Introductions to Operations Management Flashcards
The part of a business organization that is responsible for producing goods or services.
Operations
The management of systems or processes that create goods and/or provide services
Operations Management
are physical items that include raw materials, parts, subassemblies, and final products.
Goods
are activities that provide some combination of time, location, form or psychological value.
Services
a sequence of activities and organizations involved in producing and delivering a good or service
Supply Chain
Measurements taken at various points in the transformation process
Feedback
The comparison of feedback against previously established standards to determine if corrective action is needed.
Measurements
Products are typically neither purely service- or purely goods-based.
Good Service Continuum
The three basic functions of business organization
marketing, operations, finance
function of business organization that handles Budgeting, Economic analysis of investment proposals, Provision of funds
Finance and Operations
function of business organization that handles Demand data
Product and service design
Competitor analysis
Lead time data
Marketing and Operations
one or more actions that transform inputs into outputs
Process
this process governs the entire organization’s operation
Upper management process
this process make up the value stream
Operational processes
these support the core processes
Supporting processes
Wasteful and Costly:
Supply _ Demand
Supply > Demand
Opportunity Loss and Customer Dissatisfaction
Supply _ Demand
Supply < Demand
Ideal
Supply _ Demand
Supply = Demand
The greater the variety of goods and services offered, the greater the variation in production or service requirements.
a. Variety of goods or services being offered
b. Structural variation in demand
c. Random variation
d. Assignable Variation
a. Variety of goods or services offered.
These are generally predictable. They are important for capacity planning.
a. Variety of goods or services being offered
b. Structural variation in demand
c. Random variation
d. Assignable Variation
b. Structural Variation in demand
Natural variation that is present in all processes. Generally, it cannot be influenced by managers.
a. Variety of goods or services being offered
b. Structural variation in demand
c. Random variation
d. Assignable Variation
c. Random variation
Variation that has identifiable sources. This type of variation can be reduced, or eliminated, by analysis and corrective action.
a. Variety of goods or services being offered
b. Structural variation in demand
c. Random variation
d. Assignable Variation
d. Assignable Variation
The _______ function consists of all activities directly related to producing goods or providing services.
Operations
These are typically strategic decisions that
- usually require long-term commitment of resources
- determine parameters of system operation
System Design
