Chapter 10 Flashcards
Define operations management
Set of methods and technologies used in producing goods/services
Define service operations
Production of activities yielding tangible and intangible service products
Define goods production
Production activities yielding tangible results
Define time utility
When product is available
Define place utility
Where product is available
Define ownership/possession utility
Consumption/ use of product
Define form utility
Product’s form i.e. Transformation of raw materials into finished product
What is the difference between service and manufacturing operations
- Interacting with customers 2. Services can be intangible, unstorable 3. Customers presence in operations process 4. Service quality considerations
Define goods-producing processes
Methods of technology used in production of goods and services
What are the 3 classifications of methods and technologies in goods-producing processes
- Type of transformation technology 2. Type o process (analytic vs synthetic) 3. Amount of customer contact
What are the 5 types of transformation technologies
- Chemical process 2. Fabrication 3. Assembly 4. Transport 5. Clerical
Define the analytic process
Resources broken down in production process i.e. extracting minerals from ore
Define synthetic process
Resources combined in production process
Define the service-producing process
Customers involved, affecting transformation process, low contact system vs high contact system (customers physically present)
What are the 4 aspects of the business strategy
Quality, lower prices, flexibility, dependability
What makes up operations planning
Forecasting and planning, operations planning and control, capacity planning, layout planning,
How are operations plans successful
By being carefully planned and implemented
Define forecasting and planning (5)
Capacity, quality, location, layout, methods planning
What are the steps to operations planning and control
I. Business plan and forecasts,2 long-range operations plan 3. Operations schedule 4. Operations control 5. Output to customers,who then give feedback on first 4
Define capacity planning for g/s
Amount a firm can produce under normal conditionsW
What are the 3 conditions to capacity planning
- Capacity should slightly exceed normal demand
- Accomodate seasonal changes/peak times
- Address ways to use excess capacity
What are the 3 types of layout plannins
Process layout, cellular layout, product layout
Define process layout
Equipment, people grouped by function
Define cellular layout
Used when families of products can follow similar flow paths
Define product layout
Organizing equipment/people to produce one type of product ex: assembly line, industrial robotics, lean manufacturing
What are other types of layouts currently in development
Flexible Manufacturing Process (FMS)
Soft manufacturing
Moveable factory
Define FMS
Production system allowing single factory to produce small batches of different goods on same production line
Define soft manufacturing
Emphasizes computer software/networks instead of production machines
Define moveable factory
Purchasing relatively modern production equipment and transporting it to another location to create a new manufacturing plant, usually in developping country
What are the 2 types of operations scheduling
Scheduling goods operation, and scheduling service operations
Define scheduling goods operation
Master production level (top level): which products, when, what resources, what time period
What are the 2 types of scheduling service operations
Low-contact services: based on desired completion dates/arrival
High contact services: customers directly involved (impacts scheduling)
What are Gantt Charts
Diagram of steps in project + required time, useful in checking process
What is a PERT chart
Specifies sequence, critical path of steps for a given project, identifies activities that may cause delay
Define operations control
Monitoring performance by comparing results to original plan/schedule
What are the three steps to operations control
- Follow-up ensuring production decisions are being implemented
- Materials management
- Production-process control
Define materials management
Planning, organizing, controlling flow of materials from purchase to distribution of finished goods
Examples of materials management
Transportation
Purchasing
Inventory Control
Supplier Selection
Warehousing
What are the tools necessary for process control
Employee training
Material requirements training
Just-in-time production systems
Quality control
Define just-in-time production systems + advantages
Parts delivered only when needed; helps resources continually flow from raw materials to finished products, saves on warehouse costs, helps a smooth movement of product components
Define materials requirement planning (MRP)
Computerized bill of materials to estimate production needs; resources then acquired and put into production on a need basies
Define manufacturing resource planning (MRP II)
Advanced version of MRP tying all parts of org into production activities such as
Production
Inventory
HR
Marketing
Finance
Define quality
Product’s fitness for use in terms of offering features that consumers wantD
Define measuring productivity
Measured by ratio of outputs to inputs, with labour acting as inputs due to easily available data
How is labour productivity calculated
GDP/total # of workers OR # of hours
Define domestic productivity
Productivity affecting standard of living, employee wages, investor profits, customer prices
Is manufacturing or service productivity higher + why
Manufacturing is higher BUT service gaining from modern info tech eliminating inefficiencies
What impacts productivity within any industry
Labour-union negotiations, investors, supplies
Which industries have gained from new tech
Agriculture, computer, steel
Define company productivity
Higher gives competitive edge, decreased cost decreasing prices therefore increasing profit/wages
What factors can impact company productivity
Investors buying stock, employee profit-sharing plans, managers’ plans for future
What are the characteristics of total quality management (TQM)
- All activities and parts of business (ex customers, suppliers, employees)
- Leadership, customer focus are key
- Requires highest level of commitment (no defects are tolerable)
- Highlights continuous improvement
- All employees responsible for maintaining quality standard
Define performance quality
Features of product, how well it performs
Define quality reliability
Consistency, repeatability of performance
Define quality ownership
Idea that quality belongs to each person who creates/destroys while performing job
What are the quality assurance tools (10)
- Competitive product analysis
- Value-added analysis
- Statistical process control
- Quality/cost studies
- Quality-improvement teams
- Benchmarking
- Getting closer to customer
- ISO 9000:2000, ISO 14000
- Re-engineering
- Adding value through supply chains
Define value-added analysis
Evaluation process determing value added by
1. all work activities
2. material flows
3. paperowrk
helps to reveal and eliminate wasteful activities
Define statistical process control (SPC)
Methods enabling managers to analyze variations in production data
Detects when adjustments are needed to create products with high quality reliability
Define process variation
Change in employees, materials, work methods, equipment affecting output quality
Define a control chart
Statistical process control methods plotting results on diagram, results outside control limits easily spotted
Define quality/cost studies
Assessing quality-related costs and identifying areas with cost-saving potential; costs associated with making, finding, repairing, preventing product defects; requires determining costs of internal/external failures
What are the 3 characteristics of quality improvement teams
Groups of employees from various areas meeting to define, analyze, solve quality problems
Goal is to improve work methods and products
Brainstorming, discussing, quality/cost study
Define benchmarking
Comparing quality of firm’s output with quality of output of industry leaders
Internal vs external benchmarking
I: comparing to company’s past performance
E: comparing to competitors best practices
Define ISO 9000:2000, ISO 14000
Programs certifying company meets rigorous standards of ISO (international organization for standardization)
How are ISO ratings earned
Product testing
Employee training
Record-keeping
Correcting defects
Define reengineering business process
Redesigning business processes to improve performance, quality, productivity
Define adding value through supply chains
Group of companies, stream of activities involving getting product from raw material stage to end of consumer
Define supply-chain management + adv (3)
Offers competitive edge because companies work together to improve overall flow of goods
Customers get better value
Smooth flow of accurate info reduces unwanted inventory
Materials move faster to consumers
