Om Pre Lim Flashcards
Is the management of systems or processes
that create goods and/or provide services
Operation management
Is the sequence of organizations ̶ their facilities,
functions and activities ̶ that are involved in
producing and delivering a product or service.
Supply chain
MUST BE
PERIODICALLY PREPARED TO
PLAN FINANCIAL
REQUIREMENTS. BUDGETS
MUST SOMETIMES BE
ADJUSTED, AND PERFORMANCE
RELATIVE TO A BUDGET MUST
BE EVALUATED.
Budgeting
VALUATION OF ALTERNATIVE
INVESTMENTS IN PLANT AND
EQUIPMENT REQUIRES INPUTS
FROM BOTH OPERATIONS AND
FINANCE PEOPLE
ECONOMIC ANALYSIS OF
INVESTMENT PROPOSALS.
THE NECESSARY FUNDING
OPERATIONS AND THE AMOUNT
AND TIMING OF FUNDING CAN
BE IMPORTANT AND EVEN
CRITICAL WHEN FUNDS ARE
TIGHT. CAREFUL PLANNING CAN
HELP AVOID CASH-FLOW
PROBLEMS
PROVISION OF FUNDS
A key aspect of operations management is process management. A process consists
Process management
Variation occurs in all business processes. It can be due to
variety or variability
Process Variation
FOUR BASIC SOURCES OF VARIATION
The greater the variety of goods
and services, the greater the variation in production or service requirements.
The variety of goods or services being offered
FOUR BASIC SOURCES OF VARIATION
These variations, which include trends and sea-
sonal variations, are generally predictable. They are particularly important for capacity
planning.
Structural variation in demand
FOUR BASIC SOURCES OF VARIATION
This natural variability is present to some extent in all
processes, as well as in demand for services and products, and it cannot generally be
influenced by managers.
Random variation
FOUR BASIC SOURCES OF VARIATION
These variations are caused by defective inputs, incorrect
work methods, out-of-adjustment equipment, and so on. This type of variation can be
reduced or eliminated by analysis and corrective action.
Assignable variation.
FOUR BASIC SOURCES OF VARIATION
These variations are caused by defective inputs, incorrect
work methods, out-of-adjustment equipment, and so on. This type of variation can be
reduced or eliminated by analysis and corrective action.
Assignable variation.
What is the six sigma?
•
Cost and time reduction
• Productivity improvement
• Process yield improvement
• Quality improvement
•Increasing customer satisfaction
System that uses minimal amounts of resources to
produce a high volume of high-quality goods with some variety.
Lean system
The ability of an organization to respond quickly to demands
or opportunities.
Agility
. A process for reducing costs, improving quality, and
increasing customer satisfaction.
Six sigma
HENRY FORD’S
CONTRIBUTION 2 type
Mass production
Interchangeable
, the great industrialist, employed scientific management techniques in his
factories.
Henry Ford
applied Taylor’s ideas to organization structure and encouraged the
use of experts to improve organizational efficiency. He testified in a congressional hearing
that railroads could save a million dollars a day by applying principles of scien- tific
management.
Harrington Emerson
He recognized the value of nonmonetary rewards to motivate workers, and
developed a widely used system for scheduling, called Gantt charts.
Henry Gantt
was an industrial engineer who is often referred to as the father of motion
study. He developed principles of motion economy that could be applied to incredibly
small portions of a task.
Frank Gilbreth
management era brought widespread changes to the management of
factories. The movement was spearheaded by the efficiency engineer and inventor
Frederick Winslow Taylor, who is often referred to as the father of scientific
management.
SCIENTIFIC MANAGEMENT
What is the 3 models miniture
Physical model - miniture card
Schematic model- abstract, graphs chart blueprint
Mathematical model- numbers formula
AREAS SUPPORTING OPERATIONS
MANAGEMENT
is responsible for general upkeep and repair of
equipment, buildings and grounds, heating and air-conditioning;
removing toxic wastes; parking; and perhaps security.
Maintenance
AREAS SUPPORTING OPERATIONS
MANAGEMENT
involves the shipping of goods to warehouses,
retail outlets, or final customers.
Distribution
AREAS SUPPORTING OPERATIONS
MANAGEMENT
is often concerned with scheduling,
performance standards, work methods, quality control, and
material handling.
Industrial engineering
AREAS SUPPORTING OPERATIONS
MANAGEMENT
has responsibility for procurement of materials, supplies, and equipment. Close
contact with operations is necessary to ensure correct quantities and timing of purchases
Purchasing
