Operations and Supply Chain Management The Core

goods, they can’t be stored. You cannot “come back last week” for an air flight or a day on
campus.
And fifth, the specifications of a service are defined and evaluated as a package of features
that affect the five senses.
QUALITY
These
MANAGEMENT
features relate
AND SIX
to the
SIGMA
location, decoration, chapter 10 and layout 313
xvi of the facility WALKTHROUGH where the service is housed, for example. Other features are the training
∙ How well
and
are
attitude
we able
of employees,
to maintain
and
the
the
dimensional
consistency
tolerance
of service
on
performance.
our three-inch
Such attributes as
ball bearing
speed,
assembly?
privacy, and
Given
security
the variability
are other features
of our process
that define
for
a
making
service.
this ball
bearing, how many
Photos
defects would
and
we
Exhibits
expect to produce per million bearings that
we make? The Goods–Services Photos and exhibits Continuum
the text enhance the visual appeal and clarify
∙ How long Almost does it any text take product discussions. for customers offering to Many is be a combination served of the from photos of our goods drive-through illustrate and services. additional window In Exhibit examples 1.3, we of
during the show busy this lunch arrayed period? along a continuum of “pure goods” to “pure services.” The continuum
companies that utilize the operations and supply chain concepts in their
captures the main focus of the business and spans from firms that just produce products
Processes that to provide those that business. goods only and provide services services. usually Pure exhibit goods some industries variation have in their become output. low-margin commodity
be caused businesses, by many and in factors, order to some differentiate, of which they we can are often control adding and others some services. Some
This variation can
that are inherent examples in the process. are providing Variation help that with is caused logistical by factors aspects that of stocking can be clearly items, identified
and possibly sive even information managed databases, is called and assignable providing variation. consulting For advice. example, variation Assignable variation
maintaining exten-
caused by workers not being equally trained or by improper machine adjustment is assignable
variation. Variation that is inherent in the process itself is called common variation. output of a process
Deviation in the
Common variation is often referred to as random variation and may be the result of the that can be clearly
type of equipment exhibit used to complete 1.3 a The process, Goods–Services for example.
identified and
Continuum
managed.
As the title of this section implies, this material requires an understanding of very basic
statistics. Recall from your study of statistics involving numbers that are normally distributed
the definition of the mean and standard deviation. The mean ( ¯
Common variation
X ) is just the average Deviation in the
value of a set of numbers. Pure Mathematically Goods this Core is Goods Core Services Pure Services output of a process
Food products Appliances
Hotels
University that is random and
n
Chemicals
Automobiles
Airlines
Medical inherent in the
Mining Data
∑
storage x i systems Internet service Investment process itself.
X ¯ i=1
= _____
providers [10.1]
n
where:
Goods
x i = Observed value
n = Total number of observed values
Services
jac38881_ch01_002-023.indd 8
MARSHMALLOW CANDY
PEEPS CHICKS GET A QUALITY
CONTROL CHECK AS THEY
MOVE DOWN A CONVEYOR
BELT INSIDE THE JUST
BORN INC. MANUFACTURING
FACILITY 08/02/18 02:59 IN BETHLEHEM, PM
PENNSYLVANIA.
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