Om 301 Ch 1

Front 1

what is operations management?

Back 1

activities that relate to the creation of goods and services through the transformation of inputs and outputs

Front 2

what is production?

Back 2

creation of goods and services

Front 3

what is a service?

Back 3

an intangible good or product

Front 4

to create goods and services all organization must perform what 3 functions?

Back 4

marketing, production/operations, finance/accounting

Front 5

marketing

Back 5

generates the demand, or at least takes the order for a product or service (nothing happens until there is a sale)

Front 6

production/operations

Back 6

creates the product

Front 7

finance/accounting

Back 7

tracks how well the organization is doing, pays the bills, and collects the money

Front 8

management process consists of...

Back 8

planning, organizing, staffing, leading, & controlling to the achievement of objectives

Front 9

what are services?

Back 9

economic activities that typically produce an intangible product (such as education, entertainment, lodging, government, financial, & health services)

Front 10

services are....

Back 10

usually intangible, often produced & consumed simultaneously, often unique, have high customer interaction, have inconsistent product definition, often knowledge based, and frequently dispersed.

Front 11

what is the US service sector?

Back 11

the segment of the economy that includes trade, financial, lodging, education, legal, medical, & other professional occupations

Front 12

challenges to OM..

Back 12

ethics, global focus, rapid product development, environmentally sensitive production, mass customization, empowered employees, supply-chain partnering, just-in-time performance

Front 13

what is productivity?

Back 13

the ratio of outputs (goods and services) divided by one or more inputs (such as labor, capital, or management)

Front 14

improvement in productivity can be achieved in two ways:

Back 14

1- reducing inputs while keeping output constant 2- increasing output while keeping inputs constant

Front 15

inputs are labor, capital & management, which are integrated into a production system

Back 15

outputs are goods and services, including such diverse items such as guns, butter, education...

Front 16

production is

Back 16

the making of goods and services

Front 17

only through increases in productivity can

Back 17

the standard of living improve

Front 18

If returns to labor, capital, or management are increased without increased productivity prices rise.

Back 18

On the other hand, downward pressure is placed on prices when productivity increases, because more is being produced with the same resources.

Front 19

Since 1869 the U.S. has been able to increase productivity at an average rate of almost 2.5% per year.

Back 19

Such growth has doubled U.S. wealth every 30 years.

Front 20

measurement of productivity

Back 20

units produced/input used

Hint 20

units produced/labor-hours used

Front 21

single-factor productivity

Back 21

the use of just one resource input to measure productivity

Front 22

Multifactor productivity

Back 22

a broader view of productivity that is calculated by combining the input units

Front 23

multifactor productivity measurement

Back 23

output/(labor + material + energy + capital + miscellaneous)

Front 24

productivity increases are dependent on three productivity variables:

Back 24

Labor (contributes about 10% of the annual increase), capital (contributes about 38% of the annual increase) & management (contributes about 52% of the annual increase)

Front 25

Improvement in the contribution of labor to productivity is hte result of a healthier, better-educated, and better-nourished labor force.

Back 25

3 key variables for improved labor productivity are:

Hint 25

basic education approprate for an effective labor force, diet of the labor force, social overhead that makes lavor available (such as transportation and sanitation)

Front 26

Capital investment provides tools for human beings

Back 26

inflation and taxes increase the cost of capital, making capital investment increasingly expensive

Hint 26

when the capital invested per employee drops, we can expect a drop in productivity

Front 27

management is a factor of production and economic resource.

Back 27

management is responsible for ensuring that labor and capital are effectively used to increase productivity.

Hint 27

management accounts for over half of the annual increase in productivity

Front 28

knowledge societies are

Back 28

those in which much of the labor force has migrated from manual work to technical and information-processing tasks requiring ongoing education

Front 29

productivity of the service sector has proven difficult to improve because service sector work is:

Back 29

typically labor intensive (counseling, teaching), frequently focused on unique individual attributes or desires (investment advice), often an intellectual task performed by professionals (medical diagnosis), often difficult to mechanize and automate (haircut), often difficult to evaluate for quality (performance of a law firm)

Front 30

ten critical decisions in OM;

Back 30

1 designs of goods & services (what good or service should we offer? 2 managing quality (how do we define quality) 3 process and capacity design (what process and what capacity will these products require) 4 location strategy (on what criteria should we base the location decision?)

Hint 30

5 layout strategy (how large must the facility be to meet our plan) 6 human resources and job design (how do we provide a reasonable work environment) 7 supply-chain management (who should be our suppliers and how can we integrate them into our strategy) 8 inventory, material requirements planning, and JIT (just in time) (how much inventory of each item should we have & when do we reorder) 9 intermediate and short-term scheduling (are we better off keeping people on the payroll during slowdowns) 10 maintenance (who is responsible for maintenance and how do we build reliability into our processes)