Module 1 Flashcards
Operations Management (OM)
Definition - the art and science of converting materials and labor into goods and services efficiently.
- Plans, executes, and controls the process to create goods and services to customers.
- Essential to manufacturing firms and service organizations.
Total System
Definition - all activities are coordinated vertically (throughout organization) and horizontally (across multiple functional areas).
Value
Definition - the perception of the benefits associated with a bundle of goods and/or services in relation to what buyers are willing to pay for them.
- Manufacturing Firms and Service Organizations create value by focusing on OM functions and activities.
Manufacturing Firms
Definition - create value by converting materials and labor into automobiles.
ex. automobile manufacturers
Service Organizations
Definition - create value by providing excellent (intangible) experience for customers.
ex. Disneyland, Sea World
Service Encounters
Definition - the interactions between customer and service provider.
Goods
Definition - a physical product that we can see, touch, or consumer.
ex. televisions, airplanes, fish, lumber, paper, industrial machines, etc.
Services
Definition - any primary or complementary activity that does not directly product a physical product.
ex. legal service, accounting service, travel, warranty, etc.
Standardized Goods and Services
Definition - make-to-stock goods and services (made to fixed design and customer has no option from which to choose).
Customized Goods and Services
Definition - products made uniquely designed according to customer specification.
Supply Chain
Definition - a network of facilities and processes that describe the flow of goods, services, information, and financial transactions from suppliers through the facilities and processes that create goods and services and deliver them to customers.
Supply Chain Management
Definition - the management of all activities that facilitate the fulfillment of a customer order for a manufactured good or service to achieve satisfied customers at a reasonable cost.
ex. purchasing, operations management, and physical distribution of finished goods.
Dell
Definition - sells highly customized computers, servers, computer workstations, and peripherals.
Contract Manufacturer
Definition - a firm that specializes in certain types of goods-producing activities and works under contract for end users.
ex. customized design, manufacturing, assembly, and packaging.
Electronic Manufacturing Service (EMS)
Definition - companies that design, test, manufacture, distribute, and provide return/repaid services for electronic components and assemblies for original equipment manufacturers (OEMs).
ex. Solectron, Jabil Circuit, Celestica Inc.
Outsourcing to Contract Manufacturers
Definition - offers significant competitive advantage, such as access to advanced manufacturing technologies, faster product time-to market, customization of goods in regional markets, and lower total costs from economies of scale.
Third-Party Logistics (3PL)
Definition - providers provide integrated services that include packaging, warehousing, inventory management, and inbound/outbound transportation.
Sustainability
Definition - ability to address current business needs and successfully develop a long-term strategy to preserve resources for future generations.
Three Dimensions of Sustainability:
- Economic
- Environmental
- Social Sustainability
Economic Sustainability
Definition - focuses on making sound financial and operational decisions as financial management, resource management, and emergency preparedness.
Environmental Sustainability
Definition - focuses on OM activities, such as remanufacturing, waste management, green supply chains, and energy conservation.
Social Sustainability
Definition - focuses on activities that impact the society as a part of the firm’s overall corporate responsibilities, such as creating zero carbon footprint products, product safety, gambling addition, and second-hand smoke.
SCOR Model
Definition - a framework for analyzing SCM scope based on five basic functions.
- Plan (developing)
- Source (obtaining)
- Make (transforming)
- Deliver (transporting)
- Return (maintenance/excess)
Vendor-Management Inventory (VMI)
Definition - vendor monitors and manages inventory for customer.
Reverse Logistics
Definition - manage along reverse supply chain.
