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31 Cards in this Set
- Front
- Back
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What is OM?
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The set of activities that create value in the form of goods and services by transforming inputs into outputs.
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What is OM responsible for?
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Planning, coordinating, and controlling the resources needed to produce a company's products and services.
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Why OM?
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"In business today, the emphasis is not so much on what you make, but on how you do business."
Ex. Dell makes computers just like every other PC manufacturer. |
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Why study OM? (4)
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1. OM is one of three major functions of any organization, we want to study how people organize themselves for productive enterprise.
2. We want and need to know how goods and services are produced. 3. We want to understand what operations managers do. 4. OM is such a costly part of an organization. |
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Describe the two types of OM decisions.
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1. Strategic Decisions
- Broad in scope - Long-term in nature - All encompassing 2. Tactical decisions - Narrow in scope - Short term in nature - Concerning a small group of issues |
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Basic functions of OM managers. (5)
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Planning
Organizing Staffing Leading Controlling |
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What are the critical decisions of OM managers?
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1. Design of goods and services
2. Managing quality 3. Process and capacity design 4. Location strategy 5. Layout strategy 6. Human resources and job design 7. Supply-chain management 8. Inventory, material requirements planning, and JIT 9. Intermediate and short-term scheduling 10. Maintenance |
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What are new trends in OM?
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- Ethics
- Global Focus - Environmentaly sensitive production - Rapid product development - Environmentally sensitive production - Mass customization - Empowered employees - Supply-chain partnering - JIT performance |
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What is the productivity Challenge?
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Productivity is the ratio of outputs divided by inputs.
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What is the objective to the productivity challenge?
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To improve productivity.
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What are the types of productivity?
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Productivity = Units produced/Input used
Labor productivity = Units produced/Labor-hours used Multi-factor productivity = Output/Labor+Material+Energy+Capital+Miscellaneous |
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Describe Service productivity
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1. Typically labor intensive
2. Frequently focused on unique individual attributes or desires 3. Often an intellectual tasks performed by professionals 4. Often difficult to mechanize 5. Often difficult to evaluate for quality. |
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What are the challenges OM managers face involving ethics and social responsibility?
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- Developing and producing safe, quality products
- Maintaing a clean environment - Providing a safe workplace - Honoring stakeholder commitments |
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What are the reasons to globalize?
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1. Reduce costs
2. Improve supply chain 3. Provide better goods and services 4. Understand markets 5. Learn to improve operations 6. Attract and retain global talent |
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Why does globalization reduce costs?
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Foreign locations with lower wage rates can lower direct and indirect costs.
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How does globalization improve the supply chain?
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By locating facilities closer to unique resources.
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How does globalization provide better goods and services?
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Objective and subjective characteristics of goods and services.
- On time delieveries - Cultural variables - Improved customer service |
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How does globalization help understand markets.
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Interacting with foreign customers and suppliers can lead to new opportunities
- Cell phone design from Europe - Cell phone fads from Japan - Extend the product life cycle |
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What is developing missions and strategies important?
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Mission statements tell an organization where it is going.
The strategy tells the organization how to get there. |
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What are the factors that affect the mission?
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1. Philosophy and values
2. Profitability and growth 3. Public image 4. Benefit to society 5. Customers 6. Environement |
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What does the strategy involve?
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- Action plan to achieve the mission
- Functional areas have strategies - Strategies exploit SWOT |
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What are the strategies for competitive advantage?
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Differentiation - Better or atleast different
Cost Leadership - cheaper Response - rapid response |
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What is competing on differentiation?
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Uniqueness can go beyond both the physical characteristics and service attributes to encompass everything that impacts customer's perception of value.
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How to compete on cost
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Provide the maximum value as perceived by customer. Does not imply low quality.
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How to compete on Response.
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- Flexibility
- Reliability - Timeleness |
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What are the 10 strategic OM decisions?
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1. Goods and service design
2. Quality 3. Process and capacity design 4. Location selection 5. Layout design 6. Human resources and job design 7. Supply-chain management 8. Inventory 9. Scheduling 10. Maintenance |
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What is the first rule of business?
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You have to have products that sell.
Product design is a business issue. |
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What are the product strategy options?
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- Differentiation
- Low cost - Rapid response |
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What are the phases of the product life cycle?
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Introductory Phase
- Fine tuning my warrant unusual expenses for 1. Research 2. Product development 3. Process modification and enhancement 4. Supplier development Growth Phase - Product design begins to stabilize - Effective forecasting of capacity becomes necessary - Adding or enhancing capacity may be necessary Maturity Phase - Competitors now established - High volume, innovative production may be needed - Improved cost control, reduction in options, paring down of product line. Decline Phase - Unless product makes a special contribution to the organization, must plan to terminate offering |
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What are new product opportunities?
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1. Understanding the customer
2. Economic change 3. Sociological and demographic change 4. Technological change 5. Political/legal change 6. Market practice, professional standards, suppliers, distributors |
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What are the components of quality function deployment?
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1. Identify customer wants
2. Identify how the good/service will satisfy the customer 3. Relate customer wants to product hows 4. Develop importance ratings 5. Evaluate competing products 6. Compare performance to desirable technical attributes |
