MGMT250 Notes September 7, 2004
1. Initial Stuff
A. Schedule
1. Collect H.W. and briefly go over it (any volunteers to put their work on board?).
2. We will finish up Operations Strategy.
3. We will begin Decision Theory and how it helps to make decisions.
3. Case Analysis due week from Thursday.
4. Problems for Chapter 5S may be due next class (depending on how far we get today).
5. For next week read quality assignments. Will try to start Quality next time, if time allows.
2. Levels of operations/manufacturing strategy
1. Internally Neutral (Very Reactive, don't mess anything up).
2. Externally Neutral (Keep up the industry status quo, externally reactive).
3. Internally Supportive (Closely link to business strategy, internally proactive).
4. Externally Supportive (Closely link to other functions and keep an external proactive eye).
Developing a Strategy see graphics. Essentially looking at the market and determining what operations are needed to
fulfill market requirements. Good structural procedure. How do you position a company on the product/process
matrix? Let’s talk about Trek/Huffy again.
New Strategies include:
Quality, Time.
Time based Strategies occur throughout the “Product Development Life Cycle”
Chapter ends with discussion of integration of Craft and Mass for “Lean Production”.
Flexibility-Quality Dependability-Cost
Continuous
Flow
Assembly
Line
Batch
Job
Shop
Low
Volume
One of a
Kind
Multiple
Products,
Low
Volume
Few
Major
Products,
Higher
Volume
High
Volume,
High
Standard-
ization
Commercial
Printer
Heavy
Equipment
Automobile
Assembly
Sugar
Refinery
Flexibility-
Quality
Dependability
Cost
Product-Process Lifecycle Matrix
Variety, Flexibility, & Volume
Product
Variety
High
Moderate
Low
Very Low
Equipment
flexibility
High
Moderate
Low
Very Low
Low
Volume
Moderate
Volume
High
Volume
Very high
Volume
Job
Shop
Batch
Repetitive
assembly
Continuous
Flow
