Chapter 1 Flashcards
Creation of goods and services.
Production
Activities that relate to the creation of goods and services through the transformation of inputs to outputs.
Operations management
All organizations perform 3 functions that are necessary ingredients for an organizations survival:
Marketing, production/operations and finance/accounting
Generates demand, or at least takes the order for a product or service.
Marketing
Creates the product.
Production/operations
Tracks how well the organization is doing, pays the bills and collects the money.
Finance/Accounting
Global network of organizations and activities that supplies a firm with goods and services.
Supply chain
______ in specific fields helps supply chains, gives company competitive advantage.
Specialization
Good managers perform basic functions of management process, POLCS:
Planning, organizing, leading, controlling, staffing.
There are 10 strategic OM decisions: 1. Design of \_\_\_\_&\_\_\_\_ 2. Managing \_\_\_\_\_\_ 3. Process strategy 4&5. \_\_\_\_\_ &\_\_\_\_\_ strategies
Goods and services, quality, location and layout
10 strategies cont.
- HR
- ____ ______ management
- ________ management
- Scheduling
- _______
Supply chain, inventory, maintenance
Economic activities that typically produce an intangible product.
Services
Segment of the economy that includes trade, financial, lodging education, legal, medical and other professional occupations.
Service sector
Rate of outputs/one of more inputs
Only through increases in _____ can the standard of living improve.
Productivity
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 to the goods and services produced.
Multi factor productivity.
Those with an invested interest in an organization, including customers, distributors, suppliers, owners, lenders, employees and community members.
Stakeholders.
6 reasons domestic business operations decide to change to some form of international operations:
- Improve ___ chain.
- Reduce ____
- Improve operations
- Understand _____
- Improve ______
- Attract and retain global ____
Supply, costs, markets, products, talent
- Designs of goods and services: defines what is __________; product design determines quality, sustainability and HR
Required of operations
- Managing quality: determines the ______ quality _______; establish policies and procedures to identify and achieve that quality
Customers, expectations
- Process and capacity strategy: how is a good or service produced? Commits management to specific technology, quality, ____ and _____
Resources, investment
- Location strategy: nearness to customers, suppliers and talent; considering costs, infrastructure, logistics and ______
Government
- Layout strategy: integrate capacity needs, personnel levels, technology and _____; determines the efficient flow of materials, people and _____
Inventory, information
- Human Resources and job design: recruit, motivate and retain personnel with the required talent and skills; integral and expensive part of the total ___ ____
System design
- Supply chain management: integrate supply chain into the firms strategy, determine what is to be purchased from whom and under what
Conditions
- Inventory management: inventory ordering and holding decisions, optimize considering customer satisfaction, supplier capability, and production _____
Schedules
- Scheduling: determine and implement intermediate and short term schedules, utilize personnel and facilities while meeting customer ____
Demands
- Maintenance: consider facility capacity, production demands and personnel, maintain a reliable and stable ____
Process
APICS- association for operations _____
Management
ASQ- American society for
Quality
ISM- institute for supply
Management
Born 1765, died 1825. In 1798, received government contract to make 10,000 muskets and showed that machine tools could make standardized parts to exact specifications
Eli Whitney
Born 1856, died 1915. Known as the father of scientific management, in 1881 as chief engineer for midvale steel studied how tasks were done. Began first motion and time studies and created efficiency principles.
Frederick Taylor
Taylor’s principles said that management should take more responsibility for:
- Marching employees to right job
- Providing the proper ____
- Providing proper work methods and ____
- Establishing legitimate incentives for work to be accomplished
Training, tools
Husband and wife engineering team, further developed work measurement methods. Applied efficiency methods to their home and 12 children. Has a book and movie: cheaper by the dozen and bells on their toes.
Frank and Lillian glibreth
In 1903, created ford motor company. In 1913, first used moving assembly line to make Model T
Henry Ford
Engineer and physicist, credited with teaching Japan quality control methods in post WW2. Used statistics to analyze process, his methods involve workers in decisions
W. Edwards deming
How to solve for labor productivity:
Units produced/labor hours used
How to compute multi factor productivity:
Output/labor+materials+energy+capital+misc
