Chapter 12 Flashcards
Successful organizations understand the interconnectivity of
business structure
operations
strategy
is the effective design, development, and management of the processes, procedures, and practices embedded within an organization’s business system for the purpose of achieving its strategic intent
operations management
categories of responsibility in operations management
○ Supply chain management
○ Information technology-based operational analytics
○ Product/service management
○ Process management
the design and development of the work flow and connectivity of the transformation requirements (processes) needed to ensure that an organization’s products and services are efficiently produced and effectively delivered to the marketplace
process management
is the management of the interdependencies among suppliers, manufacturers, and distributors, it seeks to develop the terms and conditions that will enable all parties to efficiently and effectively meet their obligations to one another due to their business relationships
supply chain management
refers to the variety of activities that commence with the design and development of potential new products in R&D and extend to the post-purchase support of products/services now in the hands of customers
product/service management
refers to the assessment of historical, as well as predictive data in a way that enables the operations management team to actively manage the organization’s current and future operational needs
information-technology based operational analytics
refers to maximizing the benefits (price/quality comparison) that an individual or set of customers will realize as a result of using a product or service
value maximization
relate to the specific activities though which the development and transformation of a product or service occurs as it is produced and delivered to the marketplace
○ Inbound logistics, operations, outbound logistics, marketing and sales, customer service
primary activities
refers to the management of supplier relationships relating to those parts and/or components, or finished products that are brought into the organization in order to produce finished products for delivery to the marketplace
inbound logistics
refers to the manufacturing and/or product change processes set up to ensure that the final product the organization is manufacturing or handling is ready for the marketplace
operations
refers to getting the finished product tot eh customer via a distribution channel that is accessible, convenient, and able to minimize stock outs and other sales impediment factors
outbound logistics
efers to those activities that create profile and awareness for the organization’s products, services, or brand(s), and the benefits derived from the acquisition and use of such products or services
marketing and sales
refers to the support provided to customers before, during, and following the purchase process
customer service
are those areas within the organization that are not directly associated with the actual processes the organization uses to produce products and/or deliver services but that are an integral part of the support structure the primary activities rely on to successfully execute strategy
○ Includes: HR, R&D, Engineering, IT, Finance, Legal, Environmental Safety
• The successful execution of primary activities is facilitated by these
support activities
is the alignment of the operational tasks within an organization by its management team in order to meet the strategic outcomes defined in the organization’s business strategy
operations cycle
is the design and utilization of common platforms and common task sequencing to produce/develop a variety of products or services
process standardization
is the design and utilization of a minimum number of tasks when developing products and/or services
process simplification
four core decision areas of process management
○ Process design, layout, and execution
○ Materials management
○ Facility design and layout
○ Capital asset evaluation and acquisition
refers to the assessment and implementation of the tasks necessary to get the required work accomplished, and how such tasks will be grouped and sequences to ensure that the most efficient and effective processes are utilized in the production of products and/or services
process design, layout, and execution
is a scheduling methodology that focuses on task sequencing and the identification of the critical path of steps that will most greatly impact the ability to complete a project, and the length of time needed for completion
PERT chart
is a methodology used to schedule the steps associated with a project and the time required to complete each step (looks like excel)
Gantt chart
refers to the management of the inputs required in order to develop the products or services that the organization is intent on delivering to the marketplace
materials management
refers to the development of the supply chain structure and the accumulation of the necessary information to make effective supply chain decisions
supply chain management
