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38 Cards in this Set
- Front
- Back
Operations Management
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The field of management that focuses on the physical production of goods or services and uses specialised techniques for solving manufacturing problems
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What are the two main aims of OM
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Reducing and managing cost
Adding value and increasing responsiveness towards customers |
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What does OM have an influence on?
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- Cash Flow
- Allocation of/ investment in resources - Balancing capacity and demand |
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What are the 4 major outcomes desired in OM?
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- Achieving superior customer responsiveness
- Achieving superior innovation with speed and flexibility - Achieving superior quality - Achieving superior efficiency |
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Supply Chain Management
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Managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to final consumers
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How would OM affect a Management Consultant?
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Using people as a resource to efficiently create the services that will address client needs
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How would OM affect an Advertising Agency?
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Using staff knowledge and experience as a resource to creatively present ideas which meet client needs
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How would OM affect a car assembly factory?
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Using machines to efficiently assemble cars that satisfy customer demand
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How would OM affect a Physician?
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Using knowledge to effectively diagnose and treat conditions in order to address customer concerns
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How would OM affect a disaster relief charity?
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Using own resources to speedily provide supplies and services that relieve community suffering
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What is the process of transformation?
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Inputs --> Transformation --> Outputs
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What are inputs?
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Transforming resources such as staff, facilities, equipment or technology
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What are outputs?
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Transformed resources such as material, information, customers
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What is a pure good?
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- Tangible
- Can be stored - Production precedes consumption - Low customer contact - Can be transported - Quality is evident E.g. Crude oil production |
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What is a pure service?
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- Intangible
- Cannot be stored - Production and consumption are simultaneous - High customer contact - Cannot be transported - Quality is difficult to judge E.g. Physiotherapy |
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What are the four key decision areas of OM?
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1. Operations Strategy
2. Design 3. Planning and Control 4. Improvement |
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Operations Strategy
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The recognition of the importance of operations to the firm's success and the involvement of operations managers in the organisation's strategic planning
- Know what the company's performance should be |
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Design
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Allocate resources accordingly
Shape facilities |
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Planning and Control
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Controlling operations to actually achieve desired performance and deliver to customers
Capacity to satisfy market and meet demand |
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Improvement
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See if and how we can improve
Develop capabilities to ensure improvement Compete in the market, continuously change and retain competitive advantage |
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Operations Strategy
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The recognition of the importance to the firm's success and the involvement of operations managers in the organisation's strategic planning
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What are the four main points Operations Strategy is about?
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- directing performance
- supports business strategy - key decisions and policies - facilities, equipment and people |
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Design/Process Design
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- Shaping the processes, products and services to achieve desired performance
- Influences how a business delivers goods and services to customers - Process that contributes to the transformation |
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What are the four key perspectives informing Operations Strategy?
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- Top-down perspective
- Market Required perspective - Bottom-up perspective - Operations Resources perspective |
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What are the three process types and how do you categorise each?
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Volume and Variety - Low volume and high variety or high volume and low variety
Process Tasks - Dynamic or Standard Process Flow - Intermittent or Continuous |
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Facilities Layout
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The layout for producing goods or services
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Design Layout and Flow
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The physical arrangement of the equipment, offices, rooms and so on within an organisation. It describes the location of resources and their relationship to one another
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What are the four facilities layouts?
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- Fixed Position
- Cell - Product - Functional/Process |
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Fixed Position Layout
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Product remains in one location and the required tasks and equipment are brought to it
--> Transforming resources (equipment, people) move as necessary to recipient E.g. Aircraft, Stadium |
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Cell Layout
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Machines dedicated to sequences of production are grouped into cells in accordance with group technology principles
--> Transformed resources are pre-selected to move to one part of the operation or cell in which all transforming resources necessary are located E.g. Check - in Lectures Hospital - wards |
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Functional/Process Layout
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Machines that perform the same function are grouped together in one location
--> Grouping together of the transforming resources to conform to the needs and convenience of the functions performed - Similar process undertaken in the same place E.g. Customs Supermarket |
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Product Layout
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Machines and tasks are arranged according to the sequence of steps in the production of a single product
--> Locating the transforming resources (people, equipment etc) entirely for the convenience of the transformed resources - Sequential flow E.g. Car assembly Cafe |
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Process Technology
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The machines, equipment and devices that create and/or deliver products and services
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Indirect PT
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Not directly involved in creation of product/service but still important in facilitating transformation
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Direct PT
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Technology that directly acts on the materials, information or customer processing to transform it
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Materials Processing Technology
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- The way that materials are processed
- Materials actually transforming - Relates to production equipment itself E.g. Equipment in a cafe |
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Information Processing Technology
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- Any device that collects, manipulates, stores or distributes information
E.g. On-line info on arrivals and departures |
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Customer Processing Technology
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- Technology used to meet acceptable service levels required while reducing costs
- Help to make things faster E.g. Check-in kiosk |