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Operations Management > Week 1 - What is Operations Management? > Flashcards

Week 1 - What is Operations Management? Flashcards

1
Q

What is operations management?

A

A systematic way to organise, plan and improve a process. It is the process behind delivering services and producing goods

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2
Q

What is an operation?

A

A transformation process that changes inputs into outputs to add value for customers

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3
Q

What indicate a good transformation process?

A

Effective
Efficient
Economical
Ethical

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4
Q

What are the competitive priorities when it comes to operations management?

A

Cost
Quality
Flexibility
Dependability
Speed

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5
Q

2 spectrums to quality

A

Consistency vs customisation

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6
Q

2 spectrums to flexibility

A

Variety vs volume

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7
Q

2 aspects to speed

A

Delivery speed vs development speed

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8
Q

If an output has dependability, it is…

A

On time, always

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9
Q

What are the 5 organisational forms

A

Simple
Functional
Divisional (product)
Conglomerate
Matrix

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10
Q

What is a simple organisation?

A

Original founder is in charge of all aspects of business

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11
Q

What is a functional organisation?

A

CEO employs specialists in their area of business

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12
Q

What is a divisional organisation?

A

Organised around product categories, customer markets or regions around the world. Each division then has its own resources and functional organisation

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13
Q

What is a conglomerate organisation?

A

Made up of a variety of different businesses that may or may not have similarities between them. E.g. a big company creating and owning a completely different company alongside their current business.

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14
Q

What is a matrix organisation?

A

A mix of the four previous forms

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15
Q

What is nature of hierarchy?

A

How many layers there are in an organisation, between the ‘shop floor’ and the CEO
Tall = lots of layers, harder to communicate with people higher up
Flat = less layers, higher to communicate with people higher up
Trend = make business flatter

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16
Q

What is degree of centralisation?

A

How power is distributed:
Highly centralised= power held at the centre=CEO make decisions
Decentralised= power more evenly distributed= low-level managers can make decisons

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17
Q

What is the extent of formalisation?

A

How work is organised:
If it is highly centralised, I.e. decisions have to be passed through a certain individual/point, there are more policies and procedures to follow so there is a high extent on formalisation

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18
Q

What is level of complexity?

A

How many subunits and the degree of difference between them I.e. making one product = more standardisation

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19
Q

Direct responsibility of an operations manager?

A
  • understand the operations objectives + developing strategy
  • develop processes, products and services
  • planning + controlling operations resources (people materials + processes)
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20
Q

Indirect responsibility of an operations manager?

A

Speaking with department managers as part of management team

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21
Q

Broad responsibility of an operations manager?

A

Social
Technological
Environmental
Globalisation awareness

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22
Q

What are the four Vs?

A

Volume of output
Variety of products offered
Variation in demand
Variability in product itself

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23
Q

What is volume of output?

A

The number of a single product produced

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24
Q

What is variety of products offered?

A

The number of different types of product that are available to the customer.

25
Q

What is variation in demand?

A

Whether there is a pattern or trend in the demand for the product or if it is randomly always changing

26
Q

What is variability in the product itself?

A

Whether the single product be customised to suit the customer’s individual needs

27
Q

Where do MPOs sit on the spectrum?

A

Upstream

28
Q

Where do CPOs sit on the spectrum?

A

Downstream

29
Q

CPOs comprised of what 2 elements?

A

Customer experience
Process outcome
(these are a.k.a the service concept)

30
Q

What is the servuction system?

A

The relationship between all of the customers, physical assets and information (transformation system)

31
Q

What are the process types for MPOs?

A

Project
Job shop
Batch
Mass
Continuous

32
Q

What is project process type? (MPO)

A

One-off
discrete
take very long
change frequently

33
Q

What is job shop process type? (MPO)

A

Precision/craft (low volume but higher than project)
Bespoke and customised
Shared resources

34
Q

What is batch process type? (MPO)

A

Used when demand can be predicted (make batches - batch process time)
More than 1
Range of novel products

35
Q

What is mass process type? (MPO)

A

Variants within process don’t affect the process function at all
Predictable demand, high volume

36
Q

What is continous process type? (MPO)

A

Demand known with certainty
Endless flow
Inflexible

37
Q

What are the CPO process types?

A

Professional service
Service shop
Mass service

38
Q

What is professional service process type? (CPO)

A

Low volume
High variety
High customer contact

39
Q

What is service shop process type? (CPO)

A

More standardised than professional
Less customer contact
E.g. car going through a garage

40
Q

What is mass service process type? (CPO)

A

High volume, low variety
Low customer contact
Very standardised
Limited on ways to meet increasing demand I.e. can’t expand shop size to match the volume so other strategies used

41
Q

Procurement

A

The agreeing on two-way contractual terms, where a business will source their supplies from (external source). Different suppliers will compete by demonstrating what they have to offer that company.

42
Q

Inbound logistics

A

Moving procured material into the operation

43
Q

Outbound logistics

A

The movement of the transformed materials, to the consumer

44
Q

Processes in SCOR model

A

Plan
Source
Make
Deliver
Return

45
Q

What is inventory?

A

Anything that is counted, paid for, controlled and managed in operations to satisfy customer demand

46
Q

Too much inventory?

A

Deprofitability

47
Q

Too little inventory?

A

Damage customer confidence - change customers opinion on operations dependability (this is an OQ here)

48
Q

Why hold inventory?

A

Buying in bulk = cost effective
Excess material = can be sorted so best material is used in operations
Helps short term demand
Dependability = helping get more orders as there are raw materials in stock
Process will flow more smoothly if all material is readily available

49
Q

Why not hold inventory?

A

Can account for high percentage of company’s working capital
Reduce profitability

50
Q

Raw material inventory?

A

Goods received from suppliers

51
Q

Work-in-progress inventory?

A

Partially completed products

52
Q

Finished goods inventory?

A

Completed and ready for customer

53
Q

Inventory by location?

A

Their location in the processing model
I.e. raw/work-in-progess/finished

54
Q

Cycle inventory?

A

Inventory that can meet typical demand in given time period. Usually one or more outputs
E.g. bakery

55
Q

Buffer/safety stock inventory?

A

Extra stock held so that when demand increases, supply can match it
Compensates for uncertainty in supply chain

56
Q

What is pipeline/movement inventory?

A

Stock that is in transit or in the pipeline for weeks on end

57
Q

Anticipation inventory?

A

Predicting increase in demand due to seasonality/ patterns

58
Q

5 assumptions with EOQ

A

No limit on what we order
Demand rate is constant
Only 2 costs considered : inventory holding cost + order cost
Decisions for 1 item is independent to others
Lead time = known and constant

Operations Management (1 decks)

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