Introduction to OM Flashcards
What is Operations Management
Efficient and effective planning, scheduling and control of manufacturing and service entities
Compare OM and Supply Chain Management (SCM)
SCM refers to processes and exchanges across multiple firms whereas OM is within a single firm
What is a process
A process is a sequence of operations that take up time, space and resource in order to complete a production of some outcome
What are the internal objectives of a process performance
100% effective use of resources, minimal operating expenses (zero defects, zero stock)
What are the external objectives of a process performance
Quality (doing this to a standard), speed, dependability, flexibility and cost (price competitiveness)
What is the customer value equation
Value = Performance / Cost
What is performance a function of
Quality, speed and flexibility
Ways to compete on cost
Lower price relative to competition, high volume products, limit product range, invest in automation for lower unit costs, lower skill labour
How to compete on quality
Superior product features, excellent customer service, consistent delivery, error-free delivery
How to compete of speed/dependability
Rapid delivery, on-time delivery, availability
How to compete on flexibility
Service flexibility, mix flexibility, volume flexibility, delivery flexibility
Compare order winners to order qualifiers
Order qualifiers: hygiene factor, needed to be considered by customer
Order winners: distinguishing factors that drive customer choice
Describe the 4 performance frontiers
1) Local performance frontier based on the technology used for the project
2) Improvements achieved in multiple performance dimensions through process improvements
3) Periodic shift in the global frontier as technology advances
4) Global frontier established by state-of-the-art product development which forms trade-offs for efficient projects
Compare pure goods to pure services
Pure goods are tangible, can be stored, production precedes consumption, low customer contact, can be transported, quality is evident
