Final Review Flashcards
(26 cards)
What is Operations Management (OM)?
The management of processes used to design, supply, produce, and deliver valuable goods and services to customers.
Define Supply chain (SC).
The global network of organizations and activities involved in:
* Designing
* Transforming
* Consuming
* Disposing of goods and services.
What activities create and enhance the value of goods and services in OM?
How resources are developed and used to accomplish business goals.
OM is about designing, executing, and improving what?
Business processes.
What are the four major sets of players in OM?
- Firm
- Customers
- Suppliers
- Stakeholders.
Why must OM be consistent with the strategic goals of the firm?
To be effective.
What makes OM dynamic?
Changes in customers’ demands, resources, competition, and technologies.
What is a Value Proposition?
Statement of product and service features that the firm offers to its customers.
What are the characteristics of a well-designed value proposition?
- Features that customers value and will pay for
- Differentiates from competitors that is difficult to imitate
- Satisfies financial and strategic firm objectives
- Reliably delivered using the firm’s capabilities and supply chain
- Consistent with the firm’s social and core values.
Define a process.
A system of structured activities that use resources to turn inputs into valuable outputs.
What is process thinking?
Views activities in an organization as a collection of processes.
Define capacity in the context of process capacity.
Amount of output a process can produce given the amounts of inputs and resources made available to the process.
What is a bottleneck?
A constraint or ‘scarce resource’ for which demand ≥ capacity.
What does demand define in a system?
The maximum capacity of a system.
What is the difference between a serial/sequential structure and a parallel structure?
- Serial/Sequential structure: processes occur one after another
- Parallel structure: two or more processes occur simultaneously.
What does flow time measure?
Time for one unit to get through a process.
What is Little’s law?
There is a relationship between flow time (F), inventory level (I), and throughput rate (TH): F = I / TH.
What are the stages of the product life cycle?
- Launch
- Growth
- Maturity
- Decline.
What is the focus during the decline stage of the product life cycle?
Changing technology or customer needs, declining demand, potential phase in of a replacement product.
What is the Product-Process Matrix?
A tool that relates product characteristics to process characteristics.
What are the types of inventory?
- Raw materials and component parts
- Work in process (WIP) inventory
- Finished goods inventory
- MRO inventory.
What are the dimensions of quality for goods and services?
- Prevention costs
- Appraisal costs
- Internal failure costs
- External failure costs.
What does PDCA stand for in quality management?
Plan, Do, Check, Act.
What does demand planning involve?
Both forecasting and managing customer demand to reach operational and financial goals.
