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Z - Operations Management > Week 1 - What is Operations Management? > Flashcards

Week 1 - What is Operations Management? Flashcards

(58 cards)

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1
Q

What is operations management?

A

A systematic way to organise, plan and improve a process. It is the process behind delivering services and producing goods

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2
Q

What is an operation?

A

A transformation process that changes inputs into outputs to add value for customers

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3
Q

What indicate a good transformation process?

A

Effective
Efficient
Economical
Ethical

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4
Q

What are the competitive priorities when it comes to operations management?

A

Cost
Quality
Flexibility
Dependability
Speed

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5
Q

2 spectrums to quality

A

Consistency vs customisation

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6
Q

2 spectrums to flexibility

A

Variety vs volume

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7
Q

2 aspects to speed

A

Delivery speed vs development speed

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8
Q

If an output has dependability, it is…

A

On time, always

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9
Q

What are the 5 organisational forms

A

Simple
Functional
Divisional (product)
Conglomerate
Matrix

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10
Q

What is a simple organisation?

A

Original founder is in charge of all aspects of business

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11
Q

What is a functional organisation?

A

CEO employs specialists in their area of business

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12
Q

What is a divisional organisation?

A

Organised around product categories, customer markets or regions around the world. Each division then has its own resources and functional organisation

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13
Q

What is a conglomerate organisation?

A

Made up of a variety of different businesses that may or may not have similarities between them. E.g. a big company creating and owning a completely different company alongside their current business.

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14
Q

What is a matrix organisation?

A

A mix of the four previous forms

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15
Q

What is nature of hierarchy?

A

How many layers there are in an organisation, between the ‘shop floor’ and the CEO
Tall = lots of layers, harder to communicate with people higher up
Flat = less layers, higher to communicate with people higher up
Trend = make business flatter

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16
Q

What is degree of centralisation?

A

How power is distributed:
Highly centralised= power held at the centre=CEO make decisions
Decentralised= power more evenly distributed= low-level managers can make decisons

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17
Q

What is the extent of formalisation?

A

How work is organised:
If it is highly centralised, I.e. decisions have to be passed through a certain individual/point, there are more policies and procedures to follow so there is a high extent on formalisation

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18
Q

What is level of complexity?

A

How many subunits and the degree of difference between them I.e. making one product = more standardisation

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19
Q

Direct responsibility of an operations manager?

A
  • understand the operations objectives + developing strategy
  • develop processes, products and services
  • planning + controlling operations resources (people materials + processes)
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20
Q

Indirect responsibility of an operations manager?

A

Speaking with department managers as part of management team

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21
Q

Broad responsibility of an operations manager?

A

Social
Technological
Environmental
Globalisation awareness

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22
Q

What are the four Vs?

A

Volume of output
Variety of products offered
Variation in demand
Variability in product itself

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23
Q

What is volume of output?

A

The number of a single product produced

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24
Q

What is variety of products offered?

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A

The number of different types of product that are available to the customer.

25
What is variation in demand?
Whether there is a pattern or trend in the demand for the product or if it is randomly always changing
26
What is variability in the product itself?
Whether the single product be customised to suit the customer’s individual needs
27
Where do MPOs sit on the spectrum?
Upstream
28
Where do CPOs sit on the spectrum?
Downstream
29
CPOs comprised of what 2 elements?
Customer experience Process outcome (these are a.k.a the service concept)
30
What is the servuction system?
The relationship between all of the customers, physical assets and information (transformation system)
31
What are the process types for MPOs?
Project Job shop Batch Mass Continuous
32
What is project process type? (MPO)
One-off discrete take very long change frequently
33
What is job shop process type? (MPO)
Precision/craft (low volume but higher than project) Bespoke and customised Shared resources
34
What is batch process type? (MPO)
Used when demand can be predicted (make batches - batch process time) More than 1 Range of novel products
35
What is mass process type? (MPO)
Variants within process don’t affect the process function at all Predictable demand, high volume
36
What is continous process type? (MPO)
Demand known with certainty Endless flow Inflexible
37
What are the CPO process types?
Professional service Service shop Mass service
38
What is professional service process type? (CPO)
Low volume High variety High customer contact
39
What is service shop process type? (CPO)
More standardised than professional Less customer contact E.g. car going through a garage
40
What is mass service process type? (CPO)
High volume, low variety Low customer contact Very standardised Limited on ways to meet increasing demand I.e. can’t expand shop size to match the volume so other strategies used
41
Procurement
The agreeing on two-way contractual terms, where a business will source their supplies from (external source). Different suppliers will compete by demonstrating what they have to offer that company.
42
Inbound logistics
Moving procured material into the operation
43
Outbound logistics
The movement of the transformed materials, to the consumer
44
Processes in SCOR model
Plan Source Make Deliver Return
45
What is inventory?
Anything that is counted, paid for, controlled and managed in operations to satisfy customer demand
46
Too much inventory?
Deprofitability
47
Too little inventory?
Damage customer confidence - change customers opinion on operations dependability (this is an OQ here)
48
Why hold inventory?
Buying in bulk = cost effective Excess material = can be sorted so best material is used in operations Helps short term demand Dependability = helping get more orders as there are raw materials in stock Process will flow more smoothly if all material is readily available
49
Why not hold inventory?
Can account for high percentage of company’s working capital Reduce profitability
50
Raw material inventory?
Goods received from suppliers
51
Work-in-progress inventory?
Partially completed products
52
Finished goods inventory?
Completed and ready for customer
53
Inventory by location?
Their location in the processing model I.e. raw/work-in-progess/finished
54
Cycle inventory?
Inventory that can meet typical demand in given time period. Usually one or more outputs E.g. bakery
55
Buffer/safety stock inventory?
Extra stock held so that when demand increases, supply can match it Compensates for uncertainty in supply chain
56
What is pipeline/movement inventory?
Stock that is in transit or in the pipeline for weeks on end
57
Anticipation inventory?
Predicting increase in demand due to seasonality/ patterns
58
5 assumptions with EOQ
No limit on what we order Demand rate is constant Only 2 costs considered : inventory holding cost + order cost Decisions for 1 item is independent to others Lead time = known and constant

Z - Operations Management (1 decks)

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