Chapter 1 - Intro to OM Flashcards
What are some examples of Operations failures?
*Automobile recalls
* Food recalls
*Toy recalls
*major oil spills
*dysfunctional government legislatures
What are some examples of operations successes?
*The electronic devices we use
* Medical breakthroughs
*high-quality goods and services
What is Operations Management
The management of processes that create goods and/or provide services.
Process
A sequence of activities, usually performed by more than one person, which uses resources and achieves a desired result.
Good
A tangible item
Services
An act or work for someone (customer or client)
What are the three processes involved in operations?
1) Core processes
2) Support Processes
3) Managerial Processes
Efficience
measures the amount of resources (e.g. time, cost, etc.) used to produce one unit of output.
Effectiveness
Measures the extent to which an operation is achieving the intended goals (quality and timeliness).
What are the 4 reasons to study OM?
1) Large percentage of company’s expenses occur in the operations area.
2) Many management positions in companies are OM positions
3) All areas of an organization are all inter related with OM activities
4) Operations innovations lead to marketplace and strategic benefits.
What are the three basic functions for a typical organization?
1) Operations (manufacturing/services)
2) finance
3) marketing (including sales)
Value Added
the term used to describe the difference between the cost inf inputs and the value or price of outputs.
Lead time
The time between the placement of an order and the shipment of the completed order to the customer.
how far ahead is design decisions?
long term 1-5 years ahead
how far ahead is planning decisions
tactical and medium-term (1-12 months ahead)
how far ahead is control decisions?
1-12 weeks ahead short-term
what are the 6 areas that production of goods and performance of services differ in?
1) Customer contact, use of inventories, and demand variability
2) Uniformity of input
3) Labor content of jobs
4) Uniformity of outputs
5) Measurement of productivity
6) Quality assurance
what are the planning responsibilities of an operations manager?
Capacity
Location
Mix of products
Production processes
Layout
What are the organizing responsibilities of an operations manager?
Degree of centralization
Departments
Subcontracting
Suppliers
Staffing
What are the controlling responsibilities of an operations manager?
Inventory control
Quality control
Production pace
Motivation
Cost control
What are the directing responsibilities of an operations manager?
Scheduling
Issuance of work orders
Job assignments
Purchasing
Logisitics
Model
An abstraction of reality, a simplified representation of something.
Quantitative Techniques
methods that focus on objective measurements and analysis of numbers in order to draw conclusions.
What are some examples of quantitative techniques?
Optimization
Queueing techniques
Inventory techniques
Project scheduling technique PERT
Forecasting techniques
Statistical techniques
