Chapter 18B: Managing operations

Question 1

Operation Management

Answer 1

the management of the transformation process that converts resources into finished goods And services

Question 2

Manufacturing organizations

Answer 2

organizations that produce physical goods

Question 3

service organizations

Answer 3

organizations that produce non physical goods in the form of service ( 80% of all economic activity in the USA)

Question 4

Value chain

Answer 4

entire series of work activities that (only) add value at each step; from acquiring raw materials to delivering the finished product (or service) to the customer

Question 5

Value

Answer 5

the performance characteristics, features, attributes and any other aspects of goods or services for which customers (highest level of power) are willing to give up resources

Question 6

Productivity

Answer 6

Outputs/Inputs
The overall output of goods or services produced divided by the inputs needed to generate that output
a composite of people and operations variables

Managers (not workers) are the primary source of increased productivity

Question 7

Benefits of increased productivity
Organizational

Answer 7

Increased competitive capability due to lower costs

Question 8

Benefits of increased productivity Nationally

Answer 8

economic growth, higher profits and higher wages without inflation - maintain global leadership

Question 9

Value Chain Management

Answer 9

managing the sequence of activities and information along the entire value chain

Externally oriented on outgoing products and services

Externally oriented to created the highest value for customers

Goals; Transform organizations into finely tuned models of efficiency and effectiveness that meets and exceeds the customers needs

Question 10

Value chain strategy

Answer 10

a business model incorporating:
- hiring/ training
- communication
- investment in information tech
Questioning organizational processes (how work is done) (aka intellectual stimulation)
- Setting expectations
- Trust, respect

Question 11

Organizational Barriers

Answer 11

Refusal, reluctance, or inability to effectively share information
Reluctance to shake up the status quo
Security issues

Question 12

Cultural attitudes

Answer 12

Lack of trust or too much trust (balanced control)
Fear of loss of control, leading to stagnation/inertia

Question 13

Required Capabilities

Answer 13

Lacking or failing to develop the requisite value chain management skills (communication, conceptual, analytical, technical, stakeholder relationships)

Question 14

People

Answer 14

• lacking commitment
• refusing to be flexibly
• nonmotivated
• lack of trained managers

Question 15

Tech’s roles in manufacturing (productivity)

Answer 15

Increased automation to control costs

The production function (people) must be a pull partner in the entire business system in order to avoid bottle necks/slowdowns

Question 16

Quality

Answer 16

the ability of a products or service to reliably do what its suppose to do and to satisfy customer expectations

Question 17

Benchmarking

Answer 17

the search for the best practices among competitors or non-competitors that lead to superior performance

A TQM tool for measuring organizational performance
must not be based on past performance only, but instead on the best performance possible

Question 18

Suggestions for internal benchamarking

Answer 18

• Identify best practices throughout organization
• Develop best practices reward and recognition system
• Communicate best practices throughout the organization
• Create a best practices knowledge sharing system
• nurture best practices in an ongoing basis

Question 18

Benchmark

Answer 18

a standard of excellence to measure and compare against

Question 19

Six sigma

Answer 19

a quality program designed to reduce effects to help lower cost, save time and improve customer satisfaction

Question 20

Internal organization for standardization

Answer 20

ISO 9001 certification: a series of internal quality management standards that set uniform guidelines for processes to ensure that products conform to customer requirements

Certification as a Quality Organization, Matters!!!

Question 21

Lean organization

Answer 21

understands what customers want, identifies customer value by analyzing all activities required to produce products, and then optimizes the entire process from the customer’s perspective.

Continuous learning to drive out all activities that do not add value to the customer.*