Introductions to Operations Management Flashcards
The part of a business organization that is responsible for producing goods or services
Operations
The management of systems or processes that create goods
and/or provide services
Operations Management
a sequence of activities and
organizations involved in producing and delivering
a good or service
Supply Chain
-Suppliers’ suppliers
-Direct suppliers
-Producer
-Distributor
-Final Customers
Products are typically neither purely service- or purely
goods-based.
Goods-service Continuum
Why Study Operations Management?
- Every aspect of business affects or is affected by operations
2.Many service jobs are closely related to operations
- Through learning about operations and supply chains you will have a better understanding of:
What are the service jobs are closely related to operations?
(FMAI)
Financial services
Marketing services
Accounting services
Information services
Through learning about operations and supply chains you will have a better understanding of:
-The world you live in
-The global dependencies of companies and nations
-Reasons that companies succeed or fail
-The importance of working with others
Function Overlap of Finance & Operations
(BEP)
-Budgeting
-Economic analysis of investment proposals
-Provision of funds
Marketing and Operations : Function Overlap
(DPCL)
-Demand data
-Product and service design
-Competitor analysis
-Lead time data
one or more actions that transform inputs into outputs
Process
Three Categories of Business Process
(UOS)
-Upper-Management Processes
-Operational Processes
-Supporting Processes
These govern the operation of the entire organization.
Upper-management Processes
These are core processes that make up the value stream.
Operational Processes
These support the core processes.
Supporting processes
The Operations Function consists of all activities of what?
directly related to producing goods or providing services.
A primary function of the operations manager is to guide the system by decision making which includes?
System Design Decisions
System Operation Decisions
Most operations decisions involve many alternatives that can have quite different impacts on costs or profits
OM Decision Making
Typical operations decisions include:
What: What resources are needed, and in what amounts?
When: When will each resource be needed? When should the work be
scheduled? When should materials and other supplies be ordered?
Where: Where will the work be done?
How: How will he product or service be designed? How will the work be done?
How will resources be allocated?
Who: Who will do the work?
All managers use metrics to
manage and control operations
PERFORMANCE METRICS
(PCQPFISF)
-Profits
-Costs
-Quality
-Productivity
-Flexibility
-Inventories
-Schedules
-Forecast accuracy
A trade-off is giving up one
thing in return for something
else
Analysis of Trade-Offs
Carrying more inventory
(an expense) in order to
achieve a greater level of
customer service
Trade-Offs
5 Historical Evolution of OM
Industrial Revolution
Scientific Management
Human Relations Movement
Decision Models and Management Science
Influence of Japanese Manufacturers
5 Key Issues for Operations Managers Today
Economic conditions
Innovating
Quality problems
Risk management
Competing in a global economy
In the past, organizations did little to manage the supply
chain beyond their own operations and immediate
suppliers which led to what numerous problems ?
-Oscillating inventory levels
-Inventory stockouts
-Late deliveries
-Quality problems
What are the SUPPLY CHAIN ISSUES?
1.The need to improve operations
2.Increasing levels of outsourcing
3.Increasing transportation costs
4.Competitive pressures
5.Increasing globalization
6. Increasing importance of e-business
7.The complexity of supply chains
8.The need to manage inventories
