Operations Management Flashcards
(38 cards)
Operations management
Consists of all the activities in which managers engage to produce goods or services.
Tangibles
Goods which can be touched
Intangibles
Services which cannot be touched
Inputs
Resources used in the process of production
Transformation
The conversion of inputs (resources) into outputs (goods or services)
Outputs
Refers to the end result of an organisation efforts (delivered/provided to the customer)
Effectiveness
The degree to which an organisation has achieved its stated objectives
Efficiency
Refers to how well an organisation uses resources to achieve objectives
Productivity
Output per worker per unit of time
Business competitiveness
The ability of an organisation to sell products in a market
Facilities design & layout
Involves planning the design, layout & formation of the workplace to streamline the production process
Fixed position layout
Deals with large-scale processes (construction of ships, aircrafts)
Product layout
Deals with the manufacturing of goods in mass volume using an assembly line
Process layout
Deals with high varieties of products by grouping activities, equipment and machinery of similar function together
Lean manufacturing
Aims to eliminate waste at every stage of production.
Involves analysing each stage of the production process, detecting where inefficiencies are and correcting them
Materials management
The strategy that manages the use, storage and delivery of materials/goods to ensure the right amount of inputs is available when required in the operations system
Inventory
The goods and materials held as stock by an organisation
Materials handling
The physical handling of goods in warehouses and at distribution points
Production plan
An outline of the activities undertaken to combine resources (inputs) to create goods or services (outputs)
Master production scheduling
Details what is to be produced and when
Materials requirements planning
Involves developing an itemised list of all materials involved in production to meet the specified orders
Inventory control
Ensures that costs are minimised and that the operations system has access to the right amounts of inputs when required
Just in time (JIT)
A materials management strategy that ensures that the exact amount of material inputs will arrive only as they are needed in operations process
Supply chain
The range of suppliers from which the organisation purchases materials and resources
