FINAL EXAM REVISION (LEC 1, 2, 3 & 4) Flashcards
Operations management
Managing an organization’s resources or production systems
It involves
o Product design
o Manufacturing
o Logistics
o Distribution
Operations
Manufacturing used to transform resources into products
Process
Any activity that takes one or more inputs, transforms them and provide one or more outputs for its customer.
Operations and Supply Chain Management (OSCM)
Design, operation and improvement of the systems that create and deliver firm’s primary product and services
Strategic planning
Defining the strategy, or direction, and making decisions on allocating resources to pursue this strategy.
Tactical planning
Short range planning emphasizing on achieving strategic objectives
Operational planning
Linking strategic goals and objectives to tactical goals and objectives
Operational performance
The level at which all business units in an organization work together to achieve core business goals
Measurement
Act of quantifying the performance criteria
Quality
Measures the degree to which the output (product/service) meets customer requirements
Goods quality
Physical performance and characteristics of a good
Service quality
meeting or exceeding customer expectations (external focus) and service delivery performance (internal focus)
Tangibles
the physical evidence
Reliability
ability to perform the promised service dependably and accurately
Responsiveness
willingness to help customers and provide prompt recovery to service upsets
Assurance
ability to inspire trust and confidence in customers
Empathy
caring attitude and individualized attention provided to customers
Service Upsets or Service Failures
Errors in service creation and delivery
Processing time
time it takes to perform some
Queue time
time spent waiting
Flexibility
Ability to adapt quickly and effectively to changing requirements
Volume flexibility
Ability to respond quickly to changes in the volume and type of demand
Innovation
Ability to create unique goods and services that serve customers and create competitive advantage
Learning
Acquiring and transferring knowledge to modifying the behavior of employees in response to internal and external change
Productivity
Ratio of the output of a process to the input
Productivity formula
Quantity of Output / Quantity of Input
Operational Efficiency
Ability to provide goods and services to customers with minimum waste and maximum utilization of resources
Triple Bottom Line
measurement of environmental, social, and economic sustainability
Environmental Sustainability
measures include:
- energy consumption
- recycling
- air emissions
- hazardous waste rates
Social Sustainability
measures include:
- consumer and workplace safety
- community relations
- corporate ethics and governance
- ethical violations
Economic Sustainability
measures include:
- financial audit results
- regulatory compliance
- sanctions and fines
- accomplishment of strategic initiatives
Sustainable Strategy
The firm’s strategy describes how it will create and sustain value for its current shareholders
Shareholders
Individuals or companies that legally own one or more shares of stock in the company
Stakeholders
Individuals or organizations who are directly or indirectly influenced by the actions of the firm
Operations effectiveness
Performing activities that implement strategic priorities at minimal cost
Straddling
Seeking to match a successful competitor by adding features, services, or technology to existing activities
Order qualifiers
Dimensions that are necessary for a firm’s products to be considered for purchase by customers
(Features customers will not forego)
Order winners
Criteria used by customers to differentiate the products and services of one firm from those of other firms
(Features that customers use to determine which product to ultimately purchase)
Supply chain risk
The potential disruptions or negative impacts that can occur within a supply chain, affecting the flow of goods or services from suppliers to customers
Decouple
Separating the various stages of production and inventory to increase flexibility and reduce the impact of disruptions
Circular economy
Decouples economic activity from the consumption of finite resources
Lead production
Activities that achieve high-volume production using minimal inventories
Pull system
A system in which production is initiated only when a customer places an order or a downstream process signals a need for more products
Lean-Focused Supply Chain
Supply chain management approach that incorporates lean principles into every stage of the supply chain, from suppliers to customers
Uniform Plant Loading
Balancing the production schedule across all work cells to avoid bottlenecks or underutilization
Kanban Production Control Systems
Controlling production and inventory, by tracking when new products are needed
Specialized Plants
Specialized factory that focuses on a specific product, allowing for greater efficiency and cheaper operations
Work with Suppliers
Having a transparent relationship with suppliers to ensure quality standards are met
Building a Lean Supply Chain
Involves applying lean principles across the entire supply chain, from sourcing to delivery, to ensure that waste is minimized and efficiency is maximized.
Plant layout (factory layout)
Designed to ensure balanced workflow with a minimum of WIP inventory
Aims to eliminate waste such as overproduction, waiting time, and unnecessary movement
Preventive maintenance
Regularly scheduled maintenance activities to keep equipment in good working condition
Essential to minimize downtime and avoid costly repairs
Group technology
A philosophy in which similar parts are grouped into families
Quality at the source
Doing it right at the first time and if something goes wrong stop the process immediately
Just-in-time production
Producing what is need when its needed
Level schedule
Pulls material into final assembly at a constant rate
Freeze windows
Schedule is fixed and no further changes are possibleSS
Backflush
Calculating how many parts were required for the finished product’s quantity
Uniform plant loading
Smoothing the production flow to dampen schedule variation
Kanban system
A sign-based scheduling method which shows:
- goods in
- goods in production
- goods out.
It’s now seen as a precursor to bar codes
It is used to manage the flow of materials in the production system to ensure that production is aligned with customer demand to minimize waste and reduce inventory
Value stream mapping (VSM)
Special type of flowcharting tool that analyzes whether or not value is added though a process
Current state (VSM)
Where products are at currently
In order to reach the maximum number of sales, you need suggested improvement
Future state (VSM)
Suggests areas for improvement
