Operations Introduction & Strategy Flashcards
What is Operations Management?
The design, management, and improvement of activities required to create products and services and deliver them to customers.
What are the Strategic IMPACTS of Operations?
- Control costs and generate revenue
- Ensures quality
- Impacts Return on Investment
- Provides a competitive advantage
What is a Business Process?
A set of end-to-end processes within an organization designed to achieve a specific goal.
What are the key components of a business process?
- AS IS: Current process
- TO BE: Proposed improved process
- Designed with the end user in mind
- Process Modeling Principles
What is the Strategic IMPORTANCE of Operations?
- Reduce operational risk
- Make effective investments
- Build capabilities
- Control costs
- Increase revenues
Where do operations exist?
in every department, making every manager an operations manager to some extent.
What are the Key Process Management Factors?
- VOLUME: The quantity of products/services processed.
- VARIETY: The range of different products/services offered.
- VARIATION: Fluctuations in demand.
- VISIBILITY: The extent to which customers interact with or observe operations.
What does every process need?
Planning
Sourcing
Making/Producing
Delivering
Returning
What are operations?
Manufacturing and service processes that transform resources into final products
What is the supply chain?
Processes that move materials and information to and from the company
What is Efficiency?
doing something at the lowest possible cost
What is Effectiveness?
doing the right things to create the
most value for the company
What is Quality?
the attractiveness of the product, considering its features and durability
What are the Competitive Dimensions?
Price – Deliver products/services at a low cost
Quality – Offer superior products/services
Delivery Speed – Ensure fast delivery
Delivery Reliability – Meet promised delivery timelines
Demand Flexibility – Adjust production volumes as needed
New Product Introduction Speed – Adapt quickly to market changes
What are Trade-Offs in Operations?
The decision to prioritize certain operational aspects over others.
What are Order Qualifiers?
Basic product/service features required to compete in a market
What are Order Winners?
Unique features that differentiate a product/service and drive customer purchases
What is Productivity Measurement?
A measure of how effectively resources are used
What is the formula for Productivity Measurement?
Productivity = Output / Input
What are the types of Productivity Measurement?
Partial Productivity: Compares output to a single input
Multifactor Productivity: Compares output to a combination of inputs
Total Productivity: Compares output to all inputs used in production
What does a firm’s strategy describe?
how it will create and sustain value for its current shareholders
What is the Triple bottom line?
evaluating the firm against social,
economic, and environmental criteria
What is Social Responsibility?
Ethical business practices toward employees, communities, and society
What is Economic Prosperity?
Ensuring profitability while meeting stakeholder expectations
What is Environmental Stewardship?
Reducing environmental impact and promoting sustainability
