OPMAN CHAPTER 01

• Agile manufacturing – Emphasizes the need for an organization to be able to switch frequently from
• one market-driven objective to another.
• Craft manufacturing – The production of goods in low volume, but with a high degree of variety,
• performed by skilled, specialized craftspeople to meet the requirements of their individual customers.
• Effectiveness – Making the right actions and plans in order to improve the business and add value for
• the customer.
• Efficiency – Doing things well at the lowest cost possible and reducing activities which add
• unnecessary costs.
• Flexible specialization – Firms (especially small firms) focus on separate parts of the value-adding process and collaborate within networks to produce whole products. Such an approach requires highly
• developed networks, effective processes for collaboration and the development of long-term
• relationships between firms.
• Lean production – Focuses on the elimination of all forms of waste from a production system,
• especially from the perspective of keeping inventory levels down to exposes inefficiencies, reduces
• costs, and cuts lead times.
• Macro operations – The overall process within a company’s transformation processes, e.g. in a brewery,
• the macro operation is making beer.
• Mass customisation – Seeks to combine high volume, as in mass production, with adapting products to
• meet the requirements of individual customers.
• Mass production – The production of goods in high volume with low variety by using standardized
• parts, a system of scientific management, and assembly lines; rose in popularity in the 19th century.
• Micro operations – The detailed transformations that must occur, usually in a specific sequence, for a
• company to complete their macro operation.
• Operations management – The design, management, and improvement of the systems and processes
• that create the organization’s goods or services.
• Transformation process – Any activity or group of activities that takes one or more inputs, transforms
• and adds value to them, and provides outputs for customers or clients, e.g. milk (input) being
• transformed into cheese or butter (outputs)