Topic 6 : Operations and Management Flashcards
Define what is operations management
Operations management is the development and administration of the activities involved in transforming resources into goods and services.
What is the difference between Service and Manufacturing regarding Intangibility
With service, the control and measurement are difficult and the labor is intensive, while in manufacturing, quality has observable benchmarks
What is the difference between Service and Manufacturing regarding Perishability?
Service : No inventory
Manuf. : With inventory
What is the difference between Service and Manufacturing regarding Heterogeneity?
Service : customized
Manufacturing : Standardized
What is the difference between Service and Manufacturing regarding Simultaneity?
Service : more customer contact
Manufacturing : possible no contact
What is an input?
Input refers to the resources, like fuel and labor, that goes into the production of a good or service.
What is an output?
Output is the finished product that is the result of input resources combined.
Explain the transformation process using all the right terms.
Production factors, which are inputs such as labor, capital, raw materials, etc. goes into production process to be transformed into products like goods, ideas and services, which are outputs. Those are controlled with standards of quality and feedbacks to see if the goals have been achieved.
What are the 3 components of Operations management?
Product, Process and the Supply chain
Which step or activity is crucial to determine what to produce and for whom?
Marketing research
What is called the concept in which you identify what to offer.
Product definition
A Company’s relative position within the industry is called : __________
Strategic positioning
What is product architecture
How all the functional parts of the product are arranged and come together, how the product is built.
After defining the product, what are the 2 questions we must ask ourselves? To which component of Operations management does it apply to?
How to produce?
Where to produce?
Applies to Process
What are the 3 types of process in producing?
- Standardization
- Modular design
- Customization
If i produce identical interchangeable components or products, what type of process am I using?
Standardization
If i produce self-contained units that can be combined or interchanged to create different products, what type of process am I using?
Modular design
If I produce personalized products, what tyoe of process am I using?
Customization
Explain the concept of CAPACITY.
Capacity is the maximum load that an organizational unit can carry or operate. It can be stated in terms of inputs or outputs.
Give examples of units of measurement that could be used to calculate the CAPACITY of an organizational unit.
Worker, machine, department, entire plant.
What happens if i plan a capacity that is too low while producing?
The demand of the customer isn’t met. Too High results in High costs.
Explain what a facility is.
A facility is a permanent, semi-permanent or temporary commercial/industrial property that is built, established, or installed for the performance of one or more specific activities or functions.
What are the factors to consider when building a facility?
- The proximity to market
- Availability of raw materials, transportation, power and labor
- Climatic influences and community characteristics
- Taxes and inducements
Now that the facility is built/bought, what are the three layouts that can be put in place?
- Fixed position
- Process layout
-Product layout
Explain the ‘fixed position’ layout in a facility.
When all the resources required to create the product are brought to a central location.
Explain the ‘process layout’ layout in a facility
The transformation process is organized into departments.
Explain the ‘product layout’ layout in a facility
When production is divided into relatively simple tasks assigned to workers (ex : in an assembly line)
Name some technology advancements seen in Operations Management
Computer-assisted design (CAD), Computer-assisted manufacturing (CAM), Computer-integrated manufacturing (CIM), Flexible manufacturing
Explain what is the supply chain management.
The design, planning, execution, control and monitoring of supply chain activities
What are the objectives of the supply chain management.
- Creating net value
- Building a competitive infrastructure
- Leveraging worldwide logistics
- Synchronizing supply with demand
- Measuring performance globally
What does the supply chain involves?
The movement and storage of raw materials, work-in-progress inventory, and finished goods from point of origin to point of consumption.
What is the other concept that Supply Chain Management is often referred to?
Logistics
What is inventory?
All raw materials, components, partially completed products and equipments used in the production process.
Give the definition of raw materials.
All materials purchased to be used as inputs of production.
Give the definition of a work-in-progress
A partially complete product
Give the definition of finished goods
Product ready for sale
Why does inventory costs money?
The inventory is a stuck capital : money that has been put into the raw materials, work-in progress, but can’t be sold and can’t obtain a profit.
- Storage location
-Obsolescence : products can perish
- Insurance
- Security control
-Theft risks
What is inventory control?
The process of determining how many supplies and goods are needed.
It’s also keeping track of quantities on hand, where each item is and who is responsible for it.
What are the types of inventory?
- safety
- cycle
- seasonal
- speculative
- in-process/pipeline
- marketing/shelf
What is the use of the Economic Order Quantity Model?
It is an inventory management model that identifies the optimum order of items to minimize the costs of managing them
Normally used to manage CYCLE inventory
Explain the Just-in-Time Inventory management model.
Use smaller quantities and materials that arrive “just-in-time” for use in the transformation process
What are the main benefits of the Just-in-time model in inventory management?
Requires less storage space and other inventory management expense
Quality is the match between (a)____________ , (b)____________ and (c)___________
a. products
b. consumers’ needs
c. requirements
What are the 4 principles of quality?
- Customer first
- Social learning
- Continuous improvement
- Total participation
What is the Optimal Quality level?
When the failure costs function meets the prevention costs function.
Why is the Total cost quality always higher on the graphic than the failure costs and prevention costs even if the latters are at the same cost?
Because the total cost of quality is the sum of the prevention costs and failure costs.
What is quality control?
The process used to maintain established quality standards.
