Operations Flashcards
What is operations management?
All steps required to take a USEFUL good or service from idea to reality
What is the conversion process?
Production inputs - start with customer needs
Conversion - with completed good that meets their needs
Outputs
What is included in production inputs?
Concept or idea and human, financial, material, and informational resources
What steps are included in conversion?
Planning, designing, executing, evaluating, improving, and redesigning
What are the factors in deciding if it makes sense to produce your own goods?
Cost, capacity, expertise, funding, impact on operations, availability of drop shipping, and strategic importance
What is included in Production Process Planning?
Design planning, facilities planning, and operational planning
What is design planning?
Considers strategic goals and resources of the business
What is facilities planning?
Identifies site where good or service can be produced
What is operational planning?
Decides amount of good or service to be produced
How are goods different than services?
A good is a physical product that can be seen and touched, a service is an intangible product we experience or use
How are goods and services similar?
They are both products - a product is anything a company offers to satisfy customer needs and wants
How do you measure quality for a good vs a service?
Good - # of defective products or customer returns
Services - # and degree of customer satisfaction
What major decisions are involved in design planning?
Designing product lines
Estimating production capacity
Evaluate production technology options
What are the benefits of long product lines vs short product lines?
Long product lines - offer customers more choice, easier to sell products that meet customer needs
Short product lines - easier to manage from production perspective
What are important considerations in designing product lines?
Group of similar products, requires balancing customer needs with production requirements, integration
What is production capacity?
Amount of product that an organization can produce in a given period of time
How is capacity determined?
Requires operations manager and marketing managers to analyze sales projections
What is zero slack?
A critical task that if pushed back, will slow down the entire production process
What are some trade-off considerations for using production technology?
Automation requires high initial costs and low operating costs
Human labour results in low initial costs and high operating costs
Affects break-even and company purpose
What considerations are used in facility planning for deciding a location?
Proximity to major customers, availability and cost of labour, cost of construction and operations, and access to key resources
What considerations are made when producing new products in existing facilities?
Capacity to meet demand for both new and current products
Cost of refurbishing an existing factory (is it less than the cost of building a new one?)
What is the process layout in a facility, how do the products move, and when is it best used?
Separate stations for distinct tasks, any sequence, low-volume, customized products
What is the product layout in production, how do the products move, and when is it best used?
Single assembly line, same sequence, and high-volume, standardized products
What is the fixed-position layout in facility, how do the products move, and what is the best application?
Products are in a fixed position, remain stationary, best for extremely large hard to move products
What is supply chain management?
The coordination of members of the supply channel from raw materials, manufacturers, distributors, and retailers
What are the benefits of a coordinated supply chain?
Reduce lead times, minimize inventory costs, increase customer satisfaction
What are the drawbacks in a coordinated supply chain?
Lower financial costs, reputational risk, vulnerability of extreme interdependence
What are the new trends in supply chain management?
Purpose driven ethical enterprise supply network (PDE2SN)
Traceability
What is Purpose driven ethical enterprise supply network (PDE2SN)?
Circular supply network, moving away from linear approach
Keep materials and products in use, design to last, treat sustainability as integral
Going above and beyond pursuit of profits
What is traceability in supply chain management?
Allow companies to follow products as they move through chain, supports sustainability, considers traditional objectives of reliability and efficiency with new objectives of resiliency and sustainability
What is scheduling in ops planning?
Specifying and controlling time required for each step, ensuring right materials are in the right place at the right time
What is quality control in ops planning?
Creating quality standards, producing goods that meet them and measuring against those standards
Proactive and continuous approach with heavy employee participation
What are the two general categories of products?
Business and consumer
What is included in business products?
Raw materials, major equipment, accessory equipment, component part, process material, supply, and business service
What items can be grouped as business and consumer?
Lightbulbs, stoves, pencils, paper, etc
What are the two types of innovation, give examples
Revolutionary = apple inventory iPad Simple = restaurants adding healthy options
What are the benefits of innovation?
Improving function or quality, lower cost of production, offering customers new experiences
What is the PLC?
