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NOTE MID (Content): 7 tool of quality management + Decision Tree + Crossover Chart

Chap 1: Operations and Management

I. Characteristic of Services
- Intangible: Customers wait for medical personnel to provide advice on medical examination
services.
- Created and consumed at the same time: People that wish to do their nails will go to a nail salon
(Manicurists are service providers, and manicures create products and services).
- Unique: High-end wedding dress stores will manufacture products that are unique to their
customers based on their customers' ideal ideas.
- Extensive consumer engagement: The English center notifies students about their personal study
activities on a daily basis.
- Product definition inconsistency: The cost of a movie ticket varies depending on the type of seat
and venue.
- Frequently knowledge-based: Studocu is a knowledge-based educational service because the
website covers most of the content in numerous university topics from many different schools.
- Services scattered: The rental office will assist consumers in finding a home by contacting the
landlord and preparing the relevant documentation.
- Assessing quality may be difficult: Because each patient's expectations and experiences varies
and are heterogeneous, hospitals find it challenging to gauge service quality specifically.
- Resale is unusual: Depending on the demands of the seller and buyer, tickets to famous
concerts/movies are frequently resold at a greater (or occasionally lower) price than the initial
price.
II. Characteristic of Goods
- Tangible: Personal computer.
- Generally, the product can be kept in stock: Motorcycle accessories and electronic components
- Similar products produced: Butter — margarine
- Customer input in production is limited.
- Product standardization: Hao Hao instant noodles
- The standard tangible product makes automation possible.
- Product is normally manufactured in a fixed facility (Airplanes/Ships)
- Many characteristics of quality for physical objects are simple to assess (tension in a badminton
racket)
- Products frequently have some residual value.

Chap 2: The Global Environment and Operation Strategy


I. Six reasons why domestic businesses desire to expand into overseas markets
1. Improve the supply chain - can frequently be improved by putting facilities in nations
with distinct resources (These resources could be human capital, low-cost labor, or raw
materials).
Ex: Because labor costs are low in Vietnam, the textile and apparel industry frequently
establishes a base and recruits people there.
2. Reduce cost
Ex: Vietnam has a program of "tax incentives" for foreign firms (including a lower tax rate than
typical, as well as tax exemption and reduction under Article 15 of the Investment Law 2020).
This facilitates and encourages international investment in Vietnam while also lowering
investment costs for foreign firms.
3. Improve Operation
- Operations benefit from a deeper grasp of how business is conducted in other nations:
Vietnamese manufacturing has made supply chain integration easier.
- To minimize response time in order to satisfy changing consumer product and service
needs: Because the Japanese enjoy Vietnamese Pho and consume it frequently, Vietnam
has launched a Pho Thin restaurant in Japan to better service customers.
4. Understand markets - Because international operations include connection with overseas
consumers, suppliers, and other competitive enterprises, international firms invariably
learn about new product and service prospects.
Ex: Fast food restaurants who wish to expand in India will switch from serving pork to serving
chicken because Muslims do not eat pork. Understanding the host country's culture and needs
will guide investors in the appropriate route.
5. Improve products - Learning does not happen in a vacuum. Firms benefit themselves and
their consumers when they remain open to new ideas.
Ex: Dell and Baidu have joined together to collaborate and share development costs for
smartphone research.
6. Attract and retain global talent - By providing more job options, global firms can recruit
and keep superior people.
Ex: Google attracts and maintains talented employees through "unbuttoning" - that is, reducing
management's authority and prestige over individuals.
II. Competitive Advantage
1. Competing on Different
- Differentiation should be viewed as encompassing everything about the product or
service that influences the value that customers obtain from it, in addition to physical
qualities and service aspects.
- The goal of experience differentiation is to engage the customer—to use all five senses to
immerse or even actively participate in the product.
Ex: Apple distinguishes itself from the competition by developing its own operating system (iOS)
for its electrical gadgets.
2. Competing on Cost - Low-cost leadership implies maximizing value as defined by your
consumer (this does not imply low value or bad quality).
Ex: IKEA is a prime example of a low-cost strategy since the company seeks suppliers that can
make well-designed sub-assemblies at the lowest possible cost, and customers must assemble the
products themselves.
3. Competing on Response
- Response as including the complete spectrum of values associated with on-time product
creation and delivery, as well as dependable scheduling and adaptability.
- Flexible response can be defined as the ability to adapt to changes in a market where
design innovations and volumes fluctuate significantly.
- The second part of responsiveness is scheduling dependability.
- The third aspect of response is rapidity.
Ex: As the company's primary paid membership offering, Amazon Prime meet Responses' three-
factor standards; users may enjoy guaranteed two-day shipping on all Prime-eligible products:
Customers' conditions: Even if a consumer simply tries two-day shipping once, he or she will
find it difficult to return to the customary three to seven days. As a result, they're likely to keep
paying for Prime membership.
Amazon has been able to reduce the need for consumers to wait for a product to arrive after
purchase by focusing on quick shipping.
Chap 5: Production Design
I. Issues for Production Design
1. Robust Design - A design that can be produced to specifications despite difficult
manufacturing conditions.
Ex: Using umbrella fabric to make coats, rain umbrellas, and other products will assist the
product not be destroyed when exposed to various situations.
2. Modular Design - A product design in which elements or components are separated into
modules that can be easily interchanged or replaced.
Ex: LEGO - These plastic toys feature pieces that can be readily assembled and reassembled to
create a variety of final items.
3. Computer-aided design (CAD) - Using computers to develop items interactively and
create technical documentation.
Ex:Googlemaps/ ultrasound imaging
4. Computer-aided manufacturing (CAM) - The employment of specialized computer
programs to direct and control manufacturing equipment is referred to as robotics.
Ex: Water cutters/ Plasma cutters/ Laser cutters.
5. Virtual Reality Technology - is a type of visual communication in which visuals replace
the real thing while yet allowing the user to engage interactively.
Ex: Samsung Gear VR/ Microsoft HoloLens/ Google Cardboard
6. 3D-Printing - A CAD addon that creates prototypes and small batches.
7. Value analysis - seeks improvements that result in a better product, a more cost-effective
product, or a product with less environmental impact.
Ex:
II. Defining a Product
1. Engineering drawing - displays a component's dimensions, tolerances, materials, and
finishes (the tender drawing, the contract drawing, the working drawing, and the
complete drawing)
*NOTE: An engineering schematic demonstrates how to build a single item on a bill of
materials.

2. Bill of material (BOM) - outlines the component hierarchy, their descriptions, and the
quantity of each necessary to manufacture one unit of a product.
Ex: Bill of material for (a) a pair of eyeglasses and its case
3. Make-or-Buy Decisions - The option of producing a component or service versus obtaining it
from a third party.
4. Group Technology - identifies components using a coding method that specifies size, shape, and
kind of processing.
Ex: To incorporate into products with functions like together, a computer manufacturing process must
divide similar functional pieces into the same group (internal memory/external memory
group/monitor/mouse...).
III. Documents for Production
1. Assembly drawing - just depicts an expanded picture of the product
2. Assembly chart - identifies the point in production at which components are assembled into
subassemblies and, finally, into a finished product.
3. The route sheet - describes the activities necessary to make the component with the material
specified in the bill of material.
4. The work order - is a command to produce a specified quantity of a specific object, usually
according to a timetable. (A work order/formal document that grants authorisation to draw
products from inventory, conduct certain duties, and assign workers to accomplish those
functions is a ticket that a waiter writes in your favorite restaurant )
5. Engineering change notices (ENCs) - Change some component of the product's definition or
documentation, such as an engineering sketch or a bill of materials
6. Configuration management - is the system that accurately identifies a product's planned and
changing configurations and maintains control and accountability for change.
7. Product Life-Cycle Management (PLM) - Software tools that connect several stages of product
design and manufacturing.

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