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Define Operations Management
The management of systems or processes that create goods and/or provide services
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Difference between Production of Goods vs. Delivery of Services
- Customer Contact
- Uniformity of input
- Labor content of jobs
- Uniformity of output
- Measurement of productivity
- Production and delivery
- Quality assurance
- Amount of inventory
- Evaluation
- Ability to patent design
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Why is manufacturing is still important?
- Over 18 million workers
- When a California manufacturing job is lost, an average of 2.5 service jobs are lost (more service jobs are related to mfg jobs).
- 70% of value of U.S. exports
- mfg compensation pkg is about 20% higher than average of all workers
- workers more likely to have benefits e.g. health and life ins, disability, retirement plans, and vacation and sick leave.
- Productivity growth in last 5 years is more than double U.S. economy
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Operations Management make a number of key decisions that include....
- What
- What resources/what amounts
- When
- Needed/scheduled/ordered
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Operations Management need tools to handle Operations decisions. Name the tools used.
- Models
- Quantitative approaches
- Analysis of trade-offs
- Systems approach
- Establishing priorities
- Ethics
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List the Historical Evolution of Operations Management in order.
- Industrial revolution (1770’s)
- Scientific management (1911)
- -Mass production
- -Interchangeable parts
- -Division of labor
- Human relations movement (1920-60)
- Decision models (1915, 1960-70’s)
- Influence of Japanese manufacturers (80’s)
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Trends in Business
- The Internet, e-commerce, e-business
- Management technology
- Globalization
- Management of supply chains (SCM)
- Outsourcing
- Agility- Ability of an org to respond quickly to demands or opportunities.
- Revenue management = Yield management
- Lean operations (JIT): incorporates advantages of both mass production (high vol, low cost) and craft production (variety and flexibility) with higher quality
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What are the typical differences between Manufacturing and Service organizations?
- Customer Contact
- Uniformity
of Input
- Labor
content
- Uniformity of output
- Output
- Measurement
of productivity
- Opportunity
to correct quality problems before delivery to customer
- Inventory
- Evaluation
- Patentable
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Goods are high in which of the ten characteristics?
- Uniformity of input
- Uniformity of output
- Measurement of productivity
- Opportunity to correct quality problems before delivery to customer
- Inventory
- Evaluation
- Patentable
- Output - Tangible
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Services are high in which of the ten characteristics?
- Customer Contact
- Labor Content
- Output - Intangible
- Patentable - Not usually
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Types of Operations and give examples of each
- Goods Producing - Farming, manufacturing, power generation, mining, construction
- Storage/Transportation - Warehousing, trucking, mail, service, moving, taxis, buses, hotels, airlines
- Exchange - Retailing, wholesaling, banking, renting, leasing, library, loans
- Entertainment - Films, radio and television, concerts, recording
- Communication - Newspapers, radio and television, newscasts, telephone, satellites
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