ch 1. Flashcards
major business functions?
- operations
- marketing
- finance
What does a production system do?
Converts inputs to outputs to great GOODS and/or SERVICES
how many value added activities are included in the conversion process?
one or more
Managing activities include?
- Planning
- designing
- executing
- controlling
Types of Outputs?
Goods: car, book, food, furniture
service: repairs, education, sales person
can outputs include a combination of goods and services?
Yes
Input examples?
land, labor, capital, materials, components, equipment, facilities, technology!
conversion process involves? (5)
- inputs
- outputs
- flow units
- network of activities
- Information structure
Flow units?
a unit of input, output, or intermediate product
-examples: automobile, customer, data, crude oil, fruits and veggies
Intermediate product
as assembled component or purchased part
what do flow units influence?(4)
- process type
- process layout
- resource type
- process technology
Activities?
- building blocks of process
- constitute the transformation process
- add value to products and services
- influence productivity and process performance
- who, what order, when, how, how long, etc
- examples: installing wheels, monitoring refining process, advising students, designing product or service, entering or analyzing data
information structure>
- to perform activities
- to make managerial decisions
- it triggers control mechanism
- to measure process performance
- sources
information structure to make managerial decisions regarding?
- process choice
- input choices
- activity choices
What process performances are measured with information structure?
Financial and operationl
What are the sources of information structure?
internal and external
what is a transformation or conversion process?
a network of activities performed on flow units by resources using an appropriate information system
what is the purpose of the transformation or conversion process?
to convert inputs to outputs!
nature (or focus) of conversion systems: physical
manufacturing
nature (or focus) of conversion systems: locational
transportation
nature (or focus) of conversion systems: storage
warehousing
nature (or focus) of conversion systems: distributional
retailing and wholesaling
nature (or focus) of conversion systems: physiological
health care
nature (or focus) of conversion systems: informational
service organizations
production operations functions?
Product/Service Design Process Design Capacity Planning Location Selection Facilities Layout Human Resources Work Systems Design Inventory Management Quality Management Demand Forecasting Production Planning, Scheduling, and Control Maintenance Decisions etc.
Supply chain management functions include? (4)
- marketing
- operations
- logistics
- information technology
characteristics of goods?
- tangible
- consumed
- can be stored
- can be resold
- selling is seperate form production
- quality is objective and easy to measure
- customer interaction: low or absent
- capital intensive
- easy to automate
10 input and output: uniform and standard - productivity: usually high and easy to measure
Characterisitics of services?
- intangible
- experiential
- difficult to store
- difficult to resell
- production and consumption are simultaneous
- selling is often part of the service
- quality: subjective difficult to measure
- customers interaction is usually very high
- labor intensive
- difficult ot automate
- input and output varies
- productivity is usually low and difficult to measure
productivity?
measure of how well a country, industry or business unit is using its resources, inputs, or factors of production
How is productivity computed?
as a ratio if output to input
What are the three factors for productivity?
- single-factor productivity
- multi-factor productivity
- total productivity
single-factor
=output/labor
multifactor
=output/(labor+machine)
total productivity
=goods or services produced/all inputs used to produce them
Productivity growth
=current period productivity-previous period productivity/ previous productivity
(new-old)/(old)
labor productivity
=total number of units produced/total labor hours used
Delivery Productivity
= number of delivery (shipment) on time/total number of delivery (shipment)
invenotry turnover
=cogs/average inventory value
quality index
=(total units produced- rejected units)/ total units produced
facility utilization
=facility used (hours)/ facility available (hours)
When does productivity increase?
When firms;
- Become more efficient
- downsize
- expand
- retrench
- achieve breakthrough
Become more efficient?
output increases with little or no increase in input
downsize?
output remains the same with reduced inputs
Expand?
both output and input grow with output growing more rapidly
acheive breathough
output increases while input decrease
