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Operations Management Midterm

Terms in this set (104)

What is operations management?
the activity of managing the resources which are devoted to the production and delivery of products and services (making stuff)
What are the 3 basic functions of an organization?
product/service development, marketing, operations (the heart of a function)
Input Resources
things that are changing, or things that are doing the changing (transformed resources and transforming resources)
Transformed Resources
things that are changing in the process (materials, information)
Transforming Resources
the things you use to make the change happen (staff, machines)
Transformation Process
changing in some sort of meaningful way
Output Products/Services
the value added aspects from the transformation process
What are the 3 levels at which operations can be analyzed at?
the level of the supply network, the level of the operation, the level of the process
The Level of the Supply Chain
looking at how a bunch of different individual companies have to come together to create a product/service
The Level of the Operation
looking at one individual company, and seeing all the functional areas within that organization. looks at how the product/service has to flow through the organization to create the output
The Level of the Process
looking at one, individual department within a company and seeing how they are going to produce the product and what steps they have to take within their department. getting down to the fine details of how to create the output
What are the 4 Vs?
volume, variety, variation in demand, visability
Volume
the shear number of products or services you are producing

low = low repetition, each staff member performs more of each task, less systemization, high unit costs
high = high repeatability, specialization, capital intensive, low unit costs
variety
the number of different types of things you are producing

low = well defined, routine, standardized, regular, low unit costs
high = flexible, complex, match customer needs, high unit costs
Variation in Demand
how smooth is your demand for a given product or service (morning vs. night, summer vs. winter)

low = stable, routine, predictable, high utilization, low unit costs
high = changing capacity, anticipation, flexibility, in touch with demand, high unit costs
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