Chapter 10 (10.1, 10.4, 10.6-10.7) Flashcards
Operations Management
a set of methods and technologies used in the production of a good or a service.
Service Operations
production activities that yield tangible and intangible service products
Goods Production
production activities that yield tangible products
Time Utility
when the product is available
Place Utility
where the product is available
Ownership (Possession) Utility
consumption or use of product
Form Utility
product’s form (the transformation of raw materials into a finished product)
Successful operations
carefully planned and implemented
forecasting and planning
Capacity
quality
location
layout
methods planning
Capacity Planning—Goods and Services
amount that a firm can produce under normal conditions
Process Layout
Equipment and people are grouped by function
Cellular Layout
Used when families of products can follow similar flow paths
Product Layout
Organizing equipment and people to produce one type of product
assembly lines, industrial robotics, lean manufacturing
Scheduling Goods Operations
Master Production Schedule (top level)
which products, when, what resources, what time period
Scheduling Service Operations
low-contact services:
based on desired completion dates and/or arrival
high-contact services:
customer is directly involved (impacts scheduling)
Operations Control
monitoring performance by comparing results to original plans and schedules
Materials Management
planning, organizing, and controlling the flow of materials from purchase to distribution of finished goods
transportation
purchasing
inventory control
supplier selection
warehousing
Performance Quality
refers to the features of a product and how well it performs
Quality Reliability
refers to the consistency or repeatability of performance
Quality Ownership
the idea that quality belongs to each person who creates or destroys it while performing a job
Value-Added Analysis
evaluation process to determine the value added by:
all work activities
material flows
paperwork
reveal and eliminate wasteful activities
Statistical Process Control (S P C)
S P C methods enable managers to analyze variations in production data
detect when adjustments are needed to create products with high quality reliability
Process Variation
change in employees, materials, work methods, or equipment that affects output quality
Control Chart
statistical process control method (results plotted on a diagram)
results outside the control limits are easily spotted (checked)
Quality/Cost Studies
assessing quality-related costs and identifying areas with cost-saving potential
Benchmarking
compares the quality of a firm’s output with the quality of the output of the industry’s leaders
Supply Chain (Value Chain)
a group of companies and stream of activities involved in getting the product from the raw material stage to the end consumer
Supply-Chain Management
offers a competitive edge because companies are working together to improve overall flow of goods
