12BUS- Ch 3 The Operations Management Function Flashcards
(54 cards)
Tangibles
Goods which can be touched
Intangibles
Services which cannot be touched
Inputs
Resources used in the production process
Transformation
The conversion of inputs(resources) into outputs(goods or services)
Outputs
The product or service that is delivered to the consumer as a final result of the organisation’s efforts
How does operations management directly influence an organisation’s competitive position?
~Establishing level of quality
~Influencing cost of production
~Determining product availability according to demand
What are the 6 categories of inputs?
- Materials
- Capital equipment
- Labour
- Information
- Time
- Money
Operations management
All the activities in which managers engage to produce goods or services.
Productivity
A measure of efficiency- the amount of output produced compared to the amount of input required in production
Business competitiveness
The ability of an organisation to sell products in a market.
Materials management
The strategy that manages the use, storage and delivery of materials to ensure the right amount of inputs is available when required in the operations system.
Inventory
The goods and materials held as stock by an organisation
Materials handling
The physical handling of goods in warehouse and at distribution points
Production plan
An outline of the activities undertaken to combine resources to create goods or services
Master production scheduling (MPS)
Details what is to be produced and when
Materials requirements planning (MRP)
Involves developing an itemised list of all materials involved in production to meet the specified orders
Inventory control
Ensures that costs are minimised and that the operations system has access to the right amounts of inputs when required.
Just in time
A materials management strategy that ensures that the exact amount of material inputs will arrive only as they are needed in an operations process
Supply chain
The range of suppliers from which the organisation purchases materials and resources
Quality circles
Groups of workers who meet to solve problems relating to quality
Quality assurance
The use of a system so that an organisation achieves set standards in production
Total quality management
An ongoing, organisation-wide commitment to excellence that is applies to every aspect of the organisation’s operation.
Quality
The degree of excellence of goods or services and their fitness for a stated purpose
Quality control
The use of inspections at various points in the production process to check for problems and defects
