ch 1: introduction to production and operations management Flashcards
is the process, which combines and transforms various resources used in the production/operations subsystem of the organization into value added product/services in a controlled manner as per the policies of the organization.
Production/Operations Management
it is the part of an organization, which is concerned with the transformation of a range of inputs into the required (product/service) having the requisite quality level.
Production/Operations Management
The set of interrelated management activities, which are involved in manufacturing certain products, is called as?
production management
The set of interrelated management activities, which are involved in services management, is called as?
operations management
The nature of production or operations can be better understood by viewing the manufacturing function as: (four distinct views)
(enumerate)
a) Production/operations as a system,
b) Production/operations as an organisational function,
c) Production/operations as a conversion or transformation process and
d) Production/operations as a means of creating utility.
The view, “Production/operations as a system” is also known as?
“systems concept of production”
Production/operations as a system
is defined as the collection of interrelated entities.
system
Production/operations as a system
views any organisation or entity as an arrangement of interrelated parts that interact in ways that can be specified and to some extent predicted.
The systems approach
Production/operations as a system
Production is viewed as a________which converts a set of inputs into a set of desired outputs.
system
Production/operations as a system
A production system has the following elements or parts:
- Inputs,
- Conversion process or transformation process,
- Outputs
- Transportation subsystem,
- Communication subsystem and
- Control or decision-making subsystem.
Production/operations as a system
To create goods and services, all organisations, whether manufacturing goods or providing services, perform?
three basic functions
Production/operations as an organisational function
which function generates the demand or takes customers’ orders for a product or service?
Marketing
Production/operations as an organisational function — three basic functions
which function creates the product (goods or services)?
Production/Operations
Production/operations as an organisational function — three basic functions
which function keeps track of how well the organisation is performing, and takes care of cash inflow and cash outflow?
Finance/Accounting
Production/operations as an organisational function — three basic functions
Production/operations managers need to build and maintain strong relationships both?
intra-organizational and inter-organizational
Production/operations as an organisational function
Inter-organisational relationship exists between?
production/ operations department and suppliers.
Production/operations as an organisational function
intra-organisational relationship calls for?
cross-functional coordination
Production/operations as an organisational function
is essential for effective production/operations management. For example, marketing function determines the need for new products and services and the demand for existing ones and operations managers must bring together human and capital resources to meet these demands effectively.
Cross functional coordination
Production/operations as an organisational function
It is the core of a production system because it consists of processes or activities wherein workers, materials, machines and equipment are used to convert inputs into outputs, i.e.,
The conversion or transformation sub-system
Production/operations as a conversion or transformation process
The conversion process may include manufacturing processes such as?
cutting, drilling, machining, welding, painting, etc., and other processes such as packing, selling, etc.
Production/operations as a conversion or transformation process
Any conversion process consists of several small activities referred to as?
“operations”
Production/operations as a conversion or transformation process
are some steps in the overall process of producing a product or service that leads to the final output.
“operations”
Production/operations as a conversion or transformation process
Production is defined as?
the process of adding to the value of outputs or the process of creating utility in outputs.
Production/operations as a conversion or transformation process
is the power of satisfying human needs.
“Utility”
Production/operations as a conversion or transformation process
During this process, various types of utilities are created while adding value to the outputs.
During the process of converting the raw materials into finished goods (PRODUCTION)
Production/operations as a conversion or transformation process
types of utilities
(enumerate)
- Form utility
- Place utility
- Time utility
- Possesion utility
- Service utility
- Knowledge utility
Production/operations as a conversion or transformation process
which is created by changing the size, shape, form, weight, color, smell of inputs in order to make the outputs more useful to the customers.
Form utility
For example, iron ore is changed to steel, wood is changed to furniture, etc. — (Production/operations as a conversion or transformation process)
which is created by changing the places of inputs or transporting the inputs from the source of their availability to the place of their use to be converted into outputs.
Place utility
For example, the iron ore and coal are transported from the mines to the steel plant to be used in the conversion process. — (Production/operations as a conversion or transformation process)
which is created by storage or preservation of raw materials or finished goods which are in abundance sometime, so that the same can be used at a later time when they become scarce due to higher demand exceeding the quantity available.
Time utility
(Production/operations as a conversion or transformation process)
which is created by transferring the possession or ownership of an item from one person to another person.
Possession utility
For example, when a firm purchase materials from suppliers, the possession utility of the materials will increase when they are delivered to the buying firm. — (Production/operations as a conversion or transformation process)
which is the utility created by rendering some service to the customer.
Service utility
For example, a doctor or a lawyer or an engineer creates service utility to a client/customer by rendering service directly to the client/customer. — (Production/operations as a conversion or transformation process)
which is created by imparting knowledge to a person
Knowledge utility
For example, a sales presentation or an advertisement about some product communicates some information about the product to the customer, thereby imparting knowledge. — (Production/operations as a conversion or transformation process)
refers to the application of management principles to the production function in a productive system such as a factory or a manufacturing plant.
Production Management
(e.g., steel plant, cement plant, etc.)
It involves application of planning, organising, directing and controlling the production processes employed for the conversion of inputs into outputs in a productive system.
Production Management
The objective of production management is to?
produce goods services of right quality and quantity at the right time and at the right manufacturing cost.
the quality of product is established based upon the?
customers’ needs
Objectives of Production Management—right quality
The right quality is the same as the best quality.
(true or false)
false
“The right quality is not necessarily best quality.” It is determined by the cost of the product and the technical characteristics as suited to the specific requirements—(Objectives of Production Management—right quality)
the objective of production that stated the manufacturing organization should produce the products in right number.
Right Quantity
Objectives of Production Managemet
What happens when the manufacturing organization produce in excess of demand and when they produce in short demand
- If they produced in excess of demand—the capital will block up in the form of inventory.
- if the quantity is produced in short demand— leads to shortage of products.
Objectives of Production Managemet—right quantity
This is one of the important parameters to judge the effectiveness of production department.
timeliness of delivery
Objectives of Production Managemet—right time
So, the production department has to make the optimal utilization of input resources to achieve its objective.
Right Time
Objectives of Production Managemet—right time
these costs are established before the product is actually manufactured.
manufacturing costs
Objectives of Production Managemet—right Manufacturing Cost
All attempts (should be) made to produce the products are?
pre-established cost
so as to reduce the variation between actual and the standard (pre-established) cost.—(Objectives of Production Managemet—right Manufacturing Cost)
Operations Management refers to a set of activities that?
Operations Management refers to a set of activities that creates value in the form of goods and/ or services by transforming inputs into outputs.
designs and operates productive systems or operating systems such as banks, hospitals, hotels, government agencies and manufacturing plants.
Operations management
includes activities such as organising work, selecting processes, arranging layouts, locating facilities, designing jobs, measuring performance, controlling quality, scheduling work, managing inventory and planning production.
Operations management
Objectives of Operations Management
- The Customer Service Objective
- The Resource Utilization Objective
To provide agreed/adequate levels of customer service (and hence customer satisfaction) by providing goods or services with the right specification, at the right cost at the right time.
The Customer Service Objective
Objectives of Operations Management
To achieve adequate levels of resource utilization (or productivity)
[e.g., to achieve agreed levels of utilization of materials, machines and labour.]
The Resource Utilization Objective
Objectives of Operations Management
there is a lot of difference between the two terms: production management and operations management.
(true or false)
false
there is hardly any difference between the two terms: production management and operations management
The two apparent differences between production management and operations management are:
a. The term “production management” is mainly used for a productive system where tangible goods are produced; whereas the term “operations management” is more frequently used where various inputs are transformed into intangible services.
b. Operations management is the more recent term used to activities involved in the process of transforming inputs into outputs (goods and/or services) in a productive system, whereas the term “production management” (or manufacturing management) was used earlier to refer to activities related to the process of transforming inputs into outputs (mainly tangible goods).
idk
This term is mainly used for a productive system where tangible goods are produced
production management
This term is more frequently used where various inputs are transformed into intangible services.
operations management
is the more recent term used to activities involved in the process of transforming inputs into outputs (goods and/or services) in a productive system.
Operations management
This term was used earlier to refer to activities related to the process of transforming inputs into outputs (mainly tangible goods).
“production management” (or manufacturing management)
Although goods and services often go hand in hand, there are some very basic differences
between the two, differences that impact the management of the goods portion versus managemen of the service portion.
(true or flase)
true
What are the difference of goods and services in terms of the product they offer?
- Services are usually intangible whereas;
- Goods are tangible (i.e., can be touched and seen)
DIFFERENCE BETWEEN GOODS AND SERVICES
What are the difference of goods and services in terms of their process/production and consumption?
- Services are often produced and consumed simultaneously, services cannot be stored whereas;
- Goods can be produced and inventoried before consumption or use
DIFFERENCE BETWEEN GOODS AND SERVICES
What are the difference of goods and services in terms of their uniqueness?
- Services are often unique, for example insurance policies, medical treatment procedures, haircut styles, etc.
- Goods are usually similar to one another(?)
DIFFERENCE BETWEEN GOODS AND SERVICES
What are the difference of goods and services in terms of customer relationship?
- Services have high customer interaction; services are often difficult to standardize and automate because customer interaction demands uniqueness. The service product may have to be customized in most of the service offerings.
- Goods offer little to no direct interactions with the customers.
DIFFERENCE BETWEEN GOODS AND SERVICES
Services are often ________________ based.
knowledge
example: educational, health-care, legal and consultancy services and, therefore, difficult to standardize and automate.—(DIFFERENCE BETWEEN GOODS AND SERVICES)
Services are ________________________ because services may have to delivered to the client/customer at his/her place or office, a retail outlet or even at the residence of the customer/client.
frequently dispersed
DIFFERENCE BETWEEN GOODS AND SERVICES
What are the difference of goods and services in terms of reselling?
- Goods can be inventoried and can be resold whereas
- Services cannot be inventoried and reselling of services is unusual
DIFFERENCE BETWEEN GOODS AND SERVICES
What are the difference of goods and services in terms of measurability?
- Some aspects of quality of goods are measurable whereas
- Many aspects of quantity of services are difficult to measure.
DIFFERENCE BETWEEN GOODS AND SERVICES
What are the difference of goods and services in terms of selling and production?
- Selling and production are distinct in case of goods whereas
- in case of services selling is often a part of the service.
DIFFERENCE BETWEEN GOODS AND SERVICES
What are the difference of goods and services in terms of transportation.
- Goods can be transported whereas
- Service cannot be transportedbut the service provider can be transported.
DIFFERENCE BETWEEN GOODS AND SERVICES
What are the difference of goods and services in terms of location?
- Location of facility to manufacture goods, affects costs whereas
- location of service facility affects customer contact.
DIFFERENCE BETWEEN GOODS AND SERVICES
What are the difference of goods and services in terms of automation?
- Manufacturing of goods can be easily automated whereas
- service is often difficult to automate.
DIFFERENCE BETWEEN GOODS AND SERVICES
RESPONSIBILTIES OF PTODUCTION/OPERATIONS MANAGER
(enumerate)
a. Meeting requirements of quality demanded by customers.
b. Establishing realistic delivery or completion dates.
c. Producing the required volume of products to meet the demand.
d. Selection and application of most economic methods or processes.
e. Controlling the cost of inputs and conversion process and thereby keeping the cost of
outputs within the desired limits.
Production managers are responsible for the amalgamation of?
5Ps
* Product
* Plant
* Processes
* Programs
* People
is the most obvious interface between production and marketing.
product
5Ps
products include characteristics such as?
- performance,
- aesthetics,
- quality,
- reliability,
- selling price,
- delivery dates and/ or
- lead times.
5Ps
includes buildings, equipment and machinery required to produce the product.
plant
5Ps
include the transformation or conversion processes which convert the inputs into outputs.
processes
5Ps
consist of schedules or timetables which set times for delivery of products or services to customers.
programs
5Ps
These delivery schedules in turn decide the time schedules for various activities such as?
design, purchase, manufacture, assembly, packing and despatch etc.
programs — 5Ps
The aspect of production management includes the skills, knowledge, intelligence, etc., of labour and managerial personnel which is crucial for the efficient and effective utilisation of resources for the production of outputs.
people
5Ps
Operations management came to prominence in the ________ century, but its roots can be traced back to the ________ and ________ centuries.
Operations management came to prominence in the 20th century, but its roots can be traced back to the 18th and 19th centuries.
One of the first people to address the issues of operations management was?
the Scottish philosopher – and father of modern economics – Adam Smith.
Pre-Industrial Revolution
In ________ Smith wrote “________________________,” in which he described the division of labor.
In 1776 Smith wrote “The Wealth of Nations,” in which he described the division of labor.
Pre-Industrial Revolution
According to Smith, if workers divided their tasks, then they could produce their products more efficiently than if the same number of workers each build products from start to finish. This concept would later be used by Henry Ford with the introduction of the assembly line.
division of labor
Pre-Industrial Revolution
During the industrial revolution, what allowed factories to grow in capacity and greatly increased their output?
machinery
Post-Industrial Revolution
With the help of machineries, factories to grew in capacity and greatly increased their output, as a result, there was no longer inefficiency in production.
(true or false)
false
(During the industrial revolution, machinery allowed factories to grow in capacity and greatly increased their output. Despite this growth, there was considerable inefficiency in production.) — Post-Industrial Revolution
Two individuals helped to overcome inefficiencies in production in the early 20th century, they are?
Frederick Winslow Taylor and Henry Ford
Post-Industrial Revolution
Taylor developed a ____________ approach for operations management.
scientific
(collecting data about production, analyzing this data and using it to make improvements to operations.) — Post-Industrial Revolution
Henry Ford increased efficiency in production by introducing ________________________________ and improved the supply chain through________________________________.
Henry Ford increased efficiency in production by introducing assembly line production and improved the supply chain through just-in-time delivery.
Post-Industrial Revolution
Technological developments during the________________________ created new possibilities for managers looking to improve their operations. Specifically, the development of ____________________________ allowed for a greater degree of data to be analyzed by firms.
Technological developments during the second world war created new possibilities for managers looking to improve their operations. Specifically, the development of computational technology allowed for a greater degree of data to be analyzed by firms.
Post-World War II
During this time, the abilities of computers have continued to increase exponentially, allowing for a high degree of data analysis and communication. Modern producers are now able to track their inventory from raw materials, through production and delivery.
Post-World War II
is a system for mapping, improving and monitoring operations processes.
Quality management
(Quality management systems are popular in today’s operations managemen)
Modern Day
A variety of quality management systems are in use among top firms, the most notable systems being the?
ISO systems and Six Sigma
Modern Day
Although operations management has typically dealt with the manufacturing process, the growth of the ____________ industry has created a field of ________________________________________________.
Although operations management has typically dealt with the manufacturing process, the growth of the service industry has created a field of service operations management.
Modern Day
what is the aim of quality management systems such as ISO systems and Six Sigma?
to increase the efficiency of business processes
Modern Day
Key Issues for Todays’ Business Operations
- Economic conditions
- Innovating
- Quality problems
- Risk management
- Competing in a global economy
The lingering recession and slow recovery in various sectors of the economy has made managers cautious about investment and rehiring workers who had been laid off during the recession.
Economic conditions
Key Issues for Todays’ Business Operations
Finding new or improved products or services are only two of the many possibilities that can provide value to an organization.
Innovating
Key Issues for Todays’ Business Operations
can be made in processes, the use of the Internet, or the supply chain that reduce costs, increase productivity, expand markets, or improve customer service.
Innovating
Key Issues for Todays’ Business Operations
Managing risks starts with identifying risks, assessing vulnerability and potential damage (liability costs, reputation, demand), and taking steps to reduce or share risks.
Risk management
Key Issues for Todays’ Business Operations
Companies must carefully weigh their options, which include outsourcing some or all of their operations to low-wage areas, reducing costs internally, changing designs, and working to improve productivity.
Competing in a global economy
Key Issues for Todays’ Business Operations
The need for logical conduct in business is becoming increasingly obvious, given numerous examples of questionable actions in recent history.
(true or false)
false
The need for ethical conduct in business is becoming increasingly obvious, given numerous examples of questionable actions in recent history.
In making decisions, managers must consider how their decisions will affect internal and external benefactors, the community at large, and the environment.
(true or false)
true
In making decisions, managers must consider how their decisions will affect shareholders, management, employees, customers, the community at large, and the environment.
is that the good done by an action or inaction should outweigh any harm it causes or might cause. An example is not allowing a person who has had too much to drink to drive.
Utilitarian Principle
is that actions should respect and protect the moral rights of others. An example is not taking advantage of a vulnerable person.
Rights Principle
Ethical Conduct
is that equals should be held to, or evaluated by, the same standards. An example is equal pay for equal work.
Fairness Principle
Ethical Conduct
is that actions should contribute to the common good of the community. An example is an ordinance on noise abatement.
Common Good Principle
Ethical Conduct
is that actions should be consistent with certain ideal virtues. Examples include honesty, compassion, generosity, tolerance, fidelity, integrity, and self- control,
Virtue Principle
Ethical Conduct
taiichi ohno is the father of
father of the toyota production system
