finals Flashcards
any process that accepts inputs and uses resources to change those inputs in useful way
operations
process of efficiently and effectively planning, organizing, and controlling operations to achieve objectives.
operations management (Aldag and Stearns)
closely tied to the cost and resource utilization of a task. It is about
accomplishing a job with lower expenses compared to someone else performing the same task,
signifying greater efficiency
Efficiency
pertains to achieving goals. When someone successfully
meets their objectives, such as producing 10,000 units in a month, they are considered effective.
Effectiveness
administration of business practices
to create the highest level of efficiency possible within an organization. It is concerned with
converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization.
operations management (Hayes A.)
engineer is tasked with identifying strategies to enhance the quality of products or services while simultaneously reducing costs within their department.
engineering manager
their core duty is to take the
conceptual design of a product and translate it into a tangible reality. This involves specifying the
exact machinery, tools, and production processes needed for the efficient and effective
manufacturing of the product. They need to ensure that the product can be produced at scale with
precision and in a cost-effective manner.
manufacturing engineer
complex process of progressively transforming raw resources into a
finished product
manufacturing
differentt type of manufacturing process
- job shop
- batch flow
- worker-paced line flow
- machine-paced line flow
- continuous flow
- batch/continuous flow hybrid
Types of transformation process
a. manufacturing services
b. service processes
based on sales orders for variety of small lots
production facility that specializes in providing customized or made-to-order products, parts, or services for a variety of clients
job shop
process is where lots of generally own designed products are
manufactured. It is a method used to produce goods in batches, where each batch consists of a specific quantity of products that are produced as a group before moving on to the next batch.
batch flow process
refers to a production layout arranged in a sequence to accommodate processing of large volumes of standardized products or services.
-pace of work is determined by the worker
worker-paced line flow
process produces mostly standard products with machines playing a significant role. It is also known as an automated assembly line with automated machinery, is a manufacturing process in which products are assembled, processed, or manufactured with the primary driving force being automated machinery and equipment, rather than human labor
machine-paced line flow
characterized by the rapid rate at which items move through the system. This processing method is very appropriate for producing highlystandardized products like calculators, typewriters, automobiles, televisions, cellular phones,etc. uninterrupted manner
continuous flow
refer to the provision of services to persons by hand or with machinery.
structured series of activities, steps, and procedures designed to deliver a specific service to a customer or client
service process
offers a limited mix of services which results to some economies of scale in operations
requires low labor intensity and little or no customer interaction or customization.
service factory
provides a diverse mix of services. The layout used are those for job shops or fixed position and are adaptable to various requirements
refers to a type of service delivery model characterized by a flexible and adaptable approach to meeting customer needs.
service shop
organization that caters to the needs of a vast number of individuals concurrently. To meet this demand, they employ distinctive methods of service
delivery
mass service company
specialize in providing specialized services to other businesses or individuals
professional service firms
serves as an integral
component, similar to a foundational structure or framework that orchestrates various
activities leading to value creation
production system
six important activities of production systems
- Product Design
- Production Planning and Scheduling
- Purchasing And Materials Management
- Inventory Control
- Work-Flow Layout
- Quality Control
crucial aspect of creating products that meet customer
expectations by delivering reliable performance in line with their intended functions.
product design
described as the process
of predicting future sales for a specific product, translating these predictions into the
demand they generate for various production facilities, and making arrangements for
securing these facilities.
Production planning
phase of production control that involves
creating schedules that detail the duration of each operation in the production process
scheduling
must be undertaken with a high degree of efficiency and effectiveness specially in firms
engaged in high volume production.
purchasing and materials management
the approach that seeks efficiency of operation
through integration of all material acquisition, movement, and storage activities in the
firm
material management
process of establishing and maintaining
appropriate levels of reserve stocks of goods
inventory control
process of determining the physical
arrangement of the production system.
work-flow layout
refers to the measurement of products or services against
standards set by the company.
quality control
engaged in the production of tangible or
intangible goods
engineer managers
a group of activities designed to facilitate and expedite the selling of goods and
services
marketing (medina)
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners,
and society at large
marketing (American Marketing Association)
the process of planning, executing, and tracking the marketing strategy of an organization. This includes the marketing plan, campaigns and tactics used
to create and meet the demand of target customers to drive profitability
marketing management (Dickerson)
types of marketing concept
a. production concept
b. product concept
c. selling concept
d. marketing concept
e. societal marketing concept
oldest and most basic marketing concept. The objective of the is to achieve high sales volume and produce products that are low in cost and
easy to manufacture.
key to success: mass production to reduce costs
production concept (Bhasin)
idea that businesses should focus on creating products that are
superior in quality and features to those of their competitors
key to success: offering a superior product
product concept
to sell the company’s product through large scale marketing and
promotional activities and it doesn’t matter whether they fulfill customers’ needs or not.
customers don’t remember their past shopping experience
Selling concept (shivani)
customer oriented
puts customers in the middle of the marketing
process, finding out customers’ needs and wants, then satisfying those needs better than the competitors.
looking for right products for customers
marketing concept
based on the welfare of the whole society
because it questions the strategy of the marketing concept
What customers want; it doesn’t mean
that it would be good for them in the long term
societal marketing concept
necessary to understand the marketplace and determine what needs are not being
met, or how to exploit opportunities that are currently not being served
market research (dickerson)
tool to structure marketing activities that helps managers consider all
relevant aspects of their project
marketing mix
7Ps of marketing mix
a. product
b. price
c. place
d. promotion
e. people
f. process
g. physical evidence
includes the tangible or intangible item and its
capacity to satisfy a specific need
product (medina)
High-quality products contribute to customer satisfaction and loyalty. Meeting or
exceeding customer expectations for performance, durability, and reliability is essential for
building a positive brand reputation.
quality
serves the practical purpose of protecting the product during transportation
and storage. It should also be functional and easy for consumers to use
packaging
Unique and innovative designs can set a product apart from competitors. is
a key element in brand differentiation and can be a competitive advantage.
design
The choice of materials influences the durability and lifespan of the product.
Durable materials contribute to a positive perception of quality
materials
crucial for ensuring the
profitability of the product. It involves optimizing manufacturing processes, sourcing cost effective materials, and efficient supply chain management.
production cost
4 levels of a product
- core
- tangible
- augmented
- promised
satisfies the most basic need of the customer
core product
“perceptible by touch”
physical manifestation of the core product.
tangible product
includes
the tangible product and all of the services that support it. Also, it includes additional features or
enhancements beyond the core and tangible products
augmented product
long-term result that the customer hopes to achieve by
selecting the product
long-term product
the money or other considerations exchanged for the purchase or use of the product, idea, or service.
price
profit equation
Profit= total revenue-total costs
money generated from normal business operations. It is calculated by
the sales price of a product times the quantity of units sold.
total revenue
costs of sales and operating expenses. It is all expenses
related to operating the business that are directly related to producing a good or service and
that are indirectly related to producing goods and services.
total costs
refers to a reduction in the original price of a product or service.
discount
refers to the location, may be virtual or real-world, where you will market your goods or
services
place
factors considering business location
geographic location
operational needs
accessibility
The location of the business must be located in close proximity to the target market
. Geographic Location
The office or building must match the type of business.
Operational Needs
This relates to how simple it is for clients to visit the location
Accessibility
communicating information between seller and potential buyer to influence attitudes
and behavior.
promotion (McCarthy and Perreault)
promotional tools
- advertising
- publicity
- personal selling
- sales promotion
a paid message that appears in the mass media for the purpose
of informing or persuading people about particular products, services, beliefs, or action
advertising
forms of mass media
–radio advertising
-tv advertising
-magazine advertising
-newspaper advertising
primarily relies on audio. Advertisers can use music, voiceovers, and
sound effects to convey their message.
Radio advertising
provides a visual and auditory experience. Advertisers can use moving
images, graphics, and sound to create a compelling message.
TV advertising
offers a visual experience through static images and text. Advertisers
can use high-quality images and creative layouts to capture attention
Magazine advertising
print medium, consisting of text and static images. Advertisers
can convey detailed information through headlines, articles, and images.
Newspaper advertising
promotional tool that publishes news or information about a product, service, or idea on behalf of a sponsor but is not paid for by the sponsor
publicity
A more aggressive means of promoting the sales of a product or service
“oral presentation in a conversation with one or more prospective purchasers
for the purpose of making a sale.”
personal selling
Any paid attempt to communicate with the customers other than advertising, publicity, and personal selling
This includes displays, contests, sweepstakes,
coupons, trading stamps, prizes, samples, demonstrations, referral gifts, etc. Contests and sweepstakes are very popular sales promotion tools
sales promotion
employees, customers, and other stakeholders who interact with a
business.
people
refers to the procedures and steps involved in delivering a product or service to the enduser.
process
e incorporates aspects that prove your brand exists and that a purchase took
place. It refers to the tangible aspects of a product, including packaging, branding, and more. Ensuring
the tangible aspect of a product aligns with the customer’s perception of the brand is essential in setting the business apart from competitors
physical evidence (ajmal)
difference between costs
and benefits.
value
ease of using the product, after-sales support and so on
service benefit