The part of a business organization that is responsible for producing goods and services.
Define operations management.
The management of systems or processes that create good and/or provide servicecs
What are 8 key differences in goods and services?
- Customer contact
- Uniformity of input
- Labor content of jobs
- Uniformity of output
- Measurement of productivity
- Production and delivery
- Quality assurance
- Amount of inventory
What are the 3 basic functions of an organization?
Marketing, Operations, Finance
Define supply chain.
A sequence of activities & organizations involved in producing and delivering a good or service.
measurements taken at various points in the transformation process
The comparison of feedback against previously established standards to determine if corrective action is needed.
One or more actions that transform inputs into outputs.
What are the 3 categories of business processes?
- Upper-management processes.
- Operational processes.
- Supporting processes.
Define upper-management processes.
These govern the operation of the entire organization.
Define operational processes.
These are core processes that make up the value stream.
Define supporting processes.
These support the core processes.
Define the 4 sources of process variation.
- Variety of goods and services offered.
- Structural variation in demand.
- Random variation.
- Assignable variation.
Define variety of goods and services being offered.
The greater the variety of goods and services offered, the greater the variation in production or service requirements.
Define structural variation in demand
Theses are generally predictable. They are important for capacity planning.
Define random variation.
Natural variation that is present in all processes. Generally, it cannot be influenced by managers.
Define assignable variation.
Variation that has identifiable sources. This type of variation can be reduced , or eliminated, by analysis and corrective action.
Define operations function.
Consists of all activities directly related to producing goods or providing services.
List 5 system design decisions.
- Facility location
- Facility layout
- Product and service planning
- Acquisition and placement of equipment.
List 5 system operation decisions.
- Management of personnel
- Inventory management and control
- Project management
- Quality assurance
Increasing productivity allows companies to maintain or increase their output using fewer workers.
Some manufacturing work has been outsourced to more productive companies.
Define a statistical artifact.
Manufacturers are increasingly using contract and temporary labor which no longer show up in the statistics as manufacturing employment.
An abstraction of real-life phenomena. key tool used by all decision makers.
What the 3 types of models?
What is a physical model?
Looks like their real- life counterparts
What is a schematic model?
Looks less like their real-life counterparts than physical models.
What is a mathematical model?
Does not look their real-life counterparts.
Define quantitative method.
A decision making approach that frequently seeks to obtain a mathematically optimal solution.
Define performance metrics.
All managers use metrics to manage and control operations.
Define analysis of trade-offs.
A trade-off is giving up one thing in return of something else.
Define degree of customization.
Relative to other standardized products and services customized products. Has a significant influence on the entire organization.
Define pareto phenomenon.
A few factors account for a high percentage of occurrence of some events.
Define a system.
A set of interrelated parts that must work together. Composed of 3 subsystems- marketing, operations, finance.
What are the 10 elements of supply chain management?
- Capacity planning
Define craft production.
System in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods.
Who is Frank Gilbreth?
The father of motion studies.
Who is Henry Gantt?
Developed the Gantt chart scheduling system and recognized the value of non-monetary rewards for motivating employees.
Who is Harrington Emerson?
Applied Taylor's ideas to organization structure.
Who is Henry Ford?
Employed scientific management techniques to his factories. Moving assembly line and mass production