Supply Chain & OM Mid-Term Flashcards
(93 cards)
1
Q
Operations Management (OM)
A
Is activities that relate to the creation of goods & services through transformation of inputs to outputs
2
Q
Production
A
Creation of goods
3
Q
3 Main Functions
A
- Marketing - generates demand
- Production/operations - creates/produces product
- Finance/accounting - tracks how well organization is doing (pays bills, collects $)
4
Q
Supply Chain
A
Global network of organizations & activities that supplies a firm with goods & services
5
Q
Why Study OM? (2)
A
- Want to know how goods and services are produced
2. Because it is such a costly part of an organization
6
Q
Management Process
A
Application of planning, organizing, staffing, leading, and controlling to the achievement of objectives
7
Q
10 Critical Decisions of Operations Management
A
- Design of goods & services
- Managing quality
- Location strategy
- Process & capacity design
- Layout strategy
- Human resource job design
- Supply chain management
- Inventory, material requirements planning and JIT (just-in-time)
- Intermediate & short term scheduling
- Maintenance
8
Q
Management Should (4)
A
- Matching employees to right jobs
- Provide proper training
- Provide proper work methods & tools
- Establish legitimate incentives for work to be accomplished
9
Q
Information Technology
A
Systematic processing of data to yield information
10
Q
Services
A
Economic activities that produce an intangible product (eg. education, entertainment, repair, law & trade)
11
Q
Services (6)
A
- Produced & consumer simultaneously
- Unique
- High customer interaction
- Inconsistent product definition
- Knowledge based
- Dispersed
12
Q
Service Sector
A
Segment of the economy that includes trade, financial, lodging, education, legal, & medical
13
Q
Challenges in OM (7)
A
- Global focus
- Supply-chain partnering
- Sustainability
- Rapid product development
- Mass customization
- Just-in-time performance
- Empowered employees
14
Q
Productivity
A
Ratio of outputs (goods & services) divided by one or more inputs (labour, capital, or management)
15
Q
Efficiency
A
Improving productivity with minimum of resources & waste
16
Q
Improvement (2)
A
- Reducing inputs while keeping outputs constant
2. Increasing output while keeping input constant
17
Q
Productivity Formula
A
Units/Input Used
18
Q
Single Factor Productivity
A
Indicates ratio of one resource (input) to the goods & services produced (outputs)
19
Q
Multifactor Productivity
A
Indicates the ratio of many or all resources (inputs) to the goods & services produced (outputs)
20
Q
Quality
A
May change while the quantity of inputs and outputs remains constant
21
Q
External Elements
A
May increase or decrease in productivity for the system under study may not be directly responsible
22
Q
Precise Units of Measure
A
May be lacking (eg. not all cars require same inputs)
23
Q
3 Factors Critical to Productivity Improvement
A
- Labour (10% annual increase)
- Capital (38% annual increase)
- Management (52% of annual increase)
24
Q
3 Variables for Improved Labour
A
- Basic education appropriate for an effective labour force
- Diet of labour force
- Social overhead that makes labour available, such as transportation & sanitation
25
Capital
Human beings are tool using animals
| Capital investments provide the tools
26
Increase Cost of Capital
Inflation & taxes
27
Knowledge Society
Society which much of the labour force has migrated from manual work to work based on knowledge
28
Service Sector Work (5)
1. Typically labour intensive (eg. counselling & teaching)
2. Frequently focused on unique individual attributes or desires (eg. investments advice)
3. Often an intellectual task preformed by professionals (eg. medical diagnosis)
4. Often difficult to mechanize & automate (eg. haircut)
5. Often difficult to evaluate for quality (eg. performance of a law company)
29
Ethical Challenges Facing OM (4)
1. Efficiently developing & producing safe, quality products
2. Maintaining a sustainable environment
3. Providing a safe workplace
4. Honouring stakeholder commitments
30
Managers Must Have
Moral awareness & focus on increasing productivity
31
Globalization
Domestic production & exporting may no longer be viable business model; local production & exporting no longer guarantee success or even survival
32
6 Reasons Why Domestic Business Operations Decide International Operation
1. Reduce costs (labour, taxes, tariffs, etc)
2. Improve supply chain
3. Provide better goods & services
4. Understand markets
5. Learn to improve operations
6. Attract & retain global talent
33
Maquiladoras
Mexican factories located along the United States-Mexico border receive preferential tariff treatment
34
World Trade Organization (WTO)
International organization that promotes world trade by lowering barriers to the free flow of goods across borders
35
North American Free Trade Agreement (NATFA)
A free trade agreement between Canada, Mexico, & the United States
36
European Union (EU)
European trade group that has 28 member states as of 2015
37
To Successfully Achieve Competitive Advantage Means Maximizing
All the possible opportunities, from tangible to intangible, that international operations can offer
38
Mission
Purpose or rationale for an organization's existence
39
Effective Operations Must Have (2)
1. Mission, so it knows where it is going
| 2. Strategy, so it knows how to get there
40
Strategy
How an organization expects to achieve it's mission & goals
41
How Firms Achieve Mission in 3 Conceptual Ways
1. Differentiation (better)
2. Cost leadership (cheaper)
3. Response (more responsive)
42
Competitive Advantage
Creation of a unique advantage over competitors
43
Differentiation
Distinguishing the offerings of an organizations in a way that the customer perceives as adding value
44
Experience Differentiation
Engaging a customer with a product though imaginative use of the 5 senses, so the customer can "experience" the product
45
Low-Cost Leadership
Achieving maximum value, as perceived by customers
46
Response
A set of values related to rapid flexible & reliable performance
47
Flexible Response
Ability to match changes in the market place where design innovations & volumes fluctuate substantially
48
Resource View
Method managers use to evaluate the resources at their disposal & manage or alter them to achieve competitive advantage
49
Value Chain Analysis
Way to identify those elements in their product/service chain that uniquely add value
50
Key Success Factors (KSF)
Activities or factors that are key to achieving competitive advantage
51
Product Design
The characteristics or features of a product or service that determine its ability to meet the needs of the user
52
Product Development Process (CPDPL)
Concept, planning, design & development, commercialization preparation and finally the launch (CPDPL)
53
Reasons for Developing New Products and Services (4)
1. New products or services can give firms a competitive advantage in the marketplace
2. New products or services provide benefits to the firm
3. Companies develop new products or services to exploit existing capabilities
4. Companies can use new product development to block out competitors
54
Internal Benefits
Shorter cycle time, less cost, less waste
55
Repeatability (Robust Design)
Consistently deliver the same product at the required volume
56
Testability
Non-value added activity, so should be easy and inexpensive to do
57
Serviceability of the Design
Ease of repair, critical for products expected to be serviced or repaired
58
Product Volumes
Increased volumes due to developing a new product or service can be handled by expanding a firm’s own operations by building new facilities, hiring additional workers, buying new equipment, or joint planning with key suppliers
59
Product Costs
Obvious costs - costs that are the easiest to see and manage. Hidden costs- costs that are not easy to track but can have a major impact
60
Engineering Change
1. Track and explain what every change was, why it was made, what it may affect and how it affects it
2. Documentation of all changes to products or processes.
3. These can be known as ECO, ECR, ECN
61
Product Design Flexibility
Easy to add features or upgrade
62
Process Flexibility
Share processes or parts, will upgrade make current operations obsolete
63
How Processes are in the Developmental Process
5 Phases
1. Concept Development Phase
2. Planning Phase
3. Design and Development Phase
4. Commercial Preparation phase
5. Launch Phase
64
Concept Development Phase (Developmental Process #1)
The first phase of a product development effort where a company identifies ideas of new or revised products and services
65
Planning Phase (Developmental Process #2)
The second phase of a product development effort company where a company begins to address the feasibility of a product or service
66
Design and Development Phase (Developmental Process #3)
The third phase of a product development effort where the company starts to invest heavily in the development effort and builds and evaluates prototype
67
Commercial Preparation phase (Developmental Process #4)
The fourth phase of a product development effort where firms start to invest heavily in the operations and supply chain resources needed to support the new product or service
68
Launch Phase (Developmental Process #5)
The final phase of a product development effort. For Products, this means “filling up” the supply chain with products. For services, it can mean making the service broadly available to the target market
69
Sequential Development
Process in which a product or service idea must clear specific hurdles before it can go on to the next development phase.
70
Concurrent Engineering
An alternative to sequential development in which activities in different development stages are allowed to overlap with one another, shortening the total development time
71
Engineering
Provide the expertise
72
Marketing
Understand the marketplace
73
Accounting
Play the role of scorekeeper
74
Finance
Judge the financial impact and determine how to acquire the needed capital
75
Designers
Handle product design and create identities for companies, environments, and service experiences
76
Gray Box Design
Hybrid arrangement. A situation in which a supplier works with a customer to jointly design the product
77
Black Box Design
Highest level of supplier participation where they are the expert. A situation in which suppliers are supplied with general requirements and are asked to fill in the technical specifications
78
Standardization
Is the planned elimination of unneeded similar parts, to save time and money eg., An automaker decides to have all models using a wheel
79
Modularity
Refers to breaking components into sections or modules, based on functions (eg. a group of parts that work together as a physical chunk, such as an auto fender section, which may contain an outer panel, inner frame, fasteners and paint)
80
Target Costing
The process of designing a product to meet a specific cost objective
81
Value Analysis
The process that involves examining all elements of a component, an assembly, an end product, or a service to make sure it fulfils its intended function at the lowest total cost
82
Value =
= Function/cost
83
User-Based
Better performance, more features
84
Manufacturing-Based
Conformance to standards, making it right the first time
85
Why is Quality Important?
1. Company Reputation
2. Product Liability
3. Globally Important
4. Managing quality supports differentiation, low-cost, and response strategies
5. Quality helps firms increase sales and reduce costs
6. Building a quality organization is a demanding task
86
Flow of Activities Necessary to Achieve Total Quality Management
Organizational practices -> Quality principles -> Employee Fulfillment -> Customer Satisfaction
87
Prevention Costs
Reducing the potential for defects
88
Appraisal Costs
Evaluating products, parts and services
89
Internal Failure
Producing defective parts or service before delivery
90
External Costs
Defects discovered after delivery
91
Generating Waste
Transportation, Inventory, Movement, Waiting, Overproduction, Over-processing, Defects, Skills not utilized
92
Seven Concepts of Total Quality Management
1. Continuous Improvement
2. Six Sigma
3. Employee Empowerment
4. Benchmarking
5. Just in time (JIT)
6. Taguchi concepts
7. Knowledge of TQM tools
93
Six Sigma Program (DMAIC Approach)
1. Define critical outputs and identify the gaps for improvement
2. Measure the work and collect the data
3. Analyze the data
4. Improve the process
5. Control the new process to make sure new performance is maintained
