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46 Cards in this Set
- Front
- Back
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What is operations? |
The part of a business organization that is responsible for producing goods or services |
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Howcan we define operations management? |
The management of systems or processes that create goods and/or provide services |
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Definition of Goods, Services? |
Goods are physical items that include raw materials, parts, subassemblies,and final products. Services are activities that provide some combination of time, location, formor psychological value. |
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SupplyChain |
a sequence of activities and organizations involved in producing and delivering a good or service |
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What are the three basic functions of Business Organizations |
Marketing Operations Finance |
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Define Value Added in terms of the Supply Chain |
Term used to describe the difference between the cost of inputs and the value or price of outputs For nonprofits, their value of outputs is their value to society |
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What is the main difference between Manufacturing Organizations and Service Organization? |
Manufacturing is goods-oriented and service is act-oriented. They are often different in terms of what is done but quite similar in terms of how its done. |
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Define Process, in terms of Process Management |
Project Management is aA key aspect of operations management. A process consists of one or more actions that transform inputs into outputs. |
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Three Categories of Business Process |
Upper-management Process- govern the operation of the entire org. Operational Process-These are the core processes that make up the value steam Supporting Process-Support the core processes |
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Four Basic Sources of Variation inProcesses |
Variety of goods or services being offered- Greater variety means greater the variation in production or service requirements Structural variation in demand -generally predictable, and important for capacity planning Random variation-Natural variation that is present in all processes, generally cannot be influenced by managers Assignable variation- variation that has identifiable sources. Can be reduced, or eliminated by analysis and corrective action |
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Discuss the Roles of Operation Management |
Function consists of all activities directly related to producing goods or providingservices. A primary function of the operations manager is to guide the system bydecision making. -SystemDesign Decisions --SystemOperation Decisions -Chief role is that of planner/decision maker |
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Discuss one of the roles of Operations Management, System Design Decision |
Involve decisions that relate to: –Capacity –Facility location –Facility layout –Product and service planning –Acquisition and placement of equipment These are typically strategic decisionsthat•usually require long-termcommitment of resources •determine parameters of systemoperation |
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Discuss one of the roles of Operations Management, System Operation Decision |
These are generally tactical andoperational decisions: –Management of personnel –Inventory management and control –Scheduling –Project management –Quality assurance Operations managers spend more time onsystem operation decision than any other decision area •They still have a vital stake insystem design |
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What are the key decisions that Operation Management make that affect the entire organization? |
What:What resources are needed, and in what amounts? When: When will each resource be needed? Whenshould the work be scheduled? Whenshould materials and other supplies be ordered? Where: Where will the work be done? How: How will he product or service bedesigned? How will the work bedone? How will resources be allocated? Who: Who will do the work? |
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What is a model? What are some common features? |
anabstraction of reality; a simplification of something. Commonfeatures of models: -Theyare simplifications of real-life phenomena -Theyomit unimportant details of the real-life systems they mimic so that attentioncan be focused on the most important aspects of the real-life system |
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What are the Benefits of models? (6) |
1.Modelsare generally easier to use and less expensive than dealing with the realsystem 2.Requireusers to organize and sometimes quantify information 3.Increaseunderstanding of the problem 4.Enablemanagers to analyze “Whatif?”questions 5.Serveas a consistent tool for evaluation and provide a standardized format foranalyzing a problem 6.Enableusers to bring the power of mathematics to bear on a problem. |
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Discuss a Quantitate Method of problem solving? |
Adecision making approach that frequently seeks to obtain a mathematicallyoptimal solution Examples: Linearprogramming Queuingtechniques Inventorymodels Projectmodels Forecastingtechniques Statisticalmodels |
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Define System? |
A system can be defined as a set of interrelated parts that must work together The organization can be thought of as a system composed of subsystems which intern are composed of lower subsystems. |
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Discuss the system approach in problem solving? |
Emphasizes interrelationships among subsystems. Main theme is that the whole is greater than the sum of its parts. The output and objectives of the organization take precedence over those of any one subsystem |
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Define and Discuss the main way goods were produced in the earliest days of manufacturing? |
Craft Production- System in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods |
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Discuss the changes and areas of no change of Operation Management during the Industrial Revolution |
-Steam Engine was developed. -Standard gauging system developed which greatly reduced the need for custom-made goods -Management theory and practice did not change much during this period. |
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Scientific Management in terms of Operation Management? |
-Brought widespread changes to the management of factories. -Movement lead by efficiency engineer and inventor Fredrick Winslow Taylor. He believed in a “science of management” based on observation, measurement, analysis and improvement of work methods, and economic incentives - Also, believed management is responsible for planning, carefully selecting and training workers, finding the best way to perform each job, achieving cooperate between management and workers, and separating management activities from work activities -Emphasized maximizing output |
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Other contributors to Scientific Management besides the man that lead the movement |
Frank Gilbreth - father of motion studies Henry Gantt - developed the Gantt chart scheduling system and recognized the value of non-monetary rewards for motivating employees Harrington Emerson - applied Taylor’s ideas to organization structure Henry Ford - employed scientific management techniques to his factories -Moving assembly line-Mass production |
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Who and what models were made for Decision Models and Management Science |
F.W. Harris – mathematical model for inventory management, 1915 Dodge, Romig, and Shewart – statistical procedures for sampling and quality control, 1930s Tippett – statistical sampling theory, 1935 Operations Research (OR) Groups – OR applications in warfare George Dantzig – linear programming, 1947 WWII caused quantitative models to be more widely used in order to achieve a higher output. |
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How did Japanese Manufacturers influence U.S manufacturers. |
Refined and developed management practices that increased productivity -Credited with fueling the “quality revolution" -Just-in-Time production |
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Define Six Sigma |
A process for reducing costs, improving quality, and increasing customer satisfaction |
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What are Lean Systems |
System that uses minimal amounts of resources to produce a high volume of high quality goods with some variety. -Uses highly skilled workforce and flexible workforce -More involved in maintaining and improving the system |
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What are the Key issues facing Business Operations (Operation Managers) today? |
Economic conditions Innovating Quality problems Risk management Competing in a global economy |
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Issues affecting Supply Chain Management |
Main: Oscillating inventory levels, Inventory stockouts, Late deliveries, Quality problems The need to improve operations Increasing levels of outsourcing Increasing transportation costs Competitive pressures Increasing globalization Increasing importance of e-business The complexity of supply chains The need to manage inventories |
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Elements of Supply Chain Managment |
Customers Forecasting Design Capacity Planning Processing Inventory Purchasing Suppliers Location Logistics Definitions and breakdown on sheet. look now, |
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Define Competitiveness |
Howeffectively an organization meets the wants and needs of customers relative toothers that offer similar goods or services Organizations compete through some combination of their marketing and operations functions |
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What are the two are of a company that influence competitiveness that was discussed in ch.2? |
Business Operations and Marketing |
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What are the three Basic Business Strategies |
Low Cost Responsiveness Differentiation from competitors |
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Define Tactics |
tactics are the methods and action used to accomplish strategies |
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What are the two types of strategies with in an organization? |
Functional Strategies, Organizational Strategies |
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Define Core Competencies |
Thespecial attributes or abilities that give anorganizationa competitive edge. -To be effective corecompetencies and strategies need to be aligned |
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What two things must be taken into consideration in order to formulate a successful strategy? Define them. |
Order Qualifiers-Characteristics that customers perceive as minimum standards of acceptability to be considered as potential for purchase Order Winners- Characteristics of an organization's goods or services that cause it to be perceived as better than the competition. |
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What are the key external factors to consider when developing strategies. |
Economic Conditions Political Conditions Legal Environment Technology Competition Markets |
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What are the key internal factors to consider when developing strategies. |
Human Resources Facilities and Equipment Financial Resources Customers Products and Services Technology Suppliers Other- Patents, Labor relations, company/product image |
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Define Operations Strategy |
Narrower in scope relative to organization strategy, dealing primarily with the operations aspect of the organization
-In order to be effective, important to link it to organization strategy. -Can have major influence on competitiveness of org. |
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Define Quality-based strategy and Time-based strategy |
1.Strategythat focuses on quality in all phases of an organization. Can be a part of another strategy like cost reduction, increased productivity, etc. 2.Strategiesthat focus on the reduction of time needed to accomplish tasks. -It isbelieved that by reducing time, costs are lower, quality is higher,productivity is higher, time-to-market is faster, and customer service isimproved |
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Discuss the Balanced Scorecard (BSC) |
A top-down managementsystem that organizations can use to clarifytheir vision and strategy and transform them into action. -Helps focus managers attention on strategic issues and the implementation of strategy -Managers develop objectives, metrics, and targets for each objective and initiatives to achieve objectives, and they identify links among the various perspectives -Pays little attention to suppliers and governmental regulations |
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Define productivity, and what are the measures useful for |
Ameasure of the effective use of resources, usually expressed as the ratio ofoutput to input. =output/input -Particularly important for organization using low cost strategy. Useful for: -Trackingan operating unit’sperformance over time -Judgingthe performance of an entire industry or country |
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What is higher productivity linked to? |
Highproductivity is linked to higher standards of living - Asan economy replaces manufacturing jobs with lower productivity service jobs, itis more difficult to maintain high standards of living Higherproductivity relative to the competition leads to competitive advantage in themarketplace -Pricingand profit effects Foran industry, high relative productivity makes it less likely it will besupplanted by foreign industry |
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Define Process Yield |
Closely related to productivity, and a useful measure in service sectors. Where products are involved, it is defined as the ratio of output of good product to the quantity of raw material input. In service ind. , it is dependent on the particular process |
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What are the factors affecting Productivity |
Methods Capital Quality Technology Management -Main productivity gains in the past have come from technological improvements. |
