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68 Cards in this Set

  • Front
  • Back
Operations management
the management of systems or processes that create prodcuts and/or provide services
transformation process
changing inputs into outputs by using processing and adding value to them
Value added
the difference between the cost of inputs and the value or price of outputs
four utilities that services offer
place, psychological, time, form
place utility
offering place to do something
psychological utility
entertainment is positive, sometimes services are used to avoid the negatives (taxes)
Time utility
save time, ex. oil change
form utility
Procide information in a form that is easier to read, ex. phone book
main characteristics of service operations
intangible output, high customer contact, low uniformity of input, high labor content, low uniformity of output, difficult measurement of productivity, low opportunity to correct quality problems
Key differences between manufacturing and service
customer contact, uniformity of input, labor content, uniformity of output, measurement of productivity, quality assurance
Five major responsibilities of operations management
planning, controlling, organizaing, staffing, directing
capacity, location, products and services
inventory and quality
degree of centralization, subcontracting
hiring/laying off, use of overtime
incentive plans, job assignments
4 different types of production systems
project, batch job shop, repetitive
project production system
one time production, long duration
batch production system
hybrid between job shop and repetitive
job shop production system
low volume, high variety, high flexibility, general equipment, ex. wood working
repetitve production system
mass production, high volume, low variety, low flexibility, special equipment, ex. paperclips
continuous production system
special type of repetitive, bulk units, ex. gas and pellet units
3 types of models
physical, schematic, mathematical
physical model
most real/less abstract, ex. Globe
schematic model
drawing/map, no physical representation, ex. blueprints
mathematical model
using equations to represent reality, very abstract, ex. gravity equation
Problem with suboptimization
what is optimal for one department may not be optimal for the whole organization
Pareto Principle
80% of the problems occur from 20% of the activities, a vital few things are important for reaching an objective or solving a problem
Eli Whitney's contribution
interchangeable parts
Frank and Lillian Gilbreth
efficiency experts - motion pictures
Fredrick Taylor
best way to do a job, standardization process
Supply chain
suppliers' suppliers --> direct suppliers --> producer --> distributor --> Final consumer
how effectively an organization meets the needs of customers relative to others that offer similar goods and services
6 things we compete on
flexibility, quality, differentiation, service, time, and price
reason for existence of an organization
a plan for acheiving organizational goals
actions taken to accomplish strategies
distinctive competencies
special attributes or abilities that give an organization a competitive edge, things you can do better than anyone else
Examples of distintive compentencies
low cost, high performance, rapid delivery, variety and volume
Environmental Scanning
the considering of events and trends that present threats or opportunities for a company, ex. legal environment, competition, technology
Quality based strategies
focuses on maintaingin or improving the quality of an organization's products or services
Time based strategies
Focuses on reduction of time that it takes to produce the product
Five different productivity measures
partial measures, multi-factor measures, total measure, productivity
partial measures productivity measures
output/single input
multi-factor productivity measure
output/(multiple inputs)
total productivity measure
output/(total inputs)
productivity measure
major factors to consider in product design
cost, quality, time to market, customer satisfaction, competitive advantage
Legal issues in product design
product liability, FDA, OSHA, IRS, uniform commercial code
Product liability
a manufacturer is liable for any injuries or damages caused by a faulty product, a jury decides if it is a faulty product
Uniform commercial code
products carry and implication of merchantability and fitness
Ethical issues in product design
releasing products with defects
Environmental issues in product design
Nike Example
Life Cycle of product or service
intro. -> growth -> maturity -> saturation -> decline
mass customization
strategy of producing standardized goods or services, but incorporating some degree of customization
delayed differentiation
producing but not quite completing a product or service until you receive customer prefrences
Modular design
component parts are subdivided into modules that are easily replaced or interchangeable
robust design
design that results in products or services that can function over a broad range of conditions
Reverse engineering
the dismantling and inspecting of a competitor's product to discover product improvements
Basic Research
advances knowledge about a subject without near term commercial application
Applied research
acheives commercial applications, use items for other items
Development research
converts results of applied research into commercial use
concurrent engineering
the bringing together of engineering design and manufacturing personal early in the design phase
3 recycling reasons
environmental regulations, environmental concerns, cost savings
characteristics of well designed servise systems
consistent with company's mission, user friendly, robust, easy to suatain, cost effective, value to customers, linkage between front and back operations, single unifying theme, reliable and good quality
Challenges of service design
variable requirements, difficult to describe, high customer contact, dealing with people
quality function development, an approach that integrates the voice of the customer into the product and service design stage
3 main tradeoffs in managing a product
performance, cost and time