Chapter 10 Flashcards
Operations Management
A set of methods and technologies
used in the production of a good or a service
Service Operations
A production activities that yield tangible
and intangible service products
Goods Production
A production of 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)
Difference Between Service and Manufacturing Operations
In interacting with customers, services can be intangible and unstorable, the customer’s presence in the operations process, and service quality considerations
Goods-Producing Processes
Methods and technologies used in the production of goods & services are classified by the type of transformation technology, type of process (analytic or synthetic, and the amount of customer contact)
Types of Transformation Technology
Chemical processes, fabrication processes, assembly processes, transport processes, and clerical processes
Analytic Process
Resources are broken down in the production process (Extracting minerals from ore)
Synthetic Process
Resources are combined in the production process (Paint production)
Service-Producing Processes (2 types)
Customers are involved in and can affect the
transformation process
Low-contact systems: customers do not need to be physically present
High-contact system: customers need to be physically present
Business Strategies (Driver of Operations)
Quality, Lower prices, Flexibility, and Dependability
Operations planning methods
All successful operations are carefully planned and implemented (Capacity, quality, location, layout, and 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, robotics, lean manufacturing)
Flexible manufacturing system
A production system that allows a single factory to produce small batches of different goods on the same production line
Soft manufacturing
Emphasizes computer software and computer networks instead of production machines