Chapter 1 Flashcards
1
Q
What is operations management?
A
- Set of activities that create value in the form of goods and services by transforming inputs into outputs.
- Essential functions in a company: COMMERCIAL, PRODUCTION/ OPERATIONS, FINANCE/ ACCOUNTING.
2
Q
Why study OM?
A
- OM has 3 of the main functions in a company.
- To know how goods/ services are produced.
- Understand what operation managers do.
- OM is a costly part of an organization.
3
Q
What Operations managers do?
A
- Planning.
- Organizing.
- Staffing.
- Leading.
- Controlling.
4
Q
Significant Events in OM
A
- Cost Focus.
- Quality Focus.
- Customization Focus.
5
Q
Cost Focus
A
- Early concepts (1776- 1880).
- Scientific Management (1880- 1910).
- Mass production (1910- 1980).
6
Q
Quality Focus
A
- Lean production (1980- 1995).
7
Q
Customization Focus
A
- Mass Customization (1995- 2010).
8
Q
Frederick W. Taylor:
A
- Known as father of scientific management.
- Created efficiency principles: Management should be more responsible for:
> Matching employees to right job
> Providing proper training.
> Providing proper work methods and tools.
> Establishing incentives for work to be accomplished.
9
Q
Henry Ford:
A
- 1913: Created the first moving assembly line.
10
Q
W. Edwards Deming:
A
- Credited with teaching Japan quality control methods.
- His methods involve workers in decisions.
11
Q
Characteristics of Goods:
A
- Tangible product.
- Consistent product definition.
- Production separated from consumption.
- Can be invented.
- Low customer interaction.
12
Q
Characteristics of Services:
A
- Intangible product.
- Produced and consumed at same time.
- Often unique.
- High customer interaction.
- Often knowledge- based.
13
Q
Productivity Challenge:
A
- Productivity is the ratio of outputs divided by the inputs (such as labor and capital).
- Objective is to improve this measure of efficiency.
14
Q
What is productivity?
A
- Measure of process improvement.
- Represents output relative to input.
- Only through productivity increase can our standard of living improve.
15
Q
Measurement problems:
A
- Quality may change while quantity of inputs and outputs remains constant.
- External elements may cause an increase or decrease in productivity.
- Precise units of measure may be lacking.
16
Q
Productivity variables:
A
- Labor: contributes about 10% of annual increase.
- Capital: contributes about 38% of annual increase.
- Management: contributes about 52% of annual increase.
17
Q
Key variables for improved Labor productivity:
A
- Basic education appropriate for LF.
- Diet of LF.
- Social overhead that makes labor available.
- Maintaining and enhancing skills.
18
Q
Productivity in service sector:
A
- Typically labor intensive.
- Focused on unique individual attributes or desires.
- Intellectual task performed by professionals.
- Difficult to mechanize
- Difficult to evaluate its quality.
19
Q
Challenges facing OM:
A
- Developing safe quality products.
- Maintaining a clean environment.
- Providing a safe workplace.
