chapter 1 Flashcards
(18 cards)
what is operations management?
the management of processes that create goods or provide services
what is a process?
a sequence of activities usually performed by more than one person
what are the 3 kinds of processes?
core processes
support processes
managerial processes
what is an example of core processes?
taking customer reservations, communicating with customer, checking and boarding, in-flight service and baggage handling
what is an example of support processes?
employee recruitment and training, buying and maintaining aircraft, fuel and parts
what is an example of managerial processes?
forecasting demand, capacity and flight planning, locating maintenance facilitates, scheduling,
what is efficiency?
measures the amount of resources (time, cost) used to produce one unit of output
what is effectiveness?
measures the extent to which an operation is achieving the intended goals (quality and timeliness)
what are the 3 basic functions of a business?
operations (manufacturing/service)
finance
marketing and sales
what does the operations function deal with?
manages all the activities directly related to producing goods or providing services
what does the production of goods or services involve?
transforming or converting inputs into finished goods or service
what must the production process be?
it must be an adaptive system to ensure desired outputs are obtained, measurements should be taken at various points and compared with previously established standards to determine whether corrective actions is needed
can goods and services occur jointly?
yes they can happen at the same time
what is an example of goods and services happening at the same time?
services: surgery or teaching
both: dining at a restraint
goods: automobile assembly
what is value added?
the term used to describe the difference between the cost of inputs and the value or price of outputs
what is the value output of a non profit?
it is what they add to society
what is the value output in for-profit corporations?
the value of outputs is measures by the prices that the customers are willing to pay for those goods or services, typically the greater the value the greater the profits
