Operations Management Exam 2

Some examples of hard technology are computers, computer chips and microprocessors, optical switches and communication lines, satellites, sensors, robots, automated machines, and RFID tags. Some examples of soft technology are database systems, artificial intelligence programs, and voice recognition software. Computer integrated manufacturing systems (CIMSs) play an important role in modern manufacturing

• The right technology must be selected for the goods that are produced
• Process resources such as machines and employees must be set up and configured in a logical fashion to support production efficiency
• Labor must be trained to operate the equipment
• Process performance must be continually improved
• Work must be scheduled to meet shipping company commitments/customer promise dates
• Quality must be ensured

Refers to equipment and devices that perform a variety of tasks in the creation and delivery of goods and services.

Refers to the application of the Internet, computer software, and information, and analysis and to facilitate the creation and delivery of goods and services

Represent the union of hardware, software, database management, and communications to automate and control production activities, from planning and design to manufacturing and distribution

Machine tools enable the machinist's skills to be duplicated by a programmable device (originally punched paper tape) that controls the movements of a tool used to make complex shapes

Machines are NC machines whose operations are driven by a computer. A ROBOT is a programmable machine designed to handle materials or tools in the performance of a variety of tasks

Enables engineers to design, analyze, test, simulate, and "manufacture" products before they physically exist, thus ensuring that a product can be manufactured to specifications when it is released to the shop floor

Involves computer control of the manufacturing process, such as determining tool movements and cutting speeds

Consist of two or more computer-controlled machines or tools linked by automated handling devices such as transfer machines, conveyors, and transport systems. Computers direct the overall sequence of operations and route the work to the appropriate machine, select and load the proper tools, and control the operations performed by the machine

Refers to using the Internet and technology to provide services that create and deliver time, place, information, entertainment, and exchange value to customers and/or support the sale of goods

With all the new technology that has evolved, a new perspective and capability for the value chain has emerged--the E-COMMERCE VIEW OF THE VALUE CHAIN. This includes business-to-business (B2B), business-to-customer (B2C), customer-to-customer (C2C), and government-to-customer (G2C) value chains; some examples are GE Plastics, Federal Express, and eBay, respectively. Business analytics play a critical role in managing value chains, particularly for integrating and analyzing data throughout the value chain within an information systems framework. Two key information systems that drive value chain management are enterprise resource planning (ERP) and customer relationship management (CRM). ERP combines each department's information into a single, integrated system with a common database so that departments can easily share information and communicate with each other. A typical CRM system includes market segmentation and analysis, customer service and relationship building, effective complaint resolution, cross-selling of goods and services, and pre- and and postproduction processes such as preproduction order processing and postproduction field service

Is a business strategy designed to learn more about customers' wants, needs, and behaviors in order to build customer relationships and loyalty, and ultimately enhance revenues and profits

Scalability is a key issue in whether chains succeed or fail. OM decisions affect the ability to handle changes in demand and variable costs, and therefore the scalability of a firm's processes and value chain. Monster.com is one example of high scalability

is a measure of the contribution margin (revenue minus variable costs) required to deliver a good or service as the business grows and volumes increase

Is the capability to serve additional customers at zero or extremely low incremental costs

Implies that serving additional customers requires high incremental variable costs

Global supply chains are complex supply chains operated by multinational enterprises. Their value chains can source, market, create, and deliver goods and services to customers worldwide. Key design decisions include: strategy, control, location, sustainability, technology, digital content, logistics and transportation, outsourcing, managing risks, measuring performance

Is an organization that sources, markets, and produces its goods and services in several countries to minimize costs, and to maximize profit, customer satisfaction, and social welfare

The OPERATIONAL STRUCTURE of a supply chain is the configuration of resources such as suppliers, factories, warehouses, distributors, technical support centers, engineering design and sales offices, and communication links

Are designed for efficiency and low cost by minimizing inventory and maximizing efficiencies in process flow

Focus on flexibility and responsive service and are able to react quickly to changing market demand and requirements