Part 1. Operations Management

Created by

LORESTO, Mark

Cards (29)

______ is the creation of goods and services
Production
_______ is the set of activities that create value in the form of goods and services by transforming inputs into outputs
operations management
Essential functions: ______ - generates demand
marketing
Essential functions: ______ -creates the product
production
Essential functions: _______ - tracks how well the organization is doing, pays bills, collects the money
finance
Essential functions: _____ - – provides labor, employs, assigns and gives training.
Human Resources
A global network of organizations and activities that supply a firm with goods and services
The Supply Chain
Members of the supply chain collaborate to achieve high levels of _________, efficiency and competitive advantage.
customer satisfaction
______ is one of four major functions of any organization, we want to study how people organize themselves for productive enterprise
operations management
Basic Management Functions: POSLC
Planning, Organizing, Staffing, Leading, Controlling
Defines what is required of operations
Product design determines quality, sustainability and human resources
Design of goods and services
Determine the customer’s quality expectations
Establish policies and procedures to identify and achieve that quality
Managing quality
How is a good or service produced?
Commits management to specific technology, quality, resources, and investment.
Process and capacity design
Nearness to customers, suppliers, and talent.
Considering costs, infrastructure, logistics, and government.
Location strategy
Integrate capacity needs, personnel levels, technology, and inventory
Determine the efficient flow of materials, people, and information.
Layout strategy
Recruit, motivate, and retain personnel with the required talent and skills.
Integral and expensive part of the total system design.
Human resources and job design
Integrate supply chain into the firm’s strategy.
Determine what is to be purchased, from whom, and under what conditions.
Supply-chain management
Inventory ordering and holding decisions.
Optimize considering customer satisfaction, supplier capability, and production schedules.
Inventory management
Determine and implement intermediateand short-term schedules.
Utilize personnel and facilities while meeting customer demands.
Scheduling
Consider facility capacity, production demands, and personnel.
Maintain a reliable and stable process.
Maintenance
Born 1765; died 1825
In 1798, received government contract to make 10,000 muskets
Showed that machine tools could make standardized parts to exact specifications
Musket parts could be used in any musket
Eli Whitney
Born 1856; died 1915
Known as ‘father of scientific management’
In 1881, as chief engineer for Midvale Steel, studied how tasks were done
Began first motion and time studies
Created efficiency principles
Frederick W. Taylor
Husband-and-wife engineering team
Further developed work measurement methods
Applied efficiency methods to their home and 12 children!
Book & Movie: “Cheaper by the Dozen,” “Bells on Their Toes”
Frank and Lilian Gilbreth
Born 1863; died 1947
In 1903, created Ford Motor Company
In 1913, first used moving assembly line to make Model T
Unfinished product moved by conveyor past work station
Paid workers very well for 1911 ($5/day!)
Henry Ford
Born 1900; died 1993
Engineer and physicist
Credited with teaching Japan quality control methods in post-WW2
Used statistics to analyze process
His methods involve workers in decisions
W. Edwards Deming
Operations for Goods and Services
Manufacturers produce ____ product, services often intangible
Operations activities often very similar
______ not always clear
Few pure _____
ans form: ___,____,____
tangible, distinction, services
Differences Between Goods and Services

ans: explain

explain
______ is the ratio of outputs (goods and services) divided by the inputs (resources such as labor and capital)
productivity
Production is a measure of _____ only and not a measure of efficiency
output