Chapter 8 Flashcards
What is the purpose of operations management
to find the most efficient and effective methods of producing the goods and services it sells to its customers
What are the four main types of utility operations management benefits form
Time, place, ownership, and form
What is the operations manager in charge of?
Directing the transformation of converting resources into goods/services effecitvely
What is due diligence?
the important actions taken by directors or managers of an organization to ensure that all potential risks and errors are mitigated entirely.
What are the differences b/w manufactuers and service provides
Intangibility, customization, customer contact
What is intangibility
Manufactuers product tangible products. Services companies provide intangible products
What is customization
Manufactured goods are standardized. Services are customized to satisfy the specific needs of the customer
What is customer contact?
Satifaction is dependent on the service.
What questions should you asking the planning operation process
- Am I making a one- of -a -kind good based solely on customer specifications, or am I producing high-volume standardized goods to be sold later?
- Do I offer customers the option of “customizing” an otherwise standardized good to meet their specific needs?
What are the forms of production processes?
Make to order, mass production, mass customization, and just in time production
What is make-to-order
Products are customized to meet the needs of the buyers who ordered them (furniture, clothing)
What is mass production?
the practice of producing high volumes of identical goods at a cost low enough to price them for large numbers of customers.
What is mass customization?
combines the advantages of customized products with those of mass production.
What is just-in-time production
the manufacturer arranges for materials to arrive at production facilities just in time to enter the manufacturing process. Parts and materials don’t sit unused for long periods, and the costs of “holding” inventory are significantly cut.
