Untitled Quiz

Study Notes

Operations Management focuses on designing, operating, and improving productive systems
Operations refers to a function or system that transforms inputs into outputs of greater value.
A series of activities along a value chain extending from supplier to customer is called a transformation process.
Activities that do not add value are superfluous and should be eliminated.

Accounting: Auditors must understand the fundamentals of operations management.
Information Technology: Operations can be an efficient way to apply IT
Management: Many principles from Operations Management classes are widely used in the business world, including scheduling, lean production, theory of constraints, and quality tools.
Economics: Focuses on processes, flowcharts, and Pareto analysis.
Marketing: It helps to market a product effectively if the quality and delivery status is known.
Finance: Operations are a significant source of capital budgeting requests and cost savings in businesses.

Craft Production: Products and services are handcrafted for individual customers.
Division of Labor: Jobs are divided into smaller tasks performed by different specialists.
Interchangeable parts: Standard parts were initially aimed at replacements but enabled mass production.
Scientific Management:
- Frederick W. Taylor’s principles of scientific management aimed to improve efficiency through systematic analysis of work methods.
- Frank and Lillian Gilbreth conducted time and motion studies for process improvement.
- Henry Gantt developed the activity scheduling chart to monitor task progress.
- Henry Ford introduced the moving assembly line, a significant development in mass production.

#### Industrial Revolution (1769-1840)

Steam Engine (1769): Invented by James Watt, it revolutionized power and enabled mechanization.
Division of Labor (1776): Adam Smith's concept of dividing tasks among specialized workers to increase efficiency.
Interchangeable Parts (1790): Eli Whitney's concept of standardized parts, allowing for mass production.

Principles of Scientific Management (1911): Frederick W. Taylor's focus on systematic study of work methods and optimizing efficiency.
Time and Motion Studies (1911): Frank and Lillian Gilbreth analyzed work movements to eliminate waste and improve productivity.
Activity Scheduling Chart (1912): Henry Gantt's visual tool for planning and monitoring project progress.
Moving Assembly Line (1913): Henry Ford's innovative method for efficiently assembling automobiles, revolutionizing manufacturing.

Hawthorne Studies (1930): Elton Mayo's groundbreaking research that highlighted the impact of social and psychological factors on worker productivity.
Motivation Theories: Understanding human motivation, like Maslow's Hierarchy of Needs and Herzberg's Two-Factor Theory, became important for effective management.

Operations Research: Use of mathematical and statistical techniques for decision-making in operations.
Quality Management: Emphasis on quality assurance and customer satisfaction.
Flexible Manufacturing Systems: Automated production systems that could adapt to produce a variety of products.
Just-in-Time (JIT) Inventory: Minimizing inventory levels and receiving materials just in time for production needs.

Internet, WWW, ERP: Internet, world wide web, and enterprise resource planning systems for improved communication and information sharing.
Supply Chain Management: Managing the flow of goods, information, and finances across the entire supply chain.