Operations Management Finals PDF

\*\*Expanded Reviewer on Operations Management\*\* \-\-- \#\#\# \*\*Introduction to Operations Management\*\* \- \*\*Definition and Scope\*\*: Understanding how resources (inputs) are transformed into goods or services (outputs) to meet customer needs. \- Importance of balancing efficiency and e...

\*\*Expanded Reviewer on Operations Management\*\* \-\-- \#\#\# \*\*Introduction to Operations Management\*\* \- \*\*Definition and Scope\*\*: Understanding how resources (inputs) are transformed into goods or services (outputs) to meet customer needs. \- Importance of balancing efficiency and effectiveness in operations. \- \*\*Production of Goods vs Providing Services\*\*: \- \*\*Goods\*\*: Tangible, consistent quality, can be stored as inventory, e.g., cars, appliances. \- \*\*Services\*\*: Intangible, customer interaction is high, cannot be stored, e.g., healthcare, education. \- Differences in operations approach: manufacturing vs service-based industries. \- \*\*Why Learn About Management?\*\*: \- Develop skills to optimize organizational resources. \- Enhances problem-solving and decision-making abilities. \- Contributes to career advancement in operations-focused roles. \- \*\*Career Opportunities and Professional Societies\*\*: \- Potential roles: Operations manager, logistics coordinator, supply chain analyst, production planner. \- Professional organizations: APICS (now ASCM), ASQ (American Society for Quality), PMI (Project Management Institute). \- \*\*Process Management\*\*: \- Key processes: Planning, scheduling, controlling operations. \- Process types: Project (unique, large-scale), job shop (customized, small-scale), batch (moderate volume), assembly line (high volume), continuous (high volume, low variety). \- \*\*Scope of Operations Management\*\*: \- Includes product design, quality management, process improvement, supply chain management. \- \*\*Operations Management and Decision Making\*\*: \- Decision levels: \- \*\*Strategic\*\*: Long-term decisions, e.g., facility location, capacity planning. \- \*\*Tactical\*\*: Mid-term focus, e.g., workforce planning, inventory control. \- \*\*Operational\*\*: Day-to-day tasks, e.g., production scheduling, quality checks. \- \*\*Historical Evolution of Operations Management\*\*: \- Key milestones: Industrial Revolution, scientific management by Frederick Taylor, introduction of lean manufacturing (Toyota Production System). \- Modern trends: Sustainability, automation, AI integration. \-\-- \#\#\# \*\*Competitiveness, Strategy, and Productivity\*\* \- \*\*Competitiveness\*\*: \- \*\*Competitive priorities\*\*: \- \*\*Cost\*\*: Focus on producing at the lowest possible cost. \- \*\*Quality\*\*: Consistent product/service quality to meet customer expectations. \- \*\*Flexibility\*\*: Ability to adapt to changes in demand or product customization. \- \*\*Delivery\*\*: Ensuring timely delivery of goods or services. \- \*\*Mission and Strategies\*\*: \- \*\*Mission statement\*\*: Defines the organization's purpose and focus. \- Strategic hierarchy: \- \*\*Corporate strategy\*\*: High-level, overall direction. \- \*\*Business strategy\*\*: How to compete in specific markets. \- \*\*Functional strategy\*\*: Aligning operational activities with business goals. \- \*\*Operations Strategy\*\*: \- Align operations capabilities with strategic goals. \- Focus on process improvement, innovation, and resource optimization. \- \*\*Balanced Scorecard\*\*: \- Framework for performance measurement. \- Includes: \- \*\*Financial perspective\*\*: Revenue, profit margins. \- \*\*Customer perspective\*\*: Satisfaction, loyalty. \- \*\*Internal process perspective\*\*: Operational efficiency. \- \*\*Learning and growth perspective\*\*: Employee skills, innovation. \- Translating strategies into actionable goals. \-\-- \#\#\# \*\*Forecasting\*\* \- \*\*Features Common to All Forecasts\*\*: \- Predictions based on past and current data trends. \- Uncertainty and error are inherent in all forecasts. \- \*\*Elements of a Good Forecast\*\*: \- Accuracy, reliability, timeliness, simplicity. \- Cost-effectiveness and usability. \- \*\*Steps in the Forecasting Process\*\*: 1\. Determine the purpose of the forecast. 2\. Collect and analyze relevant data. 3\. Select a suitable forecasting method. 4\. Generate the forecast. 5\. Monitor forecast accuracy and make adjustments as needed. \- \*\*Approaches to Forecasting\*\*: \- \*\*Qualitative\*\*: \- Based on expert opinions and market research. \- Methods: Delphi method, panel consensus. \- \*\*Quantitative\*\*: \- Relies on numerical data and statistical models. \- Techniques: Time-series analysis, regression analysis. \- \*\*Monitoring Forecast Accuracy\*\*: \- Key measures: \- \*\*Mean Absolute Deviation (MAD)\*\*: Average of absolute forecast errors. \- \*\*Mean Squared Error (MSE)\*\*: Average of squared forecast errors. \- Helps in evaluating and improving forecasting models. \-\-- \#\#\# \*\*Product and Service Design\*\* \- \*\*Idea Generation\*\*: \- Sources: Customer feedback, competitor analysis, R&D activities. \- \*\*Legal and Ethical Considerations\*\*: \- Ensuring compliance with regulations. \- Adhering to ethical practices in design and production. \- \*\*Human and Cultural Factors\*\*: \- Considering ergonomics, safety, and cultural preferences in design. \- \*\*Environmental Factors\*\*: \- Emphasis on sustainability and eco-friendly materials. \- \*\*Phases in Product Design and Development\*\*: 1\. Idea generation and screening. 2\. Feasibility analysis. 3\. Detailed product design. 4\. Prototype development. 5\. Testing and validation. 6\. Commercial production and launch. \-\-- \#\#\# \*\*Strategic Capacity Planning for Products and Services\*\* \- \*\*Defining and Measuring Capacity\*\*: \- \*\*Design capacity\*\*: Maximum achievable output. \- \*\*Effective capacity\*\*: Realistic output considering limitations. \- \*\*Determinants of Effective Capacity\*\*: \- Facility layout, workforce skills, equipment maintenance, supply chain. \- \*\*Developing Capacity Strategies\*\*: \- \*\*Expansionist approach\*\*: Anticipate future demand growth. \- \*\*Wait-and-see approach\*\*: Add capacity incrementally. \- \*\*In-house production\*\* vs \*\*outsourcing\*\*: Balancing control and cost. \- \*\*Evaluating Alternatives\*\*: \- Tools: Break-even analysis, decision trees, sensitivity analysis. \-\-- \#\#\# \*\*Process Selection and Facility Layout\*\* \- \*\*Process Selection\*\*: \- Factors influencing choice: Product volume, variety, and customization needs. \- Common types: \- \*\*Job shop\*\*: Low volume, high variety. \- \*\*Batch\*\*: Moderate volume and variety. \- \*\*Repetitive\*\*: High volume, low variety. \- \*\*Continuous\*\*: Very high volume, low variety. \- \*\*Facility Layouts\*\*: \- \*\*Process-oriented\*\*: Flexible, ideal for customized products. \- \*\*Product-oriented\*\*: Efficient for high-volume production. \- \*\*Fixed-position\*\*: Suitable for large, stationary projects. \- \*\*Cellular layout\*\*: Group similar processes for efficiency. \- \*\*Line Balancing\*\*: \- Objective: Minimize idle time and balance workloads across workstations. \-\-- \#\#\# \*\*Study Tips for Success\*\* 1\. Create summary tables or flowcharts for key concepts (e.g., forecasting steps, capacity planning strategies). 2\. Use real-world examples to understand theoretical concepts (e.g., comparing service vs goods production). 3\. Practice problem-solving for numerical topics like forecasting accuracy and break-even analysis. 4\. Review past exam questions to familiarize yourself with question formats. 5\. Allocate study time based on topic weightage and difficulty. \# Reviewer for Operations Management \#\# Work Design and Measurement \#\#\# Key Concepts: 1\. \*\*Job Design:\*\* \- Principles for structuring tasks and responsibilities. \- Aligning jobs to organizational goals and worker satisfaction. 2\. \*\*Quality of Work Life:\*\* \- Enhancing employee satisfaction and productivity. \- Balancing work demands with employee well-being. 3\. \*\*Methods Analysis:\*\* \- Techniques for evaluating and improving work methods. \- Example: Flowcharts, process mapping. 4\. \*\*Motion Study:\*\* \- Observation and analysis of movements to improve efficiency. \- Aims to minimize unnecessary movements. 5\. \*\*Work Measurement:\*\* \- Tools for measuring task times and productivity. \- Includes time studies and predetermined motion time systems (PMTS). \*\*Study Tips:\*\* \- Focus on real-world examples to understand concepts better. \- Practice creating process improvement plans. \-\-- \#\# Location Planning and Analysis \#\#\# Key Concepts: 1\. \*\*The Need for Location Decisions:\*\* \- Importance in supply chain efficiency and customer satisfaction. 2\. \*\*The Nature of Location Decisions:\*\* \- Involves trade-offs like cost, accessibility, and market proximity. 3\. \*\*Global Locations:\*\* \- Strategic considerations for choosing international sites. \- Includes cultural, legal, and economic factors. 4\. \*\*General Procedures for Making Location Decisions:\*\* \- Steps: Identify options, analyze criteria, compare alternatives. 5\. \*\*Identifying a Country, Region, Community, and Site:\*\* \- Multi-level approach to narrowing down location choices. 6\. \*\*Service Retail Locations:\*\* \- Criteria for selecting high-traffic, customer-focused areas. 7\. \*\*Evaluating Location Alternatives:\*\* \- Tools like cost analysis, factor-rating systems, and GIS. \*\*Study Tips:\*\* \- Use case studies to understand the impact of location decisions. \- Practice evaluating different location scenarios. \-\-- \#\# Management of Quality \#\#\# Key Concepts: 1\. \*\*Evolution of Quality Management:\*\* \- Key milestones, from craftsmanship to modern quality frameworks. 2\. \*\*Foundations of Modern Quality Management:\*\* \- Principles like customer focus, continuous improvement, and process approach. 3\. \*\*The Gurus:\*\* \- Contributions of experts like Deming (PDCA Cycle) and Juran (Quality Trilogy). 4\. \*\*Insights on Quality Management:\*\* \- Importance of aligning quality with business strategy. 5\. \*\*Quality Awards:\*\* \- Examples: Malcolm Baldrige National Quality Award, EFQM Excellence Award. 6\. \*\*Quality Certification:\*\* \- Standards like ISO 9000 and their organizational benefits. 7\. \*\*Quality and Supply Chain:\*\* \- Ensuring quality consistency across suppliers and logistics. 8\. \*\*Total Quality Management (TQM):\*\* \- Holistic focus on quality in all organizational processes. 9\. \*\*Problem Solving and Process Improvement:\*\* \- Tools like 5 Whys, cause-and-effect diagrams, and root cause analysis. 10\. \*\*Quality Tools:\*\* \- Pareto charts, control charts, and histograms. \*\*Study Tips:\*\* \- Practice applying quality tools to real-world scenarios. \- Understand how TQM integrates into organizational culture. \-\-- \#\# Quality Control \#\#\# Key Concepts: 1\. \*\*Inspection:\*\* \- Techniques to ensure products meet quality standards. \- Types: Incoming, in-process, and final inspection. 2\. \*\*Statistical Process Control (SPC):\*\* \- Monitoring processes using control charts. 3\. \*\*Process Capability:\*\* \- Measuring how well a process meets specifications. \- Example: Cp and Cpk indices. \*\*Study Tips:\*\* \- Solve practice problems on SPC and process capability analysis. \- Learn how to interpret control charts. \-\-- \#\# Six Sigma in Operations Management \#\#\# Key Concepts: 1\. \*\*Overview:\*\* \- Six Sigma focuses on reducing defects and variability. 2\. \*\*DMAIC Framework:\*\* \- Define: Identify the problem. \- Measure: Collect data to understand the process. \- Analyze: Identify root causes of defects. \- Improve: Implement solutions. \- Control: Monitor improvements to sustain results. \*\*Study Tips:\*\* \- Practice applying DMAIC to a simple process. \- Understand Six Sigma metrics like DPMO and sigma levels. \-\-- \#\# Aggregate Planning and Master Scheduling \#\#\# Key Concepts: 1\. \*\*Basic Strategies for Meeting Uneven Demand:\*\* \- Chase strategy: Adjusting production to demand. \- Level strategy: Maintaining consistent production. \- Hybrid strategy: Combining chase and level strategies. 2\. \*\*Techniques for Aggregate Planning:\*\* \- Methods like linear programming and trial-and-error. 3\. \*\*Aggregate Planning in Services:\*\* \- Managing demand and capacity in service industries. 4\. \*\*Disaggregating the Aggregate Plan:\*\* \- Breaking down plans into detailed operational steps. 5\. \*\*Master Scheduling:\*\* \- Creating a schedule for production or services. 6\. \*\*The Master Scheduling Process:\*\* \- Aligning schedules with organizational goals. \*\*Study Tips:\*\* \- Create mock aggregate plans to practice. \- Learn the difference between aggregate planning for manufacturing and services. \-\-- \#\# Inventory Management \#\#\# Key Concepts: 1\. \*\*Nature and Importance of Inventories:\*\* \- Role in balancing supply and demand. 2\. \*\*Requirements for Effective Delivery Management:\*\* \- Minimizing delays and ensuring customer satisfaction. 3\. \*\*Inventory Ordering Policy:\*\* \- Establishing policies for ordering stock efficiently. 4\. \*\*How Much to Order:\*\* \- Models like Economic Order Quantity (EOQ). 5\. \*\*Re-order Point Ordering:\*\* \- Determining the stock level to trigger reordering. 6\. \*\*The Single-Period Model:\*\* \- Managing inventory for one-time use items. \*\*Study Tips:\*\* \- Solve numerical problems for EOQ and reorder point. \- Use diagrams to visualize inventory flow. \-\-- \#\#\# Summary \*\*Total Topics:\*\* \- \*\*Remembering:\*\* 8 items \- \*\*Understanding:\*\* 42 items \- \*\*Applying:\*\* 12 items \- \*\*Analyzing:\*\* 10 items \- \*\*Creating:\*\* 28 items Focus on higher-level skills like creating and evaluating strategies for quality management, inventory, and location planning. Practice solving case studies and numerical problems for a well-rounded understanding.