Gen Approaches to Decision Making Flashcards
used to control inventory
Inventory Models
The number of customer’s order is the basis of the acquisition of materials
Economic Order Quantity
Two Project Models; Approaches in DM for long-termed projects
PERT(Program Evaluation and Review technique)
CPM(Critical Path Method)
widely used in planning and scheduling
Forecasting Technique
currently used in many areas of decision making
Statistical Models
optimum allocation of scarce resources; how to utilize and allocate limited resources of the company
Linear programming
useful for analyzing situations in which waiting lines form.
Queuing Techniqueso
Developed in WW2 to handle complex military logistics problems
Quantitative Approaches
Six Quantitative Approahes
Linear Programming Queuing Techniques Inventory Models Project Models Forecasting Techniques Statistical Models
pros and cons
Analysis of trade-offs
When you decide, you must anticipate its effect on the while organization
System Approach
Set of interrelated parts that must work together
System
Emphasizes interrelationships among subsystems, but its main theme is that the whole is greater that the sum of individual parts.
System Approach
enables the managers to direct their efforts to where they will do the most good to avoid wasting time and energy on inisignificant elements.
Establishing priorities
Means devoting more attention to whats important
Recognition of priorities
It means that all things are not equal; some things will be very important for achieving an objective and other things will not.
Pareto Phenomenon
Have the responsibilty to make ethical decisions
Operations Manager
Ethical Issues in Operations Management: (8)
Worker Safety Product Safety Quality The environment The community Hiring and Firing Workers Closing Facilities Worker's Right
•provides adequate training
Worker safety
dealing with worker’s problems quickly and fairly
Worker’s Rights
Taking into account the impact on community
Closing facilities
Promising a long-term job when that is not what is intended
Hiring and Firing of workers
Honoring commitments that have been made
Closing Facilities
maintaining equipment in good working condition
worker safety
honoring warranties
Quality
providing products that minimize the risk of injury to users or damage to property or the environment
Product safety
Being a good neighbor
The community
Obeying government regulations
The environment
maintaining a safe working environment
Worker safety
they currently command considerable attention in business, as they heavily influence planning and dm.
Recent Trends
12 Recent Trends
Global Marketplace Operations Strategy TQM Flexibility Time Reduction Technology Worker Involvement Reengineering Environmental Issues Downsizing Supply-chain Management Lean Production
Theyve agrees to open their economies, reduce tariffs and expand protection of intellectual property.
North Amrican Free trade Agreement(NAFTA)
General Agreement on Tariffs and Trade (GATT)
Its importance is recognized on the overall success of business; overall business strategy
Operations Strategy
Never ending wuestbto improve the quality of goods and services
TQM
Key Features of TQM (4)
Team Approach
Finding and eliminating problems
Emphasizes on serving the customer
And Continuously working to improve the system
Neglected to include in the corporate strategy
Operations Startegy
Ability to adapt quickly to change
Flexibility
Flexibility means changes in: (3)
- Volume of demand
- Mix of products demanded
- Product design
In manufacturing, it is used to connote flexibility.
Agile manufacturing
Reducing time needed to accomplish various tasks to gain a competitive edge.
Time reduction
In what aspect do time reductions are achieved? (4)
- processing
- information retrieval
- product design
- response to customer complaints
have led to a cast array of new products and processes
Technological advances
Has had and will continue to have the greatest impact on bus. organizations
Computer
Best motivation
Economic
Pushing the responsibility for DM and problem solving to lower levels in the organization
Worker Involvement
The use of teams and make decisions on a consensus basis
Worker Involvement
Recognition of the knowledge workers possess about production process and the contribution they can make in improving the prod system
Worker Involvment
You are copying the greatness of other company’s product
Benchmarking
Starting over, asking why a company does things the way it does, and questioning basic rules and assumptions
Reengineering
Pollution Control and waste disposal
Environmental Issues
Managers must contend with Environmental Issues inreasing emphasis on: (5) (social responsibility)
- reducing waste
- using less toxic chemicals
- recycling
- making it easier for consumers to recycle products
- designing products and parts that can be reused
Regulations are increasing in number and complexity and penalties
Environmentally Responsible Manufacturing
People will be replaced by technology
Redunduncy
Reducing labor forces; flat organization; miltitasking
Downsizing
how to respond with squeexing competition, lagging productivity and stockholders calling for improved profits and share prices?
Reducing the labor forces (downsizing)
Operations managers find eays to produce more with fewer workers
Downsizing
You buy the company that supplies you
Backward integration
Buy other parts if your product to another company to complete your product; contracting other individual/company
Make or buy decisions
Managing the supply chain from suppliers and buyers of raw materials all the way to final customers
Supply-chain management
System that uses minimal amounts of resources to produce a high volume of high quality goods with some variety
Lean production
Minimizing resources while producing the same great product
Lean production
5 Design Decisions
- Capacity Planning
- Product Design
- Process design
- Layout of facilities
- Selecting and locations for facilities
4 Operating Decisions
- Quality assurance
- Scheduling
- Inventory Management
- Project Management
Trends that heavily affect planning and DM (7)
- Global Competition
- Increasing Emphasis on quality
- Integrating Technology into production systems
- Increasing worker involvement in problem solving and dm
- Increasing emphasis in flexibility and time reduction
- Increasing attention to environmental issues
- Supply chain management and lean production
The output and objectives of the organization as a whole take precedence over those of any subsystem. It is important if something is being: (5)
Designed Redesigned Implemented Improved Changed
