Chapter 1 Flashcards
The creation of goods and services
production
The set of activities that creates value in the form of goods and services by transforming inputs to outputs
Operations Management
What three functions must every firm perform?
- Marketing
- Production/Operations
- Accounting/Finance
A global network of organizations and activities that supply a firm with goods and services
Supply Chain
The management process consists of
planning, organizing, staffing, leading, and controlling
Economic activities that typically produce an intangible product (such as entertainment, education, lodging, goverment, etc)
services
The segment of the economy that includes trade, finance, lodging, education, legal, medical, and other professional occupations
Service Sector
The ratio of outputs (goods and services) divided by one or more inputs (such as labor, capital, or management)
Productivity
What are the two ways to increase productivity?
Decreasing inputs while maintain a constant output
Increase outputs while keeping inputs fixed
_________ pressure is put on price when productivity increases
Downward
What is the term applied for “doing the right thing”
effective
What is the term applied for “doing a job well”?
efficient
Indicates the ratio of one resource (input) to the goods and services produced (outputs)
single-factor productivity
Indicates the ratio of many or all resources (inputs) to the goods and services produced (outputs)
Multifactor Productivity
What is another name for multifactor productivity?
total factor productivity
Despite multifactor productivity’s accuracy, three measurement problems remains
quality, external elements, lack of precise unit of measure
Productivity measurement is particularly difficult in what area?
Services
______ are the three factors critical to productivity improvement
Productivity Variables
What are the three productivity variables
Labor, Capital, Management
10 Strategic OM decisions
Design of Goods and Serivces Managing Quality Process Strategy Location Strategy Layout Strategy Human Resources Supply-Chain Management Inventory Management Scheduling Maintenance
Change in unit productivity
Old productivity-new productivity
Competition in the 21st century is no longer between companies; it is between
supply chains
What are the characteristics of a service?
Intangible, produced and consumed simultaneously, unique, higher customer interaction, inconsistent product definition, knowledge based, services dispersed, quality hard to evaulate, reselling is unusual.
About what percent a year does U.S. productivity increase?
2.5
What are the four reasons to study OM?
- To learn how people organize themselves for productive enterprise
- To learn how goods and services are produced
- To understand what operations managers do
- Because OM is a costly part of an organization
About what percent of Jobs are in OM?
40% of all jobs
A society in which much of the labor force has migrated from manual work to work based on knowled?
knowledge society
What are the ethical dilemmas facing OM?
- efficiently developing and producing safe, quality products; 2 maintaining a clean environment, 3. providing a safe workplace, 4 honoring stakeholder commitments
usually determines lower limits of cost and upper limits of quality, as well as major implications for sustainability and the human resources required
design of goods and services
Determines the customer’s quality expectations and establishes policies and procedures to identify and achieve that quality
Managing quality
Determines how a good or service is produced
process and capacity design
Requires judgments regarding nearness to customers, suppliers, and talent, while considering costs, infrastructures, logistics, and goverment
location strategy
Requires integrating capacity needs, personnel levels, technology, and inventory requirements to determine the efficient flow of materials people and information
LAyout strategy
Determines how to recruit motivate and retain personnel with the required talent and skills
HR and Job design
Decides how to integrate the supply chain into the firm’s strategy, including when and where to buy supplies
Supply-chain Management
Considers inventory ordering and holding decisions and how to optimize them as customer satisfaction, suplier capability, and production schedules are considered
invt. management
Determines and implements intermediate and shrt-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands
Scheduling
Requires decisions that consider facility capacity, production demands, and personnel necessary to maintain a reliable and stable process
Maintenance
How is change in productivity measured?
(New-Old)/(Old)
The service sector is what percentage of the US economy?
between 80-90%
What is a product focus?
High-volume, low variety
The service sector has lower productivity improvements vs the production sector, Why?
Services are far more labor intensive
