GMS W123 Flashcards
(34 cards)
three functions to create goods and services:
- Marketing, which generates demand
- Production/operations, which creates the product
- Finance/accounting, which tracks how well the organization is doing, pays the
bills, and collects the money
Ten OM strategic decisions
- Design of goods and services
- Managing quality
- Process strategies
- Location strategies
- Layout strategies
- Human resources
- Supply chain management
- Inventory management
- Scheduling
- Maintenance
*About 40% of all jobs are in OM.
Productivity
ratio of outputs (goods and services) divided by one or more inputs (such as labor, capital, or management)
*High production means producing many units, while high productivity means producing units efficiently.
Single-factor productivity
goods and services produced
(outputs) to one resource (input).
Multifactor productivity
goods and services produced
(outputs) to many or all resources (inputs).
Productivity variables
labor (10%), capital (38%), and management (52%).
the current challenges for operations
- Global focus; international collaboration
- Supply chain partnering; joint ventures; alliances
- Sustainability; green products; recycle, reuse
- Rapid product development; design collaboration
- Mass customization; customized products
- Lean operations; continuous improvement and elimination of waste
three strategic approaches to competitive advantage
- Differentiation
- Cost leadership
- Response
Differentiation
Distinguishing the offerings of an organization in a way that the
customer perceives as adding value.
Experience differentiation
Engaging the customer with a product through imaginative use of the five senses, so the customer “experiences” the product.
Low-cost leadership
maximum value,
Response
rapid, flexible, and reliable performance.
Porter’s five forces model
(1) immediate rivals, (2) potential entrants,
(3) customers, (4) suppliers, and (5) substitute products.
Resources view
evaluate the resources at their disposal
and manage or alter them to achieve competitive advantage.
Potential risks of outsourcing
-A drop in quality or customer service
- Political backlash that results from outsourcing to foreign countries
- Negative impact on employees
- Potential future competition
- Increased logistics and inventory costs
*most common reason given for outsourcing failure is that the decision was made
without sufficient understanding and analysis.
*factor-rating method
j International business
cross-border transactions.
Multinational corporation
involvement in international business, owning or controlling facilities in more than one country.
four operations strategies for approaching global
- International strategy—global markets are penetrated using exports and licenses with little local responsiveness.
- Multidomestic strategy—operating decisions are decentralized to each country to enhance
- Global strategy—operating decisions are centralized and head-quarters coordinates the standardization and learning between facilities.
- Transnational strategy—combines the benefits of global-scale efficiencies with the benefits of local responsiveness. These firms transgress national
boundaries.
objective of maintenance and reliability
maintain the capability of the
system.
Maintenance
maintaining capability of the system.
Reliability
probability that a machine part or product will function
properly
two main tactics for improving reliability
- Improving individual components
- Providing redundancy
two main tactics for improving maintenance
- Implementing or improving preventive maintenance
- Increasing repair capabilities or speed
Reliability
any one component fails to perform, the overall
system can fail.
As the number of components in a series increases, the reliability of the whole system declines very quickly:
