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Flashcards in Chapter 21 Deck (47):
1

Operations Management

The set of managerial activities used by an organization to transform resource inputs into products, services, or both.

2

The Importance of Operations

Efficient and effective management of operations is necessary for competitiveness and overall organization performance.

3

Manufacturing and Production

A form of business that combines and transforms resource inputs into tangible outcomes that are then sold to others.

4

Service Organization

Organization that transforms resources into an intangible output and creates time and place utility for its customers

5

The Role of Operations in Organizational Strategy

Operations management has a direct impact on competitiveness, quality, productivity, and effectiveness.
Operations management and organizational strategy have reciprocal effects on each other.
Strategic goals cannot be met if there are deficiencies and insufficiencies in operations resources

6

Designing Operations Systems

Determining Product-Service Mix
Capacity Decisions
Facilities Decisions

7

Determining Product-Service Mix

Involves deciding how many and what kinds of products to offer in the marketplace.

8

Capacity Decisions

Involve choosing the amount of products, services, or both that can be produced by an organization.
High-risk decisions due to uncertainty about future product demand and the significant costs of additional, possibly excess, capacity.

9

Facilities Decisions

Facilities
Layout

10

Facilities

The physical locations where products or services are created, stored, and distributed.
Location

11

Layout

The physical configuration of facilities, the arrangement of equipment within facilities, or both.
Product Layout
Process Layout
Fixed Position Layout
Cellular Layout

12

Product Layout

Facilities arranged around the product; used when large quantities of a single product are needed.

13

Process Layout

Facilities arranged around the process; used in facilities that create a variety or products.

14

Fixed Position Layout

Facilities arranged around a single work area; used for the manufacture of large and complex products.

15

Cellular Layout

A configuration of facilities used when families of products can follow similar paths.

16

Manufacturing Technology

Technology
Automation
Robot
Robotics

17

Technology

The set of processes and systems used by organizations to convert resources into products or services.

18

Automation

The process of designing work so that it can be completely or almost completely performed by machines.

19

Robot

Artificial device

20

Robotics

The science and technology of the construction, maintenance, and use of robots.

21

Service Technology

Services are rapidly moving toward automated systems and procedures.

22

Implementing Operations Systems Through Supply Chain Management

Supply Chain Management
Operations Management as Control
Purchasing Management
Inventory Management

23

Supply Chain Management

The process of managing operations control, resource and inventory acquisition and purchasing, and thus improving overall efficiency and effectiveness.

24

Operations Management and Control

Operations management can be used as a control by coordinating it with other organizational functions to insure that the system focuses on the elements that are most crucial to goal attainment.

25

Purchasing Management

Controlling the buying of the materials and resources is at the heart of effective supply chain managemnte

26

Inventory Management

Inventory control
Just-in-time method

27

Inventory Control

X

28

Just-in-time Method

As inventory system that has necessary materials arriving as soon as they are needed so that the production process is not interrupted.

29

The meaning of Quality

The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
Quality is both a relative and absolute concept.
Quality is relevant to both products and services.

30

The Importance of Quality

Malcolm Bridge Award
Competition
Productivity
Costs

31

The Importance of Quality: Competition

Quality has become one of the most important competitive points in business today

32

The Importance of Quality: Productivity

Quality enhancement programs decrease the number of defects, reduce resources dedicated to rework, and reduces the need for inspectors as employees become responsible for quality.

33

The Importance of Quality: Costs

Improved quality reduces costs from customer returns, warranty, and lawsuits for faulty products, and lost sales to future customers.

34

Total Quality Management

TQM
A strategic commitment by top management to change its whole approach to business and to make quality a guiding factor in everything the organization does.

35

Eight Dimensions of Quality

Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived Quality

36

TQM Tools and Techniques

Value
Bench marking
Outsourcing
Statistical Quality Control

37

Guidelines for increasing speed of operation

Start from scratch.
Minimize the number of approvals to get things done.
Use work teams as a basis for organizations.
Develop and adhere to a schedule.
Don't ignore distribution.
Integrate speed into the organization's culture.

38

Productivity

An economic measure of efficiency that summarizes the value of outputs relative to the value of the resources used to produce them.

39

Levels of Productivity

The unit of analysis used to calculate or define productivity.
Aggregate Productivity
Industry Productivity
Company Productivity
Unit Productivity
Individual Productivity

40

Aggregate Productivity

The total level of productivity for a country.

41

Industry Productivity

The total productivity of all the firms in an industry.

42

Company Productivity

The level of productivity of a single company.

43

Unit Productivity

The productivity level of a unit or department.

44

Individual Productivity

The productivity attained by a single person.

45

Improving Productivity

Improving Operations
Increasing Employee Involvment

46

Improving Operations

Spending more resources on research and development helps identify new products, new uses for existing products, and new methods for making products.
Reworking transformation process and facilities can boost productivity.

47

Increasing Employee Involvment

Increased employee participation can increase quality and productivity.
Cross-training of employees allow the firm to function with fewer workers.
Rewards are essential to success in improving productivity.