BUSN Ch. 16 Operations Management Flashcards
What is operations management?
Managing the activities involved in creating value by producing goods and services and distributing them to customers.
What is efficiency?
Producing output or achieving a goal at the lowest cost.
What is effectiveness?
Using resources to create the greatest value by providing customers with goods and services that offer a better relationship b/w price and perceived benefits.
What are goods and services?
Goods are tangible products.
Services are intangible products.
When an operations manager does a good job, what does that mean for the firm?
Their firm produce the right goods and services in the right quantities and distribute them to the right customers at the right time. All the while keeping quality high and costs low.
What are the key differences between Efficiency and Effectiveness?
Efficiency means achieving a goal at the lowest cost.
Effectiveness means creating value by satisfying wants.
What are the key responsibilities of an operations manager?
Design of products Determine best production processes Select best locale for facilities How much inventory to hold How to allocate resources Manage value chains
What is a value chain?
Network of relationships that channels the flow of inputs, information, and financial resources through all the processes directly or indirectly involved in producing goods and services and distributing them to customers.
What is the critical path?
Sequence of activities in a project that is expected to take the longest to complete.
What does CPM stand for?
Critical Path Method
What is Critical Path Method?
Project management tool that illustrates the relationships among all the activities involves in completing a project and identifies the sequence of activities likely to take the longest to complete.
What are immediate predecessors?
Activities in a project that must be completed before some other specified activity can begin.
What is outsourcing?
Arranging for other organizations to perform supply chain functions that were previously performed internally. (NOT the same as offshoring)
What does CAD stand for?
Computer-Aided Design
What does CAE stand for?
Computer-Aided Engineering
