Ops Mgmt 1

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Operations is responsible for

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producing the goods or providing the services offered by the organization.

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Supply chain

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The sequence of organizations--their facilities, functions, and activities--that are involved in producing and delivering a product or service. The sequence begins with basic supplies of raw materials and extends all the way to the final customer.

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Creation of goods and services

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involves transforming or converting inputs into outputs. Various inputs such as capital, labor, and information are used to create goods or services using one or more transformation processes.

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Value Added

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The essence of operations is to add value during the transformation process. Value added is the term used to describe the difference between the ost of inputs and the value or price of outputs.

Front 5

Technology choices

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Can have a major impact on productivity, costs, flexibility, and quality and customer satisfaction.

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Production of goods vs. delivery of service

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In production of goods a tangible output is often produced. Delivery of service usually implies an act.

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Differences between manufacturing and service companies

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1. Degree of customer contact. Services involve high customer contact.
2. Labor content of jobs. Service jobs typically require more labor.
3. Uniformity of inputs. Service companies are subject to a higher degree of variability of inputs. Manufacturing have more uniform job requireents.
4. Measurement of productivity. Can be more difficult for service jobs due largely to the high variations of inputs.
5. Quality assurance-Usually more challenging for service companies due to the higher variation in input and because delivery and consumption occur at the same time.
7. Inventory Services are lovew in costs of inventory on hand,
8. Wages- Manufacturing jobs are generally high paid and have less wage variation than service jobs.
9. Ability to patent. Product designs are often easier to patent than service designs.

Front 8

Similities between managing production and managing services.

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1. Forecasting and capacity planning to match supply and demand.
2. Process management
3. Managing variations
4. Monitoring and controlling costs and productivity
5. Supply chain managment
6. Location planning, inventory management, quality control, and scheduling.

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Process

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Consists of one or more actions that transform inputs into outputs. In essence, the central role of all management is process management.

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3 major process management strategies

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1. Upper-management processes
2. Operational processes
3. Supporting processes

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Upper-management processes

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Govern operation of entire organization. Examples include organizational governance and organizational strategy.

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Operational processes

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THese are the core processes that make up the value stream. Examples include purchasing, production and/or services, marketing, and sales.

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Supporting processes

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Support the core processes, examples include accounting, human resources, and IT.

Front 14

Why does ops management look at managing a process to meet demand?

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Excess capacity is wasteful and costly; too little capacity means dissatisfied customers and lost revenue.

Front 15

Process variation 4 major sources.

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1. Variety of goods and services being offered-The greater variety that is offered, the greater the variation in production or service requirements.
2. Structural variation in demand-These variations which include trends and seasonal variations are generally predictible. They are particularly important for capacity planning.
3. Random variation-Natural variability is present to some extent in all processes, as well as in deand for services and products. CAnnot generally be influenced by managers.
4. Assignable variations. Caused by defective inputs, incorrect work methods, out-of-adjustment equipment, and so on. CAn be reduced or eliminited by abalysis and corrective action.

Front 16

Scope of operations management

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Operations management people are invluved in product and service design, process selection, selection and manageent of technology, design of work systems, location planning, facilities plannig, and quality improvement of the organizations products or services.

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Operations managers deal with

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1. Forecasting
2. capacity planning
3.Facitlites and layout
4. scheduling
5. managing inventory
6. assuring quality
7, motivating and training employees
8. locating facilities.

Front 18

What areas are part of or support the operations function?

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1. purchasing
2. industrial engineering concerned with scheduling, performance standards, work methods, quality control, and material handling.
3. Distribution-- involves shiping of goods to warehouses, retail outlest, or final customers.
4. Maintenance.

Front 19

The operations manager is the key figure in the system:

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He or she is responsibel for creation of goods or provitions of services.

Front 20

What are the two line functions of a business organization?

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Operations and sales. All other functionsL accounting, finance, marketing, IT, and so on support these 2 functions.

Front 21

What is the chief role of an ops manager?

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planner/decision maker. They exert considerable influence over the degree to which the goals and objectives of an organization are reached.

Front 22

Operations managers make decisions such as

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1. who: Who will do the work
2. What: What resources will be needed, and what amount?
3. When: When will each resource be needed? When should the work be scheduled? When should materials and other supplies be ordered? When is corrective action needed?
4. Where: Where will the work be done?
5. How: How will the product or service be designed? How will the work be done (organization, methods, equipment)? How will resources be allocated?

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Model Definition --3 types

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An abstraction or simple representation of something
1. Physical models
2. schematic models
3. mathematical models.

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Physical models

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Look like real life counterparts, Example, toy car looks like regular car. Advantage is that these models have visual correspondence with reality.

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Schematic models

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More abstract than physical models. Less resemblence to physical reality. These are graphs, charts, blueprints, pictures, ect. Advantage relatively simple to construct and change. Have some degree of visual correspondence.

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Mathematical models

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Most abstract type of models. Do not look at all like real life counterparts. Example: numbers, symbols, formulas. These models are easiest to manipulate, important forms of inputs for computers and calculators.

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Models are beneficial because

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1. THey are generally easy to use and less expensive than dealing directly with the actual situation
2. REquire users to organize and sometimes quantify information and often indicuate areas where additional information is needed.
3. Increase understanding of the problem
4. Enable managers to analyze what if questions.
5. Serve as a consistent tool for evaluation and provide a standardized format for analyszing a problem.
6. Enable users to bring the power of mathematics to bear on a problem.

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Three important limitations of models.

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1. Quantitative information may be emphasized at the expense of qualitative information.
2. Models may be incorrectly applied and the results misinterpreted. The widespread use of computerized models adds to this risk because highly sophisticated models may be placed in the hands of users who are not sufficiently knowledgable to appreciate the subtleties of a particular model.; thus they are unable to fully comprehend the circumstances under which the model can be successfully employed.
3. The use of models does not guarantee goods decisions.

Front 29

Quantitative approaches

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approaches to problem solving often embvody an attempt to obtain mathematically optimal solutions to managerial problems. Although these approaches are widely used in ops mgmt it is imp to note a combo of quantitatiave and qualitative methods are used.

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system

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a set of interrelated parts that must work together. THereofre from a systems viewpoint, the output and objectives of the organization as a whole take precedence over those of any one subsystem. This type of approach is necessary whenever something is designed, redesigned, implemented, improved, or otherwise changed

Front 31

Establishin priorities

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Managers discover that certain issues or items are more important than others. Recognizing this enables the managers to direct their efforts to where they will do the most good.

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Pareto phenomenon

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Typically a relatively few issues are important so dealing with these factors will generally have a disproportionately large impact on the results achieved.

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e-business

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Involveds the use of the internet to transact business.

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e-commerce

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consumer to business transactions such as buying or requesting informatopn

Front 35

technology

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The application of scientific discoveries to the development and improvement of goods and services.

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Ops management is concerned with 3 types of technology

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1. Product and service technology-which deals with discovery and development of new products and services done by researchers and engineers.
2. Process technology-Which refers to methods and proceedures and equipment used to produce goods and provide services. Include processes within the organizationa nd also processes in the supply chain.
3. Information technology-REfers to the science and use of computers and other electronic equipent to store, process,a nd send information. Heavily ingrained in today's business operations.

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Total quality management

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focuses on customer satisfaction and often involves teamwork. Process improvement can result in improved quality, cost reduction, and time reduction.

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Agility

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refers to the ability of an organization to respond quickly to a change in demands or opportunites.

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Lean system

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System that uses minimum amounts of resources to produce high voluvme of high quality goods with some variety.

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Key issues for today's business operations

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1. Economic conditions
2. innovating
3. Quality problems
4. Risk management
5. Competing in a global economy.

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Issues that make it clear supply chain management must be looked at and controled.

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1. The need to improve operations. Many companies became lean now it's time to do so in regards to procurement, distribution, and logistics aka the supply chain,
2. Increased levels of oursourcing. AS they are outsourcing a significant amount of work questions arise as to the liability the company needs to tkae for monitoring the safety of oursourced goods.
3 Increasing transportation costs. Need to be managed more carefully
4. Competitive pressures--have led to increasing number of new products, shorter product development lifecycles and increased demands for customization.
5. Increasing globalization often currency differences and monetary fluctuations.
6. Increasing importance of e-business- Has presented new challenges.
7. Complexity of supply chains they are dynamic and have many inherent uncertainties that can adversely affect them ushc as inaccurate ordering or late deliteries, substandard quality ect.
8. Need to manage inventories-Shortages can disrupt timely workflow while excess inventories add nnecessary cost.