Operation Management Flashcards
(20 cards)
What is operations management (OM)?
Operations management involves transforming inputs into useful outputs to create value. It is the business function responsible for planning, coordinating, and controlling resources to produce products or services efficiently.
What are the main goals of operations management?
- Maximize organizational efficiency
- Increase productivity
- Reduce costs
- Increase profits
- Ensure high-quality product/service delivery
How is operations management linked to a company’s strategy?
OM aligns with the company’s mission and vision to ensure products and services meet customer needs efficiently and competitively.
Why is operations management important in today’s business world?
Because success is increasingly about how business is done rather than what is produced. Efficient operations offer advantages in delivery, quality, cost, and flexibility, giving companies like Dell a competitive edge.
What are the main types of planning in operations management?
- Strategic Planning
- Operational Planning
- Business Planning
- Resource Planning
- Organizational & Contingency Planning
What does strategic planning involve?
Setting vision, mission, goals, and objectives using tools like SWOT analysis, and defining strategies, roles, and processes specific to the pharmacy setting.
What is product/service planning?
- It involves market research to:
- Identify customer needs
- Define product specifications
- Price and promote effectively
- Manufacture prototypes
- Conduct feasibility studies
What is capacity planning?
It determines how much of a product or service should be delivered, how often, and forecasts demand to align production capacity with customer needs.
What are the four competitive priorities in operations?
- Cost
- Quality
- Time
- Flexibility
What does facilities and layout planning include?
- Planning the physical layout
- Maintaining facilities
- Meeting regulatory requirements
- Learning from industry best practices
What is job and work design?
It involves structuring tasks and work environments to reduce employee dissatisfaction and alienation from repetitive or mechanical tasks.
What is workflow management?
Mapping processes, identifying redundancies, automating tasks, and improving overall process flow from input to outcome.
What is production planning?
Mapping out activities needed to produce, assemble, and test products or services, including assessing cost, demand, and available technologies.
What is supply chain management?
Coordinating the flow of materials, information, and resources from supplier to customer, including product development, production, sourcing, and logistics.
What is inventory management?
Managing raw materials, finished goods, supplies, and in-progress work to balance stock levels with sales rates.
What role does operations management play in pharmaceutical companies?
Planning and coordinating production, ensuring medicines are prepared, packaged, and delivered to clients like hospitals and pharmacies efficiently.
How does OM ensure product and service quality?
By verifying durability, reliability, and using processes that uphold quality standards in both manufacturing and service delivery.
How does OM contribute to customer satisfaction?
By ensuring timely delivery, quality products, good service, and meeting or exceeding customer expectations.
What is quality control in operations management?
A key part of quality management that ensures all product and service quality standards are met, often using systems like Total Quality Management (TQM).
How does effective operations management offer a competitive advantage?
By improving outputs, reducing waste, lowering costs, and delivering tailored, high-quality services that help a company stand out in the market.
