Introduction to Operations Management

Operations = The part of a business that creates goods and services Supply Chain = Network of organizations involved in providing goods and services Productivity = Ratio of outputs to inputs Process = A set of activities transforming inputs into outputs

Marketing = Promoting and selling products Operations = Producing goods and services Finance = Managing monetary resources Human Resources = Managing employees

Efficiency = Performing tasks in the best way possible Effectiveness = Doing the right task Value Added = The difference between cost of inputs and value of outputs Capacity = Maximum output rate of a process

<p>Quality = Features and characteristics of products Cost = The total expense for production Speed = Timeliness in production Flexibility = Ability to produce different products</p> Signup and view all the answers

<p>Planning = Defining goals, processes, and resources in operations Control = Monitoring performance, comparing actual results and desired results Improvement = Enhancing operations for better outcomes Design = Creating new products and services</p> Signup and view all the answers

<p>Globalization = 1990s-2000s Internet Revolution = 1990s E-commerce = 2000s Lean Systems Implementation = Today's Environment</p> Signup and view all the answers

<p>WWW = Tim Berners-Lee ERP systems = SAP, Oracle, PeopleSoft E-commerce Platforms = Amazon, Yahoo, eBay ARPANET = Internet Revolution</p> Signup and view all the answers

<p>Manager of Manufacturing = Manufacturing manager Overall Operations Management = V.P.operations Supply Chain Oversight = Director of supply chains Plant Supervision = Plant manager</p> Signup and view all the answers

<p>Customer Demands = Better quality, greater speed, lower costs Operational Efficiency = Implementing lean system concepts Information Management = Need to better manage information using ERP and CRM systems Organizational Structure = Increased cross-functional decision making</p> Signup and view all the answers

<p>Supply Chain Management = OM has the most diverse organizational function Transformation Process = Manages the transformation process Diverse Titles = OM has many faces and names Specific roles = Manufacturing manager, Plant manager, Quality specialists</p> Signup and view all the answers

<p>Frederick Taylor = Scientific management Henry Gantt = Management Activity Scheduling chart Frank and Lillian Gilbreth = Time and motion studies Henry Ford = Moving assembly line</p> Signup and view all the answers

<p>Elton Mayo = Hawthorne studies Abraham Maslow = Motivation theories Frederick Herzberg = Motivation theories Douglas McGregor = Motivation theories</p> Signup and view all the answers

<p>Linear programming = George Dantzig Simulation, waiting line theory = Operations research groups PERT/CPM = Operations research groups Digital computer = Remington Rand</p> Signup and view all the answers

<p>MRP, EDI, EFT, CIM = 1970s Digital computer = 1950s Simulation, waiting line theory = 1950s Linear programming = 1940s</p> Signup and view all the answers

<p>JIT (just-in-time) = Taiichi Ohno TQM (total quality management) = Joseph Juran Strategy and operations = Wickham Skinner</p> Signup and view all the answers

<p>Strategy and operations = Robert Hayes Business process reengineering = James Champy</p> Signup and view all the answers

<p>Henry Gantt = Management Activity Scheduling chart Abraham Maslow = Motivation theories Taiichi Ohno = JIT (just-in-time) George Dantzig = Linear programming</p> Signup and view all the answers

<p>Scientific Time and motion studies = 1910-1920 Human Relations movement = 1930-1960s Operations Research emergence = 1940s to 1960s Quality Revolution focus = 1970s to 1990s</p> Signup and view all the answers

<p>Marketing = Understanding production capabilities to meet customer needs Finance = Assessing capital investment needs based on operations concepts Human Resources = Understanding job requirements and worker skills Accounting = Considering inventory management, capacity, and labor standards</p> Signup and view all the answers

<p>Industrial Revolution = Introduction of machine power and factory systems Scientific Management = Application of systematic analysis to improve efficiency Human Relations Movement = Focus on the importance of human factors in productivity Computer Age = Advancement in information processing and automation</p> Signup and view all the answers

<p>Inputs = Resources such as materials, labor, capital, and information Transformation Process = Conversion of inputs into products or services Outputs = The finished products or services OM = Managing resources to produce a company's products</p> Signup and view all the answers

<p>Just-in-Time (JIT) = Reducing inventory levels by receiving materials only when needed Total Quality Management (TQM) = A management philosophy focusing on continuous improvement Reengineering = Radical change to business process to improve efficiency Supply Chain Management (SCM) = Managing the flow of goods and services from suppliers</p> Signup and view all the answers

<p>Manufacturing organizations = Produce tangible products Service organizations = Produce intangible services Both = May use technology to assist in production and delivery Neither = Products are not their focus</p> Signup and view all the answers

<p>Strategic Decisions = Long-term decisions about capacity and product design Tactical Decisions = Medium-term decisions about scheduling and resource allocation Operations = The specific business function that is responsible for transformation Business = Must interact with all functions to achieve goals</p> Signup and view all the answers

<p>Marketing = Focuses on customer needs and market demands Finance = Focuses on capital investments and financial reporting Human Resources = Focuses on worker skills and employee needs Operations Management = Focuses on the production and delivery of goods/services</p> Signup and view all the answers

<p>Flexibility = The ability of OM to adapt to change. Time-based competition = Using speed as a way to capture market shares. Global marketplace = Interacting with the entire world in OM. Environmental issues = Focusing on sustainability in OM.</p> Signup and view all the answers

<p>Value Added = The net increase between output product value and input material value Efficiency = Performing activities well for the least possible cost Strategic Decisions = Set the direction for the entire company, broad in scope and long-term Tactical Decisions = Focus on specific day-to-day issues like resource needs and schedules</p> Signup and view all the answers

<p>Intangible product = Service organization Tangible product = Manufacturing organization High customer contact = Service organization Low customer contact = Manufacturing organization</p> Signup and view all the answers

<p>James Watt = Steam engine Adam Smith = Division of labor Eli Whitney = Interchangeable parts Frederick W. Taylor = Principles of scientific management</p> Signup and view all the answers

<p>Capacity = Maximum output rate Layout = Physical arrangement of resources Scheduling = Timing of resource use Quality = Degree of excellence</p> Signup and view all the answers

<p>Service Organization = Simultaneous production and consumption, high customer contact Manufacturing Organization = Output can be stored and low customer contact Quasi-Manufacturing Organization = Low customer contact and capital intensive Both = Use technology and must forecast demand</p> Signup and view all the answers

<p>Service = Short response time; labor intensive Manufacturing = Longer response time; capital-intensive</p> Signup and view all the answers

<p>Planning = Determining how resources will be used Coordinating = Ensuring resources are correctly aligned Controlling = Monitoring and adjusting operations Transformation = Process of converting inputs to outputs</p> Signup and view all the answers

<p>Growing to 50-80% of non-farm jobs = Service sector Demands for higher quality = Service sector Time based competition = Service sector Work force diversity = Service sector</p> Signup and view all the answers

<p>Strategic decisions = Set the direction for the entire company Tactical decisions = Day-to-day and specific in nature Tactical Decisions = Focus on resource needs, schedules, and quantities</p> Signup and view all the answers

<p>Industrial Revolution = Longer response time; capital-intensive</p> Signup and view all the answers