Operation Management Flashcards
Operations Management
The systematic design, direction, and control of processes that transform inputs into services and products for internal, as well as external customers
Process
Any activity or group of activities that takes one or more inputs, transform them and provides one or more outputs for its customers
Operation
A group of resources performing all or parts of one or more processes
Supply Chain Management
The synchronization of a firm’s processes with those of its suppliers and customers to match the flow of materials, services and information with customer demand
o synchronization: making 2 things work at the same moment, or place and they work together
Supply Chain
An interrelated series of processes within and across firms that produces a service or product to the satisfaction of customers
Nested Processes
The concept of a process within a process
Supply Chain Process
Busines processes that have external customers or suppliers
o examples:
outsourcing, moving a service or production to another company or place
warehousing, stocking goods up in the warehouse
sourcing, including a production or service into your company
customer service, answering questions from customers and help them
logistics, way of how goods are transporter
Corporate Strategy
Provides an overall direction that serves as the framework for carrying out all the organization’s functions. Which direction is the company heading to o Environmental Scanning o Core Competencies o Core Processes o Global Strategies
Market Analysis
Understand what the customers want and how to provide it.
o Market Segmentation
o Needs Assessment
Competitive Priorities
The critical dimensions that a process or supply chain must possess to satisfy its internal or external customers, both now and in the future.
Competitive Capabilities
The cost, quality, time, and flexibility dimensions that a process or supply chain actually possesses and is able to deliver.
Order Winners
A criterion customers use to differentiate the services or products of one firm from those of another.
Order Qualifiers
Minimum level required from a set of criteria for a firm to do business in a particular market segment.
Break-even analysis
Analysis to compare processes by finding the volume at which two different processes have equal total costs.
Break-even quantity
The volume at which total revenues equal total costs.
Process strategy
The extent to which the customer is present, is actively involved, and receive personal attention during the services process
Customization
Service level ranging from highly customized to standardized
Process divergence
The extent to which the process is highly customized with considerable latitude as to how its task are performed
Flow
How the work progresses through the sequence of steps in a process
Process choice
A way of structuring the process by organizing resources around the process or organizing them around the products
Layout
The physical arrangement of operations (or departments) relative to each other
Process Analysis
The documentation and detailed understanding of how work is performed and how is can be redesigned
Reengineering
The fundamental rethinking and radical(big step) redesign of processes to improve performance dramatically in terms of cost, quality, service, and speed (competitive priorities)
Process Improvement
The systematic study of the activities and flows of each process to improve it
Flowchart
A diagram that traces the flow of information, customers, equipment, or materials through the various steps of a process
Project
An interrelated set of activities with a definite starting and ending point, which results in a unique outcome for a specific allocation of resources.
Project Management
A systemized, phased approach to defining, organizing, planning, monitoring, and controlling projects.
Work Breakdown Structure
A statement of all work that has to be completed.
Activity
The smallest unit of work effort consuming both time and resources that the project manager can schedule and control.
Network Diagram
A network planning method designed to depict the relationships between activities, that consist of nodes (circles) and arcs (arrows)
Precedence relationship
A relationship that determines a sequence for undertaking activities; it specifies that one activity cannot start until a preceding activity has been completed.
Path
The sequence of activities between a project’s start and finish.
Critical Path
The sequence of activities between a project’s start and finish that takes the longest time to complete.
