Exam 1 Flashcards
Define Operations Management
Designs, operates, and improves productive systems - SYSTEMS FOR GETTING WORK DONE!
-HEART of the company
-TRANSFORMATION process
-More than planning and controlling, it is doing it!
List some of the roles of an Operations Manager
*ONLY NEED 3 FOR EXAM
- Organizing work
- Selecting processes
- Arranging layouts
- Locating facilities
- Designing jobs
- Measuring performance
- Controlling quality
- Scheduling work
- Managing inventory
- Planning production
What are the 4 primary areas of a firm?
- Finance/Accounting
- Marketing
- Operations
- Human Resources
Why would a firm go “global?”
-new markets, growth opportunities
-cheaper labor
-access to resources
What is the formula for calculating productivity?
Output / Input
Output = units produced
Input = labor hours, machine hours, multifactor
What is Quality, and what does it do?
The degree of level or excellence
-creates VALUE
-ENSURES CUSTOMER SATISFACTION!
What are some of the Dimensions for Quality for MANUFACTURED PRODUCTS?
*KNOW A FEW
- Performance
- Features
- Reliability
- Conformance
- Durability
- Serviceability
- Aesthetics
- Safety
What are some Dimensions for Quality for MANUFACTURED SERVICES?
*KNOW A FEW
- Time and Timeliness
- Completeness
- Courtesy
- Consistency
- Accessibility and Convenience
- Accuracy
- Responsiveness
What is the PDCA Cycle and its components?
- PLAN: study process, identify the problem, set goals, and develop the plan for improvement
- DO: implement the plan on a test basis, measure improvement
- STUDY/CHECK: assess the plan, is it working? goals achieved?
- ACT: institutionalize improvement, continue the cycle with new problems at stage 1
What is Six Sigma?
A project-oriented methodology (or system) that provides businesses with the tools and expertise to improve their processes
What does Six Sigma look to do?
Improve performance through DEFECT REDUCTION
Measures how much a process deviates from perfection
In Six Sigma, what are the components of the Breakthrough Strategy?
- DEFINE: define problem
- MEASURE: process is measured, data are collected and compared to the desired state
- ANALYZE: data are analyzed in order to determine the cause of the problem
- IMPROVE: the team brainstorms to develop solutions to problems, changes are made to the process, and the results are measured to see if the problems have been eliminating
- CONTROL: monitor process to ensure improvement is sustained
What are Internal Failure Costs vs External Failure Costs?
Internal Failure Costs = BEFORE they are delivered to the customer (e.g., rework, scrap costs, process downtime)
External Failure Costs = AFTER the customer has received a poor-quality product (e.g., product return, warranty claims, product liability, lost sales)
What are Perceptual Maps?
visual method of comparing customer perceptions of different products or services
What is Benchmarking?
comparing a product or process against the best-in-class product
-making recommendations for improvement!
