EXAM 2 Flashcards
Operations Management
Organizing the processes that turn inputs such as labor, raw materials, purchased goods, and capital into products or services that a business can sell
Product
is tangible
Service
intangible
Decoupling Demand
product made ahead of time and inventoried until needed
Quality
Product: can be tested before customer sees it
Service: tested after the fact
Capacity
Product: made before demanded: additional factories if needed
Services: provided proportional to # of providers
Capital and Automation
Products: made with capital
Services: some capital, less products
make-decision
make a product or business
Outsourcing
buy product or service from another business
Job Shop
willing to do any customization within their skill set
Batch Process
make things in batches
Assembly Line
highest volume process that offers much lower prices
Hybrid Process
Batch, assembly line, and customization
Demand Planning
getting the customer to buy the service when the company wants them to
Capacity Planning
ensures that enough production capability is ready to meet customer demand
Automation
anything that helps someone do a task faster, easier, or with less effort
Inventory
the goods that a company makes and buys to be able to provide a product or service
Raw Materials
basic elements that a business buys for their products or services
Work-In-Process (WIP)
inventory at the highest risk because the business has started to process it, but it’s not yet ready to be sold
Finished Goods
inventory still carries risk because the business will often have more than customer demand to ensure they do not run out
Centralized Inventory
holding the inventory at a centralized distribution center, which allows low-volume products to be held more efficiently
Decentralized Inventory
most inventory is kept at the store level and uses distribution centers to replenish the products sold at the store
Prevention
attempt to reduce the likelihood of a problem occurring before before a product or service is started
Inspection
detection of a defect or problem in a product or service after it has been produced
Productivity
is a ratio of how much time, energy, materials, and labor needed to produce a product or provide a service
Lean
identification of waste anywhere in a process and removing it
Transportation(lean)
the movement of a product and the distance that a customer needs to walk
Movement(lean)
physical movement that employees need to do in order to complete a task
Waiting
the amount of time a customer stands in line and waits for a service to be completed
Overproduction
having too many finished goods inventory where someone is working
Overprocessing
providing more that what the customer wants or demands
Defects
the errors in a product or service
Unused Employee Creativity
vital resource for increasing customer and employee satisfaction
Six Sigma
designed to reduce variation in a process so that it’s consistent and does not deviate from the outcome
DMAIC
Define, measure, analyze, improve, and control is the basis for the problem-solving process
Supply
