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