Chatper 1
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kipbelcher on September 25, 2011
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Unit 1, note cards
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35 terms
Terms | Definitions |
|---|---|
 Goods | Physical items produced by business organizations |
| Services | Activities that provide some combination of time, location, form, and psychological value |
| Operations Management | The mangement of systems or processes that create goods and/or provide services |
| Supply Chain | a sequence of activities and organizations involved in producing and delivering a good or service |
| Value-added | the difference between the cost of inputs and the value or price of outputs |
| Process | One or more actions that transform inputs into outputs |
| Upper-management processes | These govern the operation of the entire organization. Ex. Organizational governance and organizational strategy |
| Operational processes | These are the core processes that make up the calue stream. Ex. purchasing, production, and/or services, marketing, and sales |
| Supporting processes | Theses support the core processes. Ex. Accounting, HR, and IT |
| Four basic sources of variations | 1) The Variety of goods or servies being offered 2)Structural variation in demand 3) Random variation 4) Assignable variation |
| The scope of operations management | 1) Forecasting 2) Capacity planning 3) Facilities and layout 4) Scheduling 5) Managing inventories 6) Assuring quality 7) Motivating and training employees 8) Locating facilities |
| System Design | involves decisions that relate to system capacity, the geographic location of facilities, arrangement of departments and placement of equipment within physical structures, product and service planning, and acquisition of equipment. (Strategic Decisions) |
| Other areas of operation management | 1) purchasing 2) industrial engineering 3) distribution 4) maintenance |
| Operations and sales are | The two line functions in a business organization |
| Lead time | The time between ordering a good or service and receiving it. |
| Key decisions of oepration management | The chief role of an operations manage is that of planner and decision maker. (What, when, where, how, who) |
| Models | Ab abstraction of reality; a simplified representation of something |
| Physical model | look like their real-life counterparts |
| Schematic models | more abstract than their physical counterparts, less resemblance to the physical reality |
| Mathematical models | most abstract, they do not look at all like their real-life counterparts.` |
| Quantitative Approaches | 1) Linear programming: used for optimum allocation of scarce resources 2) Queuing techniques: used for analyzing situations in which waiting lines form. 3) Project models: PERT and CPM, useful for planning, corrdination, and controlling large-scale projects. 4) Forecasting techniques: used in planning and scheduling 5) Statistical models: used in many areas of decision making |
| System | A set of interrelated parts that must work together Main theme is, the whole is greater than the sum of its indicidual parts. |
| Pareto Phenomenon | A few factors account for a high percentage of the occurrence of some event(s) |
| Craft Production | System in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods. |
| Mass production | System in which low-skilled workers use specialized machinery to produce high volumes of standardized goods. |
| Interchangeable parts | Parts of a product made to such precision that they do not have to be custom fitted. |
| Division of labor | The breaking up of production process into small tasks, so that each worker performs a small portion of the overal job |
| E-business | Use of the internet to transact business |
| E-commerce | Consumer-to-business transactions |
| Technology | the application fo scientific discoveries to the development and improvement of goods and services. |
| Substainability | Using resources in ways that do not harm ecological systems that support human existence. |
| Agility | The ability of an organization to respond quickly to demands or opportunites |
| Six sigma | A process for reducing costs, improving quality, and increasing customer satisfaction. |
| Lean System | System that uses minimal amounts of resources to produce a high volume of high-quality goods with some variety. |
| Outsourcing | Buying goods or services instead of producing or providing them in-house. |
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