Week 1 /Chapter 1 Flashcards
(32 cards)
Operations Management definition
an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services
OM is the ___________________ that create goods and/or provide services
management of processes
Companies use operation management for two reasons, which are?
1) Efficiency
2) Effectiveness
Efficiency
Operating to minimize cost and time
Effectiveness
Achieving intended goals: quality & timeliness
Why Study Operations Management?
1) A large percentage of a company’s expenses occur in OM area (more efficient operations = more profits).
2) A large number of all jobs are in OM area (purchasing, quality, planning, scheduling, inventory, etc.).
3) Activities in all other areas( finance, human resources, marketing, ) are interrelated with OM activities.
4) Operations innovations lead to marketplace and strategic benefits (Toyota Production System, Dells’ direct shipping of personal computers).
3 basic functions that must interact to achieve the goals and objectives of the organization
1) Operations
2) Marketing
3) Finance
Interviews, observations, or questionnaires can be used, such as?
Accounting MIS Purchasing Personnel Human Resource Manufacturing engineering Maintenance Product design Logistics
Designing Decisions
- Capacity
- Location
- Equipment
Planning / Control Decision
- Personnel
- Inventory
- Scheduling
- Quality Assurance
Most systems are a blend of both _____ and ______
Good and Services
Since the 1900’s, the percentage of the labour force in manufacturing and construction has increased
False
Most systems are a blend of both good & service.
Service sector accounts for > ___% of jobs in Canada
79
Supply chain
A sequence of activities and organizations involved in producing and delivering a good or service.
SCM
Supply chain management
Supply Chain Management (SCM) Definition
profs definition
Managing a set of chains (manufacturers, wholesalers, retailers, distributors, etc.) to match supply with demand.
Supply Chain Management (SCM) Definition
wikipedia definition
In commerce, supply chain management (SCM), the management of the flow of goods and services, involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods as well as end to end order fulfilment from point of origin to point of consumption
Supply chain management definition
Textbook definition
the procurement and physical transmission of material through the supply chain, from suppliers to customers
Purchasing:
worldwide buying of raw material, component parts, and products used in manufacturing the product or service
Logistics
plans, implements, and controls the effective flows and inventory of raw material, component parts, and products used in manufacturing.
What is a project? (definition)
A project is a temporary endeavor undertaken to create a uniqueobjective.
Temporary
Lifecycle: It has a definite start and end.
Unique
Output: It creates/changes a product/service/result.
Product: Bridge, Aircraft, Software, …
Service: Repairing, painting, a unique surgery, …
Result: Document, design, research article, …
Project vs operation Differences
Project is temporary and unique
Operation is ongoing and unique
