Part 1 · Decision 1 · Weeks 2–3

"What kind of operation are we running?"

Before you can improve an operation, you need to know what kind of operation it is. A custom-cake bakery, a Tesla gigafactory, and a hospital emergency department are all "operations" — but they live in different worlds. This is where the course starts.

Process Types Facility Layout Project Management Foundations

Why this decision matters

Almost every operations mistake traces back to a mismatch between the process you have and the product you're trying to make. Tesla tried to build a job-shop level of automation on an assembly line and called it "production hell." Boeing tried to run an aerospace project like a manufacturing line and ended up with the 737 MAX recall. The product-process matrix isn't a textbook concept — it's how you avoid those mistakes.

This module covers two weeks because it stitches together three foundational chapters: strategy and productivity (Ch 1–2), project management (Ch 4), and the family of manufacturing & service processes (Ch 7–9). The lens we use to tie them together is fit: does this process fit this product, this volume, this customer expectation?

By the end of this topic you'll be able to

Classify any operation as job shop / batch / assembly / continuous (or its service equivalent) and defend why. Read a product-process matrix and spot when a company has drifted off the diagonal. Build a basic project plan with PERT, identify the critical path, calculate slack, and decide whether to crash. Apply the same fit lens to service operations using the Service-System Design Matrix.

Materials

Key concepts to know
  • Productivity — output / input. The single most common operations metric. Know labor, multifactor, and total productivity.
  • Order winners vs. order qualifiers — qualifiers get you on the shortlist; winners get you the sale. Cost, quality, speed, flexibility, dependability.
  • The four process types — job shop (custom, low volume), batch (medium volume, some variety), assembly line (high volume, low variety), continuous flow (very high volume, no variety).
  • The product-process matrix — the diagonal is efficient; off the diagonal usually means you're paying for capability you don't use or capacity you can't get.
  • Make-to-stock, make-to-order, assemble-to-order — how far down the value chain you commit before a customer order arrives.
  • Facility layouts — process, product, cellular, fixed-position. Each fits a different process type.
  • Service-System Design Matrix — the service equivalent of the product-process matrix. Frontstage vs. backstage, customer contact, sales opportunity.
  • Project management — PERT expected time, critical path, slack/float, EVM (CV, SV, CPI, SPI), crashing.
Class notes & cheat sheets
Real-company case studies

Eight short case studies that anchor the concepts in companies you've heard of. Read at least two manufacturing and two service before you do the hands-on activity.

Hands-on activity

The project-management worksheet walks you through a small project from PERT estimates through the critical path, slack, and a crashing decision. The warehouse-shuffle activity is a layout exercise — rearrange a small warehouse to cut travel time.

Practice with games · Overview & strategy

Short browser games that build intuition for what an operation is and how the pieces fit together.

Practice with games · Project Management

Project management is hands-on by nature. These games make critical path, slack, and crashing concrete.

Practice with games · Process & Layout
Practice with games · Service Process Design (Ch 9)
Using AI on this decision

AI is a fast way to classify an unfamiliar operation. Paste the operation description into an AI assistant and ask:

  1. "Which of the four manufacturing process types best fits this operation, and why?"
  2. "Is this make-to-stock, make-to-order, or assemble-to-order? What's the evidence?"
  3. "On the product-process matrix, is this operation on the diagonal? If not, what's the misfit?"

The trap: AI will confidently classify wrong if the operation has hybrid characteristics. Always check by asking it to list two pieces of evidence against its own answer.

See the Prompt Engineering for OSCM guide for more patterns.

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