Product Life Cycle Analysis

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Questions and Answers

What type of process is characterized by high-contact and high customization?

Service shops

Mass services

Professional Services (correct)

Mass processes

What is a characteristic of mass processes?

Limited customer interaction

High levels of customization

High volume and relatively narrow variety (correct)

Highly adaptable to meet individual customer needs

What is a key feature of continuous processes?

High levels of customer interaction

Operation for longer periods of time (correct)

Limited division of labor

Highly adaptable to meet individual customer needs

What is a sequence of steps that accomplishes an activity in process-chain-network analysis?

Process chain Signup and view all the answers

What type of process is characterized by limited contact time and little customization?

Mass services Signup and view all the answers

What is the focus of process-chain-network analysis?

Optimizing interaction between firms and their customers Signup and view all the answers

What is a key assumption for a product-oriented layout?

The product demand is stable enough to justify investment in specialized equipment Signup and view all the answers

What is the primary purpose of an assembly line in a product-oriented layout?

To put the fabricated parts together at a series of workstations Signup and view all the answers

What is the main reason for considering site location in facility planning?

To be closer to a particular customer base Signup and view all the answers

What is a fabrication line responsible for in a product-oriented layout?

Building components such as automobile tires or metal parts Signup and view all the answers

What is a key consideration for selecting a site location?

The availability of uniform quality raw materials Signup and view all the answers

Why might a business decide to relocate to a new facility?

To be closer to a particular customer base Signup and view all the answers

What is a major consequence of unfavorable exchange rates on a facility location decision?

Negation of any savings from low wage rates Signup and view all the answers

What is operational hedging in the context of facility location?

Having excess capacity in multiple countries and shifting production based on exchange rates Signup and view all the answers

What is a key factor to consider when evaluating a location based on labor costs?

Labor productivity in addition to wage rates Signup and view all the answers

What type of costs are readily identifiable and precisely measurable?

Tangible costs such as utilities and labor Signup and view all the answers

What is a significant factor contributing to globalization?

More rapid, reliable travel and shipping Signup and view all the answers

What is a critical consideration when comparing facility locations?

Exchange rates and currency risk Signup and view all the answers

What is one of the objectives of layout design?

To improve employee morale and safer working conditions Signup and view all the answers

What is the main distinction of office layouts?

The importance of the flow of information Signup and view all the answers

What is one of the aspects that office layouts should balance?

All of the above Signup and view all the answers

What was the result of Deloitte & Touche's finding that 30% to 40% of desks were empty at any given time?

The company developed a 'hoteling program' Signup and view all the answers

What is the purpose of the 'concierge' in Deloitte & Touche's 'hoteling program'?

To manage the booking of offices Signup and view all the answers

What is one of the trends in office layout design?

Creating dynamic needs for space and services Signup and view all the answers

What is the purpose of an LCA?

To formally evaluate the environmental impact of a product Signup and view all the answers

What stage of the product life cycle would a product in decline be classified as?

Decline Signup and view all the answers

What type of process deals with discrete, highly customized products?

Project process Signup and view all the answers

What is the purpose of a project's S-curve?

To illustrate the product's life cycle Signup and view all the answers

What is a characteristic of jobbing processes?

Each product shares resources with others Signup and view all the answers

What determines the overall design of a process?

The position of a process on the volume-variety continuum Signup and view all the answers

Study Notes

Layout Design Objectives

Higher utilization of space, equipment, and people
Improved flow of information, materials, and people
Improved employee morale and safer working conditions
Improved customer/client interaction
Flexibility

Office Layout

Grouping of workers, equipment, and spaces to provide for comfort, safety, and movement of information
Importance placed on the flow of information
Balance of three physical and social aspects:
- Proximity: Spaces should naturally bring people together
- Privacy: People must be able to control access to their conversations
- Permission: The culture should signal that non-work interactions are encouraged

Office Layout Trends

Technology
Creating dynamic needs for space and services
Example: Deloitte & Touche's "hoteling programs"

Process Types

Mass processes: High volume, relatively narrow variety
Continuous processes: Long periods of operation, sometimes continuous
Professional Services: High-contact, customizable, high staff discretion
Service shops: Mix of front- and back-office activities, moderate volume and variety
Mass services: High volume, limited customization, low staff discretion

Service Design

Unique characteristic: Customer interaction
Process-chain-network analysis: Optimize interaction between firms and customers
Activities: Direct interaction, assumptions for product-oriented layout

Product-Oriented Layout

Repetitive and product-oriented layout
Two types: Fabrication line, Assembly line

Facility Planning

Site location: Geographical positioning of an operation relative to input resources and customers
Reasons for location: Manufacturing products, delivering services, relocating due to factors such as larger premises or customer base

Factors Affecting Location Decision

Labor productivity
Exchange rates and currency risk
Costs: Tangible costs, operational hedging, transportation of raw materials and finished goods

Take-Home Group Project

Task: Identify a product/service in the decline stage, assess activities in each stage of the product life cycle
Prepare a PowerPoint presentation showing the S-Curve of the product lifecycle, including timeline and sales

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Description

Assess the environmental impact of a product and its life cycle stages. Identify a product that has reached its decline stage and analyze its activities in each stage. Create a PowerPoint presentation showing the S-Curve of the product lifecycle.