Overview of Production Operations Management Flashcards
A group of people working together to achieve common objectives.
Organization
There must be a group of people – two or more persons –who are interconnected, interrelated and interdependent; people who communicate and are concerned with one another;
Community
These persons must have common objectives; i.e., they all agree on at least one objective that is worth pursuing and achieving together;
Common purpose
Each member of the group works to the best that he or she can to contribute towards the achievement of their shared objectives; and
Cooperation
The group members work together; i.e., all their efforts are interrelated and coordinated, all aimed at the achievement of their common objectives; coordination implies both harmony and unity of direction.
Coordination
The process of working with resources by performing the functions of planning, organizing, staffing, leading, and controlling to create a positive environment where people can harmoniously work together to effectively and efficiently achieve organizational objectives in an ever-changing environment.
Management
The people in the organization who are responsible for the management process – need to be continually aware that the organization exists as a part of an environment that is constantly changing; thus, the need for organizations to be continually adaptive organisms.
Managers
Involves choosing or setting objectives and then determining the course of action needed to achieve them.
Planning
Involves determining the activities and resources required to implement the strategies, combining them into a formal structure, assigning responsibilities, and delegating authority.
Organizing
Involves filling, and keeping filled, with the right people the various positions in the organizational structure.
Staffing
Involves influencing people so that they will do their best, in harmony with the other members, to contribute to the achievement of the organization’s objectives.
Leading
Involves devising ways and means to ensure that the planned performance is actually achieved.
Controlling
Means doing the right thing. An organization is doing the right things if these contribute towards the achievement of the right objectives.
Effectiveness
What the organization sees itself becoming into.
Vision
Why the organization exists; the organization’s basic purpose for existence.
Mission
Means doing things right. An organization is doing things right if it is achieving its objectives using minimum resources.
Efficiency
The functional area responsible for making the decisions related to the 5 Ps – people (customers), product (goods/services), promotion, place (distribution) and pricing.
Marketing
The functional area responsible for making the financing, investment and dividend decisions. We will discuss only the first two of these, in more detail.
Finance
The functional area directly responsible for making the decisions related to the creation of goods or provision of services.
Production/Operations
Is the ability of an organization to effectively meet or exceed customer expectations relative to other organizations that offer similar goods or services.
Competitiveness
Refers to the customer perception of how well the product serves its purpose.
Quality
Refers to an organization’s ability to effectively use its resources, it is the ability of the organization to be both effective and efficient; i.e., its ability to maximize customer satisfaction at the minimum cost possible.
Productivity
The driving force behind the production of goods and services, and customers generally view quality from either the transcendent or the product-based perspective.
Customer
A person or group with a direct interest,
involvement, or investment in the organization.
Stakeholder
