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26 terms

Chapter 14

The Operation System
1) Inputs
- People
- Technology
- Capital
- Equipment
- Materials
- Information
2) Transformation Process
3) Outputs
- Goods
- Services
Operation Management
The study and application of the transformation process.
Transformation Process
The process that converts resources into finished goods and services.
Manufacturing Organizations
Organizations that produce physical goods.
Service Organizations
Organization that produce nonphysical products in the form of services.
The performance characteristics, features, attributes, and other aspects of goods and services, for which customer are willing to give up resources.
Value Chain
The entire series of work activities that add value at each step from raw materials to finished product.
Value Chain Management
The process of managing the sequence of activities and information along the entire value chain.
Requirements For Successful Value Chain Management
Value Chain Strategy:
1) Coordination and collaboration
2) Technology investment
3) Organizational processes
4) Leadership
5) Employees
6) Organizational culture and attitudes
Business Model
A strategic design for how a company intends to profit from its broad array of strategies, processes, and activities.
Organizational Processes
The way organizational work is done.
Obstacles To Successful Value Chain Management
Obstacle to value chain management:
1) Culture attitudes
2) Required capabilities
3) People
4) Organizational barriers
What is Quality?
1) Product quality dimensions
2) Service quality dimensions
Product Quality Dimensions
1) Performance
2) Features
3) Flexibility
4) Durability
5) Conformance
6) Serviceability
7) Aesthetics
8) Perceived quality
Service Quality Dimensions
1) Timeliness
2) Courtesy
3) Consistency
4) Convenience
5) Completeness
6) Accuracy
ISO 9000
A serie of international quality standards that set uniform guidelines for processes to ensure that products conform to customer requirements
Six Sigma
A quality standard that establishes a goal of no more than 3.4 defects per million units or procedures.
A one-time-only set of activities with a definite beginning and ending point.
Project Management
The task of getting project activities done on time, within budget, and according to specifications.
Gantt Chart
A planning tool that shows in bar graph form when tasks are supposed to be done and compares that with the actual progress on each.
Load Chart
A modified version of Gantt chart that list either whole department or specifics resources.
PERT Network Analysis
A flowchart-like diagram that depicts the sequence of activities needed to complete a project and the time or costs associated with each activity.
End points that represent the completion of major activities.
Action that take place
Critical Path
The longest and most time-consuming sequence of events and activities required to complete a project in the shortest amount of time.
Slack Time
The time difference between the critical path and all other path.