ch 14 Flashcards
(25 cards)
operations management
the management of any aspect of the production system that transforms inputs into finished goods and services
production system
The system that an organization uses to acquire inputs, convert inputs into outputs, and dispose of the outputs
operations manager
Manager who is responsible for managing an organization’s production system and for determining where operating improvements might be made
quality
goods and services that are reliable, dependable, or psychologically satisfying`
efficiency
amount of inputs required to produce a given output
responsiveness to customers
action taken to meet the demands and needs of customers
input stage
raw materials; component parts; labor
conversion stage
skills; machines; computers
output stage
goods, services
customer relationship management
technique that uses IT to develop an ongoing relationship with customers to maximize the value an organization can deliver to them over time
The fewer the inputs required to produce a given output…
…the higher the efficiency of a production system
total factor productivity
looks at how well an organization utilizes all of its resources - such as labor, capital, materials, or energy - to produce its outputs
total factor productivity =
outputs/all inputs
partial productivity
specific measure of productivity that measures the efficiency of an individual unit
labor productivity =
outputs/direct labor
facilities layout
the operations technique whose goal is to design the machine-worker interface to increase production system efficiency
flexible manufacturing
operations management techniques that attempt to reduce the setup costs associated with a production system
product layout
machines are organized so that each operation is performed at work stations arranged in a fixed sequence
process layout
- self contained work stations not organized in a fixed sequence
- provides flexibility in making a wide variety of products tailored to customers
fixed position layout
the product stays in a fixed spot and components produced at remote stations are brought the product for to final assembly
flexible manufacturing aims to
to reduce the time required to set up production equipment.
flexible manufacturing increases
a company’s ability to be responsive to its customers
inventory
the stock of raw materials, inputs, and component parts that an organization has on hand at a particular time
just in time inventory
a system in which parts or supplies arrive at an organization when they are needed, not before
