Operations Management Fundamentals

Question 1

The design, maintenance, and improvement of business processes to produce and deliver goods and services to customers, aiming to identify and solve problems that hinder these processes.

Answer 1

Operations Management (OM)

Question 2

The inputs, such as labor and raw materials, used in a process to transform inputs into outputs.

Answer 2

Resources

Question 3

The resources or materials used in a process to produce a desired output, such as raw materials or labor.

Answer 3

Inputs

Question 4

The end results of a process, such as the finished goods or services, that are produced by transforming inputs through various activities.

Answer 4

Outputs

Question 5

Inputs being transformed into outputs in a process, such as raw materials being turned into finished goods. They are the basic components of a process and can be in progress at any given time.

Answer 5

Flow Units

Question 6

Steps for transforming flow units into outputs, such as the activities involved in making a product or providing a service.

Answer 6

Activities

Question 7

A visual representation of the steps and activities involved in a process, using symbols to represent flow units, activities, and buffers, and arrows to indicate the direction of movement.

Answer 7

Process Flow Diagram

Question 8

Holding areas for flow units that are in-between activities in a process, allowing for smooth movement of flow units through the process.

Answer 8

Buffers

Question 9

The number of flow units in a process, also known as work-in-progress (WIP), not including inputs yet to undergo the process or outputs that have exited it. Can be materials (for producing products) or people (for performing services).

Answer 9

Inventory

Question 10

The total number of flow units in a production line at any given time, not including inputs yet to undergo the process or outputs that have exited it.

Answer 10

Work-in-Progress (WIP)

Question 11

The time it takes for one flow unit to go through an entire process, also known as throughput time.

Answer 11

Flow Time

Question 12

The number of flow units that complete a process within a specified time span, such as an hour, a day, or a week.

Answer 12

Flow Rate

Question 13

The average inventory in a process is equal to the average flow time multiplied by the average flow rate.

Answer 13

Little’s Law

Question 14

When the production process is limited by the level of demand for the product.

Answer 14

Demand-Constrained

Question 15

When the production capacity of a process is unable to meet the demand for its output.

Answer 15

Supply-Constrained

Question 16

The limits or scope of a specific process, defining what is included and excluded from the analysis or improvement efforts.

Answer 16

Process Boundaries

Question 17

A line of inventory waiting for the next activity or service to be completed.

Answer 17

Queue

Question 18

The slowest activity in a process, which limits the overall capacity of the entire process.

Answer 18

Bottleneck

Question 19

The average duration of a particular step in a process.

Answer 19

Service Time

Question 20

The amount of time a customer has to wait in line or for a service to be completed before they can proceed with their intended activity.

Answer 20

Wait Time

Question 21

The maximum possible output of a process, representing the total number of customers that can complete a step in a given period of time.

Answer 21

Process Capacity

Question 22

A process in which customers or flow units wait in line for the next activity to be served.

Answer 22

Queueing System

Question 23

An organized manufacturing facility that produces a large variety of customized products at low volumes, with employees requiring a high level of skill and equipment grouped by function.

Answer 23

Job Shop

Question 24

The manner in which a business or operation carries out its production processes, including the organization of resources, allocation of tasks, and overall approach to manufacturing or service provision.

Answer 24

Mode of Operation

Question 25

A production process that relies on structured, repetitive processes, offering a smaller range of products at higher volumes.

Answer 25

Flow Shop

Question 26

A tool used to analyze the relationship between process structure and production volume, categorizing businesses based on their production processes and output volume.

Answer 26

Product-Process Matrix

Question 27

A method of production where products are grouped together and processed in batches, with each batch requiring different procedures and resources. It is used for high-demand, low-customization products.

Answer 27

Batch Processing

Question 28

A production process in which the pace of work is determined by the workers, who have the ability to assemble the product as they see fit, with assistance from others when needed. This type of process is characterized by high demand, standardized outputs, and large production volume.

Answer 28

Worker-Paced Assembly Line Flow

Question 29

A production process that is almost entirely automated and inflexible, with machinery dictating the flow rates, large production volume, standardized inputs and outputs, and high capital investments.

Answer 29

Machine-Paced Assembly Line Flow