Notes for review

Operations management is:

Managing the process that transforms inputs into useful outputs

Every business is managed through what three major functions?

Finance, marketing, and operations management

Which business function is responsible for sales, generating customer demand, and understanding customer wants and needs?

Marketing

By AKA AS

Examples of inputs:

Employees, raw materials, insurance, information, time, licensing, utilities, facilities

What is an input associated with?

Costs

What is an output associated with?

Revenue

Examples of outputs:

Tangible products and/or services (amusement park- food, ride)

What does the forecast develop?

Figures out what is needed to fill a demand

What is process design?

Figuring out what the product is going to look like

What is procurement?

What is needed to keep a factory or the business running and making the product/service

What is the inventory?

Making sure enough inputs are being used to get the output required

What links to marketing?

Forecast, strategy, quality

What links to finance?

Process design, capacity, strategy

What links to accounting?

Procurement, inventory, logistics, process mgmt, staffing, strategy

What are core competencies?

The skills/knowledge /technology that differentiate your firm from competitors

What are companies that have low customer contact and are capital intensive, yet a service, called?

Quasi-manufacturing organizations

What is it called when the production of a good is broken down into a series of small tasks, each performed by a different worker?

Division of labor

What was Frederick W. Taylor's background?

Engineering

Which of the following operations management concepts did not evolve from scientific management? Moving assembly lines, interchangeable parts, stopwatch time studies, piece rate incentives, setting time standards for task performance

Interchangeable parts

What term describes the approach of giving workers a larger portion of the total task to do?

Job enlargement

What is a philosophy that aggressively seeks to improve product quality by eliminating causes of product defects and making quality an all encompassing organizational philosophy?

TQM

Electronic commerce is the use of:

Internet to conduct business activities

What is enterprise resource planning?

Large, sophisticated software

Of all business functions, operations is?

Most diverse in terms of tasks performed

Decisions within the operation management must?

Be linked to other business functions

To meet customer needs, marketing managers need to:

Understand and know what operations can produce and what deadlines they can and cannot meet

What is value added?

Net increase created during the transformation of inputs to the final outputs

Efficiency

Performing activities at the lowest possible cost

Manufacturing organizations

Produce a tangible product, low customer contact, longer response time, capital intensive

Service organizations

Intangible product, high customer contact, short response time, labor intensive

Service organizations

Intangible product, high customer contact, short response time, labor intensive

What are the similarities for service manufacturers?

The use of technology can have capacity, layout, and location issues, must forecast demand, and have quality, productivity and response issues

Strategic decisions

Broad in scope, long term, all ecompassing

Tactical decisions

Narrow in scope, short term, concerning a small group of issues

Finance cannot judge the need for _______ __________ if they do not understand operations concepts and needs

Capital investments

_____ _________ must understand job requirements and worker skills

Human resources

Accounting needs to consider _________ __________, capacity information, and labor standards.

Inventory management

Product flexibility

Being able to easily switch production from one tie, to another

Competing on cost

High volume products, little customization, lower skill labor, product focused layouts

Product flexibility

Being able to easily switch production from one tie, to another

Competing on quality

Often subjective and varies depending on who you ask

Volume Flexibility

Ability to ramp production up and down to match market demands

What are two major quality dimensions?

High performance design and product and service consistency

Product design quality

Product or service meets requirments

Process design

Error-free products