GMS W123 Flashcards
three functions to create goods and services:
- Marketing, which generates demand
- Production/operations, which creates the product
- Finance/accounting, which tracks how well the organization is doing, pays the
bills, and collects the money
Ten OM strategic decisions
- Design of goods and services
- Managing quality
- Process strategies
- Location strategies
- Layout strategies
- Human resources
- Supply chain management
- Inventory management
- Scheduling
- Maintenance
*About 40% of all jobs are in OM.
Productivity
ratio of outputs (goods and services) divided by one or more inputs (such as labor, capital, or management)
*High production means producing many units, while high productivity means producing units efficiently.
Single-factor productivity
goods and services produced
(outputs) to one resource (input).
Multifactor productivity
goods and services produced
(outputs) to many or all resources (inputs).
Productivity variables
labor (10%), capital (38%), and management (52%).
the current challenges for operations
- Global focus; international collaboration
- Supply chain partnering; joint ventures; alliances
- Sustainability; green products; recycle, reuse
- Rapid product development; design collaboration
- Mass customization; customized products
- Lean operations; continuous improvement and elimination of waste
three strategic approaches to competitive advantage
- Differentiation
- Cost leadership
- Response
Differentiation
Distinguishing the offerings of an organization in a way that the
customer perceives as adding value.
Experience differentiation
Engaging the customer with a product through imaginative use of the five senses, so the customer “experiences” the product.
Low-cost leadership
maximum value,
Response
rapid, flexible, and reliable performance.
Porter’s five forces model
(1) immediate rivals, (2) potential entrants,
(3) customers, (4) suppliers, and (5) substitute products.
Resources view
evaluate the resources at their disposal
and manage or alter them to achieve competitive advantage.
Potential risks of outsourcing
-A drop in quality or customer service
- Political backlash that results from outsourcing to foreign countries
- Negative impact on employees
- Potential future competition
- Increased logistics and inventory costs
*most common reason given for outsourcing failure is that the decision was made
without sufficient understanding and analysis.
*factor-rating method
j International business
cross-border transactions.
Multinational corporation
involvement in international business, owning or controlling facilities in more than one country.
four operations strategies for approaching global
- International strategy—global markets are penetrated using exports and licenses with little local responsiveness.
- Multidomestic strategy—operating decisions are decentralized to each country to enhance
- Global strategy—operating decisions are centralized and head-quarters coordinates the standardization and learning between facilities.
- Transnational strategy—combines the benefits of global-scale efficiencies with the benefits of local responsiveness. These firms transgress national
boundaries.
objective of maintenance and reliability
maintain the capability of the
system.
Maintenance
maintaining capability of the system.
Reliability
probability that a machine part or product will function
properly
two main tactics for improving reliability
- Improving individual components
- Providing redundancy
two main tactics for improving maintenance
- Implementing or improving preventive maintenance
- Increasing repair capabilities or speed
Reliability
any one component fails to perform, the overall
system can fail.
As the number of components in a series increases, the reliability of the whole system declines very quickly:
Mean time between failures
expected time between a repair and
the next failure of a component, machine, process, or product.
Redundancy
components in parallel to raise reliability.
Preventive maintenance
monitoring equipment and facilities, and per-
forming routine inspections and service to keep equipment and facilities reliable.
Breakdown maintenance
occurs when preventive maintenance fails and equipment/facilities must be repaired on an emergency
or priority basis.
Predictive maintenance
advanced technologies to monitor and predict
equipment failure.
Infant mortality
failure rate early in the life
Costs of a breakdown
- The cost of inventory maintained to compensate for downtime
- Downtime, have a devastating effect on safety and morale, affects delivery schedules, destroying customer relations and future sales
Autonomous maintenance
partner with maintenance personnel to
observe, check, adjust, clean, and notify.
Total productive maintenance
total quality management with a strategic view of maintenance from process and equipment design to
preventive maintenance.
Total productive maintenance includes:
- Designing machines that are reliable, easy to operate, and easy to maintain
- Emphasizing total cost of ownership when purchasing machines
- Developing preventive maintenance plans that utilize the best practices of operators, maintenance departments, and depot service
- Training for autonomous maintenance
