Midterm Exam Flashcards
Operation Management
the set of activities that create
value in the form of goods and
services by transforming inputs
into outputs
What do Operation Managers do?
Planning, Organizing, Staffing, Leading, Controlling
Mission Statements
A mission statement is a brief declaration of a company’s purpose, goals, and values, explaining what it does, why it exists, and who it serves.
Why do Companies Need Mission Statements?
Provides guidance and direction, unifies employees, and communicates companies purpose to stakeholders
SWOT Analysis
Used to Analyze the Environment
S in SWOT
Strenght
W in SWOT
Weakness
O in SWOT
Opportunities
T in SWOT
Threats
What does a SWOT Analysis give you?
Strategy
Supply Chain Management
The objective of supply chain management is to structure the supply chain to maximize its competitive advantage and benefits to the ultimate consumer
Factor Rating Method
Evaluates suppliers by rating them on various factors, applying weights to each factor, and calculating a total score for decision-making.
Weighted Factor Method
Focuses on assigning specific weights to criteria from the beginning, emphasizing certain factors more heavily in the evaluation process.
Key Difference between Weighted Factor and Factor Rating
Factor Rating applies weights after scoring, while Weighted Factor predefines weights before scoring based on the criteria’s importance.
Human Resource Strategy
The objective of a human resource strategy is to manage labor and design jobs so people are effectively and efficiently utilized
Labor Standards
the amount of time required to perform a job or part of a job
Performance Rating
Adjustment to the Average observed time to what a TRAINED worker could expect to accomplish working at a NORMAL pace.
Normal Time
Five eight-hour days
Allowance Factors
Extra time added to normal time to account for breaks, fatigue, or unavoidable delays.
Standard Time
The total time allowed to perform a task, including normal time plus allowances.
Ethics
Principles that govern conduct in decision-making, ensuring fairness, responsibility, and respect in business.
Ergonomics
study of the human interface with the environment and machines
Job Enrichment
Enhancing a job by adding more meaningful tasks, increasing autonomy, and providing more responsibility to improve job satisfaction.
Job Enhancement
Increasing the number of tasks a worker performs to make a job more diverse without changing the job’s complexity.
Job Design
The process of defining how a job’s tasks, responsibilities, and interactions are structured to optimize performance and satisfaction.
Phases of Project Management
Initiation
Planning
Execution
Monitoring
Controlling
Critical Path Method (CPM)
A project management tool used to determine the longest sequence of activities, which defines the minimum project duration.
How to Identify Critical Path
List activities, calculate durations, and find the longest path from start to finish without any slack time.
Tasks
Tasks are individual units of work;
Activities
Activities are tasks grouped under a project
Activity Time
Activity time is the time required to complete an activity.
Project Completion
Achieved when all tasks and activities are completed according to plan, within the critical path.
Predecessor Relationships
Defines the sequence of activities, where certain tasks must be completed before others can begin
Forward Pass
A calculation technique to find the earliest possible start (ES) and finish (EF) times for each project activity.
Backward Pass
A technique to calculate the latest possible start (LS) and finish (LF) times without delaying the project.
Slack (Float)
The amount of time an activity can be delayed without affecting the project’s completion date.
Early Start (ES)
Earliest an activity can begin.
Early Finish (EF)
Earliest an activity can finish, calculated as ES + duration.
Late Start (LS),
Latest an activity can start without delaying the project.
Late Finish (LF)
Latest an activity can finish without delaying the project.
Crashing
The process of reducing project duration by allocating additional resources to critical path activities.
New Critical Paths
After crashing, new critical paths may emerge if previously non-critical activities now have zero slack due to reduced durations.
Crash Costs
Additional costs to shorten project duration.
Normal Costs
The standard cost when activities are performed at normal time.
