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
Heuristic
A quick way to find a good solution
System
a set of interrelated parts that must work together.
Pareto Phenomenon
Says that some things (a few) will be very important for achieving an objective or solving a problem, and other things (many) will not.
Economies of scale
The economic conditions that favor larger plants and machines/equipment by causing minimum average unit cost to decrease as size increases.
Division of Labor
Production process is divided up into a series of small tasks and individual workers are assigned to each one of these tasks.
Interchangeable parts
Standardizing parts and make them so precisely that any part in a batch of parts would fit the product without alteration.
Scientific management
Applying science to observe, measure, analyze and improve work methods, including the use of economic incentives.
what are the recent trends in OM?
Ecommerce
management Technology
Globalization
Supply chains
Sustainability
Industry 4.0/internet of things
what are some factors for operation managers when making decisions?
1) Models
2) Ethics
3) Quantitative Techniques
4) Establishing priorities
5) Analysis of trade-offs
6) systems approach
Approaches to decision making what are some examples of models?
-Physical Model
- Mathematical model
-Schematic model
-Statistical model
Quantitative Techniques decision making
*Optimization
*Queueing techniques
*Inventory techniques
*Project scheduling techniques
*Forecasting techniques
*Statistical techniques
Analysis of trade-offs decision making
Between
*Profits
*costs
*Productivity
*Customer satisfcation
Establishing priorities decision making
Pareto phenomenon (80/20 rule)
*80% of results achieved will come from 20% of factors
*80% of success comes from 20% of your ideas
*80% of promotions are given by 20% of bosses
The systems approach decision making
Emphasizes interrelationships among subsystems
*The output and goals of the organization take precedence over those of any subsystem
*Main theme is the sum is the greater than the sum of its parts
Ethics decision making
*Ethical issues arise in
**Worker safety
**Product safety
**the environment
**society and commitments
Sustainability
Environmental
Social
economic
