Operations Management Overview

The process of designing, directing, and controlling processes that transform inputs into services and products for customers, both internal and external.

Any activity or set of activities that takes inputs, transforms them, and delivers outputs to customers.

A group of resources working together to carry out all or part of one or more processes.

The coordination of a company's processes with those of its suppliers and customers to effectively manage the flow of materials, services, and information in response to customer demand.

A process that focuses on selecting suppliers of services, materials, and information, and ensuring their timely and efficient delivery to the company.

A process that involves designing and developing new services or products based on input from customers or market research.

A process that includes the activities required to produce and deliver a service or product to the external customer, starting from the moment an order is placed and ending with the delivery.

A process that focuses on identifying, attracting, and building relationships with customers, and facilitating the placement of orders. It also includes managing customer interactions and handling returns.

Processes involving external customers or suppliers, like outsourcing, warehousing, sourcing, customer service, logistics, and cross-docking.

Operations that implement the company's overall strategy to build a customer-focused organization. It links short-term and long-term operations decisions to corporate strategy.

A high-level plan that guides the organization's actions. It includes environmental scanning to adapt to changes and identifies core competencies.

Unique strengths of an organization, including resources, workforce, facilities, market and financial knowledge, systems, and technology.

Understanding customer wants and needs, identifying groups of customers with similar needs, and assessing how well competitors are meeting those needs.

Dimensions a process or supply chain must possess to satisfy customers, both now and in the future. Examples include cost, quality, time, flexibility, and innovation.

The actual capabilities of a process or supply chain related to cost, quality, time, flexibility, and innovation.

A criterion customers use to choose one company's products or services over another. It's what makes your offering stand out.

A type of automation that produces one type of product in a fixed sequence, ideal for high volume, stable products but requires a significant initial investment.

A form of automation that allows for the production of multiple products in small batches and can be reprogrammed for different products, making it suitable for changing demands.

The ability to produce multiple products more cheaply combined than separately, often found in industries with high capital intensity but low resource flexibility.

A process improvement model that uses a structured five-step approach (Define, Measure, Analyze, Improve, Control) to identify and eliminate inefficiencies and improve performance.

A visual representation that divides a process into lanes representing different functional areas responsible for specific subprocesses, allowing for clear understanding of each step.

A type of process that focuses on producing a standardized output, typically in large volumes. It relies on specialized equipment and a fixed sequence of operations. Examples include assembly lines in manufacturing.

The strategic approach of delaying final product customization until an order is placed, thereby reducing inventory and allowing for greater product variety while maintaining efficiency.

The layout of operations, departments, and workstations within a facility, designed to optimize the flow of materials, information, and people for efficient production, service delivery, or administrative work.

The degree to which equipment and technology are used in a process compared to labor. High capital intensity means a greater reliance on equipment and automation, while low capital intensity typically involves more manual labor.

The degree to which customers are involved in the process. High customer involvement means customers actively participate in the process, while low customer involvement means customers are passive recipients of the service or product.

Measures the value of outputs produced relative to the resources consumed. Calculated by dividing output by input.

The level of involvement and interaction a customer has with a service during its delivery. High customer contact means more personalized service.

The extent to which a service is customized to meet individual customer needs. Highly customized services involve unique solutions, while standardized services offer identical solutions.

The level of flexibility and variety in how tasks are performed within a process. High divergence means a process can be adapted to various situations, while low divergence means tasks are rigidly defined.

The flow of work through the different steps of a process. A smooth flow ensures efficiency and timely completion.

A computer system used in manufacturing to track and control production processes, from raw materials to finished goods.

Technologies like machine learning and natural language processing that enable machines to sense, comprehend, act, and learn.