Operations Management Study Guide PDF

Definition of Operations Management OM is the set of activities that creates goods and services through the transformation of inputs into outputs. ⬆️Productivity = Outputs ⬆️/ Inputs ⬇️ Goods - Something you own but can be influenced by service you receive, An example of thi...

Definition of Operations Management OM is the set of activities that creates goods and services through the transformation of inputs into outputs. ⬆️Productivity = Outputs ⬆️/ Inputs ⬇️ Goods - Something you own but can be influenced by service you receive, An example of this is upselling at phone stores. Goods are tangible and can be exchanged Goods are physical objects and therefore may be more consistent, and have less variability. Can be manufactured - HOMOgenius Intangibility Services are ideas and concepts; products are tangible items Heterogeneity Perishability Services can not be returned Simultaneity Service is produced and consumed at the same time. EX: a restaurant with the waiter giving you your food that’s service and goods Vision ○ An aspirational description of what an organization would like to achieve or accomplish in the mid term Mission ○ The purpose of THE COMPANY Values ○ The philosophy of the company Strategy ○ Action plan to achieve the goals Order winners How a company distinguishes itself from competitors Mc Donalds - Price Chipotle - Variety JIT - Just in time ○ Reduces inventory Competitive Priorities (PAGE 37) COST - QUALITY - SPEED - FLEXIBILITY ○ Low operating cost ○ High-performance design ○ Consistent quality ○ Fast delivery  ○ On-time delivery ○ Development speed ○ Customization ○ Volume flexibility Cost of prevention ○ Quality audits, job training, equipment capability analysis, technical manuals, defect prevention, workmanship standards, process characterization, flowchart review, correlation analysis, operator certification, preventive maintenance. 8 Dimensions of quality of goods ○ Performance- primary operating characteristics ○ Features- qualities that add value but not necessary for operating characteristics ○ Reliability - Probability of surviving over a specified period of stated conditions of use ○ Conformante - Physical characteristics of a product of how they match pre-established standards ○ Durability - The amount of use you get from a product before it deteriorates ○ Serviceability - Speed courtesy and competence of repair ○ Aesthetics- look ○ Perceived quality - Subjective assessment of quality resulting from image advertising or brand names TQM - Total quality management ○ A management approach to achieve a long term competitive advantage through customer satisfaction with the product or service offered. TQM includes the participation of all members of an organization in improving processes goods services and the culture in which they work Natural variations ○ Normal part of process Assignable variations ○ Not a normal part of the process can be traced to a specific cause NOT STATISTICALLY IN CONTROL Six Sigma ○ set of techniques and tools used to improve business processes. It was introduced in 1986 by engineer Bill Smith while working at Motorola. Six Sigma practitioners use statistics, financial analysis, and project management to identify and reduce defects and errors, minimize variation, and increase quality and efficiency. Pareto chart ○ Bar graph that displays results of a pareto analysis PAGES TO READ: 37 -31 47-50 58, 77-80, 91-97