TEST 1 Flashcards
The wealth of nations; division of labor; separation of tasks; mass production as opposed to craft production (in which one person has control of all the materials and resources)
Adam Smith
a system in which the production and distribution of goods is entrusted primarily to the market mechanism; based on private ownership of property, and on exchange between legally free individuals; part of the nature of globalization
capitalism
one of the most insightful critics of capitalism; predicted just this scenario
Karl Marx
“one best way” to do things; said idiots were running plants; efficiency focus; runs over into the TPS; very people thought helping ended up hating him
Fredrick Taylor
emphasis on efficiency; promoted by Frederick Taylor and Henry Ford; come to dominate the emerging view of manufacturing early in the 20th century
scientific management
done by Lewin; changed lighting in the factory; people are more willing to change if they are involved in the change; provided a counter to Taylorism and Fordism; insights into the motivation of work
Hawthorne Experiments
when we realized that we needed an economy based around consumption and rise of mass production; evolved to mass services; WWII deficit spending got us out of it
The Great Depression
most widely recognized 20th century economist; said got could mitigate depth of recession by spending on infrastructure
John Maynard Keynes
mid 20th century; the triumph of mass production; combines Taylors approach with his own desire to mechanize labor and becomes the “Father of Mass Production”
Henry Ford
started by Ford; “Fordism” ; eventually overtaken by the TPS; WWII forced america back into mass production
mass production
WWII forced the need for mass production; began the need to quickly produce war machines and supplies ultimately entrenched mass production as the only viable paradigm of manufacturing; the US enjoyed one of the largest periods of economic progress in modern history
WWII
Father of H.R. movement; performed Hawthorne experiments; psychologist who said mass production has an underbelly; called it he “Cult of Efficiency”
Kurt Lewin
“father of modern quality management”; focused on process management; quality=results of work efforts/cost; thought Taylor’s control is illusion
W. Edwards Deming
first time price of oil shot up rapidly because of gas shortage; provided the Japanese an incredible opportunity; US couldn’t be independent
the 1973 Oil Crisis
emphasis on a “pull system” of production and the requirement to eliminate waste and add value; lean management; six sigma; overtakes mass production as operations paradigm; considered most operationally excellent firm in the world today
TPS
pioneered the TPS; eliminate wast and add value; emphasis on pull system of production; lean mgmt
Taiichi Ohno
open trading among nations thanks to technology; “the greatest labor migration since the industrial revolution. the migration from agriculture and manufacturing to services is both invisible and largely global”
globalization
“As productivity increases in one sector, the labor force moves into another”
Clark Fisher Hypothesis
economy driven by peoples experiences; from the past transactional nature of services into experience–based on relationships
experience economy
if you don’t need it, then don’t produce it; driven by the customer
Pull Theory of Innovation
a service encounter is any episode in which the customer comes into contact with any aspect of the organization and gets an impression of the quality of its services; moments of truth
service encounter
physical resources that must be in place before a service can be sold
supporting facility
operations data or information that is provided by the customer to enable efficient and customized service
information
psychological benefits of extrinsic features; which the consumer may sense only vaguely
implicit services
the material consumed by the buyer of items provided by the customer
facilitating goods
benefits readily observable by senses; the essentially of intrinsic features
explicit services
separates services into degrees of love/high labor intensity and low/high interaction and customization
service process matrix
overall cost leadership; differentiation focus
service strategies
criteria used by a customer to create a subset of service firms meeting minimum performance requirements
service qualifiers
dimensions such as price, convenience, or reputation that are widely used by a customer to make a choice among competitors
service winners
failure to deliver at or above the expected level for a competitive dimension can result in a dissatisfied customer who is lost forever
service losers
delighters (didn’t know you need it until you have it); more is better (offering more); fundamental (what’s expected)
Kano Diagram
1) available for service
2) journeyman
3) distinctive competence achieved
4) world class service
stages of competitiveness
application of information to improve the revenue that is generated b time perishable resource
yield management
delivery, location, information, service encounter, managing capacity and demand, facility design, and capacity planning
service design elements
results produced+process quality/price+cost of acquiring services
customer value equation
a service encounter
moment of truth
gold standard amount of time btw placing an order and receiving a good or service
throughput
slowest stage of a process; the part of a service company that has the slowest throughput; the long line
bottle neck
how much a business can make
capacity
how much the consumer wants
demand
output/input; how efficiently a company converts inputs into outputs; growth rate=(P1-P2)/P1
productivity
strategy as design; about being different; developed 5 forces analysis; operations effectiveness isn’t strategy
Michael Porter
strategy as evolution; more a craft strategy is than a well excited plan; strategies emerge out of firms confrontation with its market and environment; strategy involves both plans and past patterns
Henry Mintzberg
strategy as revolution; involves forms of creative destruction; companies follow 1 of 3 paths: 1) rule makers 2)rule takers 3)rule breakers
Gary Hamel
key aspect of capitalism; a company destroys certain industries for others to rise up in relation to Gary Hamel
creative destruction
challenges: protect intellectual property; evolutionary character; time and cost; two kinds: radical and incremental
service innovations
creating a service that is perceived as being unique
differentiation
the unique strengths the firm possesses which can help the firm become successful in the market
core competencies
technique for forecasting; there are many
forecasting model
method of forecasting that is focused on personal estimates, opinions, surveys, and opposed to the following which use mathematical calculations
qualitative forecasting
technique that averages a number of recent actual values; updated as new values become available
moving average model
a weighted average method based on previous forecast plus a percentage of the forecaset error
exponential smoothing model
the average absolute forecast error; used to assess forecast accuracy; also used to estimate a tracking signal
mean absolute deviation (MAD)
the average absolute percentage error; adjust magnitude of data
Mean absolute percentage error (MAPE)
describe key task in the management of service operations
system design and operating decision related to product and service design, capacity planning, process selection, location selection, work mgmt, inventory and supply mgmt, production planning, quality assurance, scheduling, and project mgmt
what are the key elements in the evolution of operations
smith: division of labor; industrial revolution; taylor: scientific mgmt; ford: mechanization; reaction to the Taylor and Ford quality is an issue; TPS; WWII
why is the US economy considered a service economy
most of its jobs are in the service industry rather than manufacturing
what is mass production
factory production of goods at lower cost and high volume; low skilled workers and specialized machinery
what are the lessons of the Hawthorne experiments
found out that people are more willing to change if they are a part of the change; a sustained change has to be made
what was Lewin’s critiques of scientific mgmt
demanded human labor
what was Deming’s critiques of scientific mgmt
didn’t understand variance; too narrow a view; demeaned workers; too much
key ideas of the TPS
called just-in-time production; lean mgmt; pull system; requirement to eliminate waste and add value
what is the central lesson of the 1973 oil crisis
that US could not be dependent
what are some lessons of the Nickel and Dimed for service operations
you make a living working for minimum wage; a lot of work for nothing
what is the value of “self service” in a service economy
allows customers to be more of a co-producter; allows them to have control; addresses problem of matching supply; hiring less people
what are some challenging aspects of managing service operations
worker autonomy; labor; declining manufacturing wages=declining service wages bc of mass production, efficiency, and mechanizations
apply the concept of a service package
supporting facility service experience explicit services facilitating goods implicit services info
attention to facility design, opportunities for co production; concern for customer and employee behavior
customer participation
opportunities for personal selling; interaction creates customer perceptions of quality
simultaneity
cannot inventory; opportunity loss of life capacity; need to match supply with demand
perishability
creative advertising; no patent protection; important of reputation
intangibility
customer involvement in delivery process results in variability
heterogeneity
new garage parts; CCBD tracking system; experience repairing cars; clean/layout/comfortable; experience mechanics
see village volvo case
P2-P1/P1=transaction hours
compute productivity
why is productivity so important
how efficiently a co. converts inputs to outputs
what are production suggestions for restoring competitiveness in the us
pursue productivity
build commons and the business
rein in self interest
established a need for interchangeable parts; specialization of labor, and coordination of task; replacing man with machines; bigger productions
industrial revolution
a process for reducing cost, improving quality, and increasing customer satisfaction
six sigma
system that uses minimal amounts of resources to produce a high volume of high quality goods with some variety
lean system
what you need when, and in amount; to avoid over production
pull system
output/input; ex: tables waited/hrs
partial productivity
output/multi-input
multifactor
value=(results produced) + (process quality) / (price) + (cost of acquired service)
back to value
moving averages and exponential smoothing are intended to be used on ______
stationary time series
