BMS231 Flashcards
What is OM?
Management of processes that create goods and/or provide services
- Efficiency (minimizing cost and time)
- Effectiveness (acheiving intended goals)
3 basic functions within an organization
- operations (creates goods and services)
- finance (provides funds and the economic analysis of investment proposals)
- marketing (asses the customers want and needs)
Transformation process
inputs to outputs
Differentiating goods and services
is the degree of contact
Business Strategy
long range plans for a company
operations strategy
developing a plan for operation functions focusing on specific competitive priorities in order to meet the long range plan
competition priorities
cost, quality, flexibility, delivery
Order qualifiers
competitive priorities that must be met for a company to qualify as a competitor
order winners
competitive priorities that win orders in the marketplace
trade- off
the need to focus more on one competitive priority than others
Forecasting principles and steps
- decide what needs to be forecasted
- evaluate and analyze appropriate data
- select and test the forecasting model
- generate the forecast
- monitor forecast accuracy over time
Qualitative (judgemental)
considers soft info such as human and environmental factors, experience, gut instinct
Quantitative (Statistical)
numerical data
Time series model
- a time ordered sequence of observations taken at regular intervals of time
- Assumes info needed to generate a forecast is contained in a time series of data
- assumes future will follow the same patterns as the past
Product design Process
- Idea Generation
- Build a business case
- Development of product and process
- Testing and Validation
- Launch
Product Design Life Cycle
series of changing product demand
intro, growth, maturity, decline
Standardization
Extent to which there is an absence of variety in a product, service or process
Mass Customization
A strategy of producing standardized goods or services, but incorporating some degree of customization
Reliability
The ability of a product, part or a system to perform its intended function under a prescribed set of (normal) conditions
Delayed differentiation
Producing, but not quite completing, a product to service until customer preference are known
Robust Design
Design that can function over a broad range of conditions
Concurrent Engineering
Walls broken down, design team
Designing Services
- services are intangible;e
- services created and delivered at same time
- Services customized, vary in length
- services have low barriers to entry and exit
- location important to service design
Quality Functions
Translates customer requirements into appropriate technical requirements for each stage of product or service development and production
Reliability Rule 1
if two or more events are independent and “success” = occurrence of all of the events then probability of success = product of the probabilities of the events
Reliability rule 2
probability of success is 1-probability of none of the events that occur
Design Capacity
Maximum output rate under ideal conditions
Effective Capacity
Maximum output rate under normal conditions; usually lower than design capacity
Efficiency capacity
The ratio of actual output rate to effective capactiy
Utilization Capacity
a unit of a resource during a period. Uptime is divided by available time
Factors influencing capacity
Facilities and machines, product mix, workers, planning and operational, supply chain, external factors
Process Types
Core, Support, Managerial
Process Flow diagram
Operations, Inspection, transportation, delay, storage
Product Line layout
Arranges production resources linearly according to the progressive steps by which a product is made
Product Functional Layout
Arranges production resources together according to similarity of function
Cellular Layout
Layout in which machines are grouped into a cell that can process items that have similar processing requirements
Facility Location
process of identifying the best geographic location for a facility
Location decision process
- identify the important factors
- gathers information on appropriate sites
- eliminate some to obtain a short list
- site visits and meetings
- evaluate and make selection
