Overview Flashcards
What is the definition of Operations Management (OM)?
Involves designing, overseeing, and controlling business operations in the production of goods or services.
What are the key objectives of Operations Management?
- Efficiency
- Effectiveness
- Quality
- Continuous improvement
Why is Operations Management important?
Aligns operations with strategic goals, optimizes resources, and ensures customer satisfaction.
What are the types of processes in process design and analysis?
- Job shop
- Batch
- Assembly line
- Continuous flow
What is process mapping?
Visualizing workflows to identify inefficiencies.
What does capacity planning involve?
Determining production capacity to meet demand.
Define supply chain management.
Coordination of production, inventory, location, and transportation.
What are key strategies in supply chain management?
- Just-in-Time (JIT)
- Lean Supply Chain
- Agile Supply Chain
What does inventory management include?
- Economic Order Quantity (EOQ)
- Safety stock
- Reorder points
What is Total Quality Management (TQM)?
Continuous improvement and customer satisfaction.
What is Six Sigma and its methodology?
Reducing defects through DMAIC methodology.
What are ISO Standards?
International benchmarks for quality assurance.
What are quantitative methods in forecasting?
- Moving averages
- Exponential smoothing
- Regression analysis
What are qualitative methods in forecasting?
- Delphi method
- Market research
Why is forecasting important in operations management?
Aligns production with market demand to reduce waste.
What tools are used in project management?
- Gantt charts
- Critical Path Method (CPM)
- Program Evaluation Review Technique (PERT)
What are the phases of project management?
- Initiation
- Planning
- Execution
- Monitoring
- Closure
What is the Product-Process Matrix?
Aligns product life cycle with process choice.
What is the Theory of Constraints (TOC)?
Identifies and manages bottlenecks.
What is Lean Production focused on?
Waste reduction and value creation.
What does Just-in-Time (JIT) aim to achieve?
Minimizes inventory by producing only what is needed.
What are the root causes of operational inefficiencies in the sample case study?
- Inefficient Processes
- Poor Inventory Management
What recommendations were made to improve the case study scenario?
- Implement Lean Manufacturing to reduce waste
- Adopt JIT inventory systems for better stock control
- Upgrade equipment and introduce automation
Explain the role of operations management in achieving competitive advantage.
OM improves efficiency, reduces costs, ensures quality, and enhances customer satisfaction.
How can Lean Manufacturing benefit an organization?
Reduces waste, lowers costs, improves quality, and increases responsiveness to customer needs.
Discuss the importance of capacity planning in operations management.
Ensures that production capabilities meet market demand, preventing stockouts or excess inventory.
Differentiate between push and pull production systems.
Push systems produce based on forecasted demand; pull systems produce in response to actual demand.
What are the key principles of Total Quality Management (TQM)?
- Customer focus
- Continuous improvement
- Employee involvement
- Process-centered approaches
Calculate the Economic Order Quantity (EOQ) given D = 5,000 units, S = $100 per order, H = $5 per unit per year.
EOQ = √((2 * 5,000 * 100) / 5) ≈ 447 units
What is the Break-Even Point formula?
Break-Even Point (Units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)
Calculate the Break-Even Point given Fixed Costs = $50,000, Selling Price = $25, Variable Cost = $15.
Break-Even Point = 5,000 units
What is the Capacity Utilization Rate formula?
Capacity Utilization = (Actual Output / Potential Output) × 100%
Calculate the Capacity Utilization Rate given Actual Output = 8,000 units, Potential Output = 10,000 units.
Capacity Utilization = 80%
What is the Productivity formula?
Productivity = Output / Input
Calculate productivity given Output = 1,000 units, Input = 500 labor hours.
Productivity = 2 units per labor hour
What is the Critical Path Method (CPM)?
A project management technique used to determine the longest path through a project.
Identify the critical path given tasks A (2 days), B (4 days), C (3 days after A), D (5 days after B and C).
A → C → D (10 days)
What are the root causes of delivery delays in the logistics case study?
- Manual routing processes
- Lack of GPS tracking
What strategies were suggested to reduce delivery delays?
- Implement route optimization software
- Introduce real-time GPS tracking
Calculate the potential cost savings from reduced fuel consumption by 10% saving $20,000 annually.
Cost savings of $20,000 annually.
