Test 1 Study Guide Flashcards
Definition of Operations Management
Operations Management is the art
and science of ensuring that goods
and services are created and
delivered successfully to customers.
Two key questions that drive the evolution of operations management
How to make it or do it better?
How to make it or do it repeatedly?
OM is the systematic
Design, Direction, and Control of
processes that transform inputs into goods and services that
creates value for internal and external customers
Process
Any activity or group of activities that takes one or more inputs, transforms them, and provides one or more outputs for its customer
Operation
A group of resources performing one or more processes
Operations Management:
Managing the process of turning inputs into outputs
Inputs -> Operations
Management is a
transformative
process -> Outputs
Is turning inputs into outputs enough?…what are we missing?
Creating customer value
Each part of a SC is simply
a group
of processes that add value to the
preceding process(es)
Customer Value
Perceived benefit of a good or service (or bundle of goods or service) what customers are willing to pay
Customer Value =
Perceived Benefit/Cost to Customer
Customer value goal
Maximizing value by designing more efficient processes that create goods and services
Organizations have 3 basic tasks
Design solutions to meet customer needs, Transformation, Bring together information or resources in a way that are valuable to the customer
Transformation
Change the physical form or location of materials, information, or
customers
Supply Chain
An interrelated series of processes within and across
firms that produce products and services customers want
Supply Chain Management
The synchronization of processes between
a firm, its suppliers and customers to match the flow of materials,
services, and information with customer demand
