Chapter 1 Flashcards
(23 cards)
The creation of goods and
services.
Production
Activities that relate to the creation
of goods and services through
the transformation of inputs to
outputs.
Operations management (OM)
is one of the
three functions that every
organization performs.
Operations
A global network of organizations
and activities that supplies a firm
with goods and services.
Supply chain
Coke supply chain
Farmer - Syrup
producer - Bottler -Distributor - Retailer
Good OM managers are
_______ and, as a result,
career opportunities and
pay are excellent.
scarce
We study OM for four reasons:
how people organize themselves for productive enterprise . to know how goods and services are produced , to understand what operations managers do, because it is such a costly part of an organization
All organizations perform three functions to create goods and services:
1. Marketing , which generates demand
2. Production/operations, which creates the product
3. Finance/accounting, which tracks how well the organization is doing, pays the
bills, and collects the money
TRUE
All good managers perform the basic functions of the management process. The management
process consists of planning , organizing , staffing , leading , and controlling
TRUE
About 40% of all jobs are in OM. Operations managers possess job titles such as
plant manager, quality manager, process improvement consultant, and operations
analyst.
True
Economic activities that typically produce an intangible product
(such as education, entertainment, lodging, government, financial, and health
services). Almost all services and almost all goods are a mixture of a service and
a tangible product.
Services
The segment of the economy that includes trade, financial, lodging, education, legal, medical, and other professional occupations. Services now
constitute the largest economic sector in postindustrial societies. The huge productivity increases in agriculture and manufacturing have allowed more of our
economic resources to be devoted to services. Many service jobs pay very well.
Service Sector
The ratio of outputs (goods and services) divided by one or more
inputs (such as labor, capital, or management)
Productivity
High production means producing many units, while high productivity means
producing units efficiently.
True
Indicates the ratio of goods and services produced
(outputs) to one resource (input).
Single-factor productivity
Indicates the ratio of goods and services produced
(outputs) to many or all resources (inputs).
Multifactor productivity
Measurement problems with productivity include: (1) the quality may change,
(2) external elements may interfere, and (3) precise units of measure may be lacking
True
A society in which much of the labor force has migrated
from manual work to work based on knowledge
Knowledge society
Some of the current challenges for operations managers include:
j Global focus; international collaboration
j Supply chain partnering; joint ventures; alliances
j Sustainability; green products; recycle, reuse
j Rapid product development; design collaboration
j Mass customization; customized products
j Lean operations; continuous improvement and elimination of waste
Among the many ethical challenges facing operations managers are (1) efficiently
developing and producing safe, quality products; (2) maintaining a clean environment; (3) providing a safe workplace; and (4) honoring stakeholder commitments.
Those with a vested interest in an organization
Stakeholders
Services are especially
important because almost 80%
of all jobs are in service firms.
TRUE
t is responsible for ensuring that labor and capital are effectively used to increase productivity
Management
