Operations management Intro Flashcards
1
Q
Definition of OM
A
is the set of activities that
creates value in the form of goods and services by transforming
inputs into outputs
2
Q
What are the essential functions of organizing to produce goods and services?
A
- Marketing (generates demand)
- Production/operations (creates the product)
- Finance/ accounting (collect money, pay bills, etc)
3
Q
In what areas does OM take critical decisions ?
A
- Service and product design
- Quality management
- Process and capacity design
- Location
- Layout design
- Human resources and job design
- Supply chain management
- Inventory, material requirements planning, and JIT
- Intermediate and short–term scheduling
- Maintenance
4
Q
Characteristics of products
A
• Tangible product • Consistent product definition • Production usually separate from consumption • Can be inventoried • Low customer interaction
5
Q
Characteristics of Services
A
• Intangible product • Produced and consumed at same time • Often unique • High customer interaction • Inconsistent product definition • Often knowledge-based • Frequently dispersed
6
Q
What is the trend for the future of OM?
A
- Rapid product development
- Mass customization with emphasis in quality
- Empowered empoyees
- Enviromentaly sensitive production.
7
Q
Definition of productivity
A
Productivity is the ratio of outputs (goods and services)
divided by the inputs (resources such as labor and capital)
8
Q
Formula to calculate Productivity
A
Productivity = Units produced / Input used
9
Q
Formula to calculate Multi-factor productivity
A
Productivity = Output / ( labor + material + energy+ etc)
10
Q
What are possible problems when calculating productivity =
A
- Quality may change while the cuantity of input and output remains constant
- External elements may cause an increase or decrease in productivity
- precise units of measure may be lacking
