Chapter 1 Flashcards
How theme parks and resorts like Disneyland creates value for people of all ages? They focus on:
- training employees
- Use of technology (e.g., facility layout, lighting,
signage, music) - Process design issues like efficient waiting lines
- Continuous improvement of everything they do
- Provide excellent service encounters (interactions between customer & service provider)
Operations management (OM)
is the science and art of ensuring that goods and services are created and delivered successfully to customers.
________ is the science and art of ensuring that goods and services are created and delivered successfully to customers.
Operations management (OM)
The principles of OM help one to view a business enterprise as a _____ ____, in which all activities are coordinated, not only vertically throughout the organization, but also horizontally across multiple functions.
total system
Total system
total system looks at the corporation as one unit
How many units does the total system look at?
one unit
What are examples of standardized goods
Dunkin Donuts
What are examples of Customized goods
- Nike shoes
- Wedding planning
Production management
based on product
Whats’s a synonym Operations management
Supply chain Management
What do operations managers do? (12)
- Forecasting
- Planning
- Purchasing
- supply chain management
- facility layout and design 6. technology selection
- quality management
- resource and capacity management
- process design
- job design
- service encounter design 12. scheduling
What are examples of operations managers?
- Chief Operating Officer
- Hotel or Restaurant Manager
- Vice President of
- Manufacturing
- Customer Service Manager
- Plant Manager
- Field Services Manager
- Supply Chain Manager
A ____ is a physical product that you can see, touch, or possibly consume. Examples: oranges, flowers, soap, televisions, airplanes, fish, furniture, coal, lumber, personal computers, paper, and industrial machines
good
A ______ _____ is a product that typically lasts at least three years. Examples: vehicles, dishwashers, and furniture.
durable good
A _____ is any primary or complementary activity that does not directly produce a physical product. Examples: legal service, accounting service, travel by air or bus, and warranty.
service
How much percentage of the jobs in the U.S. economy are in the service sector?
~ 80-90% of the jobs in the U.S. economy are in the service sector
Does the total system look at the corporation vertically or horizontally?
Horizontal
True or false: Can services be considered as standardized or customized good
True
(3) Examples of High Goods Content
Toothpaste
Bicycle
Medicine Prescription
What are Low Goods Content
Intangible, Pure Service
What are High Goods Content
(Tangible, Pure Goods)
3 Examples of Low Goods Content
Psychiatric Session
Symphony, Play, and Movie
College
[He said this will be on the test]
(3) Similarities Between Goods and Services
- Goods and services provide value and satisfaction to customers.
- They both can be standardized or customized to individual wants and needs.
- A process creates and delivers each good or service, thus, OM is a critical skill.
Differences Between Goods and Services
- Goods are tangible while services are intangible.
- Customers participate in many service processes, activities, &
transactions. - The demand for services is more difficult to predict than demand for
goods. - Goods can be stored as physical inventory while services can’t be
stored. - Service management skills are paramount to a successful service
encounter. - Service facilities typically need to be in close proximity to the
customer. - Manufacturing facilities can be located anywhere in the world.
- Patents do not protect services.
What 2 things that goods and services provide:
Values and Satisfaction to customers
What can Goods and Services be?
Standardized or customized
A process creates and delivers each good or service, thus, OM is a ______ ____
Critical skill
Goods are _____
Tangible
Services are _____
Intangible
Customers participate in many service ______, ______, and ______
Processes, activities, and transactions
What can be produced and consumed at the same time?
Service
What’s more difficult to predict good or services
Services
Goods can be stored as ?
Physical inventory
Can services be stored?
No
______ _____ skills are paramount to a successful service encounter
Service management
What needs to be in close proximity to the customer?
Service facilities
What can be located anywhere in the world?
Manufacturing facilities
What doesnt protect services?
Patent
A customer benefit package
is a combination of goods and services to provide value to customers.
A customer benefit package consists of:
primary good or service, coupled with peripheral goods and/or services.
Primary Good or Service
Core Offering - automobile, laptop, airline flight, checking account, etc.
Peripheral Goods or Services
Not essential to the primary good or service but enhance it - financing and leasing (Vehicle), free software (laptop), preferred seats (airline flight), online acces and bill payment (checking account)
Variant
An attribute that departs from the standard CBP, and is normally location or firm specific a fishing pond at an automobile dealer, or an aquarium at a casino hotel
Main purpose of a firm is to provide
value to its customers & stakeholders •
Value:
is the perception of the benefits associated with a bundle of
goods and/or services in relation to what buyers are willing to pay
for them.
A ____ ____ is a network of facilities and processes that
describes the flow of goods, services, information, and financial
transactions from suppliers through the facilities and processes
that create goods and services and deliver them to customer –
integrated supply chain
value chain
A ____ _____ is the portion of the value chain that focuses
mainly on the physical movement of goods and materials, and supporting flows of information and financial transactions through the supply, production, and distribution processes – internal supply chain
supply chain
Frequently, the terms value chain and supply chain are used
__________.
interchangeably
If the value ratio is high, the good or service is perceived
perceived favorably by customers.
(3) To increase value (ratio), a firm must:
(a) Increase perceived benefits
(b) Decrease price or cost, or
(c) Simultaneously increase perceived benefits and reduce price
or cost
[test] Value formula
Perceived benefits
/
Price (cost) to the customer
What are the 5 Eras of Operations Management
- Cost minimization - > Sustainability
- Mass production (economics of scale) -> Mass Customization
- Manufacturing-based technology -> Information based technology
- Focus on goods -> Focus on value and analysis
- Local markets -> Global Market
What year is Cost & Efficiency?
1960
What year is Quality
1970
What year is Customization and Design
1980
What year is time?
1990
What year is Service and Value
1900s - 2000s
What year is Sustainability
2000s
What year is Data and Analytics
2010s
Current Challenges in OM
- Customer Expectations
- Evolving Technology → Short Product Life Cycles
- Managing Workforce
- Globalization
- Sustainability
- Optimizing Supply Chains
- Business Analytics
Sustainability –
ability to address current business needs and successfully
develop a long-term strategy to preserve resources for future generations
Sustainability – Three Dimensions
• Economic sustainability focuses on making sound financial and operational decisions
such as financial management, resource management, and emergency preparedness. • Environmental sustainability focuses on OM activities like remanufacturing, waste
management, green supply chains, and energy conservation. • Social sustainability focuses on activities that impact the society as a part of the firm’s
overall corporate responsibilities, such as creating a zero carbon footprint product,
product safety, gambling addiction, & second-hand smoke.
