CHAPTER 4: MANAGING PRODUCTION AND SERVICE OPERATIONS Flashcards
refers to any process that accepts inputs and uses resources to change those inputs in useful ways. The transformation process converts inputs into final goods or services.
Operations
The process of planning, organizing, and controlling operations to reach objectives efficiently and effectively.
Operations Management
management of systems or processes that create goods and/or provide services
Operations Management
are physical items that include raw materials, parts, subassemblies such as motherboards that go into computers, and final products such as cell phones and automobiles.
Goods
are activities that provide some combination of time, location, form, or psychological value.
Services
Operations Management Components
- Forecasting
- Capacity Planning
- Inventory Management
- Scheduling
- Quality Assurance
- Facilities Planning
- Employee Motivation
predict or estimate a future event or trend.
Forecasting
determining the production capacity needed to meet changing demands for its products.
Capacity Planning
process of ordering, storing and using a company’s inventory: raw materials, components and finished products.
Inventory Management
allocate plant and machinery resources, plan human resources, plan production processes and purchase materials.
Scheduling
systematic activities implemented to provide confidence that a product or service will fulfill requirements for quality.
Quality Assurance
determines how an activity’s tangible fixed assets best support achieving the activity’s objectives.
Facilities Planning
level of energy, commitment, and creativity that a company’s workers bring to their jobs.
Employee Motivation
3 Basic Functions of Business Organizations
- Operations
- Finance
- Marketing
consists of all activities directly related to producing goods or providing services;
core of most business organization.
Operations
