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
are physical items that include raw materials, parts, subassemblies, and final products.
Goods
are activities that provide some combination of time, location, form or psychological value.
Services
a sequence of activities and organizations involved in producing and delivering a good or service
Supply Chain
Measurements taken at various points in the transformation process
Feedback
The comparison of feedback against previously established standards to determine if corrective action is needed.
Measurements
Products are typically neither purely service- or purely goods-based.
Good Service Continuum
The three basic functions of business organization
marketing, operations, finance
function of business organization that handles Budgeting, Economic analysis of investment proposals, Provision of funds
Finance and Operations
function of business organization that handles Demand data
Product and service design
Competitor analysis
Lead time data
Marketing and Operations
one or more actions that transform inputs into outputs
Process
this process governs the entire organization’s operation
Upper management process
this process make up the value stream
Operational processes
these support the core processes
Supporting processes
Wasteful and Costly:
Supply _ Demand
Supply > Demand
Opportunity Loss and Customer Dissatisfaction
Supply _ Demand
Supply < Demand
Ideal
Supply _ Demand
Supply = Demand
The greater the variety of goods and services offered, the greater the variation in production or service requirements.
a. Variety of goods or services being offered
b. Structural variation in demand
c. Random variation
d. Assignable Variation
a. Variety of goods or services offered.
These are generally predictable. They are important for capacity planning.
a. Variety of goods or services being offered
b. Structural variation in demand
c. Random variation
d. Assignable Variation
b. Structural Variation in demand
Natural variation that is present in all processes. Generally, it cannot be influenced by managers.
a. Variety of goods or services being offered
b. Structural variation in demand
c. Random variation
d. Assignable Variation
c. Random variation
Variation that has identifiable sources. This type of variation can be reduced, or eliminated, by analysis and corrective action.
a. Variety of goods or services being offered
b. Structural variation in demand
c. Random variation
d. Assignable Variation
d. Assignable Variation
The _______ function consists of all activities directly related to producing goods or providing services.
Operations
These are typically strategic decisions that
- usually require long-term commitment of resources
- determine parameters of system operation
System Design
This primary function of system decision consists of the following:
Capacity
Facility location
Facility layout
Product and service planning
Acquisition and placement of equipment
System Design or System Operation Decisions?
System Design
These are generally tactical and operational decisions:
- Management of personnel
- Inventory management and control
- Scheduling
- Project management
- Quality assurance
System Design or System Operation Decisions
System Operation
an abstraction of reality; a simplification of something.
Model/s
- They are simplifications of real-life phenomena
- They omit unimportant details of the real-life systems they mimic so that attention can be focused on the most important aspects of the real-life system
Models
This kind of information may be more emphasized in models.
Quantitative Information
The use of models (does/does not) guarantee good decisions
does not
A decision-making approach that frequently seeks to obtain a mathematically optimal solution
- Supported by computer calculations
Quantitative Approaches
a set of interrelated parts that must work together
System
The systems approach emphasizes interrelationships among _________.
subsystems
The systems approach indicates that that the whole is greater than the sum of its _____.
parts
The o______ and o_______ of the organization take precedence over those of any one subsystem
output and objectives
This phenomenon states that a few factors account for a high percentage of occurrence of some event(s).
The critical few factors should receive the highest priority.
Pareto Phenomenon
Using resources in ways that do not harm ecological systems that support human existence
Sustainability
