Operations Management test 1

  1. Production system
    a user of resources to transform inputs into some desired outputs
  2. supply chain
    network flow of how that transformation takes place
  3. operations management
    design, operation and improvement of the process system that create and deliver products (things and services)
  4. transformations
    inputs into outputs
  5. 6 types of transformations
    physical, location, exchange, storage, physiological, information
  6. efficiency
    maximizing productivity and minimizing costs
  7. effectiveness
    doing those things that create the most benefit for the company
  8. value
    customer perceived quality/unit price - satisfaction/dollar spent
  9. OP Management deals with three decision types
    • Strategic (long term) Horizon III
    • Tactical (Intermediate) Horizon II
    • OP Planning and Control (short term) Horizon I
  10. a product is?
    a service is?
    • product: tangible
    • service: intangible
  11. core services
    basics that customers want from a product
  12. value added services
    • characteristics that differentiates the product from its competitors; it's extra
    • -customer information
    • -customer problem solving
    • -customer sales support
    • -customer field support
  13. operations management
    • design, operation and improvement of the process system that create and deliver products
    • -continuous improvement
    • -radical change (reengineering)
  14. mass customization
    producing products to order in lot sizes of one
  15. pure goods industries
    low-margin commodity businesses and in order to differentiate they are often adding some services
  16. straddling
    match what a competitor is doing by adding new features, services, or technologies to existing activities
  17. competitive dimensions of operations and supply strategy (6)
    • 1. cost vs. price
    • 2. quality of reliability level
    • 3. delivery speed
    • 4. delivery reliability
    • 5. flexibility
    • 6. support product
  18. order qualifiers
    the screening that allows product to become a candidate for customer purchase
  19. order winner
    characteristics that differentiate a product from its competitors
  20. core capabilities
    skills and abilities that differentiate the supplying firm from its competitors these capabilities are either product or process differentiators
  21. strategic fit
    fitting operational activities to strategy
  22. activity system map
    • diagram that shows how strategy is implemented through tailored supporting activities
    • -red: ultimate goal
    • -green: high ordered strategies
    • -orange: linked activities
  23. productivity management
    productivity measures how well resources are used. it is a ratio of product output value produced from units of resource value. productivity = output/input
  24. operations strategy:
    setting policies and plans to support the firm's competitive position
  25. plant-within-a-plant (PWP)
    different locations within a facility are dedicated to different product lines
  26. key performance indicators
    a set o measures used to evaluate a firm's performance
  27. productivity
    a measure of how well resources are used
  28. operations effectiveness
    relates to the core business processes needed to run the business and related directly in the costs associated with doing business
  29. customer management
    relates to better understanding an leveraging customer relationships
  30. product innovation
    development of new products, markets, relationships to sustain growth
Card Set
Operations Management test 1
test 1 vocabulary for operations management