Management and Organizational Studies 3330A/B Lecture 5: OPS week 5

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3330A/B
• Professor: Clarence Borja

Document Summary

Processes the (cid:862)(cid:271)la(cid:272)k (cid:271)o(cid:454)(cid:863) step (cid:449)hi(cid:272)h takes i(cid:374)puts a(cid:374)d tra(cid:374)sfor(cid:373)s i(cid:374)to outputs of greater value. Lots of ter(cid:373)s to re(cid:373)e(cid:373)(cid:271)er tied to (cid:272)o(cid:374)(cid:272)epts (cid:449)e(cid:859)re lear(cid:374)i(cid:374)g! Fundamentally, we map processes in order to identify ways we can improve them somehow! Analyze every step in the process, identify and remove non-value added steps if/where possible. Fancy way of categorizing firms by the stage that they fabricate their products to. Inventory positioned at the retailer (products totally made, sent out, customer just picks a widget off the shelf and goes) Assemble-to-order firms: inventory stored in some intermediate stage at factory, then when customer orders come in the product is finalized. Make-to-order firms: inventory stored in only raw form, customer orders trigger entire manufacturing process. Engineer-to-order firms: works with customer to develop then manufacture product, inventory not stored at all. Faster customer response time higher inventory investment costs: need to balance customer service against higher cost.