September 27, 2023

Brief your understanding about Benetton Supply Chain operations.

Questions:

1. Brief your understanding about Benetton Supply Chain operations. (3MM)

2. In your understanding, what is the specialty of Benetton’s contractors? (3MM)

3. Does this method provide Benetton competitive advantage over their competitors? Is this method sustainable in the long term? (4MM)

Note:

• You must include at least 5 references.

• Format your references using APA style.

Requirements: 1200-1600

1-2Chapter 1 Learning Objectives•LO 1.1 Define operations and supply chain management.•LO 1.2 Review the role of operations in the firm and the economy.•LO 1.3 Describe the five main decisions made by operations and supply chain managers.•LO 1.4 Explain the nature of cross-functional decision making with operations.•LO 1.5 Describe typical inputs and outputs of an operations transformation system.•LO 1.6 Analyze trends in operations and supply chain management.COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.

1-3Definition of Operations ManagementCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.Operations management focuses on decisions for the internal production of the firm’s products or services. ةرادإ تاجتنم يلخادلا جاتنلإا تارارق ىلع زكري تايلمعلااهتامدخ وأ ةكرشلا.

1-5Operations and Supply Chain ManagementCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.Deals with the sourcing, production, and distribution of the product or service along with managing the relationships with supply chain partners. عم لماعتي ىلإ ابنج ةمدخلا وأ جتنملا عيزوتو جاتنإو رداصمديروتلا ةلسلس ءاكرش عم تاقلاعلا ةرادإ عم بنج.

1-6Importance of Operations and Supply ChainCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.Providing the products and services that we use and enjoy ميدقت يتلا تامدخلاو تاجتنملااهب عتمتسنو اهمدختسنConstantly improving both productivity and innovation ةيجاتنلإا نيسحترارمتساب راكتبلااوSustaining our way of life while working to protect the planet بولسأ ىلع ظافحلابكوكلا ةيامح ىلع لمعلا عم انتايحCreating revenue from products & services to drive firm profitability قلخ عفدل تامدخلاو تاجتنملا نم تاداريإ ةكرشلا ةيحبر

1-7Role of Operations in the EconomyCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.Gross Domestic Product (GDP) -monetary value of all goods and services produced in a country. يلامجلإا يلحملا جتانلا- ةيدقنلا ةميقلاام دلب يف ةجتنملا تامدخلاو علسلا عيمجل .Productivity-value of goods/services output, relative to input. ةيجاتنلإا-علسلا جتان ةميق/تلاخدملل ةبسنلاب ،تامدخلا .Productivity = output capital + labor

1-8Productivity ExampleCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.A retail (quick) clinic has the following output (revenue) and labor expenses. ةئزجتلاب عيبلا ةدايع يوتحت(ةعيرسلا ) يلاتلا جتانلا ىلع(تاداريلإا )ةلامعلا تاقفنو.Did productivity improve from Year 1 to Year 2? (assume equivalent capital costs) ةنسلا نم ةيجاتنلإا نسحت له1 ؟ةيناثلا ةنسلا ىلإ(ةئفاكملا ةيلامسأرلا فيلاكتلا ضرتفا)AnnualYear 1Year 2InflationOutput (revenue) $thousands$842$8832%Labor $thousands$280$2924%

1-9Productivity Example -SolutionCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.A retail (quick) clinic has the following output (revenue) and labor expenses. Did productivity improve from Year 1 to Year 2? (assume equivalent capital costs)Productivity year 1 = Output year 1= 842= 3.01 Labor year 1 280Productivity year 2 = Output year 2= 883(.98)= 3.09Labor year 2 292(.96)Change in productivity = 3.09= 1.027 which is a 2.7% increase3.01

1-10Why Study Operations Management?Challenging and interesting career opportunities –domestic, international مامتهلال ةريثمو ةبعص ةيفيظو صرف– ةيلودو ةيلحمCross-functional nature of decisions –what every major needs to know ةعيبطلا تارارقلل ةكرتشملا ةيفيظولا– ىلإ سيئر لك جاتحي امهتفرعمPrinciples of process thinking can be applied across the organization نكميةمظنملا ءاحنأ عيمج يف ةيلمعلا ريكفتلا ئدابم قيبطتCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.ammentorp/123RF

1-11Careers in Operations and Supply Chain ManagementCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.Supply Chain Analyst ديروتلا ةلسلس للحمSupply Chain Analytics ةلسلس تلايلحت ديروتلاPlant Lead on Sustainability صاصرلاةمادتسلاا ىلع يتابنلاSourcing Specialistرداصم يئاصخأGlobal Sourcing Analyst رداصم للحمةيملاعTransportation Planner لقنلا ططخمRisk Consultant رطاخملا يراشتساCustoms Specialistكرامجلا يئاصخأNetPics/Alamy Stock Photo

1-123 Aspects of Operations and Supply Chain ManagementDecisions: The operations manager must decide:تايلمعلا ريدم ررقي نأ بجي:•Process, quality, capacity, inventory, and supply chain ديروتلا ةلسلسو نوزخملاو ةردقلاو ةدوجلاو ةيلمعلاFunction: ةلاد :Major functional areas in organizations:تامظنملا يف ةيسيئرلا ةيفيظولا تلااجملا :•Operations, marketing, finance ليومتلاو قيوستلاو تايلمعلاProcess: ةيلمع :Planning and controlling the transformation process and its interfaces (internal/external) اهتاهجاوو لوحتلا ةيلمع ةبقارمو طيطخت(ةيجراخلاو ةيلخادلا)Expansion of these points follows on the next slides.COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.

1-14MajorDecisions at Pizza USAProcess◦How should we produce pizzas?Quality◦How do we meet quality standards and ensure a good customer experience?Capacity◦How much output do we need at various times?Inventory◦Which ingredients, when & how much?Supply Chain◦How to source inputs and manage logistics?COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.

1-16Cross-Functional Decision MakingOperations is critical in every firm.ةكرش لك يف ةيمهلأا غلاب رمأ تايلمعلا .Marketing = create demand قيوستلا = بلطلا ءاشنإOperations = produce and distribute goods and services تايلمعلا = علسلا عيزوتو جاتنإتامدخلاوFinance = acquire and allocate capital ليومتلا = هصيصختو لاملا سأر ىلع لوصحلاSupporting functions: human resources, information systems, accounting فئاظولاةمعادلا :ةبساحملاو ،تامولعملا مظنو ،ةيرشبلا دراوملاCross-functional decision making -see Table 1.2COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.

1-18Operations as a Process (Figure 1.3)COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.Transformation(Conversion)ProcessEnergyMaterialsLaborCapitalInformationGoods orServicesFeedback information forcontrol of process inputsand process technology ل تاظحلاملا تامولعمةجلاعملا ايجولونكتو ةيلمعلا تلاخدم يف مكحتلا

1-20Trends in Operations and Supply Chain Management▪Sustainability –triple bottom line ةمادتسلاا–يثلاثلا ىندلأا دحلا▪Services تامدخلا▪Digital Technologies ةيمقرلا تاينقتلا▪Integration of Decisions Internally and Externallyايجراخو ايلخاد تارارقلا لماكت▪Globalization of Operations and the Supply Chain ةملوعديروتلا ةلسلسو تايلمعلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.StreetVJ/Shutterstock

1-21Chapter 1 SummaryCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.•LO 1.1 Define operations and supply chain management.•LO 1.2 Review the role of operations in the firm and the economy.•LO 1.3 Describe the five main decisions made by operations and supply chain managers.•LO 1.4 Explain the nature of cross-functional decision making with operations.•LO 1.5 Describe typical inputs and outputs of an operations transformation system.•LO 1.6 Analyze trends in operations and supply chain management.

1-22Questions for DiscussionCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.•What do you hope to learn in this course?•Review the operations and supply chain trends on slide 1-20. Which of these is most interesting to you and why?•What production systems have you seen in person? How do they produce the intended product or service?•Describe a transformation process that you recently experienced. Think about a medical or dental clinic visit, or a restaurant visit.•Why are global factors important in operations and supply chain?•How is operations and supply chain related to environmental responsibility?

Chapter 18 Learning ObjectivesCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-2▪LO 18.1 Define the scope and purpose of logistics.▪LO 18.2 Explain transportation economics.▪LO 18.3 Compare the advantages and disadvantages of the five modes of transportation.▪LO 18.4 Distinguish among the different functions of warehouses. ▪LO 18.5 Describe how to determine the number and location of warehouses.▪LO 18.6 Consider when a firm should use a third-party logistics provider.▪LO 18.7 Define logistics strategy and explain why it is needed.

Logistics DefinitionIncludes:◦Inbound to firm ةكرش ىلإ ةدراو◦Outbound from firm ةكرش نم ةرداص◦Warehousing (storage) نيزختلا(نيزختلا )◦Network design ةكبشلا ميمصتCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-3Plans, implements, and controls the efficient, effective forward and reverse flows and storage of goods and related information between the point of origin and consumption in order to meet customer requirements. ماملأل لعافلاو لاعفلا قفدتلا ةبقارمو ذيفنتو ططخبلت لجأ نم كلاهتسلااو أشنملا ةطقن نيب ةلصلا تاذ تامولعملاو علسلا نيزختو سكعللو ةيءلامعلا تابلطتم.

Importance of Logistics▪Strategic decisions linking marketing and operations طبرت يتلا ةيجيتارتسلاا تارارقلا تايلمعلاو قيوستلا▪Operational decisions defining “place” and movement of goods يتلا ةيليغشتلا تارارقلا ددحت”ناكم ” عئاضبلا ةكرحو▪Integration with other functions ىرخأ فئاظو عم لماكتلا◦Marketingto fulfill customer demand ءلامعلا بلط ةيبلتل قيوستلا◦Information systems to link firm to suppliers and customers نيدروملاب ةكرشلا طبرل تامولعملا مظنءلامعلاو◦Financefor large investments in inventory, warehousing نوزخملا يف ةريبكلا تارامثتسلاا ليومتنيزختلاوCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-4Boundary spanning activities

Critical Logistics Decisionsةجرحلا ةيتسجوللا تارارقلا❑What modes of transportation to use?؟اهمادختسلا لقنلا لئاسو يه ام❑What types of warehousing to use? بجي يتلا نيزختلا عاونأ يه ام ؟اهمادختسا❑Where should factories and warehouses be located? نأ بجي نيأ؟تاعدوتسملاو عناصملا دجوت❑Should logistics be outsourced to third-party provider (3PL)? ثلاث فرط دوزمل ةيتسجوللا تامدخلل ةيجراخ رداصمب ةناعتسلاا يغبني له(3PL)؟❑What is the strategic role of logistics in creating and supporting competitive advantage? تامدخلل يجيتارتسلاا رودلا وه ام؟ةيسفانتلا ةزيملا معدو قلخ يف ةيتسجوللاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-5

Transportation Economicsلقنلا تايداصتقاEconomies of scale تاروفو مجحلا◦Largershipments cost less per pound(than smaller)لطرلل لقأ فلكت ربكلأا تانحشلا دحاولا(رغصلأا نم )◦Fulltruckloads cost less per pound (than partial) لكل لقأ ةلماكلا ةنحاشلا ةلومح لطر(يئزج نم)COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-6Economies of distanceةفاسملا تاروفو◦Longerdistances cost less per pound(than shorter) لطرلل لقأ ةفلكت لوطأ تافاسم دحاولا(رصقأ نم )◦Longerdistances cost less per mile(than shorter) ليم لكل لقأ فلكت لوطأ تافاسم(رصقأ نم)Economies of speed تاروفوةعرسلا◦Regularshipping costs less per mile(than expedited) ليم لكل لقأ ةيداعلا نحشلا فيلاكت(لجعملا نم )◦Regularshipping costs less per pound(than expedited) لطر لكل لقأ ةيداعلا نحشلا فيلاكت(لجعملا نم)

Transportation Economics ExampleCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-7A company has three shipments of 10,000 pounds each going from different nearby cities to one retail store. The carrier charges $10 per hundredweight (cwt). If the shipments are consolidated into one truck, the carrier will take the 30,000 pounds for $7 per cwt, but charges $300 each for the two extra stops.Should the company consolidate the three shipments?Cost to ship separatelyin three trucks is:Cost = 10,000 ($10/100 pounds)*(3 shipments) = $1,000 * 3 = $3,000Cost to consolidatethe three shipments is:Cost = 30,000 ($7/100 pounds) + $300*(2) = $2,100 + $600 = $2,700Consolidating the shipments costs less.

Transportation Decisions (Table 18.1)ModeAdvantagesDisadvantagesTruckCan move freight quickly over long distances. Veryflexible on locations. Easily linked with rail or air.More expensivefor heavy and bulky freight than other modes.RailRelatively inexpensivefor long distances. Can be linked with truck or ocean freight.Relatively slow.Water (inland)Low cost for moving bulkcommodities. Effective when linked to multimode.Subject to proximity of waterway locations. Relatively slow.Water (ocean)Cost-effective way to ship freightin containers over long distances.Very slow.AirFast way to move freight.Flexible when linked to trucks.Very expensive.PipelineCan move bulk commodities (oil, gas, and chemicals) for long distances.Expensive to install.COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-10

Other Purposes ofDistribution Centers and Warehousingنم ىرخأ ضارغأنيزختلاو عيزوتلا زكارم➢Managing seasonal demandيمسوملا بلطلا ةرادإ➢Supporting manufacturing عينصتلا معدIncoming raw materials ةدراولا ماخلا داوملاOutgoing finished goods ةيهتنملا علسلاةيهتنملاهتيلاو➢Providing value-added servicesةفاضم ةميق تاذ تامدخ ميدقت➢Handling reverse logisticsةيسكعلا ةيتسجوللا تامدخلا ةجلاعمCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-14

Logistics Networks -Location factors ةيتسجوللا تاكبشلا- لماوععقوملا•Labor availability ةلامعلا رفاوت•Cost of laborةلامعلا ةفلكت•Cost of construction and maintenance ةنايصلاو ءانبلا ةفلكت•Cost of transportationلقنلا ةفلكت•Taxesبئارض•Government incentivesةيموكحلا زفاوحلا•Government regulations ةيموكحلا حئاوللا•Delivery time to customer ىلإ ميلستلا تقو ليمعلا•Proximity to suppliersنيدروملا نم برقلا•Highway and rail availability قرطلا رفوتةيديدحلا ككسلاو ةعيرسلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-15

Center of Gravity Analyticsةيبذاجلا تلايلحت زكرمCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-17▪First approximation to locate warehouses based on transportation costs and distances. فيلاكت ساسأ ىلع تاعدوتسملا عقوم ديدحتل لولأا بيرقتلاتافاسملاو لقنلا .▪Model calculates the center-of-gravity based on the distances from warehouses to customers. ىلإ ادانتسا ةيبذاجلا زكرم باسحب جذومنلا موقيءلامعلا ىلإ تاعدوتسملا نم تافاسملا .

Center of Gravity -Example COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-18CustomerXcoordinateYCoordinateDemand (lbs)A10105000B20257500C25356000XCG= 10(5000) + 20(7500) + 25(6000) = 18.95000 + 7500 + 6000YCG= 10(5000) + 25(7500) + 35(6000) = 24.25000 + 7500 + 6000

Center of Gravity -Example COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.19ABCCenter of gravity0510152025303540051015202530The center of gravity is a logical location for a warehouse to serve Customers A, B, and C.

Global Logisticsةيملاعلا ةيتسجوللا تامدخلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.21▪Complex transportation, usually multimodal ددعتم ةداع ،دقعملا لقنلاطئاسولا▪Complex information transfer: exporters, importers, freight forwarders, clearing agents, ocean shipping lines, freight companies, intermodal operators, banks, and insurance companies تامولعملا لقنةدقعملا : ءلاكوو نودروتسملاو نوردصملا نحشلا طوطخو ةصاقملا ءلاكوو نحشلا ددعتملا لقنلا ولغشمو نحشلا تاكرشو يرحبلا نيمأتلا تاكرشو كونبلاو طئاسولاilfede/123RF

Third-Party Logistics (3PL) تاهجل ةيتسجوللا تامدخلا ةيجراخ(3PL)•Transportation servicesلقنلا تامدخ•Warehousing servicesنيزختلا تامدخ•Inventory management servicesنوزخملا ةرادإ تامدخ•Reverse logistics services ةيسكعلا ةيتسجوللا تامدخلا•Access to logistics expertise تاربخلا ىلع لوصحلاةيتسجوللا•Enhanced flexibility to changing markets/technology رييغتل ةززعم ةنورمقاوسلأا/ايجولونكتلا•Lower cost than insourcingدراوملا نم لقأ ةفلكت•Humanitarian aidةيناسنلإا تادعاسملاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-23Ryder is a major player in 3PL to more than 50,000 business customers, using their 5900 technicians, 7700 drivers, and 800 facilities. Ryder is a 3PL provider to Cisco, helping them keep their warranty promise on 1.5 million parts every year. John Crowe/Alamy Stock Photo

Logistics StrategyDetermine objectives فادهلأا ديدحت◦Cost, delivery, service quality, flexibility ،ليصوتلا ،ةفلكتلاةنورملا ،ةمدخلا ةدوجOwnership vs. outsourcing logistics function لباقم ةيكلملا ةيتسجوللا ةفيظو ةيجراخ رداصمب ةناعتسلااTransportation modes لقنلا طئاسوWarehousing network نيزختلا ةكبش◦Number and location of facilitiesاهعقومو قفارملا ددعCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-24

Chapter 18 SummaryCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.18-25▪LO 18.1 Define the scope and purpose of logistics.▪LO 18.2 Explain transportation economics.▪LO 18.3 Compare the advantages and disadvantages of the five modes of transportation.▪LO 18.4 Distinguish among the different functions of warehouses. ▪LO 18.5 Describe how to determine the number and location of warehouses.▪LO 18.6 Consider when a firm should use a third-party logistics provider.▪LO 18.7 Define logistics strategy and explain why it is needed.

Questions for DiscussionCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.26•Describe different types of logistics that you have personally observed. Where did you see them? What were they doing?•How does a firm choose its modes of transportation to move its goods?•When would a firm use these various types of warehouses: consolidation, break-bulk, cross-docking?•When is reverse logistics used? How does it work?•In your own words, what is a logistics network?•Beyond knowing the ‘center of gravity’ in a network, what other factors should be considered when choosing a warehouse location?•What types of services are carried out by third-party logistics (3PL) providers?

2-2Chapter 2 Learning Objectives▪LO 2.1 Define operations strategy.▪LO 2.2 Describe the elements of operations strategy and alignment with business and other functional strategies.▪LO 2.3 Differentiate the ways to compete with operations objectives.▪LO 2.4 Compare product imitator and innovator strategies.▪LO 2.5 Explain the nature of global operations and supply chains.▪LO 2.6 Analyze two types of supply chain strategies.▪LO 2.7 Illustrate how operations and supply chain can become more sustainable.COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.

2-3Operations Strategy“A consistent pattern of business decisionsfor operations and the associated supply chain …” ةلسلسو تايلمعلل ةيراجتلا تارارقلا نم تباث طمن اهب ةطبترملا ديروتلا …… that are linked to the business strategy and other functional strategies, leading to a competitive advantage for the firm.” … ةزيم ىلإ يدؤي امم ،ىرخلأا ةيفيظولا تايجيتارتسلااو لامعلأا ةيجيتارتساب طبترتةكرشلل ةيسفانت .”COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.The operations strategy at Southwest Airlines includes using only one type of airplane. يف تايلمعلا ةيجيتارتسا نمضتت ثواس ةكرشتسيوزنيلاريإتارئاطلا نم طقف دحاو عون مادختسا .This lowers staff training and maintenance costs, andreduces on hand spare parts. نيفظوملا بيردت فيلاكت ضفخي اذهوةيوديلا رايغلا عطق نم للقيو ،اهتنايصو .These decisions support the business strategy of being a low costcarrier. ةلثمتملا ةيراجتلا لامعلأا ةيجيتارتسا تارارقلا هذه معدتوةفلكتلا ضفخنم لاقان اهنوك يف.Markus Mainka/123RF

2-4Operations Strategy Process (Figure 2.1)COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.Consistent pattern of decisions InternalanalysisExternalanalysisMissionObjectives: (cost, quality, delivery, flexibility, sustainability)Strategic Decisions: (process, quality, capacity, inventory, supply chain)DistinctiveCompetenceOperations StrategyBusiness strategyFunctional strategies inmarketing, finance,engineering, human resources, andinformation systemsResultsCorporate strategy

2-5Operations Strategic ObjectivesCost–resources used ةفلكتلا– دراوملاةمدختسملاQuality–conformance to customer expectations ةدوجلا– ةقباطم ءلامعلا تاعقوتلDelivery–quickly and on time ميلستلا– تقولا يفو ةعرسب ددحملاFlexibility–ability to rapidly change operations ةنورملا– ىلع ةردقلا ةعرسب تايلمعلا رييغتSustainability–environmental, social, economic ةمادتسلاا– ةيئيبلاةيداصتقلااو ةيعامتجلااوCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.What trade-offs exist among the objectives?How do firms use these objectives to gain competitive advantage?

2-7Distinctive Competenceةزيمم ةءافكCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.This operations capability is something an organization does better than any competing organization that adds value for the customer. هذه نأ ةسفانم ةمظنم يأ نم لضفأ لعفي ةسسؤم ءيش تايلمعلا ةردقلاليمعلل ةميق فيضي .Examples: •patents, proprietary technology, operations innovations ،ةيكلملا ايجولونكتلاو ،عارتخلاا تاءارب تاراكتبلااوتايلمعلا

2-8Linking Operations to Business Strategy طبرلامعلأا ةيجيتارتساب تايلمعلاBusiness strategy alternatives ةيجيتارتسا لئادب لامعلأا◦Product Imitator جتنملا دلقم◦Operations must focus on keeping costs low. ةضفخنم فيلاكتلا ءاقبإ ىلع تايلمعلا زكرت نأ بجيو .◦Product Innovator جتنملا ركتبم◦Operations must maintain flexibility in processes, labor, and suppliers. تايلمعلا ظفاحت نأ بجينيدروملاو ةلامعلاو تايلمعلا يف ةنورملا ىلع .Customer perspective روظنم ليمعلا◦Order Qualifier بيترت نيلهؤملا◦Objective that must be delivered at an acceptable level for customer to consider product/service. Can be an order loser if not met. لوبقم ىوتسم ىلع هميلست متي نأ بجي يذلا فدهلا جتنملا يف رظنلل ليمعلل /ةمدخلا .اهب ءافولا متي مل اذإ ماظنلا ارساخ نوكي نأ نكمي .◦Order Winner زئافلا رملأاب◦Objective that causes customer to choose a particular product/service. ىلإ يدؤي يذلا فدهلاجتنمل ليمعلا رايتخا/ةنيعم ةمدخ.COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.

2-9Linking Operations to Business Strategy◦Product Imitator جتنملا دلقم◦Order Winner = price (low cost) رملأاب زئافلا = رعسلا(ةضفخنم ةفلكت )◦Order Qualifiers = flexibility, quality, delivery بلطلا تايفصت = جتنملا ركتبم ميلستلاو ةدوجلاو ةنورملا◦Product Innovator ركتبم جتنملا◦Order Winner = flexibility (rapid introduction of new products) رمأ زئافلا = ةنورملا(ةديدجلا تاجتنملل عيرس لاخدإ )◦Order Qualifiers = cost, delivery, quality بلطلا تايفصت = ميلستلاو ةفلكتلاةدوجلاوCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.

2-10Example:McDonald’s Operations StrategyMission ةمهمfast product/service, consistent quality, low cost, clean/friendly environment عيرس جتنم / ةفيظن ةئيب ، ةضفخنم ةفلكت ، ةقستم ةدوج ، ةمدخ / ةقيدصOperations Objectives فادهأ تايلمعلاcost, quality, service ةمدخلاو ةدوجلاو ةفلكتلاStrategic Decisions تارارقلا ةيجيتارتسلااprocess, quality, capacity, inventory, supply chain ،نوزخملا ،ةردقلا ،ةدوجلا ،ةيلمعلا ديروتلا ةلسلسDistinctive Competence ةزيمم ةءافكtoday:continuous improvement of the transformation system, and brand (originally: unique service/supply chain) مويلا : ةملاعلاو ، لوحتلا ماظنل رمتسملا نيسحتلا ةيراجتلا( لصلأا يف : اهعون نم ةديرف ةمدخ /ديروتلا ةلسلس)COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.

2-11Characteristics of “Global Corporations”صئاصخ”ةيملاعلا تاكرشلا”✓Facilities located worldwide, not country by country. ءاحنأ عيمج يف عقت قفارم دلب سيلو ،ملاعلادلب .✓Products & services can be shifted among countries. تاجتنملا لقن نكمينادلبلا نيب تامدخلاو .✓Sourcing on a global basis.يملاع ساسأ ىلع رداصملا .✓Supply chain is global in nature.اهتعيبطب ةيملاع ديروتلا ةلسلس .✓Product design & process technology are global. ايجولونكتو تاجتنملا ميمصتةيملاع ةجلاعملا .✓Products/service fit global tastes.تاجتنملا /ةيملاعلا قاوذلأا بسانت تامدخلا .✓Demand is considered on worldwide basis.يملاع ساسأ ىلع بلطلا يف رظنيو .✓Logistics & inventory control is on worldwide basis. نوزخملا ةبقارمو ةيتسجوللايملاع ساسأ ىلع.COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.

2-12Supply Chain Strategyديروتلا ةلسلس ةيجيتارتساTo achieve competitive advantage for entire supply chain, rather than individual entities.يدرفلا تانايكلا نم لادب ،اهلمكأب ديروتلا ةلسلسل ةيسفانت ةزيم قيقحتة .Two supply chain strategies:ديروتلا ةلسلسل ناتيجيتارتسا :◦Imitative Products (e.g.commodities) ةدلقملا تاجتنملا(علسلا لثم )◦Predictable demand بلطلا عقوتملا◦Efficient, low-cost supply chain ةفلكتلا ةضفخنمو ةلاعف ديروت ةلسلس◦Innovative Products (e.g.new technologies) ةركتبملا تاجتنملا( تاينقتلا لثمةديدجلا )◦Unpredictable demand ؤبنتلا نكمي لا بلط هب◦Flexible, fast supply chain ةعيرسو ةنرم دادمإ ةلسلسFirms design supply chain for each product/service or group of products/services جتنم لكل ديروتلا ةلسلس ميمصت تاكرشلا / تاجتنملا نم ةعومجم وأ ةمدخ /تامدخلا◦Avoid “one size fits all” strategy ةيجيتارتسإ بنجت”عيمجلا بساني دحاو ساقم “COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.

2-14Sustainability is in Operations تايلمعلا يف ةمادتسلااOperations Sustainability: تايلمعلا ةمادتسا :* minimizing or eliminating environmental impact of operations * ىلع ءاضقلا وأ ليلقتتايلمعلل يئيبلا رثلأا* social and financial viability of the firm for future generations * ةيعامتجلاا ىودجلا لايجلأل ةكرشلل ةيلاملاوةمداقلاOperations‘greening’ may include: تايلمع نمضتت دق”ريضختلا :”◦Curtailing air, water, landfill pollution ةمامقلا نفادمو ءاملاو ءاوهلا ثولت نم دحلا◦Reducing energy consumption ةقاطلا كلاهتسا نم دحلا◦Minimizing transportation and total carbon footprint ةمصبلا يلامجإو لقنلا ليلقت ةينوبركلا◦Working with suppliers to use recyclable and biodegradable packaging عم لمعلا يويحلا للحتلاو ريودتلا ةداعلإ ةلباقلا فيلغتلاو ةئبعتلا مادختسلا نيدروملا◦Incorporating product reuse, end-of-life return, recycling ،جتنملا مادختسا ةداعإ جمد ةداعإ ،رمعلا ةياهن ةدوعريودتلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.

COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.British retailer Marks & Spencerhas met goals to send zero waste to landfills and is the first major retailer to be carbon neutral. ةئزجتلا رجاتم تققح سكرام ةيناطيربلادنآ ةئزجتلا رجاتم لوأ يهو ةمامقلا نفادم ىلإ تايافن رفص لاسرلإ افادهأ رسنبسنوبركلا ثيح نم ةدياحم نوكت يتلا ةيسيئرلا .Supply chain partners have been an important source of support for this effort. دهجلا اذه معدل اماه اردصم ديروتلا ةلسلس ءاكرش ناكو .TEA/123RF

2-16Chapter 2 SummaryCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.▪LO 2.1 Define operations strategy.▪LO 2.2 Describe the elements of operations strategy and alignment with business and other functional strategies.▪LO 2.3 Differentiate the ways to compete with operations objectives.▪LO 2.4 Compare product imitator and innovator strategies.▪LO 2.5 Explain the nature of global operations and supply chains.▪LO 2.6 Analyze two types of supply chain strategies.▪LO 2.7 Illustrate how operations and supply chain can become more sustainable.

2-17Questions for DiscussionCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.•Describe operations strategy in your own words.•What is the relationship between a firm’s business strategy and its operations strategy?•Think of examples of manufacturing and service firms that pursue the operations objectives of cost, quality, delivery, flexibility, sustainability. •How do Apple’s operations and supply chain characteristics support their product innovator strategy?•What are some operations or supply chain challenges facing global corporations?•Describe recent examples you have seen in person or in the media that illustrate how operations is closely tied to environmental, social, and financial sustainability.

McGraw-Hill/IrwinChapter 3 Learning Objectives▪LO 3.1 Compare the three strategies for new product introduction.▪LO 3.2 Describe the three phases of new product development.▪LO 3.3 Evaluate how concurrent engineering deals with misalignment.▪LO 3.4 Describe the criteria for selecting suppliers for collaboration.▪LO 3.5 Evaluate an example of Quality Function Deployment. ▪LO 3.6 Explain the benefits of modular design.COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.3-2

McGraw-Hill/IrwinProduct Design:Why Does Operations Care?جتنملا ميمصت:؟تايلمعلا متهت اذاملIn the past: Throw product design “over the wall”يضاملا يف : جتنملا ميمصت يمر”رادجلا ىلع “Today:◦Must be able to produce the product (design the process) جاتنإ ىلع ةرداق نوكت نأ بجي جتنملا(ةيلمعلا ميمصت)◦technology ةينقتلا◦availability of resources دراوملا رفاوت◦Must have the right type and amount of capacityةردقلا رادقمو حيحصلا عونلا نوكي نأ بجي◦Must deliver a quality product or service ةيلاع ةدوج تاذ ةمدخ وأ جتنم ميدقت بجي◦Must have right inventory at right timeبسانملا تقولا يف حيحصلا نوزخملا نوكي نأ بجيCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.3-3The LEGO Group is investing over $100 millionand hiring 100 workers to redesign its product. The goal is to make the product entirely from plant or recycled materials by 2030.Milosh Kojadinovich/12RF

McGraw-Hill/IrwinStrategies for New Product Introduction لاخدلإ تايجيتارتساديدج جتنمMarket Pull:“Make what we can sell”قوسلا بحس” :هعيب اننكمي ام لعج “◦Organize resources to fulfill customer demand ءلامعلا بلط ةيبلتل دراوملا ميظنت◦Food industry ةيذغلأا ةعانصTechnology Push:“Sell what we can make”ايجولونكتلا عفد” : اننكمي ام عيبلعجن نأ “◦Develop superior technologies and products ةقئاف تاجتنمو تاينقت ريوطت◦Electronics تاينورتكلإInterfunctionalView: most difficultفئاظولا نيب ضرع : ةبوعص رثكلأا◦Cross-functional design team –marketing, engineering, operations, finance قيرف فئاظولا ددعتم ميمصتلا- ليومتلاو تايلمعلاو ةسدنهلاو قيوستلا◦Challenge to gain cooperation of all functions فئاظولا عيمج نم نواعتلا ىلع لوصحلل يدحتلا◦Consider existing and new markets ةديدجلاو ةمئاقلا قاوسلأا يف رظنلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.3-4

McGraw-Hill/IrwinNew Product Development Processةديدج تاجتنم ريوطت ةيلمعConcept Development موهفملا ريوطت◦Idea generation and evaluation of alternative ideas ةليدبلا راكفلأا مييقتو راكفلأا ديلوتProduct Design جتنملا ميمصت◦Design of the physical product يداملا جتنملا ميمصت◦Design of the production process جاتنلإا ةيلمع ميمصتPilot Production/Testingيبيرجتلا جاتنلإا /رابتخلاا◦Testing production prototypes (e.g., 3D printing) جاتنلإا جذامن رابتخا( ةعابطلا لثمداعبلأا ةيثلاث )◦Finalizing production process جاتنلإا ةيلمع نم ءاهتنلاا◦Finalizing ‘information package’ specifying product and process design details ىلع ةريخلأا تاسمللا عضو”تامولعملا ةمزح ” ةيلمعلاو جتنملا ميمصت ليصافت ددحت يتلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.3-6Shutterstock/Gorodenkoff

McGraw-Hill/IrwinNew Product Design Process (Figure 3.2)COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.3-7Pilot production/testingFinal process designPreliminary process designConcept developmentProduct design

McGraw-Hill/IrwinProduction Prototypesجاتنلإا جذامنCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.83D Printing or Additive Manufacturing ةعابطلا فاضملا عينصتلا وأ داعبلأا ةيثلاث-Creates physical prototype يلعف يلوأ جذومن ءاشنإ-Allows rapid production of prototype designs جذامنلل عيرسلا جاتنلإا حمسي ةيلولأا-Software and hardware continue to improve لصاوت ةزهجلأاو تايجمربلا نيسحت-Now possible to print metal and human cells ايلاخلا ةعابط نكمملا نم نلآا ةيرشبلاو ةيندعملا-Speeds entire product design processاهلمكأب جتنملا ميمصت ةيلمع تاعرس

McGraw-Hill/IrwinCross-Functional Product Design ميمصتةيفيظو ربع تاجتنملاSequential approach يلسلست جهن◦Functions (marketing, engineering, operations) work independently before passing work to next step. This is the ‘over the wall’ approach. فئاظو( قيوستلاتايلمعلاو ةسدنهلاو )ةيلاتلا ةوطخلا ىلإ لمعلا ريرمت لبق لقتسم لكشب لمعت . جهن وه اذه” قوفرادجلا .”◦Often results in misalignment of market needs, design, and production process.جاتنلإا ةيلمعو ميمصتلاو قوسلا تاجايتحا للاتخا ىلإ يدؤي ام ابلاغ .Concurrent approach نمازتم جهن◦Also called concurrent engineering.ةنمازتملا ةسدنهلا اضيأ ىمستو .◦Functions cooperate, work together over the same time frame. ،نواعتلا فئاظوينمزلا راطلإا سفن للاخ اعم لمعلاو .◦Cross-functional teams are common.ةعئاش فئاظولا ةددعتم قرف .◦Not always “best” approach (e.g. high uncertainty of market or technology). امئاد سيل”لضفأ ” جهنلا(ايجولونكتلا وأ قوسلا نم ديدشلا نيقيلا مدع لاثملا ليبس ىلع.)COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.3-9

McGraw-Hill/IrwinSupply Chain Collaborationديروتلا ةلسلس يف نواعتلاRelationships with Customers عم تاقلاعلا ءلامعلا◦Ask right questions ةحيحصلا ةلئسلأا حرط◦Align incentives to share knowledge زفاوحلا ةمءاوم ةفرعملا لدابتل◦Create collaborative technology platform ةصنم ءاشنإ ةينواعت ةينقت◦Include as advisors to design team نيراشتسمك نيمضتميمصتلا قيرفل◦COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.3-11

McGraw-Hill/IrwinSupply Chain CollaborationRelationships with Suppliers عم تاقلاعلا نيدروملا◦Technical expertise ةينفلا ةربخلا◦Capabilities –cost, time, quality targets تاردقلا– ةدوجلا فادهلأاو تقولاو ةفلكتلا◦Capacity availability تاردقلا رفاوت◦Low risk ةضفخنم رطاخمCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.3-12

McGraw-Hill/IrwinQuality Function Deployment (QFD) ةدوجلا ةفيظو رشن(QFD)❖“House of Quality””ةدوجلا تيب “❖Tool for coordinating and communicating between functions ةادأ فئاظولا نيب لصاوتلاو قيسنتلل❖Helps identify tradeoffs تاضياقملا ديدحت يف دعاسيCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.3-13Engineering Characteristics“Voice of the Engineer” صئاصخلا ةيسدنهلا”سدنهملا توص”Customer Attributes“Voice of the Customer” ليمعلا تامس”ليمعلا توص”

McGraw-Hill/IrwinModular Designتادحو ميمصت✓Allows greater product variety through ‘mixing and matching’ modules تادحو للاخ نم تاجتنملا عونت نم ديزمب حمسي”ةقباطملاو طلخلا “✓Design, develop, and manage basic components (modules) to (re)use in multiple products ةيساسلأا تانوكملا ميمصت(تادحولا ) اهمادختسلا اهترادإو اهريوطتو(اهمادختسا ةداعإ ) ةددعتم تاجتنم يف✓Controls costs while enabling customer choice ءانثأ فيلاكتلا يف مكحتلا ليمعلا رايتخا نيكمت✓Small number of components creates large number of combinations, e.g., Dell notebooks, IKEA cabinets نم ليلق ددعايكيا نئازخ ،ليد ةلومحملا رتويبمكلا ةزهجأ ،لاثملا ليبس ىلع ،تابيكرت نم ريبك ددع قلخي تانوكملاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.3-17

McGraw-Hill/IrwinModular DesignMINI Cooper’s basic model has many choices: ◦4 body colors◦3 wheeldesigns◦8 interior finishes◦2 engines◦11 stylesThe theoretical number of different cars that can be produced: 4 ×3 ×8 ×2 ×11 = 2112 COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.3-18Most automobile manufacturers use modular design. تادحو ميمصت مادختسا تارايسلا يعنصم مظعم .Robert Wilson/123RF

McGraw-Hill/IrwinChapter 3 SummaryCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.3-19▪LO 3.1 Compare the three strategies for new product introduction.▪LO 3.2 Describe the three phases of new product development.▪LO 3.3 Evaluate how concurrent engineering deals with misalignment.▪LO 3.4 Describe the criteria for selecting suppliers for collaboration.▪LO 3.5 Evaluate an example of Quality Function Deployment. ▪LO 3.6 Explain the benefits of modular design.

McGraw-Hill/IrwinQuestions for DiscussionCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.20•Can you think of examples of new products that did not function well for the customers who bought them? What went wrong?•Describe what can happen if product design and process design are approached separately by different work teams.•What are the key activities in pilot production?•What do you know about 3D printing? 4D printing?!•What do marketing, finance, and HR do when they are involved in a cross-function concurrent engineering team?•How can suppliers be involved in new product development?•Can you think of products you own that include modular design elements?

Chapter 4 Learning Objectives▪LO 4.1 Contrast and compare the five types of product-flow processes.▪LO 4.2 Describe the differences among order fulfillment processes.▪LO 4.3 Explain how companies should make process selection decisions.▪LO 4.4 Correctly place examples of products on the product-process matrix.▪LO 4.5 Describe the features of focused operations.▪LO 4.6 Discuss the uses of mass customization and 3D printing.▪LO 4.7 Contrast pollution prevention, pollution control and pollution practices.COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-2

Product-Flow Characteristics صئاصخجتنملا قفدتTypes of Product Flow تاجتنملا قفدت عاونأ◦Continuous process ةرمتسم ةيلمع◦Assembly line عيمجتلا رطس◦Batch flow قفدت ةعفدلا◦Job shop فئاظولا رجتم◦ProjectعورشمCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-3

Product-Flow Characteristics:Continuous Process❑Highly standardized and automated ةيللآاو ةياغلل ةدحوم❑Flexibility limited ةدودحم ةنورملا❑High volumes of production جاتنلإا نم ةريبك تايمك❑Commodity products علسلا تاجتنم❑Low cost is the ‘Order Winner’ يه ةضفخنملا ةفلكتلا”رملأاب زئافلا “❑Process industries (sugar, paper, oil, electricity, etc.) ةجلاعملا تاعانص( ركسلاخلإ ،ءابرهكلاو طفنلاو قرولاو )COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-4

Product-Flow Characteristics:Assembly Lineجتنملا قفدت صئاصخ:عيمجتلا طخ❑Linear sequence of operations (often paced) تايلمعلل يطخلا لسلستلا( ابلاغىطخب ريسي ام )❑Large capital investment, use of automation ،ريبكلا يلامسأرلا رامثتسلااةتمتلأا مادختساو❑Very efficient ادج ةلاعف❑High-volume, standardized products مجحلا ةيلاع ةيسايق تاجتنم❑Low flexibility to product and volume changes رييغت يف ةضفخنم ةنورم مجحلاو جتنملا❑Discrete products (autos, appliances, computers, etc.) ةلصفنم تاجتنم(كلذ ىلإ امو ،رتويبمكلا ةزهجأو ةزهجلأاو تارايسلا)COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-5nikitabuida/Shutterstock

Product-Flow Characteristics:Batch Flowجتنملا قفدت صئاصخ:تاعفدلا قفدت❑Production of batches or lots صصح وأ تاعفد جاتنإ❑Batches flow as a unit (set) from one work center to another ةدحوك تاعفدلا قفدتت(ةعومجم ) رخآ ىلإ لمع زكرم نم❑Process layout of work centers (by tasks) لمعلا زكارم ةجلاعم طيطخت(ماهملا بسح )❑Flow is jumbled and intermittent طلتخم قفدتلا عطقتمو❑Flexible labor and equipment (general purpose) تادعملاو لمعلا ةنورم( ضرغلاماعلا )❑Low to high volume, variety of products ةعونتم ةعومجمو ،مجحلا ةيلاع ىلإ ةضفخنم تاجتنملا نم❑Many types of products (furniture, dishes, boats) تاجتنملا نم ةديدع عاونأ( ثاثلأابراوقلاو قابطلأاو)COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-7

Product-Flow Characteristics:Job Shopجتنملا قفدت صئاصخ:فئاظولا رجتم❑Customized to customer order رملأ ةصصخم ليمعلا❑Production of small batches or lots ريثكلا وأ ةريغص تاعفد جاتنإ❑Layout/flow similar toBatch Flowطيطخت/ قفدتل هباشم قفدت تاعفدلا❑Flexible labor and equipment (general purpose) تادعملاو لمعلا ةنورم(ماعلا ضرغلا )❑Many types of made-to-order products (plastic parts, machine components, sheet metal parts, custom signs, artificial limbs, etc.) عاونأ بلطلا بسح ةعونصملا تاجتنملا نم ةريثك( ةيندعم ءازجأ ،ةلآ تانوكم ،ةيكيتسلاب عطقخلا ،ةيعانطصا فارطأ ،ةصصخم تاملاع ،ةقرو)COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-9

Product-Flow Characteristics:Projectجتنملا قفدت صئاصخ:عورشم❑Production of customized single products ةصصخم ةيدرف تاجتنم جاتنإ❑Labor and materials brought to site عقوملا ىلإ اهراضحإ مت يتلا داوملاو ةلامعلا❑Planning, scheduling challenges طيطختلا تايدحت ةلودجلاو❑Little automation, general purpose equipment ،يللآا ليغشتلا نم ليلقلا ةماعلا ضارغلأا تادعم❑Highly skilled and flexible labor ةنرمو ةراهملا ةيلاع ةلامع❑Unique, one of a kindproducts (bridges, building construction, large aircraft, etc.) تاجتنملا عون نم ةدحاو ،اهعون نم ةديرف( ،ينابملا ءانبو ،روسجلاخلا ،ةريبكلا تارئاطلاو)COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-10

Throughput Ratio: Process efficiencyةيجاتنلإا ةبسن :ةيلمعلا ةءافكCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-11TR =Total processing time for the jobTotal time in operationsX 100%Typically: 90-100% in continuous process & assembly line10-20% in batch flow & job shop

Order Fulfillment رملأا ذيفنتMake-to-Stock (MTS) نوزخملا ىلإ عنصMake-to-Order (MTO) بلط ءارجإAssemble-to-Order (ATO) ماظنلا ىلإ عيمجتلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-12

Make-to-Stock (MTS)•Produce finished goods according to production schedule جاتنإ جاتنلإا لودجل اقفو ةزهاجلا علسلا•Customer buys from inventory نم ليمعلا يرتشي نوزخملاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-13DisadvantageInventory holding costs, slower to respond to changes in customer preferences ظافتحلاا فيلاكت ةباجتسلال أطبأ ،نوزخملابلامعلا تلايضفت يف تاريغتللءAdvantageFaster fulfillment of customer demand, lower cost, smooth production rate ،ءلامعلا بلط ةيبلت ةعرس جاتنلإا ةعرسو ،ةفلكتلا ضافخناوسلسلا

MTS Performance Measures ءادأ سيياقم❖Service level (orders filled when requested) ةمدخلا ىوتسم( يتلا تابلطلابلطلا دنع اهؤلم متي )❖Inventory replenishment time ديدجت تقو نوزخملا❖Inventory turnover (sales/avg. inventory) نوزخملا نارود(تاعيبملا/طسوتملا نوزخملا )❖Capacity utilization تاردقلا مادختسا❖Time to fill back order ىرخأ ةرم ماظنلا ءلمل تقولا❖Others, such as shrinkage rate لدعم لثم ،رخلآا ضعبلا شامكنلااCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-15

Make-to-Order (MTO)▪Start production after customer orders رماوأ دعب جاتنلإا ءدب ءلامعلا▪No finished goods inventory علسلا نم نوزخم دجوي لا ةيئاهنلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-16DisadvantageIntermittent production (i.e., lumpy demand pattern), slower response to customer demand عطقتملا جاتنلإا(لتكتملا بلطلا طمن يأ) بلطل أطبأ ةباجتسا ،ءلامعلاAdvantageHigher flexibility to customize order; no finished goods inventory costs ىلعأ ةنورم نوزخم فيلاكت دجوت لا ؛ماظنلا صيصختلةيئاهنلا علسلا

MTO Performance Measures ءادأ سيياقم❖Lead time جاتنإ ةرتف❖Orders completed on time (%) اهلامكإ مت يتلا رماولأا ددحملا تقولا يف(٪ )❖Customer request date ليمعلا بلط خيرات❖Promise date خيرات دعولاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-18

Assemble-to-Order (ATO) ماظنلا ىلإ عيمجتلا➢Produce parts and subassemblies (modules); complete production when customer places order ةيعرف ءازجأو ءازجأ جاتنإ(تادحو) جاتنلإا لامكإ ؛ ليمعلا عضي امدنع بلطلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-19AdvantageLess finished goods inventory, faster fulfillment of customer order علسلا نوزخم رمأ نم عرسأ ءافولاو ،لقأ ةيئاهنلاءلامعلاDisadvantageWork-in-process inventory نوزخمذيفنتلا ديق لمعلا

Assemble-to-Order (Figure 4.3)CustomerProduction of subassemblies ProductCustomer orderCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-20Order assemblyForecast ordersHolding inventory of subassemblies

Process Selection Decisions رايتخا تارارق ةيلمعلاFactors affecting process choice ةيلمعلا رايتخا ىلع رثؤت يتلا لماوعلا◦Market conditions فورظ قوسلا◦Capital requirements لاملا سأر تابلطتم◦Availability and cost of labor ةفلكتو رفاوت ةلامعلا◦Technology options تارايخ ايجولونكتلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-23Produce when?Produce how?Continuous process ةيلمع ةرمتسمAssembly line رطس عيمجتلاBatch flow ةعفدلا قفدتJob shop فئاظولا رجتمProject عورشمMTSMTOATO

Product-Process Strategy جتنملا ةيلمع ةيجيتارتساStrategy must consider:رابتعلاا يف ةيجيتارتسلاا ذخأت نأ بجي :◦Product characteristics جتنملا صئاصخ◦Process capabilities ةيلمعلا تاردقProduct life cycle: جتنملا ةايح ةرود :◦Often begins in Job shop, then Batch flow, then Continuous/Assembly line. رمتسم طخ مث ،ةعفدلا قفدت مث ،ةفيظولا رجتم يف أدبي ام ابلاغ /عيمجتلا .Example:◦Bread was first produced by hand in individual units in traditional bakeries. It is now produced in very large batches in modern automated bakeries. متةيديلقتلا زباخملا يف ةيدرف تادحو يف ديلاب ةرم لولأ زبخلا جاتنإ . تاعفد ىلع نلآا هجاتنإ متيوةثيدحلا ةيللآا زباخملا يف ادج ةريبك .COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-25

Product-Process Matrix(Figure 4.5)Low volume, low standardizationPrintingHeavyequipmentAutoassemblySugarrefineryLow volume,multipleproductsHigher volumefew majorproductsHigh volume, highstandardization,commodity Job ShopBatchAssemblyLineContinuousNONENONEUnique, one ofa kind productProjectBuildingCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-26

Focused Operations ةزكرملا تايلمعلاFocused factory: Meeting one set of goals.ةزكرم عنصم :فادهلأا نم ةدحاو ةعومجم قيقحت .Plant-within-a-plant (PWP): Separate products/services with differing goals by production lines/areas within the same facility. عنصملا لخاد عنصملا(PWP): تاجتنم/ جاتنلإا طوطخ بسح ةفلتخم فادهأ تاذ ةلصفنم تامدخ/ةأشنملا سفن لخاد قطانملا .Lack of focus = attempting to meet too many goals at one plant or facility. زيكرتلا مدع =ةدحاو ةأشنم وأ دحاو عنصم يف ادج ةريثك فادهأ قيقحت ةلواحم .Signs of declining focus = product/service proliferation, different volumes, different levels of standardization. زيكرتلا ضافخنا تاملاع = جتنملا راشتنا / ، ةفلتخم ماجحأ ، ةمدخلايسايقلا ديحوتلا نم ةفلتخم تايوتسم.COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-27Example:Midwest Orthopedic Specialty Hospital (Milwaukee, WI) specializes in medical treatments on bones and joints.

Mass Customization يعامج صيصخت•Strategy to produce products in lot sizes = 1, high volume. يف تاجتنملا جاتنلإ ةيجيتارتسا ريثكلا ماجحأ =1ريبك مجحو ، .•Flexible manufacturing provides economies of scope. تاروفو نرملا عينصتلا رفويوقاطنلا .•Traditional mass production provides economies of scale. مخضلا يديلقتلا جاتنلإا رفويومجحلا تاروفو.COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-28Produce custom products using a high volume process جاتنإ تاروفو مادختساب ةصصخم تاجتنمeconomies of scale = low unit cost مجحلا ةريبك ةيلمع مجح = ةفلكت ةضفخنم ةدحوeconomies of scope = high variety قاطنلا تاروفو = ةيلاع ةعونتم

Forms of Mass CustomizationModular production & assemble-to-order (ATO) جاتنلإا تادحو ماظنلا ىلإ عيمجتو◦e.g., assembling modules for Dell computers ةزهجلأ تادحو عيمجت ،لاثملا ليبس ىلع نم رتويبمكلاDell Fast changeover عيرس رييغت◦e.g., zero set-up time at Motorola لاوروتوم يف دادعلإا تقو رفص ،لاثملا ليبس ىلعPostponement of options تارايخلا ليجأت◦e.g.power supply for Hewlett-Packard printers تاعباط ديوزت ،لاثملا ليبس ىلعHewlett-Packard ةقاطلابCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-29

3D Printing & Additive Manufacturingفاضملا عينصتلاو داعبلأا ةيثلاث ةعابطلاBased on digital design model يمقرلا ميمصتلا جذومن ىلإ ادانتسا◦Stored in cloud, in not warehouse!عدوتسم يف سيلو ،ةباحس يف ةنزخم !Layer plastic, metal, ceramic to build object نئاك ءانبل كيماريسلاو ندعملاو كيتسلابلا ةقبط◦Normal (real) size يداعلا مجحلا(يقيقحلا )◦Complex shapes and spaces ةدقعملا تافاسملاو لاكشلأاUses: medical implants, aerospace, spare parts, etc.تامادختسلاا : ،ءاضفلاو ،ةيبطلا تاسرغلاخلا ،رايغلا عطقو .◦Complements manufacturing for special needs, rather than replacing production facilitiesجاتنلإا قفارم لادبتسا نم لادب ،ةصاخلا تاجايتحلاا لجأ نم عينصتلا لمكي◦Can shorten global supply chain; reduce inventoryنوزخملا ليلقت ؛ةيملاعلا ديروتلا ةلسلس ريصقت نكميCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-30

Environmental Concernsةيئيبلا فواخملا✓Technologies for pollution prevention. ثولتلا عنم تايجولونكت✓Technologies for pollution control.ثولتلا ةحفاكم تايجولونكت✓Infrastructure Systems for pollution practices. ةيتحتلا ةينبلا ةمظنأثولتلا تاسراممل .✓Other concerns ىرخأ لغاوش•Recycling outputs ةداعإ تاجرخم ريودتلا•Recycled inputs اهريودت داعملا تلاخدملا•Remanufacturing عينصتلا ةداعإCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-31

Cross-Functional Decision Making عنص فئاظولا ربع رارقلاMarketingwants fast response to customer demand ةعيرس ةباجتسا ديري قيوستلا ءلامعلا بلطلFinanceprovides funds to configure the process ةيلمعلا نيوكتل لاوملأا ليومتلا رفويHRfinds/creates the properly skilled workers دجي ةيرشبلا دراوملا / لامعلا قلخي حيحص لكشب ةرهملاIT serves various data requirements تابلطتم فلتخم مدخت تامولعملا ايجولونكت تانايبلاAccountingevolves in setting performance measures عضو يف روطتت ةبساحملا سيياقم ءادلأا4-32Whohas a stake in process choice? رايتخا يف ةحلصم هيدل نم؟ةيلمعلا

Chapter 4 SummaryCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-33▪LO 4.1 Contrast and compare the five types of product-flow processes.▪LO 4.2 Describe the differences among order fulfillment processes.▪LO 4.3 Explain how companies should make process selection decisions.▪LO 4.4 Correctly place examples of products on the product-process matrix.▪LO 4.5 Describe the features of focused operations.▪LO 4.6 Discuss the uses of mass customization and 3D printing.▪LO 4.7 Contrast pollution prevention, pollution control and pollution practices.

Questions for DiscussionCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.4-34•In your own words, describe the advantages of each of the product flows: continuous, assembly line, batch, job shop, and project.•Let’s say you are starting a new company that manufacturers customized jewelry. What types of process equipment will you search for? What types of workforce skills will you want?•For your jewelry company, how will you decide between make-to-stock, make-to-order, and assemble-to-order?•Can you think of examples where you have seen processes that are assemble-to-order?•On the product-process matrix, why are there no firms in two of the corners?•Have you purchased any mass customized products? Try to determine how you think they were made.•What examples have you seen of organizations using pollution prevention, pollution control, or other pollution practices?

Chapter 5 Learning Objectives▪LO 5.1 Differentiate the characteristics of a service organization from a manufacturing organization.▪LO 5. 2 Explain the elements of a service-product bundle.▪LO 5.3 Organize a variety of service offerings into the service delivery system matrix.▪LO 5.4 Describe the effect on the service delivery system of customer contact.▪LO 5.5 Explain service recovery and service guarantees.▪LO 5.6 Evaluate the role of technology in service management.▪LO 5.7 Appraise how globalization has affected services.▪LO 5.7 Define the attributes of the service-profit chain.COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.5-2

The Service Economyتامدخلا داصتقاSource: Government Accountability Office, 201915 Largest U.S. employersCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.5-32010 3 manufacturers12 services196012 manufacturers3 servicesX

Defining ServiceIntangibility of the offering حرطلا نم كباشتلا مدعSimultaneous production and consumption كلاهتسلااو جاتنلإا نمازتملاNo finished goods inventory نم نوزخم دجوي لا ةيئاهنلا علسلاFront office vs. back office لباقم يماملأا بتكملا يفلخلا بتكملاCannot be stored/resoldنيزخت نكمي لا/ ةداعإ عيبلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.5-5Leonard Zhukovsky/123RF

Service-Product Bundle ةمدخلا تاجتنم ةمزحService -explicit service ةمدخلا- ةمدخ ةحيرص◦what the provider does for customer ليمعلل رفوملا هلعفي امPsychological benefits -implicit service ةيسفنلا دئاوفلا- ةمدخلا ةينمضلا◦how customer feels after service ةمدخلا دعب ليمعلا رعشي فيكPhysical goods -facilitating goods ةيداملا علسلا- علسلا ليهست◦used during service or received by customer ءانثأ مدختسيليمعلا هملتسي وأ ةمدخلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.5-6Pizza deliveryPizzaSpeed/ convenienceDelivery vehicleEnjoyment

Goods and Services Packages (Figure 5.1)COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.5-7100%75%50%25%0%100%75%50%25%Self-service groceriesAutomobileInstalled carpetingFast-food restaurantGourmet restaurantAuto maintenanceHaircutConsulting servicesGoodsServices

Service Delivery System Matrix (Figure 5.2)Standard with options, usingmoderately repeatable sequence. Customer has some decision-making power.Co-routed•Stock brokerageProvider Routed•ATMStandardizedwith highlyrepeatable process sequence. Customer has low decision-making power.Highly customized with unique process sequence.Customer hasgreat decision-making power.Customer Routed•Estate planningMany process pathways. Jumbled flows, complex work with many exceptions.Moderate number of process pathways. Flexible flows with some dominant paths, moderate work complexity.Limited number of process pathways. Line flows, low complexity work.Service Delivery System DesignCustomer Wants and Needs in the Service PackageCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.5-8

Customer Contact ليمعلا لاصتا ةهجExtent of interaction between service organization and customer. ةمظنملا ةمدخ نيب لعافتلا ىدمءلامعلاو.COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.5-9Lower contact (buffered core)(اتقؤم ةنزخملا ةيساسلأا )…“provider-routed” (standardized)” هجومرفوملا لبق نم( “دحوم )…Exampleonline shoppingHigher contact (reactive system) (لعفلا در ماظن )…“customer routed” (customized)” هيجوتليمعلا( “صصخم )…Exampledentist appointment دعوم بيبطنانسلأا

Customer Contact (see Figure 5.3)Low customer contact◦Higher production efficiency ةيجاتنإ ةءافك ىلعأ◦Lower sales opportunity لقأ تاعيبم صرف◦Workers with technical skills يوذ لامعلاةينقتلا تاراهملا◦Focus on routing methods ىلع زيكرتلا هيجوتلا قرط◦Office automation ةتمتأبتكملاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.5-10Balancing sales opportunity and production efficiency ةصرف ةنزاومجاتنلإا ةءافكو تاعيبملاHigh customer contact◦Lower production efficiency ةءافك ضافخنا جاتنلإا◦Higher sales opportunity ىلعأ تاعيبم صرف◦Workers with diagnostic skills يوذ نولماعلا ةيصيخشتلا تاراهملا◦Focus on client mix ءلامعلا جيزم ىلع زيكرتلا◦Client/worker teamsلمعلا قرف/ ليمعلا

Customer-Introduced Variability هلخدأ يذلا ريغتلا ليمعلاArrival لوصو◦Uncertainty in when customers will arrive to consume a service لصيس ىتم يف نيقيلا مدع ةمدخلا كلاهتسلا ءلامعلاRequest بلط◦Uncertainty in what customers ask for in the service-product bundle هبلطي اميف نيقيلا مدع ةمدخلا تاجتنم ةمزح يف ءلامعلاCapability نكمت◦Uncertainty in the ability of customers to participate in a service ةردق يف نيقيلا مدع ةمدخلا يف ةكراشملا ىلع ءلامعلاEffort دهج◦Uncertainty in the willingness of customers to perform appropriate actions نيقيلا مدع ةبسانملا تاءارجلإا ذيفنتل ءلامعلا دادعتسا يفSubjective preference يتاذ ليضفت◦Uncertainty in the customer’s intangible preferences in how service is carried out مدع ذيفنت ةيفيك يف ةسوململا ريغ ليمعلا تلايضفت يف نيقيلاةمدخلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.5-11

Service Failure / Service Recovery ةمدخلا لشف / ةمدخلا دادرتسا◦Taking swift and appropriate action to compensate customer for a failed service. ةمدخلا نع ليمعلا ضيوعتل ةبسانمو ةعيرس تاءارجإ ذاختاةلشافلا .◦Fly in customer’s soup →New bowl of soup plus free dessert! ليمعلا ءاسح يف ريطياناجم ىولحلا ىلإ ةفاضلإاب ءاسحلا نم ديدج ءاعو!COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.5-12UPS recovered from a service failure by not only delivering the package, but bringing flowers, chocolates, and doggy treats as well! نم طقف سيل ةمدخلا لشف نم ىفاعت روهزلا بلج نكلو ،ةمزحلا ميلست للاخكلذك بلكلا لماعيو ،ةتلاوكوشلاو!roberto galan/123RF

Service Guarantee ةمدخلا نامضBenefits to the customer ليمعلا ىلع دوعت يتلا دئاوفلا◦Promise of service to be delivered اهميدقت متيس يتلا ةمدخلاب دعو◦Payout to customer if promise not delivered دعولا ميلست مدع لاح يف ليمعلل عفدلا◦FedEx package delivery →On time, or it is free!سكيديف ةمزح ميلست تقولا يفةيناجم اهنأ وأ ،ددحملا !Benefits to the organization ةمظنملا ىلع دوعت يتلا دئاوفلا◦Focuses on customer (service promise) ءلامعلا ىلع زكري(ةمدخلا دعو )◦Clearly defines payout تاعوفدملا حوضوب ددحي◦Improves customer loyalty ءلامعلا ءلاو نيسحتCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.5-13

Technology –Artificial Intelligence ايجولونكتلا–يعانطصلاا ءاكذلا◦Routine –repetitive tasks نيتور– ةرركتملا ماهملاExample: conversational phone bots provide customer serviceلاثم : فتاهلا تاتوبور ءلامعلا ةمدخ ريفوت ةثداحملا◦Analytical –problem solving and learning يليلحت– لكاشملا لح ملعتلاوExample: sports data analytics for player recruiting decisionsلاثم : تانايبلا تلايلحت نيبعلالا فيظوت تارارقل ةيضايرلا◦Intuitive –think creatively ةيهيدب– قلاخ لكشب ريكفتلاExample: helping doctors diagnose patientsلاثم : ىضرملا صيخشت ىلع ءابطلأا ةدعاسم◦Empathetic –respond emotionally فطاعتم– ايفطاع ةباجتسلااExample: bot Pepper welcomes and amuses لاثم : توبربيب كونبلا ءلامع يلسيو بحريةينابايلاJapanese bank customers5-14Software and hardware programmed to exhibit human intelligence جمارب يرشبلا ءاكذلا ضرعل ةجمربم ةزهجأوVTT Studio/Shutterstock

Globalization: Outsourcing & Offshoring Servicesةملوعلا : تامدخ جراخلا ىلإ لقنلا تامدخو ةيجراخ رداصمب ةناعتسلااOutsourcing: ةيجراخ رداصمب ةناعتسلاا :◦An outside firm performs service activities such as workforce recruiting, payroll management, accounting services, and call center functions. ءادأب ةيجراخ ةكرش موقتلاصتلاا زكارم فئاظوو ةبساحملا تامدخو تابترملا فوشك ةرادإو ةلماعلا ىوقلا فيظوت لثم ةمدخ ةطشنأ.COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.5-15Offshoring:جراخلا ىلإ لقنلا :◦Export of these service activities to other countries. ةيمدخلا ةطشنلأا هذه ريدصتىرخأ نادلب ىلإ.Advantages:•Lower costs•Focus on corecompetencies زيكرتلا ىلع تاءافكلاةيساسلأاDisadvantages:•Coordination costs قيسنتلا فيلاكت•Loss of direct control ةرطيسلا نادقفةرشابملا

Service Profit Chain ةمدخلا حابرأ ةلسلس(Figure 5.4)Internal service quality drives…ةيلخادلا ةمدخلا ةدوج تاذ صارقلأا تاكرحم …Employee satisfaction drives… اضر تاكرحم نيفظوملاEmployee retention & productivity drives… نيفظوملاب ظافتحلاا تاكرحمةيجاتنلإاوExternal service value (to customer) drives… ةميق صارقأ تاكرحم ةيجراخلا ةمدخلا(ليمعلل)Customer satisfaction drives…ءلامعلا اضر تاكرحمCustomer loyalty drives… ءلاو تاكرحم ءلامعلاRevenue growth & profitability ةيحبرلاو تاداريلإا ومن◦Feed investment back into internal service quality ىرخأ ةرم رامثتسلاا ةيذغتةيلخادلا ةمدخلا ةدوج ىلإCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.5-16

Chapter 5 SummaryCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.5-17▪LO 5.1 Differentiate the characteristics of a service organization from a manufacturing organization.▪LO 5. 2 Explain the elements of a service-product bundle.▪LO 5.3 Organize a variety of service offerings into the service delivery system matrix.▪LO 5.4 Describe the effect on the service delivery system of customer contact.▪LO 5.5 Explain service recovery and service guarantees.▪LO 5.6 Evaluate the role of technology in service management.▪LO 5.7 Appraise how globalization has affected services.▪LO 5.7 Define the attributes of the service-profit chain.

Questions for DiscussionCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.5-18•Which service firms do you think are among the largest of all U.S. employers?•What type of education and training are needed to fill the fastest growing occupations in the U.S.?•Define the elements in the service-product bundle for your most recent service purchase.•Can you think of examples of customer-routed, co-routed, and provider-routed services?•How do firms decide if a service should be delivered in a high contact manner or a low contact manner?•What was the outcome the last time you experienced a service failure?•What ideas do you have for using artificial intelligence in the future?

Chapter 6 Learning Objectives▪LO 6.1 Describe process thinking and system boundaries. ▪LO 6.2 Explain how the process view of business is cross-functional.▪LO 6.3 Construct a process flowchart for a given process.▪LO 6.4 Analyze a process by asking a wide variety of questions informed by the process flowchart.▪LO 6.5 Calculate process-flow capabilities using analytics.▪LO 6.6 Explain the principles of process redesign.COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.6-2

Process Thinkingريكفتلا ةيلمع▪All work is a process.ةيلمع وه لمع لك .▪All business functions use processes.تايلمعلا لمعلا فئاظو عيمج مدختست .▪System: Collection of interrelated elements where…ماظنلا : نم ةعومجمثيح ةطبارتملا رصانعلا …Whole system > Sum of parts▪Apply systems thinking to business.لامعلأا ىلع ةمظنلأا يف ريكفتلا قيبطت .▪Define system boundaries ماظنلا دودح فيرعت▪Use cross-functional teams for systems analysis. فئاظولا ةددعتم قرفلا مدختساةمظنلأا ليلحتل .▪Include all affected functions ةرثأتملا فئاظولا ةفاك نيمضتCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.6-3

Process Flowchartingةيلمعلا يبايسنا طيطختCreating a visual diagram to describe (represent) a transformation process فصول يئرم يطيطخت مسر ءاشنإ(ليثمت )ليوحت ةيلمعAlso called (or similar to): اضيأ ىمست(ل ةهباشم وأ :)◦Process mapping ةيلمعلا نييعت◦Flow-process charting قفدتلا ةيلمع طيطخت◦Service blueprinting ةمدخلا ططخم◦Systems flowchart ةمظنلأل يبايسنا ططخمCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.6-5

Process FlowchartingSecond, find ways to improve current process. نيسحتل قرط داجيإ ،ايناثةيلاحلا ةيلمعلا .◦Find repetitive operations ةرركتملا تايلمعلا نع ثحبلا◦Identify bottlenecks تاقانتخلاا ديدحت◦Describe directions and distances of flows تاقفدتلا تافاسمو تاهاجتا فصو(people, material and information)(تامولعملاو داوملاو سانلا )◦Reduce wasteتايافنلا ليلقتCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.6-6First, visually describe current process.ايرصب ةيلاحلا ةيلمعلا فصو ،لاوأ.Often required for certifications such as ISO9000.

Process Flowcharting1.Select a transformation process to study.ةساردلل ليوحت ةيلمع ددح .2.Form a team to develop flowchart & for analysis (to improve the system). ليلحتلاو يبايسنلاا ططخملا ريوطتل قيرف ليكشت(ماظنلا نيسحتل .)3.Specify the boundaries of transformation process.ليوحتلا ةيلمع دودح ديدحت .4.Identify and sequence the operational steps.ةيليغشتلا تاوطخلا لسلستو ديدحت .5.Identify the performance metrics for the steps.تاوطخلل ءادلأا سيياقم ددح .-e.g., time to complete each step- ةوطخ لك لامكلإ تقولا ،لاثملا ليبس ىلع6.Draw the flowchart, using consistent symbols. زومر مادختساب يبايسنلاا ططخملا مسرةقسانتم .COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.6-7

Common Flowcharting SymbolsCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.Process:operation, activity, or taskDecision:evaluation or “IF-THEN”Flow:materials, information, customerTerminator:“START” and “END”

Service Blueprintةمدخلا ططخمCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.10What is the process for selecting and altering a suit at a retail store? يف ةلدب رييغتو رايتخا ةيلمع يه ام؟ةئزجتلاب عيبلل رجتمWhat activities involved each of the following? ؟يلي ام نم لك تلمش يتلا ةطشنلأا يه ام1. Customer2. Sales associate نيبستنملا تاعيبم3. Tailor طايخEach needs a “swim lane” ىلإ اهنم لك جاتحي”ةحابس رمم”Pressmaster/Shutterstock

Symbols for Flow-Process Chart ةيلمع ططخم زومرقفدتلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.6-11Operation:task or work activityةيلمعلا : طاشن وأ ةمهملمعInspection:checking product quantity or qualityصحفلا :هتدوج وأ جتنملا ةيمك نم ققحتلاTransportation:movement of material from point to pointلقنلا : ىلإ ةطقن نم داوملا ةكرحىرخأStorage: inventory of materials awaiting next operationنيزختلا : ةيلمعلا رظتنت يتلا داوملا درجةيلاتلاDelay:delay in sequence of operationsريخأتلا : يف ريخأتلا لسلستتايلمعلا

Questions to Ask in Process-Flow Analysis Flow:Is it balanced? Where is the bottleneck? Are all steps necessary? How jumbled is the flow?قفدتلا : ؟قفدتلا ليامت ىدم ام ؟ةيرورض تاوطخلا لك له ؟ةجاجزلا قنع نيأ ؟نزاوتم وه لهTime: How long to produce one unit? Can it be reduced? Is set-up time excessive? Is waiting time excessive?تقولا : دادعلإا تقو له ؟هضيفخت نكمي له ؟ةدحاو ةدحو جاتنلإ تقولا نم مك ؟طرفم راظتنلاا تقو له ؟طرفمQuantity:Theoretical production amount? How easy to change? How many units actually produced?ةيمكلا : ؟لعفلاب ةجتنملا تادحولا ددع مك ؟رييغتلا ةلوهس ىدم ام ؟يرظنلا جاتنلإا ةيمكQuality:Historical defect rate? Which steps contribute to defects? Where do errors occur? ةدوجلا : ؟ءاطخلأا ثدحت نيأ ؟بويعلا يف مهاست يتلا تاوطخلا يه ام ؟يخيراتلا بيعلا لدعمCost:How much to produce one unit? What are cost buckets for one unit? Can some cost buckets be reduced or eliminated? ةفلكتلا : ةدحول ةفلكتلا ءلاد يه ام ؟ةدحاو ةدحو جاتنلإ مك ؟ةفلكتلا ءلاد ضعب ةلازإ وأ ضيفخت نكمي له ؟ةدحاوCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.6-13

Measuring Process Flowsتايلمعلا تاقفدت سايقSystem Capacity = capacity of the most constraining resource ماظنلا ةعس =ادييقت رثكلأا دروملا ةعس→ The single resource with the least capacity is called the bottleneck → وه ةردق لقلأا ديحولا دروملاةجاجزلا قنع ىمسيFlow rate = minimum (Supply, Demand, Capacity) قفدتلا لدعم = ىندلأا دحلا(ةردقلاو بلطلاو ضرعلا )Throughput time = from when processing begins until product or service is completed ةيجاتنلإا تقو =ةمدخلا وأ جتنملا لامتكا ىتح ةجلاعملا ءدب تقو نمCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.6-14

Measuring Process FlowsLittle’s LawI = T x RI = average number of things in the system ءايشلأا ددع طسوتم ماظنلا يفT = average throughput time ةيجاتنلإا تقو طسوتمR = average flow rate into the process يف قفدتلا لدعم طسوتم ةيلمعلا◦Relates number of items in the system (I) to arrival rate (R) and throughput time (T). ماظنلا يف رصانعلا ددع طبر(I) لوصولا لدعمب(R) تقوو ةيجاتنلإا(T). ◦Assumes system is in a ‘steady state.’ يف ماظنلا نأ ضرتفي”ةتباث ةلاح .”COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.6-15

Little’s Law Example◦People are in a line to get through security checks at a music festival. An average of 10 people per minute are processed. People spend 24 minutes in line, on average.◦What is the average number of people in line?COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.6-16◦I = T x R◦I = 24 x 10 → I = 240 people in line, on average◦Same problem, but an average of 4 people per minute are processed, and the average number of people in line is 240.◦What is the average time spent in line?◦T = I / R◦T = 240 / 4→ T = 60 minutes in line, on average

COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.6-17Pizza U.S.A. example(section 6.6)ActivityMinutesWho/WhatTake the order1AssistantMake the crust3ChefPrepareand addingredients2ChefBake the pizza24OvenCut pizza and boxthe order1AssistantTake payment1AssistantDetails:Assume all toppings added to every pizza.Two employees working at a time.Oven can bake up to 4 pizzas at a time.

Map the ProcessCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.6-18Take orderMake crustPrep/add ingredientsBake pizzaTake paymentCut/box pizzaSTARTEND1 min.3 min.2 min.24 min.1 min.1 min.

What is the Throughput Time? تقو وه ام؟ةيجاتنلإاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.6-19Throughput time = time to complete one product or service ةيجاتنلإا تقو =ةدحاو ةمدخ وأ جتنم لامكلإ تقولاPizza throughput time? 1 + 3 + 2 + 24 + 1 + 1 = 32 min.

What is Process Capacity?؟ةيلمعلا ةعس يه امCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.6-20Assistant:1+1+1=3 min. per pizza, 20 pizzas per hr.Chef:3+2=5 min. per pizza, 12 pizzas per hr.Oven:24/4=6 min. per pizza, 10 pizzas per hr.Therefore… process capacity (flow rate) = 10 pizzas/hour3 resources

What is the Process Bottleneck? قانتخا وه ام؟ةيلمعلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.6-21At an average process time of 6 min. per pizza… ةيلمع تقو يف طسوتم6 ازتيب لكل قئاقدthe OVEN is the slowest activity….. طاشن أطبأ وه نرفلاand that determines process capacity….ةيلمعلا ةردق ددحي اذهوand is, therefore, the bottleneck.ةجاجزلا قنع نإف ،يلاتلابو.The process cannot produce more ديزملا ةيلمعلا جتنت نأ نكمي لاthan the slowest activity. طاشن أطبأ نم .(flow rate = 10 pizzas/hr)

Process Redesignةيلمعلا ميمصت ةداعإ▪Identify, analyze, improve critical processes. (may cross organizational boundaries) تايلمعلا ديدحتاهنيسحتو اهليلحتو ةجرحلا( .ةيميظنتلا دودحلا زواجتت دق )▪Extreme cases: Complete process reconfiguration. (eliminating many steps)ىوصقلا تلااحلا : ةيلمعلا نيوكت ةداعإلماكلاب( .تاوطخلا نم ديدعلا ىلع ءاضقلا )▪Business Process Reengineering (BPR) تايلمعلا ةسدنه ةداعإ ةيراجتلاCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.6-22Check the text for a successful example from Credit Suisse.

Principles of Process Redesign ةداعإ ئدابمةيلمعلا ميمصت•Organize around outcomes, not tasks.ماهملا سيلو ،جئاتنلا لوح ميظنت .•Have the people who do the work process their own information.مهب ةصاخلا تامولعملا ةيلمع لمعلاب نوموقي نيذلا سانلا نوكي .Avoid handoffs, whenever possible.انكمم كلذ ناك املك ،ميلستلا تايلمع بنجت .•Put the decision point where work is performed, andbuild control into the process.ةيلمعلا يف ةرطيسلا ءانبو ،لمعلا ذيفنت متي ثيح رارقلا ةطقن عضو .Make decisions at lowest possible level. ىوتسم ىندأ ىلع تارارقلا ذاختانكمم .•Eliminate unnecessary steps in the process. ةيرورضلا ريغ تاوطخلا ةلازإةيلمعلا يف .Simplify, eliminate non-value-added activities. تاذ ريغ ةطشنلأا طيسبتاهتلازإو ةفاضملا ةميقلا.COPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.6-23

Chapter 6 SummaryCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.6-24▪LO 6.1 Describe process thinking and system boundaries. ▪LO 6.2 Explain how the process view of business is cross-functional.▪LO 6.3 Construct a process flowchart for a given process.▪LO 6.4 Analyze a process by asking a wide variety of questions informed by the process flowchart.▪LO 6.5 Calculate process-flow capabilities using analytics.▪LO 6.6 Explain the principles of process redesign.

Questions for DiscussionCOPYRIGHT © 2022 BY THE MCGRAW-HILL COMPANIES, INC. ALL RIGHTS RESERVED.25•Based on your work experience, can you define a “system” in which you have worked?•Draw a simple process map for a breakfast process such as making coffee or toast.•What sorts of “decisions” are involved in your breakfast process?•What is the bottleneck in your breakfast process?•Have a classmate review your breakfast process map and provide suggestions for improvement!•If you could redesign one of the processes on campus, which would you choose? What are some of your ideas?

Chapter 7 Learning Objectives▪LO 7.1 Describe the origins and evolution of lean thinking.▪LO 7.2 Describe the five tenets of lean thinking and the seven forms of waste in a lean system.▪LO 7.3 Explain why a stabilized master schedule is required for smooth flow.▪LO 7.4 Explain how setup time, lot size, layout, and maintenance are related to lean thinking.▪LO 7.5 Differentiate how employees are unique in lean systems.▪LO 7.6 Design a Kanban system to achieve customer pull.▪LO 7.7 Compare lean suppliers to traditional manufacturing suppliers.▪LO 7.8 Explain how to implement a lean system.Copyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.7-2

Evolution of Lean فاجعلا روطت•Toyota Production System (TPS) اتويوت جاتنإ ماظن(TPS) •Developed in Japan following WWII (due to limited resources) نابايلا يف تعضو ةيناثلا ةيملاعلا برحلا دعب(ةدودحملا دراوملا ببسب )•Also known as Just-in-Time (JIT) manufacturing تقولا يف عينصتلا مساب اضيأ فورعملا بسانملا(JIT) •Came to U.S. in 1981 at Kawasaki motorcycle plant in Lincoln, Nebraska ىلإ ءاج ماع يف ةدحتملا تايلاولا1981 عنصم يفيكاساواكاكساربن ،نلوكنيل يف ةيرانلا تاجاردللCopyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.7-31990s book, “The Machine That Changed the World” by Womack, Jones & RoosPopularized a new label: Lean ProductionWalter Cicchetti/123RF

Lean Tenets•Create product/service value from customer perspective ةميق ءاشنإجتنملا/ ليمعلا روظنم نم ةمدخلا•Reduce waste -muda تايافنلا ليلقت- ادوم•Identify, study, improve the value stream ةميقلا قفدت نيسحتو ةساردو ديدحت•Observe the process -gemba ةيلمعلا ةبقارم-gemba•Ensure simple, smooth, error-free flow نم يلاخو سلسو طيسب قفدت نامض ءاطخلأا•Determinetakt time•Produce only what is pulled by customer طقف ليمعلا لبق نم هبحس متي ام جاتنإ•Use kanbans•Strive for perfection لامكلا قيقحتل يعسلا•Holdkaizenevents,5S,5 WhysCopyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.7-4

7-5Create Value: Seven Forms of Waste قلخةميقلا : تايافنلا نم لاكشأ ةعبسOverproduction: Producing more than the demand for customers, resulting in unnecessary inventory, handling, paperwork, and warehouse space.جاتنلإا يف طارفلإا : ىلإ يدؤي امم ،ءلامعلا ىلع بلطلا نم رثكأ جاتنإعدوتسملا ةحاسمو ،ةيقرولا لامعلأاو ،ةلوانملاو ،يرورضلا ريغ نوزخملا .Waiting time: Operators and machines waiting for parts or work to arrive from suppliers or other operations. Customers waiting in line.راظتنلاا تقو : نم لمعلا وأ رايغلا عطق لوصو رظتنت يتلا تلالآاو نولغشملاىرخلأا تايلمعلا وأ نيدروملا .فصلا يف نورظتني نئابزلا .Unnecessary transportation: Double or triple movement of materials due to poor layouts, lack of coordination, and poor workplace organization.يرورضلا ريغ لقنلا : ءوس ببسب داوملل ةيثلاث وأ ةجودزم ةكرحلمعلا ناكم ميظنت ءوسو ،قيسنتلا مدعو ،تاطيطختلا .Excess processing: Poor design or inadequate maintenance or processes, requiring additional labor or machine time.ةدئازلا ةجلاعملا :ةللآا وأ لمعلل ايفاضإ اتقو بلطتي امم ،ةيفاك ريغ تايلمع وأ ةنايص وأ فيعض ميمصت .Too much inventory: Excess inventory due to large lot sizes, obsolete items, poor forecasts, or improper production planning.نوزخملا نم ريثكلا : ماجحأ ببسب دئازلا نوزخملاتوللا وأ ةئيسلا تاؤبنتلا وأ ةميدقلا فانصلأا وأ ةريبكلاميلسلا ريغ جاتنلإا طيطخت .Unnecessary motion: Wasted movements of people or extra walking to get materials. ريغ ةكرحلاةيرورضلا :داوملا ىلع لوصحلل يفاضلإا يشملا وأ صاخشلأل ةعئاض تاكرح .Defects: Use of material, labor, and capacity for production of defects, sorting out bad parts, or warranty costs with customers.بويعلا : عم نامضلا فيلاكت وأ ،ةئيسلا ءازجلأا زرفو ،بويعلا جاتنإ ىلع ةردقلاو ةلامعلاو داوملا مادختساءلامعلا.

Value Stream Mappingةميقلا قفد نييعت▪Value stream is all processing steps to complete product/service جتنملا لامكلإ ةجلاعملا تاوطخ لك وه / ةمدخلا▪Extension of process flowcharting يبايسنلاا طيطختلا ةيلمع ديدمت▪Includes value-adding/non-value-adding activitiesةميقلا ةفاضإ ةطشنأ نمضتي/ ةفاضم ةميقلا ريغ▪Requires direct observation of process –gemba بلطتي ةيلمعلل ةرشابملا ةبقارملا▪“Is this step or task necessary in creating value for the customer?”” ةميق ءاشنإ يف ةيرورض ةمهملا وأ ةوطخلا هذه له؟ليمعلل “▪Change and improve process ةيلمعلا نيسحتو رييغتCopyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.7-6

Ensure Flow:Inventory Hides Problems (Figure 7.2)Copyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.7-8PoorqualityUnreliablesupplierMachinebreakdownInefficientlayoutBaddesignLengthysetupsWater LevelWater level indicates level of inventory in the system

Lower Inventory Level Exposes ProblemsCopyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.7-9PoorqualityUnreliablesupplierMachinebreakdownInefficientlayoutBaddesignLengthysetupsWater LevelWater level indicates level of inventory in the system

Water Flows Smoothly…Once Problems ResolvedCopyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.7-10Water LevelWater level indicates level of inventory in the systemProblems addressed/solved

Customer Pull:Push versus Pull System (Figure 7.3)Copyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.11▪Downstream customer signals need for good or service. ءلامعلا تاراشإ وأ ريخلا ىلإ جاتحت بصملاةمدخلا .▪Signal is sent upstream that production is needed. ةراشإ لاسرإ متيجاتنلإا ىلإ ةجاح كانه نأ عبنملا .▪No upstream process is authorized to produce until customer pulls, thus minimizing inventory in the system. يلأ حمسي لا بحسي ىتح جاتنلإ عبنملا ةيلمع يف نوزخملا ليلقت يلاتلابو ،ليمعلاماظنلا .

Strive for Perfection: Quality in a Lean Systemلامكلا قيقحتل يعسلا : يف ةدوجلافاجعلا ماظنCopyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.7-12Defects are waste.تايافنلا يه بويعلا.No inventory to cover up mistakes. لاءاطخلأا ىلع ةيطغتلل درج.System designed to expose errors; correct them at their source (so not repeated in the future). اهردصم يف اهحيحصت ؛ءاطخلأا فشكل ممصم ماظن(لبقتسملا يف رركتت لا ىتح.)Continuous improvement of the process.ةيلمعلل رمتسملا نيسحتلا.Quality is essential inputinto lean system. تلاخدملا يه ةدوجلاليزهلا ماظنلا يف ةيساسلأا.

5 Whys Technique•Explores cause-and-effect relationships that underlie problems (root causes) ءارو نمكت يتلا ةجيتنلاو ببسلا تاقلاع فاشكتسا لكاشملا(ةيرذجلا بابسلأا )•Enables root causes to be identified/resolved متيس يتلا ةيرذجلا بابسلأا نيكمتاهفيرعت/ اهلح•Example: Truck won’t start.لاثم :ةنحاشلا ليغشت متي نل .•Why? Battery is dead.ةتيم ةيراطبلا ؟اذامل .•Why? Alternator is not functioning.لمعي لا دلوملا ؟اذامل .•Why? Alternator belt is broken.روسكم دلوملا مازح ؟اذامل .•Why? Truck was not maintained as recommended. وه امك ةنحاشلا ةنايص متي مل ؟اذاملهب ىصوم .•Why? Truck is old; no replacement parts available.ةميدق ةنحاش ؟اذامل ; عطق دجوت لاةرفوتم رايغ .•Solution? Find source for parts, orpurchase new truck. ردصم نع ثحبلا ؟لحةديدج ةنحاش ءارش وأ ،رايغلا عطقل.Copyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.7-13

5S Technique•Organize workspace to improve employee morale, safety, efficiency.مهتءافكو مهتملاسو نيفظوملا تايونعم نيسحتل لمع ةحاسم ميظنت .•Reduces time looking for “things.” نع ثحبلا يف تقولا نم للقي”ءايشلأا.”Copyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.7-14•Seiri to Sort(keep, toss)•Seiton to Straightenor set in order•Seiso to Shine, sweep, or clean•Seiketsu to Standardize•Shitsuke to Sustain(maintain)

Example: 5S Technique7-15Storage of chemicals in production area داوملا نيزختجاتنلإا ةقطنم يف ةيئايميكلاBefore•Quantities greater than needed مزلالا نم ربكأ تايمك•Difficult to see what is missing نم دوقفم وه ام ةيؤر بعصلا•Hard to find anything روثعلا بعصلا نمءيش يأ ىلعAfter•Appropriately sized quantities تايمك بسانملا مجحلا•Quickly see what is missing وه ام ةيؤر ةعرسب دوقفم•Easy to find anything روثعلا لهسلا نمءيش يأ ىلعSource: The Lean & Chemicals Toolkit/U.S. Environmental Protection Agency

Creating Flow قفدت ءاشنإCopyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.16✓Stabilize master schedule يسيئرلا لودجلا رارقتسا✓Reduce setup times and lot sizes توللا ماجحأو دادعلإا تاقوأ ليلقت✓Change to cellular layout and preventative maintenance ىلإ رييغتلا ةيئاقولا ةنايصلاو يولخلا طيطختلا✓Cross-train and engage workers لامعلا كارشإو راطقلا ربع

Stabilize the Master Schedule لودجلا رارقتسايسيئرلا❖Production horizon set according to demand.بلطلل اقفو ددحملا جاتنلإا قفأ .❖Production schedule repeated each day.موي لك رركتي جاتنلإا لودج .❖Uniform load:level work loadacross workers/machines.دحوم ليمحت : لامعلا ربع لمعلا ليمحت ىوتسم /تلالآا .❖Takt time:match supply (production rate) to demand rate . ضرعلا ةقباطم(جاتنلإا لدعم ) بلطلا لدعمل❖Produce planned quantity each day, and no more. لك اهل ططخملا ةيمكلا جاتنإكلذ نم رثكأ سيلو ،موي❖These concepts are desirable, but not essential, to a lean system. هذهفاجعلا ماظنل ، ةيرورض تسيل اهنكلو ، ةبوغرم ميهافملا.Copyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.7-17

Reduce Setup Time andLot Size تقو ليلقتدادعلإا مجحوتوللا•Reducing setup time…دادعلإا تقو ليلقت …•increases available capacity ةحاتملا ةردقلا نم ديزي•increases flexibility to meet schedule changes نم ديزي ينمزلا لودجلا تارييغتلا ةيبلتل ةنورملا•reduces inventory نوزخملا للقي•Setup types دادعلإا عاونأ•Single (single digit minutes) درفم(دحاو مقر نم ةقيقد )•One-touch (less then 1 min; 2-step process) ةدحاو ةسمل(نيتوطخ نم ةيلمع ؛ةدحاو ةقيقد نم لقأ )•Internal (while machine stopped) يلخاد(زاهجلا فقوت ءانثأ )•External (while machine operating) يجراخ(زاهجلا ليغشت ءانثأ )•Lot size reduction مجح ضيفختتوللا•Goal: single unit productionفدهلا : ةدحاو ةدحو جاتنإCopyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.7-18

Cellular Layout ةيولخلا طيطخت(Figure 7.4)Copyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.7-19•Inventory kept on shop floor close to where it is used. ةيضرأ ىلع ىقبأ نوزخملا متي ثيح نم برقلاب لحملاهمادختسا .•Eliminates wasted transportation moving materials. داوملا ليزيةردهملا لقنلا ةكرحتملا.•Work centers organized into group technology layout -cellular manufacturing. زكارم طيطخت يف ةمظنملا لمعلا ةعومجملا ايجولونكت- عينصتلايولخلا .•U-shape ensures flow without interruption. لكش نمضيU نود قفدتلاعاطقنا.

Engaging Workers لامعلا كارشإ•Multifunction, cross-trainedworkers ابيردت نوبردمو فئاظولا وددعتم لامع اعطاقتم•Flexibility to move to busy work centersةمحدزملا لمعلا زكارم ىلإ لاقتنلال ةنورم•New pay system to reflect skills varietyتاراهملا عونت سكعي ديدج عفد ماظن•Workers contribute individually and collaboratively لامعلا مهاسي ينواعتو يدرف لكشب•Perform own maintenance and inspection ةصاخلا شيتفتلاو ةنايصلا ءارجإ•Teamwork, problem solving لكاشملا لح ،يعامجلا لمعلا•Suggestion systems تاحارتقلاا ةمظنأCopyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.7-20

Pull:Kanban System❖Signals the need for more parts ءازجلأا نم ديزملا ىلإ ةجاحلا ىلإ ريشي❖Uses simple cards or signals to control production and inventory نوزخملاو جاتنلإا يف مكحتلل ةطيسب تاراشإ وأ تاقاطب مدختسي❖Each work center receives production order (signal or card) from succeeding (downstream) work center رمأ لمع زكرم لك ىقلتي جاتنإ(ةقاطب وأ ةراشإ ) لمع زكرم نم(بصملا ) حجانلا❖Prevents buildup of inventory نوزخملا مكارت عنمي❖Reduces lead time ةلهملا نم للقي❖Same concept applies to receiving deliveries from suppliers (supplier must wait for signal) نم تانحشلا ملاتسا ىلع موهفملا سفن قبطني نيدروملا(ةراشلإا راظتنا دروملا ىلع بجي)Copyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.7-21

Kanban System•Kanban: “marker” (card, sign, empty container)نابناك” :ةملاع “(ةغراف ةيواح ،ةملاع ،ةقاطب )•Visual control system of cards and containers, or other signal. ماظنىرخأ ةراشإ وأ ،تايواحلاو تاقاطبلل يرصبلا مكحتلا .Copyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.7-23D = Demand rate (at work center)T = Time for container to complete circuitC = Container size (# units)Number of containers:

Kanban Containers -ExampleCopyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.24▪Demand at work center B is 5 parts per minute and a standard container holds 50 parts. ▪It takes 90 minutes for a container to make a complete circuit through work center A and work center B (and back to A), including all setup, run, move, and wait times. The number of containers needed: n=5(90) / 50 =9 containersThe maximum inventory in the production system, a useful measure of how lean the system is:Maximuminventory=nC=DT = (9 ×50) = (5 ×90)

Supplier Relationships ▪Viewed as the ‘external factory’ اهنأ ىلع اهيلإ رظني” عنصملايجراخلا “▪Co-location, frequent deliveries ميلستلاو ،كرتشملا عقوملا رركتملا▪Fewer suppliers نيدروملا نم لقأ ددع▪No inspection—high quality is assumed (required) دجوي لا شيتفت– ةيلاع ةدوج ضرتفي(بولطم )▪Integrated supplier programs ةلماكتملا نيدروملا جمارب▪Early supplier selection ركبملا دروملا رايتخا▪Family-of-parts sourcing رداصم رايغلا عطق نم ةرسلأا▪Long-term strategic relationship دملأا ةليوط ةيجيتارتسا ةقلاع▪Reduce paperwork and inspectionشيتفتلاو ةيقرولا لامعلأا ليلقتCopyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.7-25

Implementation: Kaizen Eventذيفنتلا : نزياك ثدح✓Establish a cross-functional team فئاظولا ددعتم قيرف ءاشنإ✓Determine what customers value ءلامعلا ةميق ديدحت✓Construct value stream map ةميقلا قفد ةطيرخ ءاشنإEliminate waste (non-value-adding activities) تايافنلا ىلع ءاضقلا( تاذ ريغ ةطشنلأاةفاضم ةميقلا )✓Create smooth and error-free flow نم يلاخو سلس قفدت ءاشنإ ءاطخلأا✓Use customer demand to pull work thru process مادختسا ةيلمع للاخ نم لمعلا بحسل ءلامعلا بلط✓Implement team ideas قيرفلا راكفأ ذيفنتCopyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.7-26

Chapter 7 Summary▪LO 7.1 Describe the origins and evolution of lean thinking.▪LO 7.2 Describe the five tenets of lean thinking and the seven forms of waste in a lean system.▪LO 7.3 Explain why a stabilized master schedule is required for smooth flow.▪LO 7.4 Explain how setup time, lot size, layout, and maintenance are related to lean thinking.▪LO 7.5 Differentiate how employees are unique in lean systems.▪LO 7.6 Design a Kanban system to achieve customer pull.▪LO 7.7 Compare lean suppliers to traditional manufacturing suppliers.▪LO 7.8 Explain how to implement a lean system.Copyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.7-27

Questions for DiscussionCopyright © 2022 by The McGraw-Hill Companies, Inc. All rights reserved.28•Why did lean (Toyota Production System) work so well in Japan after World War II?•Choose one of the Japanese words from the 5 lean tenets and explain it in your own words.•Which of the 7 forms of waste can you observe at your favorite restaurants?•What does it mean to say that “inventory hides problems” in a production system?•Consider what “setup time” looks like in different industries: hospitals, quick oil change shops, restaurants, garment producing factories.•Make a mental list of how you would “5S” your own refrigerator. Then, share your ideas with classmates and compare how they approached this task.

College of Administrative and Financial Sciences

Assignment 1

Introduction to Operations Management (MGT 311)

Due Date: 14/10/2023 @ 23:59

For Instructor’s Use only

General Instructions – PLEASE READ THEM CAREFULLY

The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.

Assignments submitted through email will not be accepted.

Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.

Students must mention question number clearly in their answer.

Late submission will NOT be accepted.

Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.

All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

Submissions without this cover page will NOT be accepted.

Learning Outcomes:

To understand the global nature of supply chain.

To explain the demand and supply side of Supply chain.

To understand the completive advantage in the business.

Assignment Question(s):

Go through the case study and answer the questions that follow

The Benetton supply chain:

One of the best-known examples of how an organization can use its supply chain to achieve a competitive advantage is the Benetton Group. Founded by the Benetton family in the 1960s, the company is now one of the largest garment retailers, with stores which bear its name located in almost all parts of the world. Part of the reason for its success has been the way it has organized both the supply side and the demand side of its supply chain.

Although Benetton does manufacture much of its production itself, on its supply side the company relies heavily on ‘contractors’. Contractors are companies (many of which are owned, or part-owned, by Benetton employees) that provide services to the Benetton factories by knitting and assembling Benetton’s garments. These contractors, in turn, use the services of sub-contractors to perform some of the manufacturing tasks. Benetton’s manufacturing operations gain two advantages from this. First, its production costs for woollen items are significantly below some of its competitors because the small supply companies have lower costs themselves. Second, the arrangement allows Benetton to absorb fluctuation in demand by adjusting its supply arrangements, without itself feeling the full effect of demand fluctuations.

On the demand side of the chain, Benetton operates through a number of agents, each of whom is responsible for their own geographical area. These agents are responsible for developing the stores in their area. Indeed, many of the agents actually own some stores in their area. Products are shipped from Italy to the individual stores where they are often put directly onto the shelves. Benetton stores have always been designed with relatively limited storage space so that the garments (which, typically, are brightly coloured) can be stored in the shop itself, adding colour and ambience to the appearance of the store.

Because there is such limited space for inventory in the stores, store owners require that deliveries of garments are fast and dependable. Benetton factories achieve this partly through their famous policy of manufacturing garments, where possible, in greggio, or in grey, and then dyeing them only when demand for particular colours is evident. This is a slightly more expensive process than knitting directly from coloured yarn, but their supply-side economies allow them to absorb the cost of this extra flexibility, which in turn allows them to achieve relatively fast deliveries to the stores.

Questions:

Brief your understanding about Benetton Supply Chain operations. (3MM)

In your understanding, what is the specialty of Benetton’s contractors? (3MM)

Does this method provide Benetton competitive advantage over their competitors? Is this method sustainable in the long term? (4MM)

Note:

You must include at least 5 references.

Format your references using APA style.

Answers

Answer-

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Brief your understanding about Benetton Supply Chain operations.

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