Operations Management 101 Flashcards
management of systems; processes that creates goods and/or provide services
Operations management
Airline Comapny
Operations Systems
Activities of OM (7)
Forecasting Capacity Planning Scheduling Managing Inventory Assuring Quality Motivation and training location of Facilities
Production concepts and techniques are applied to a wide range of activities and situations outside manudacturing
Ops Management
A term that closely reflects the diverse nature of activities to which its concepts and techniques are applied
Ops management
Opinions of experts, consumers
Qualitative (Forecasting)
Weather and landing conditions
Forecasting
According to managers decision on which cities to provide service for; wherebto locate makor and minor hubs
Location of facilities
Of such items as foods and beverages, first aid, pillows and blankets, life preservers
Managing inventory
seat demand for flights
Forecasting
Growth in air travel
Forecasting
Maintain the cash flow and make reasonable profit
Capacity Planning
Too fee or too many planes or even right number of planes but in the wrong places will hurt profit
Capacity planning
Routine maintenance of pilots and flight attendants
Scheduling
Essential in flying and maintenance operations
Assuring Quality(TQM)
Emphasis is on safety, efficiency and courtesy
Implied Requirements (TQM)
Emphasis in flying and maintenance ops
Safety
Emphasis on dealing with customers at ticket counters, check in and telephone services
Efficency and courtesy
Motivation and training
personal management
HRM
Why study Operations Management?
- OM activities are the core of all bus org
- Higher percentage or kore jobs are in OM related areas
- All orgs are interrelated eith OM activities
Core of all business organizations
OM activities
Knowledge and skill you can learn in OM (6)
Productivity Strategy Forecasting Wuality Inventory Control Scheduling
Enhance managerial Decision Making
Quantitative Tools
Functions within Business Organizations
Finance
Marketing
Operations Management
Devoted to producinf goods and/or providing services.
business organization
Where do goals, products and services similar?
In functions and the way they operate
marketing may promote good or servies for which there is no demand
unless productions and marketing work together
Funds for expansion or new equipment may not be available
finance and production
Consists of all activites related to producing goods or providing services
Operational functions
responsible for the creation of goods and services
Operations
used to obtain finished goods or services
Inputs
Storing, transporting, cutting
Transformation processes
To ensure that the desired outputs are obtained, measurements are taken at various points in the transformation process
Feedback
Compared with previously established standards to determine whether corrective action is needed
Control
Essence of ops function
Add value during transformation process
difference between the cost od inputs and the value/price of outputs
Value added
securing resources at favorable prices and allocating those resources throghout the organization.
Finance
Finance and cooperate by (3)
Budgeting
Economic Analysis of investment Proposals
Provision of funds
When do budgets prepared?
periodically
prepared to plan financial requirements
Budget
Evaluation of alternative investments in plant and equipment requires inputs from both operations and finance people
Economic analysis of investment proposals
necessary funding of operations and the amount, timing of funding
provisions of fund
Canhelp avoid cash-flow problems
Careful planning(provision of funds)
For-profit firms obtain majority of their funds through
Revenues generated by sales of goods and services
It consists of sellin and promitng the goods/services
marketing
advertising and pricing decisions
marketing
Assessing customer wants and needs
marketing
Can provide valuable insight on wha the competitors are doing
Marketing
supply information on consumer preferences
marketing
Advance warning if new equipment or skills will be needed for new products/ services
Operations
Provide info on what funds may be available
finance
Important pieace of information marketing needs from operations
manufacturing or service Lead Time
Give customers realistic esimates of how long it will take to dill their orders; the ime necessary to deliver an order or perform a service
Lead time
Other functions
Accounting purchasing personnel public relations Industrial engineering distribution
Primary function of an operations manager
Guide the system by decision making
decisions affects(2)
System design
System Operatikn
(5) system design decisions
- System Capacity
- Geographical Location of facilities
- Arrangements of deptsband placementbof equipment
- Product and service planning
- Acquisition of equipment
System capacity
System design
Geographical location of facilities
System design
Arangements of depts and placement of equipment
System design
Profuct and service planning
System design
Acquisition of equipment
System design
Decisions that usually, but not always, require long term commitments
System design
(5) System Operations
- Management of personnel
- Inventory planning and control
- Scheduling
- project management
- Quality Assurance
Management of personnel
System Operation
Inventory planning and control
System Ops
Scheduling
System Ops
Project management
System Ops
Quality Assurance
System Ops
Operations manager is more involved in_____ than relating to system deign.
day to day operating decisions
Costs, space, capacities and quality are directly affected by
Design decisions
The output of production systems can range from highly standardized ti highly customized.
Degree of Standardization
there is a high degree id uniformity in goods or services
Standardized Output
Radios, Televisions, Computers, Newspapers, Canned goods, Automobile tires, Pennandbpencil
Standardized Goods
Automatic car washes, televised newscast, taped lectures, commercial airline service
StandardiEd Service
means that the product or service is designed for specific case or individual
Customized Output
Eyeglasses, Window glasses
Customized goods
Tailoring, taxi rides and surgery
Customized servies
systems with_____ can generally take advantage in such a way that it contributed to higher volume and lower unit costs.
Standardized output
Each job is sufficiently different
Custom systems
Workers must be more skilled, moves slower and less susceptible to mechanism.
Custom systems
Type of Operations (5)
Single or large scale product/services continuous process customized batches mass prodution
results in tangible product
Production of goods
Implies an act/ intangible
Service
Manufacturing and service are often similar in terms of ____ is done but different in terms of ____ it us done.
what,how
goods-oriented
Manufacturing
More in service than manufacturing
Customer contact
Uniformity of input and output
Manufacturing
Labor contents of job
service
Straightforward in manufacturing
Measurement if productivity
more important and challenging in service
Quality assurance
key figure in the system
Ops manager
he has the ultimate responsibility for the creation of goods or provision of services
Ops manager
Operations managers must coordinate the use of resources through
Management process
Total Quality Management (5)
Leadership Teamwork Empowerment Continuous improvement Customer satisfaction Training
Continuous improvement
Kaizen
5 functions of HRM
- Job analysis
- Acquisition of Hr
- Maintenance
- Development
- research
Duties and responsibilites
Job description
Qualifications (job analysis)
Job specification
factors of prodcution;resources
Input
storing belongs to
transformation process
when theres a defect in the product
Backward movement in transformation procsess
It is important to have control
Feedback
3 steps of control
Set a standard
Implemet such standard
if theres gap, take corrective actions
if theres no gap, contiuous improvement
what should be
Standard
what was done
performance
the reason why the customers buy your product; cost of input is equivalent with the bemefit the customers get
Value added
Two items in the budget
Anticipated revenues
Expenses
Capital (2)
Equity
Borrowings
cusotmer satisfaction
product
cost
price
convenience
place
movement of product
place
