Operations Management
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Created by:
staceybowen on June 4, 2012
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Chapter 1 and 2
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54 terms
Terms | Definitions |
|---|---|
 production | the creation of goods and services |
| Operations Management | activities that relate to the production of goods and services through the transformation of outputs |
| Three Functions that create goods and services | Marketing production/operation finance/accounting |
| Marketing | generates the demand or atleast takes the order for a product or service |
| finance/ accounting | tracks how well the organization is doing, pays bills and collects the money |
| Why We Study Operations Management | It is intergrally related to all other business functions we want to know how goods and services are produced to undertand what operations managers do because its a costly part of an organization |
| Ten Decision areas | Design of goods and services managing quality process and capacity design location strategy layout strategy human resources and job design supply chain management inventory, material requirements,planning and JIT Intermediate and short term scheduling Maitenence |
| Management process | the operation of planning,organizing stafiing, leading and controlling to the acheivement of objectives |
| Services | economic activities that typically produce intangible products |
| Difference Between Goods and Services | Services are intangible services are normally produced and consumed at the same time services are often unique services have high customer interaction services have inconsistent product definition services are frequently disperesed |
| service sector | the segment of economy that includes trade, financial lodging, education, legal medical and other professional occupations |
| new trends in operations management | ethics global focus rapid product development environmentally sensitve production mass customization Empowered employees supply chain partnering just in time performance |
| productivity | the ratio of outputs divided by one or more inputs units produced / units used |
| single factor productivity | indicates the ratio of one resource in the goods and services produced |
| mulitfactor productivity | indicates the ratio if many or all resources to the goods and services produced |
| measurement problems | quality may change external elements percise units of measurement may be lacking |
| knowledge society | a society in which much of the labor factors has migrated from manual work to work based on knowledge |
| why productivity of the service sector is hard to improve | labor intensive frequently focused on unique individual attributes an intellectual task performed by professionals diffifcult to mechanize difficult to evaluate for quality |
| ethical challenges facing among managers | efficiently developing and producing safe, quality products maintaining a sustanable environment providing a safe workplace honoring stakeholder commitments |
| why businesses are chaning to some form of international business | reduce costs improve the supply chain provide better goods and services understand markets learn to improve operations attract and retain global talent |
| Maquiladoras | mexican factories located along the US Mexico border that recieve preferential tarrif treatment |
| World Trade Organization | An international organization that promotes the world trade by lowering barriers to the free flow of goods across borders |
| NAFTA | A free trade agreement between Canada, Mexico and the United States |
| European Union | A European trade group that has 27 members |
| Mission | the purpose of rationale for an organization's existence |
| Strategy | how an organization expectes to acheives their mission and goals |
| Competitive Advantage | the ceation of a unique advantage over competitors |
| Differentiation | distinguishing the offerings of an organization ina way that the customer percieves as adding value |
| experience differentiation | Engaging a costumer with a product with creative uses of the 5 senses ..so the customers experience the product |
| Low Cost Leadership | acheiving maximum value as perceived by the customer |
| Response | A set of values related to rapid flexible and reliable performance |
| Operations Decisions | the strategic decisions of OM are goods and service design quality, process design, location selection, layout design, human resources and jobs, supply chain management, inventory, scheduling and maintainence |
| resources view | a method managers use to evaluate the reources at their disposal and manage and alter them to acheive competitve advantage |
| value chain analysis | a way to identify those elements in the product/ service chain uniquely adds value |
| five forces analysis | a method of analyizing the five forces in competitive environment |
| Product life cycle | introduction growth maturity decline |
| Company strategy in Introduction Period | best period to increase market share r&d engineering is critical |
| Company Strategy in growth period | practical to change price or quantity image stregnthen niche |
| Company Strategy in the maturity period | poor time to change image price or quality competitive costs become critical defend market position |
| Company Strategy in the Decline period | cost control critical |
| OM Strategy in the introduction period | product design and development critical frequent product and process design changes short production runs high production costs limited models attention to quality |
| OM strategy in the growth period | forecasting critical product and process reliability competitive product improvements and options increase capacity shift toward product focus enhance distribution |
| OM strategy in the maturity stage | standardization fewer rapid product changes, more minor changes optimum capacity increasing stability and process long production runs product improvement and cost cutting |
| OM Strategy in the decline stage | little production differentiation cost minimization overcapacity in the industry prune line to eliminate items not returning good margin reduce capacity |
| SWOT | A method of determining a company's Strength weaknesses opportunities and threats |
| Key Success Factors | Activities or factors that are key to acheiving competitive advantage |
| Core Competencies | a set of skills and activities in which a firm is paricularly strong |
| activity map | a graphical link of competitive advantage KSFs and supporting activities |
| international business | a firm that engages in cross border transactions |
| Multinational Corporation | a firm that has extensive involvment in international business, owning or controlling facilities in more than one country |
| International Strategy | a strategy in which global markets are penetrated using exports and licensing |
| Multidomestic Strategy | a strategy in which operating decisions are decentralized to each country to enhance local responsiveness |
| global strategy | a strategy in which operating decissions are centralized and headquarters coordinate the standardization and learning between facilities |
| transitional strategy | a strategy that combines the benefits of global scale efficiencies with the benefits of local responsiveness |
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