chapter 9 Flashcards
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define operation management
an area of management concerned with overseeing, designing and controlling the processes of production and business operations, resources, and activities required for the production and delivery of goods or services with the aim of creating value for customers and profitability for shareholders
difference between goods and services in operation management in terms of the nature of output
- Product-based operations are typically standardized and can be physically measured and inspected
- Services are customized to meet individual customer needs, making them more difficult to standardize
difference between goods and services in operation management in terms of production and delivery process
- Product-based operations involve the physical transformation of inputs into finished goods through manufacturing processes.
2.service-based operations are characterized by simultaneous production and consumption. Service delivery often involves direct interaction between service providers and customers
difference between goods and services in operation management in terms of inventory management
- Products can be stored as inventory until they are sold or delivered
- Services are typically consumed as they are produced
difference between goods and services in operation management in terms of quality assurance
- Quality control in product-based operations involves inspecting and testing finished goods to ensure they meet predetermined standards
- In service-based operations, quality assurance is more challenging. It often involves monitoring customer feedback, service delivery processes, and employee performance to maintain service quality.
difference between goods and services in operation management in terms of customer involvement
1.In product-based operations, customers are typically less involved in the production process. They have limited interaction with the manufacturing process
2.in service based operations customers are active participants in the service delivery process, their feedback play a crucial role in shaping the service experience.
what is craft manufacturing?
when skilled craftsmen produce goods individually or in small batches
example of products of craft manufacturing
handcrafted jewelry
handmade furniture
example of service of craft manufacturing
custom tailoring
traditional woodworking
advantage of craft manufacturing
product meets customer’s exact requirement
the disadvantage of craft manufacturing
less chance for eos
what is mass production?
large-scale production of standardized goods using machinery and automation
example of products of mass production
automobiles
packaged food product
example of service of mass production
standardized menu
advantage of mass production
opportunities for eos
the disadvantage of mass production
high capital costs for setting up production line
what is flexible specialization?
combined benefits of mass production efficiency with customization to meet varying customer demands
advantage of flexible specialization
help companies become more efficient
the disadvantage of flexible specialization
requires highly skilled workers
what is lean production
aim to eliminate waste and reduce cost; it involves streamlining process and empowering employees
advantage of lean production
reduce inventory cost
the disadvantage of lean production
need highly trained employees
what is mass customization?
combines the benefits of mass production with customized products or services. It allows customers to personalize products within predefined options
what is agile manufacturing?
ability to rapidly reconfigure production system and processes, it focuses on flexibility and quick adaption to changing customer demands
what is production
input+process=input
economics tends to ignore process
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what is productivity
measure of efficiency that evaluates how well resources are used to generate output
measures the ratio of output to input
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example of improving productivity in the manufacturing industry
reduce production time
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example of improving productivity in the service industry
reduce call handling times
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example of improving productivity in the retail industry
streamlining checkout process
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example of improving productivity in the healthcare sector
reduce patient waiting times
what does operation management consider in value creation
- quality
- cost efficiency
- flexibility and responsiveness
4.innovation and new product development
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what is value chain analysis
a strategic management process that helps identify the primary activities and support activities within an organization’s value chain.
it involves breaking down the organization’s activities into specific steps, and identify opportunities for cost reduction.
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which activities are involved in the value chain
- primary activity
- support activity
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what are the primary activities?
directly involved in the production, marketing, delivery, and after-sales service of a product or service
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examples of primary activities
inbound logistics
outbound logistics
marketing and sales
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what are the support activities?
they provide the necessary support for the primary activities
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examples of support activity
human resource management
firm infrastructure
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importance of value chain
can identify competitive advantage
can identify opportunities for improving efficiency
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purpose of value chain analysis
identify emotional needs of customers
identify primary and support activity
evaluate competitors in the market
analyze financial performance
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what is inbound logistics
it brings supplies or materials into a business
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what is outbound logistics
deals with moving goods and products out to customers
what is emotional bridge
connection between a product/brand with the emotional needs and desires of a customers
example of emotional bridge
fender guitar taps into the emotional connection that muscians have with their instrument
how does emotional connection contribute to competitive advantage
- increased customer loyalty
- differentiation from competitors
porter’s generic strategies
it defines different approaches a company can take to achieve competitive advantage
what is porter’s generic strategy based on
cost leadership
differentation
what is cost leadership
being the lowest-cost producer in the industry while maintaining product quality
what is differentiation
create a unique product or service
what is the focus strategy?
targeting a specific market segment
example of a business having a focus strategy
rolex
what is production planning
process of determining the best use of resources, materials, and labor to ensure efficient and timely production of goods or services
what does production planning involve
setting production goals
creating schedules
allocating resources
minimizing costs
maximizing productivity.
components of production planning
Facility Planning
Supplier Location
Internet Operations
Facility Layout
Material Requirements Planning
Enterprise Resource Planning
Quality Control
Just-in-Time
Purchasing
what is facility planning?
determining the location, size, layout, and design of production facilities
what is the supplier location?
the strategic decision of selecting the appropriate geographic locations for sourcing materials, components, or services
what is internet operations
utilizing digital platforms and technologies to facilitate production and sales activities.
what is facility layout
arranging the physical layout of production facilities to optimize efficiency, workflow, and productivity.
what is material requirement planning
managing and planning material requirements based on production schedules and customer orders.
what is enterprise resource planning
comprehensive system that integrates various business functions, including production planning, inventory management, finance, HR, and customer relationship management.
what is quality control
procedures taken to ensure that products or services meet predefined quality standards
what is just in time
a production strategy aimed at minimizing inventory levels by producing and delivering items precisely when needed
what is purchasing
involves acquiring the necessary materials, components, and services for production
what is computer-aided design
software tool that assists in designing and creating detailed models or blueprints of products
what is computer aided manufacturing
utilizes computer-controlled machines to automate the manufacturing process
what is flexible manufacturing
quick changes in production processes to adapt to varying demand or customization requirements
what is robotics
the use of automated machines or robots to perform tasks.
what is machine learning
using algorithms and statistical models to enable computers to learn from data and make predictions or decisions.
what is project evaluation and review techniques
identifying the critical path
estimating task durations
determining project timelines.
what is a gantt chart
a visual representation of project tasks, schedules, and dependencies. It displays tasks as horizontal bars along a timeline, indicating their start and end dates
what are project management tools
- project evaluation and review techniques
- Gant chart
importance of gantt chart
help in project planning, tracking, and communication
