Operations Management Test 1 Flashcards
WhT is an operation
A group of resources performing all or part of one or more processes
What is a process
A group of activities that takes one or more inputs transforms them and creates outputs.
What is supply chain management
The synchronization of a firms processes with those of it suppliers and customers to match flow of materials services and information with customer demand.
What’s the difference between service and manufacturing processes?
Nature of output and degree of customer contact
What are competitive priorities
The critical operational dimensions a process or supply chain must possess to satisfy both internal and external customers
Competitive capability is
The cost quality time and flexibility dimensions that a process or supply chain actually processes and is able to deliver
Name the 4 parts to customer relationships
Top quality
Consistent quality
Delivery speed
Variety
Name the 4 competitive priorities
Customer relationships
New service development
Order fulfillment
Supplier relationship
What 5 developments have stimulated the need for sound global strategies
Improved transportation and communication technology
Loosened regulations of financial institutions
Increased demand for imported services and goods
Reduced trade barriers
Cost advantages
Describe a manufacturing process
Physical output
Low customer contact
Quality easily measured
Capital intensive
Service process
Intangible output
High customer contact
Quality not easily measured
Labor intensive
Nested process
Process within a process
Operations strategy
The way operations implement the firms corporate strategy and build a customer driven firm
What 4 things must be considered when developing a corporate strategy
Watching and converting to changes in the business environment
Developing the firms core competences
Developing the core processes
Developing the firms global strategy
3 major business functions
Finance
Marketing
Operations
Describe strategic decisions
Long term
Broad
Describe tactical decisions
Short term
Focus on day to day issues
Name the 4 competitive priorities
Cost
Quality
Time
Flexibility
What is a process strategy
The pattern of decisions made in managing processes so that the processes will achieve their competitive priorities
What are the 4 process decisions
Process structure
Customer involvement
Resource flexibility
Capital intensity
A good process strategy for a service depends on
Type of customer contact
Amount of customer contact
Services can be classified based on what 3 things
Degree of customer contact
Service customization
Process characteristics
Name the 3 service structure groups
Front
Back and hybrid office
Example of front office
Barber shop
Example of back office
Preparing financial statements in service industry’s
Manufacturing processes can be classified based on
Volume
Product customization
Process characteristic
Name the 4 manufacturing processes
Job
Batch
Line
Continuous flow process
Example of job process
Baker hired to bake a specific wedding cake
Example of batch process
Bakeries making multiple same cupcakes
Line process ex
Car assembly line
Continuos flow process ex
Beer production line
One primary material moves without stopping through the process
3 approaches to inventory
Make to stock
Assemble to order
Make to order
Make to stock
Off the shelf retail , beer
What is mass production
Combining a line process with a make to stock strategy
Example of assemble to order
Involves line and batch process
Dell computers
Make to order ex
Job processes and batch processes
Expensive homes, custom made clothing
Name the 2 types of equipment
Flexible equipment ex shovel
Special purpose equipment ex robot
Cost of quality can be broken down into what 4 categories?
Prevention costs
Appraisal costs
Internal failure costs
External failure costs
What 3 things make up total quality management
Customer satisfaction
Employee involvement
Continuous improvement
What is quality at the source
A philosophy where defects are caught and corrected where they were created
Name the 3 employee empowerment approaches
Problem solving teams
Special purpose teams
Self managing teams
Continuous improvement is based on what
The Japanese concept kaizen
What is continuous improvement
The philosophy of continually seeking ways to
Improve processes
Describe the deming wheel
Plan do study act
Statistical process control charts are used to do what?
Detect defects
