Chapter 10 Flashcards

1
Q

Operations Management

A

A set of methods and technologies
used in the production of a good or a service

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2
Q

Service Operations

A

A production activities that yield tangible
and intangible service products

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3
Q

Goods Production

A

A production of activities that yield tangible
products

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4
Q

Time Utility

A

When the product is available

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5
Q

Place Utility

A

Where the product is available

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6
Q

Ownership (Possession) Utility

A

Consumption or use of product

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7
Q

Form Utility

A

Product’s form (the transformation of raw
materials into a finished product)

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8
Q

Difference Between Service and Manufacturing Operations

A

In interacting with customers, services can be intangible and unstorable, the customer’s presence in the operations process, and service quality considerations

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9
Q

Goods-Producing Processes

A

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)

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10
Q

Types of Transformation Technology

A

Chemical processes, fabrication processes, assembly processes, transport processes, and clerical processes

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11
Q

Analytic Process

A

Resources are broken down in the production process (Extracting minerals from ore)

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12
Q

Synthetic Process

A

Resources are combined in the production process (Paint production)

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13
Q

Service-Producing Processes (2 types)

A

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

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14
Q

Business Strategies (Driver of Operations)

A

Quality, Lower prices, Flexibility, and Dependability

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15
Q

Operations planning methods

A

All successful operations are carefully planned and implemented (Capacity, quality, location, layout, and methods planning)

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16
Q

Capacity Planning—Goods and Services

A

Amount that a firm can produce under normal conditions

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17
Q

Process Layout

A

Equipment and people are grouped
by function

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18
Q

Cellular Layout

A

Used when families of products can follow similar flow paths

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19
Q

Product Layout

A

Organizing equipment and people to produce one
type of product (assembly lines, robotics, lean manufacturing)

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20
Q

Flexible manufacturing system

A

A production system that allows a single factory to produce small batches of different goods on the same production line

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21
Q

Soft manufacturing

A

Emphasizes computer software and computer networks instead of production machines

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22
Q

Scheduling Goods Operations

A

Master Production Schedule (top level), Which products, when, what resources, what time period

23
Q

Scheduling Service Operations (low and high contact)

A

Low-contact services: Based on desired completion dates and/or arrival
High-contact services: Customer is directly involved (impacts scheduling)

24
Q

Gantt Charts

A

Diagram of steps in the project and time required for each (Can be used to check progress)

25
Q

PERT Charts

A

Specifies the sequence and critical path of steps in a project (Can identify activities that will cause delay)

26
Q

Operations Control

A

Monitoring performance by comparing results to original plans and schedules

27
Q

Materials Management

A

Planning, organizing, and controlling the flow of
materials from purchase to the distribution of finished goods (Transportation, purchasing, inventory control, supplier selection, warehousing)

28
Q

Tools for Process Control

A

Worker training, Just-in-time production systems, Material requirements training, and Quality control

29
Q

Just-in-Time Production Systems (JIT)

A

Parts are delivered when they are needed (Resources continually flow from raw materials to the finished product, Saves on warehouse costs, and Smooth movement of product components)

30
Q

Materials Requirements Planning (MRP)

A

Computerized bill of materials estimates production needs. Resources are acquired and put into production only as needed

31
Q

Manufacturing Resource Planning (MRP II)

A

Advanced version of MRP; ties all parts of the organization into production activities (Production, marketing, inventory, finance, and human resources)

32
Q

Quality

A

A product’s fitness for use in terms of offering the features that consumers want

33
Q

Measuring Productivity

A

Labour productivity = Gross Domestic Product (GDP)/Total Number of Workers

34
Q

Domestic Productivity

A

Productivity affects the standard of living: employees (wages), investors (profits), customers (prices)

35
Q

True or False: Service productivity is higher than manufacturing productivity

A

False; Manufacturing productivity is higher than service productivity

36
Q

Company Productivity benefit + Impacts

A

High productivity gives a competitive edge; Lower costs allow for lower prices, more profit or higher wages
Impacts: investors buying stock, employee profit-sharing plans,
managers’ plans for the future

37
Q

Total quality management (TQM)

A

Includes all activities and parts of the business (customers, suppliers, employees), Leadership and customer focus are key, Requires the highest level of commitment (no defects are tolerable), Highlights continuous improvement, and all employees are responsible for maintaining quality standard

38
Q

Performance Quality

A

Refers to the features of a product and how well it performs

39
Q

Quality Reliability

A

Refers to the consistency or repeatability of performance

40
Q

Quality Ownership

A

The idea that quality belongs to each person who creates or destroys it while performing a job

41
Q

Quality-Assurance Tools

A

competitive product analysis, value-added analysis, statistical process control, quality/cost studies, quality-improvement teams, benchmarking, getting closer to the customer, ISO 9000:2000 and ISO 14000, re-engineering, and adding value through supply
chains

42
Q

Value-Added Analysis

A

Evaluation process to determine the
value added by all work activities, material flows, and paperwork

43
Q

Statistical Process Control (SPC)

A

SPC methods enable managers to analyze variations in production data (Detect when adjustments are needed to create products with high quality reliability)

44
Q

Process Variation

A

Change in employees, materials, work methods, or equipment that affects output quality

45
Q

Control Chart

A

Statistical process control method (results plotted on a diagram) - Results outside the control limits are easily spotted (checked)

46
Q

Quality/Cost Studies

A

Assessing quality-related costs and identifying areas with cost-saving potential (Quality costs are associated with making, finding, repairing or preventing product defects)

47
Q

Benchmarking (internal and external)

A

Compares the quality of a firm’s output with the quality of the output of the industry’s leaders
Internal: Compare to past performance
External: Compare to competitors’ best practices

48
Q

ISO 9000:2000 and ISO 14000 (Environmental)

A

Program certifying that a company meets the rigorous standards of the International Organization for Standardization (ISO). Firms are measured by product testing, employee training, record-keeping, and correcting defects

49
Q

Business Process Re-Engineering

A

Redesigning business processes to improve performance, quality, and productivity

50
Q

Supply Chain (Value Chain)

A

A group of companies and stream of activities involved in getting the product from the raw material stage to the end consumer

51
Q

Supply-Chain Management benefits

A

Offers a competitive edge because companies are working together to improve overall flow of goods
o Customers get better value
o Smooth flow of accurate information reduces unwanted inventory
o Materials move faster to business customers and consumers

52
Q

Value Chains

A

Include production, exchange distribution and
consumption activities.

53
Q

Two general categories of acitivities

A

Primary activities: these are geared towards all facets of the life cycle of the product or service (logistics and operations)
Secondary activities (i.e. procurement activities,
human resource management, technology related activities, the firm’s internal infrastructure and processes) which are required for the primary activities to occur.