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MKTG 372 Exam #1 Study Guide

Terms in this set (67)

operations management
the business function responsible for planning, coordinating, and controlling the resources needed to produce products and services for a company
marketing
manages: customer demands; generates: sales for goods and services
operations
manages: people, equipment, technology, materials, and information; to produce: goods and/or services
finance
manages: cash flow, current assets and capital investments
services
intangible product, product cannot be inventoried, high customer contact, short response time, labor intensive
manufacturers
tangible product, product is inventoried, low customer contact, longer response time, capital intensive
quasi-manufacturing
organizations that are a blend of service and manufacturing
strategic
decisions that are broad in scope, long-term in nature, all encompassing
example: What are the unique features of our product that make us competitive?
tactical
decisions that are narrow in scope, short term in nature, concerning a small group of issues
example: Who will work the 2nd shift tomorrow?
industrial revolution
late 1700s; machine to human power
scientific management
early 1900s; analysis and measurement; assembly lines and mass production
human relations movement
1930s to 1960s; human elements such as worker motivation and job satisfaction
management science
1940s to 1960s; quantitative techniques
computer age
1960s; quantitative models and data processing improvements
environmental issues
1970s; waste reduction, recycle, reuse
just in time
1980s; high volume production with minimal inventories
total quality management
1980s; eliminate causes of production defects
reengineering
1980s; redesign processes for greater efficiency and cost reduction
global competition
1980s; compete in the global market
flexibility
1990s; customization on a mass scale
time based competition
1990s; speed of delivery
supply chain management
1990s; reduce cost of entire system
electronic commerce
2000s; use of the internet for business
outsourcing and flattening of the world
2000s; technology enabling outsourcing jobs virtually anywhere
lean ERP CRM cross functional
Today's OM environment:
- customers demand better quality, greater speed, and lower costs
- companies implementing ___ system concepts- a total systems approach to efficient operations
- recognized need to better manage information using __ and __ systems
- increased ___-___ decision making
diverse transformation OM
OM in practice- jobs
- OM has the most ___ organizational function
- manages the ______ process
- OM has many different faces and names such as: VP operations, director of supply chains, manufacturing manager, plant manager, quality specialists, etc.
- all business functions need information from __ in order to perform their tasks
operations marketing finance
Most businesses are supported by the functions of:
-________
-________
-________
the major functional areas must interact to achieve the organization goals
marketing
_____ is not fully able to meet customer needs if they do not understand what operations can produce
finance
____ cannot judge the need for capital investments if they do not understand operations concepts and needs
accounting
_____ needs to consider inventory management, capacity information, and labor standards
information systems
______ ____ enables the information flow throughout the organization
human resources
____ _____ must understand job requirements and worker skills
OM
The role of __ is to transform organizational inputs into company's products or services outputs
business strategy
defines long-range plan for company
marketing strategy
defines marketing plans to support the business strategy
operations strategy
develops a plan for the operations function focusing on specific competitive priorities in order to meet the long-range plan
finance strategy
develops financial plans to support the business strategy
environmental scanning
monitoring the business environment for market trends, threats, and opportunities
mission
statement that defines WHAT is our business; WHO are our clients; and HOW our values define our business
core competencies
unique strengths that can help us win in the market
competitive priorities
cost, quality, time, flexibility
operations function
developed to focus on the identified competitive properties
structure: facilities, flow of goods, technology
infrastructure: planning and control system, workers, pay, quality
cost
Competing on ____:
offer product at a lower price than competition
- typically high volume products
- often limit product range with little customization
- may invest in automation to reduce unit costs
- can use lower skill labor
- probably use product focused layouts
- low cost does not mean low quality
quality
Competing on _____:
often subjective and is defined differently depending on who is defining it
two major quality dimensions include:
- high performance design: superior features, high durability, and excellent customer service
- product and service consistency: meets design specifications, close tolerances, error free delivery
quality must address:
- product design quality: product/service meets requirements
- process quality: error free products
time
Competing on ___:
- top competitive priority
- first to deliver often wins the race
time related issues involve:
- rapid and/or on-time delivery: focused on shorter time between order placement and delivering product exactly when needed every time
flexibility
Competing on ____:
business environments can change rapidly; company's must accommodate change by being flexible
- product flexibility: offer a wide variety of goods/services, easily customized to meet specific requirements of customer, easily drop or ass product to meet customer demand
- volume flexibility: ability to rapidly increase or decrease production to match market demands
trade offs
The need for ______:
decisions-
- must emphasize priorities that support business strategy
- often require trade-offs
- must focus on order qualifiers and order winners
structure
decisions related to the production process:
- characteristics of facilities used
- selection of appropriate technology
- flow of goods and services
infrastructure
decisions related to planning and control systems of operations:
- organization of operation function
- skill/pay of workers
- quality control approaches
product technology
new technology
process technology
improves process
information technology
enables communication
productivity
a measure of how efficiently inputs are converted to outputs
= output / input
total productivity
= output produced / all inputs used
partial productivity
= output / labor or output / capital
multifactor productivity
= output/ labor + materials
project network
a diagram of all the activities and the precedence relationships that exist between these activities in a project
earliest start
earliest time at which an activity can start, assuming all predecessors have been completed
earliest finish
earliest time at which an activity can be finished
latest start
latest time at which an activity can start so as to not delay the completion time of the entire project
latest finish
latest time by which an activity has to be finished so as to not delay the completion time of the entire project
CMP
__ assumes we know a fixed time estimate for each activity and there is no variability in activity times.
PERT
___ uses a probability distribution for activity times to allow for variability.
optimistic time
if everything goes according to plan
most likely time
most realistic time
pessimistic time
assuming very unfavorable conditions
project crashing
shortening the duration of the project
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