delicades reviewer Flashcards
The management of processes or systems that create goods and/or provide services.
Operations management
Organizations are formed to pursue goals that are achieved more effectively by the concerted efforts of a group of people than by individuals working alone.
Business Organization
Three Basic Functions Of Business Organization
- PRODUCTION / OPERATIONS
- FINANCE
- MARKETING
Activities related to securing resources at favorable prices and allocating those resources throughout the organization.
FINANCE
Inputs are used to obtain finished goods using one or more transformation processes
- PRODUCTION / OPERATIONS
- System
Focus on selling and/or promoting the goods and services of an organization.
MARKETING
evaluation of alternative investment in plant and equipment requires input from both operations and finance people.
Economic analysis of investment proposals
must be periodically prepared to plan financial requirements.
Budget
necessary funding of operations and the amount and timing of funding
Provision of funds
supplies information to management on cost of labor, materials, and overhead and may provide reposts on items such as scrap, downtime and inventories.
Accounting
responsible for procurement of materials, supplies, and equipment.
Purchasing
concerned with recruitment and training of personnel, labor relations, wages and salaries and ensuring health and safety of employees.
Personnel or Human Resources
providing management with the information it needs to effectively manage
Management Information System (MIS)
responsible for general upkeep and repair of equipment, building and grounds, heating and air-conditioning, removing toxic waste.
Maintenance
responsible for building and maintaining a positive image of the organization.
Public Relations
involves shipping of goods to warehouse, retail outlets or final consumer.
Distribution
means that the product or service is designed for specific case or individual.
Customized Output
means that there is a high degree of uniformity in goods or services.
Standardized Output
The four Vs of operations:
Volume, Variety, Variation, Visibility
results in a tangible product.
Production of goods
generally implies an act.
Service operation
Differences Between Goods and Services:
- Customer contact
- Uniformity of input
- Labor content of job
- Uniformity of output
- Measurement of productivity
- Simultaneous production/consumption and delivery
- Quality assurance
an abstraction of reality; a simplified version of something
I. MODEL
More abstract than their physical counterparts (less resemblance to physical reality)
Schematic Models
More abstract than their physical counterparts (less resemblance to physical reality)
Schematic Models
The most abstract: they do not look at all like their real-life counterparts.
Mathematical Models
Look like their real-life counterparts.
Physical Models
approaches to problem solving embody an attempt to obtain mathematically optimum solutions to managerial problems.
II. QUANTITATIVE APPROACHES
a set of interrelated parts that must work together
System
emphasizes interrelationships among subsystems, but its main theme is that the whole is greater than the sum of its individual parts
IV. SYSTEMS APPROACH
deal with decision by listing the advantages and disadvantages – pros and cons
III. ANALYSIS OF TRADE-OFFS
A measure of the effective use of resources, usually expressed as the ratio of output to input
Productivity
output/ (multiple inputs)
Multi-factor measures
output/ (single input)
Partial measures
output/ (total inputs)
Total measure
a general approach to decision making that is suitable for a wide range of operations management decision
Decision Theory
expected payoff for each alternative in every possible state of nature
PAYOFF TABLE
means that relevant parameters such as cost, capacity and demand have known value.
- Certainty
means that it is impossible to assess the likelihood of various possible future events.
- Uncertainty
means that certain parameters have probabilistic outcomes.
- Risk
best of the worst
- Maximin
best average payoff
- Laplace
least of the worst regrets.
- Minimax Regret
best possible payoff.
- Maximax
best possible payoff.
- Maximax
the best expected value among the alternatives
Expected Monetary Value (EMV)
The difference between the expected payoff with perfect information and the expected payoff under risk.
EXPECTED VALUE OF PERFECT INFORMATION (EVPI solution 1)
- A schematic representation of the available alternatives and their possible consequences
DECISION TREE
—– nodes denote decision points
Square
nodes denote chance events
circular
