Operations Management at Frankfurt School of Finance & Management

mass customization 

each customers order is unique and manufactured to his preferences 

assemble to order 

order is assembled from a set of standardized modular components after an order is received

1. man

2. machine 

3. material

A concept which shows how different factors influence a company

Cost/Efficiency = Are we wasting ressources? 

Quality = Are customers happy with the final product/service? 

Variety = Are we providing sufficient variety to match the heterogenous demand of our customers? 

Time = How fast can we provide a service or product? 

theory = prices increase

practice= losing revenues 

theory = prices decrease

practical = ressources are wasted

Price (most of the time negative except luxury products) 

Inconvenience = location and timing

consumption utility = perfomance and fit 

At service companies the customer is the most of the time the material its self (for example at the hairdresser the customer is customer and material at the same time) 

Wenn ich zum Beispiel versuche schneller zu sein impliziert dies mehr Mitarbeiter was wiederrum mehr Kosten mit sich bringt

T = I/R I=Inventory and R=COGS

How long does money stay in a company until it turns to revenue? 

How long has one passenger have to wait in average? 

There can be flow units that leave the process earlier for example loans applications that get rejected after some stage in the process

The resource with the highest implied utilization 

Managing... 

1. the transformation of an input rate into an output rate 

2. to match an demand rate and make money or achieve non for profit objectives