Chap 1: Introduction to Operations Management Flashcards
refers to the part of an organization that is responsible for producing goods and/or services.
Operations
are physical items inclusive of raw
materials, parts, subassemblies such as the engine system used in a car, and final products such as computers and machineries.
Goods
are activities that provide a combination of time, location form, and psychological value.
Services
Basic Functions of the Business Organization
Marketing
Operations
Finance
responsible for assessing consumer needs and wants, and selling and promoting the organization’s goods or services.
Marketing
responsible for producing the goods or providing the services offered by the organization.
Operations
responsible for securing financial resources at favorable prices and allocating those resources throughout the organization, as well as budgeting, analyzing investment proposals, and providing funds
for operations
Finance
Sequence of Supply Chain
Supplier’s Suppliers → Direct Suppliers → Producer → Distributor → Final Customer
sequence of organizations – their facilities, functions, and activities – that are involved in producing and delivering a product or service.
supply chain
manufacturing
goods-oriented
service
act-oriented
Degree of customer contact
Service
Uniformity of input
Manufacturing
Labor content of jobs
Service > Manufacturing
Uniformity of output
Manufacturing
Measurement of productivity
Manufacturing
Production and delivery
Service
Quality assurance
Service > Manufacturing
Amount of inventory
Manufacturing
Evaluation of work
Manufacturing
Ability to patent design
Manufacturing
scope of operations
management
ranges across the
organization
Operations Management
people are involved in
-product and service design
-process selection
-selection and management of technology
-design of work systems
-location planning
-facilities planning
-quality improvement of the organization’s products or services.
Operation functions includes:
-forecasting
-capacity planning
-scheduling
-managing inventories
-assuring quality
-motivating and training
-locating facilities
primary function of an operations manager
to guide the system by decision making
involves decisions that relate to system capacity, the geographic location of facilities, arrangement of departments and placement of equipment within the physical structures, product and service planning, and acquisition of equipment. These decisions usually, but not always, require long-term commitments.
System design
involves management of personnel, inventory planning and control, scheduling, project management, and quality assurance. These are generally tactical and operational decisions.
System operation
Other areas that that are part of Operations Management:
-Purchasing
-Industrial Engineering
-Distribution
-Maintenance
has responsibility for
procurement of materials, supplies, and equipment.
Purchasing
often concerned with scheduling, performance standards, work methods, quality control,
and material handling.
Industrial Engineering
involves the shipping of goods to warehouses, retail outlets, or final
customers.
Distribution
responsible for general upkeep and repair of equipment, buildings and grounds, heating and airconditioning; removing toxic wastes; parking; and perhaps security.
Maintenance
Chief role of an Operations Manager
planner and decision maker
key tool used by all decision makers
Model
an abstraction of reality; a simplified representation of something
Model
Types of Models
- Physical Models
- Schematic Models
- Mathematical Models
It looks like their real-life counterparts. Examples
include miniature cars, trucks,
airplanes, toy animals and trains,
and scale-model buildings.
Physical Models
More abstract than their physical
counterparts; that is they have
less resemblance to the physical
reality. Examples include graphs
and charts, blueprints, pictures
and drawings.
Schematic Models
The most abstract: They do not look at all like their real-life
counterparts. Examples include
numbers, formulas and symbols.
Mathematical Models
Quantitative Approaches
- Linear Programming
- Queuing Techniques
- Inventory Models
- Project Models (PERT-CPM)
- Forecasting Techniques
- Statistical Models
problem solving often embody an attempt to obtain mathematically optimal solutions to managerial problems.
Quantitative Approaches
related mathematical techniques are widely used for optimum allocation of scarce resources.
Linear Programming
useful for analyzing situations in which waiting lines form
Queuing Techniques
are widely used to control inventories
Inventory Models
useful for planning, coordinating, and controlling large-scale projects
Project Models (PERT-CPM)
widely used in planning and scheduling
Forecasting Techniques
currently used in many areas of decision making
Statistical Models
set of interrelated parts that must work together
system
Why study OpMan?
- Every aspect of business affects or is affected by operations;
- Many service jobs are closely related to operations;
Financial services
Marketing services
Accounting services
Information services - There is a significant amount of
interaction and collaboration amongst
the functional areas;
Budgeting
Economic analysis of investment proposals
Provision of funds
THE HISTORICAL EVOLUTION OF OPERATIONS MANAGEMENT
- The Industrial Revolution
- Scientific Management
- Human Relations Management
- Decision Models and Management
Trends in Business:
- Electronic Business
- Technology
involves the use of the Internet to transact business
Electronic Business
application of scientific discoveries to the development and improvement of goods and services
Technology
Three Kinds of Technology in Operations Management
- Product and Service Technology
- Process Technology
- Information Technology
refers to the discovery and development of new products and services
Product and Service Technology
refers to methods, procedures, and equipment used to produce
goods and provide services
Process Technology
refers to the science and use of
computers and other electronic
equipment to store, process,
and send information
Information Technology
