dsiopma ace reviewer

• Operations - The part of a business organization that is responsible for producing goods or services
• Goods are physical items that include raw materials, parts, subassemblies, and final products
• Services are activities that provide some combination of time, location, form or psychological value
• Supply chain – a sequence of activities and organizations involved in producing and delivering a good or service
• Feedback = Measurements taken at various points in the transformation process
• Control = The comparison of feedback against previously established standards to determine if corrective action is needed
• Essential functions to produce goods or deliver services

  • Marketing
  • Production or Operations
  • Finance or Accounting
• Marketing - generates demand and should coordinate well with production department
• The output of marketing is information
• Production/operations - creates the product; is the heart of the company and should be sustained by finance and marketing
• Finance/accounting - tracks how well the organization is doing; pays bills, collect the money
• Goods-service Continuum - Products are typically neither purely service- or purely goods-based
• Process - one or more actions that transform inputs into outputs
• Supply > Demand = Wasteful & Costly
• Supply < Demand = Opportunity Loss, & Customer Dissatisfaction
• Supply = Demand = Ideal
• Variations can be disruptive to operations and supply chain processes. They may result in additional costs, delays and shortages, poor quality, and inefficient work systems.
• Operations managers spend more time on system operation decision than any other decision area
• Modeling is a key tool used by all decision makers
• Model - an abstraction of reality; a simplification of something
• Examples of:

  Physical Model – miniature airplane

  Schematic Model – drawing of a city

  Mathematical Model – Inventory optimization
• Performance metrics - All managers use metrics to manage and control operations
• A trade-off is giving up one thing in return for something else
• System - a set of interrelated parts that must work together
• Pareto Phenomenon - a few factors account for a high percentage of occurrence of some event(s)
• Craft production - System in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods
• Scientific Management - Movement was led by efficiency engineer, Frederick Winslow Taylor
• Human Relations Movement - The human relations movement emphasized the importance of the human element in job design
• Influence of Japanese Manufacturers - Refined and developed management practices that increased productivity
• Key Issues of Operations Managers Today

  ● Economic conditions

  ● Innovating

  ● Quality problems

  ● Risk management

  ● Cyber-security

  ● Competing in a global economy
• Environmental Concerns Sustainability - Using resources in ways that do not harm ecological systems that support human existence
• Competitiveness - How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services
• Mission - The reason for an organization’s existence
• Goals - Provide detail and the scope of the mission
• Strategy - A plan for achieving organizational goals
• Organizational strategies - Overall strategies that relate to the entire organization
• Functional level strategies - Strategies that relate to each of

  the functional areas and that support achievement of the

  organizational strategy
• Differentiation - better or different from competitors
• Cost leadership - cheaper than others
• Response - responsive to queries