1

Step 7: multiply the score of association by the percentage of importance. This will get the
importance (at the bottom of the graph). Don’t forget to calculate the percentage

Step 8: compare your product with other competitor

1. Capacity is the number of units a facility can hold, receive, store, or produce in a period

2. Design Capacity: Maximum designed service capacity or output rate

Question example:
Dalam 7 hari kerja dan 3 shift perhari, dan rate produksi (output rate) = 1200 roti/jam.
Berapa design capacitynya?
Jawaban = (7 hr X 3 shift X 8 jam kerja) X (1200 roti/jam) = 201.600

3. Effective capacity: The maximum rate of the output which can be achieved under the
operating constraints. Often lower than design capacity

4. Utilization: the percent of design capacity achieved.

Utilization = (Actual output/ design capacity) X 100%

5. Efficiency: The percent of effective capacity achieved

Efficiency =