Chapter 1: Operations Management Flashcards
What is operations management
The management of the processes used to conceive, deliver, create, and distribute value adding goods and services to customers
Explain what value added is
It is the additional value of a good over the cost used to produce it
What is the importance of operations management
- It’s a management function within an organisation
- The value added to a good or service determines whether it’s seen as an option for customers to buy, this can either be classified as order qualifiers or order winners.
What is the historical development of operations management
- First industrial revolution 1760 - 1830
- Second industrial revolution 1817 - 1914
- Third industrial revolution 1950 - 2010
- Fourth industrial Revolution 2011- present
Fill in the blank
Sustainability is becoming increasingly central to ________
Strategic planning in organisations
Name the three areas in which organisations need to ensure improved performance
1) Environmental
2) Social
3) Economic performance
Explain environmental dimension
It is reported on climate change, greenhouse gas emissions, waste management, recycling, pollution etc.
Explain social dimension
Reported on an employees health and safety, working conditions customer satisfaction etc.
Explain governance dimension
Reported on corporate governance such as bribery cyber security etc.
What is operations and supply chain management
All activities involved in the creation, operation and improvement of the processes and procedures in the production and delivery of an organisation’s products and services
What are the three principles to ensure full integration of operations and supply chain management
- All work can be classified as a process or a sub process
- Each process can be improved
- Improvements must ensure that the organisations processes are effective, efficient, low-cost and more robust
Name three levels of operations management
- Strategic (long-term)
- Tactical (medium-term)
- Operational planning & control (short term)
Explain organisational strategy
It is complex in that it involves making decisions based on information about the customer customer requirements as well as the continuous assessment of the extent to which the customers needs are being satisfied
What are the major objectives of operations management strategic decision making
- Guarantee the availability of the 8Ms
- Guaranteeing the production or rendering of services to customers to the exclusion of competitors products /services
- Guaranteeing that these decisions will direct the organisation setting out the extent of activities to be undertaken
What questions should operation managers answer
What? How? When? Where? Who?
Name the five major strategic decision-making areas
- Certainty in the decision environment
- Price of decisions
- Degree of intricacy of decisions
- Time horizons
- Activity span
Explain organisational and tactical planning in the supply chain
- Functional areas must collaborate
- Tactical planning (medium term) include sales and operational planning
- Operational planning (short term) concerned with demand planning material planning and capacity requirements
In what five major areas do managers make decisions
Plan, supply, create, provide, send back
What are the four major areas identified in how a final service or product comes into being
Volume, variety, variation, visibility
What are the 8 M’s of operations management
- Money
- Manpower
- Materials
- Methods
- Management
- Machines
- Messages
- Markets
Explain what are operations
It includes all activities that are directly related to the production and delivery of goods and services
What are the three major functional areas
Operations, finance, marketing
Name the types of service departments
- accounting of finance department
- the management information system department
- purchasing department
- human resources department
- corporate communication department
- quality and industrial engineering department
- maintenance department
- logistics department
Differentiate between goods and services production
Services
- intangible
- provided by service organizations
- impossible to store
- cannot be transported
Goods
- tangible
- provided by manufacturers
- easy to store
- can be transported
What are the 3 modes of operations management
Primary operations management
- sourcing of raw materials
Secondary operations management t
- uses raw materials from primary to manufacture
Tertiary operations management
- renders services
