OM EXAM 1

Operations

The functional area responsible for producing goods or delivering services.

Finance

The functional area that manages financial resources, including budgeting and investments.

Marketing

The functional area that focuses on customer needs, sales, and product promotion.

Operations Manager

The individual responsible for overseeing production and ensuring that processes run smoothly.

Staffing

The process of hiring and managing employees involved in production or service delivery.

Production Systems

Systems that can be classified based on output nature, volume, customer involvement, and process flow.

System Design

Focuses on long-term aspects of production such as facility layout and capacity planning.

System Operation

Deals with day-to-day management of production including scheduling and quality control.

Key Characteristics of Production Systems

Attributes that define efficiency, effectiveness, and include inputs, processes, outputs, feedback, and flexibility.

Sustainability in Operations Management

Efforts to reduce waste and environmental impact in production processes.

Cost Leadership

A competitive strategy focused on offering products at lower prices than competitors.

Differentiation

A competitive strategy centered on providing unique or high-quality products/services.

Productivity

A measure of efficiency calculated as Output divided by Input.

Mean Absolute Deviation (MAD)

The average of absolute forecast errors used to measure forecasting accuracy.

Naïve Forecasting

A forecasting method that assumes demand in the next period will be the same as the most recent period.

House of Quality

A tool in Quality Function Deployment (QFD) that translates customer needs into technical requirements.

Life Cycle Assessment (LCA)

An evaluation of the environmental impact of a product throughout its entire lifecycle.

Concurrent Engineering

A design approach that emphasizes cross-functional collaboration among teams to reduce development time and improve quality.

Modular Design

A design strategy that views a product as composed of multiple sections or modules, facilitating easier manufacturing and maintenance.

Exponential Smoothing

A forecasting method that assigns exponentially decreasing weights to past observations.

Lean Manufacturing

A production approach focused on minimizing waste while being responsive to customer needs.

Quality Management (TQM)

A management approach aiming for long-term success through customer satisfaction and continuous improvement.

Customer Satisfaction

The measure of how products and services meet or surpass customer expectations.

Planning in Operations Management

The function that involves forecasting demand, setting goals, and developing strategies.

Feedback Mechanism in Production Systems

A process that evaluates performance to improve efficiency within the system.

Supply Chain Management (SCM)

The management of the flow of materials, information, and finances from suppliers to customers.

Globalization in Operations Management

The focus on managing international supply chains and competition.

Innovation in Business Operations

The process of introducing new products, services, or business models to maintain competitiveness.

Quality Function Deployment (QFD)

A structured approach to ensure customer requirements are integrated into product development.

Basic Needs in the Kano Model

Essential features that meet customer expectations.

Performance Needs in the Kano Model

Features that increase customer satisfaction when met, but do not cause dissatisfaction when not met.

Excitement Needs in the Kano Model

Unexpected features that delight customers and enhance their experience.

Reason for Redesign

Market demand changes that necessitate product or service revisions.

Technology Integration in Operations Management

The use of technology to enhance production processes and efficiency.

Precision in Forecasting

The degree to which forecasted values align with actual outcomes.

Market Research in Qualitative Forecasting

A technique that collects customer opinions to predict future demand.

Delphi Method in Qualitative Forecasting

A forecasting technique involving a panel of experts who provide estimates iteratively.

Salesforce Estimates in Qualitative Forecasting

Insights from sales teams based on customer interactions to gauge future demand.

Concept Development in Service Design

The phase of defining service processes based on identified customer needs.

Phases in the Forecasting Process

Steps including defining purpose, gathering data, selecting methods, and generating forecasts.

Moving Average Forecasting

A technique that calculates average demand over a specified number of previous periods.

Weighted Moving Average (WMA)

A forecasting method that assigns different weights to historical data based on relevance.

Negative Impact of Poor Forecasting

Leads to ineffective planning and inability to meet customer demand.

Continuous Improvement in Service Design

The ongoing effort to enhance services based on user feedback and performance monitoring.

User Experience in Service Design

The overall experience customers have when interacting with a service.

Prototyping in the Design Process

The creation of a working model to test aspects of a product or service design.

Environmental Laws Compliance in Product Design

Ensuring products adhere to regulations aimed at sustainability and safety.

Customer Involvement in Service Design

Engagement of customers in the co-creation process of service delivery.

Quality Control Measures

Methods implemented to maintain a desired level of quality in production.

Efficiency in Operations Management

The ability to deliver products and services with minimal waste and optimal resource use.

Inventory Management in SCM

Balancing stock levels to avoid overproduction or shortages through effective logistics.

Strategic Importance of Product Design

Critical for attracting customers and ensuring market competitiveness.

Conclusion on Product and Service Design

Essential for business success, requiring alignment with customer needs, technology, and sustainability.

Analysis in Service Design

Evaluating customer experiences to ensure efficiency and satisfaction.

Competitive Differentiation

The process of distinguishing a business's products or services from competitors.

Operations Strategy

The plan to optimize production and efficiency to support overall business strategy.

Proactive Design Response

Adjusting designs based on market trends and customer feedback for competitive advantage.

Life Cycle Analysis

Assessing the total environmental impact of a product from creation to disposal.

Labor and Material Inputs

Resources involved in the production process that affect efficiency and cost.

Virtual Prototyping

Using digital simulations to test product designs before physical creation.

Feedback Loop in Operations Management

A system that allows businesses to iterate on products and techniques based on outcomes.

Cost-Benefit Analysis in Operations

Determining financial feasibility and efficiency of operational strategies.

Employee Training in Operations Management

Ensuring employees have the necessary skills and knowledge for effective service delivery.

Satisfying Customer Experience

The objective of service design focusing on making interactions pleasant and efficient.

Directing Functions in Operations Management

Supervising employees and guiding them towards achieving performance targets.

Strategic Alignment in Operations

Ensuring that operations strategies support broader organizational goals and objectives.

Value Analysis in Product Design

Evaluating the function of a product to improve value through cost reduction and quality enhancement.

Technology's Impact on Productivity

How modern tools and systems enhance the efficiency of production processes.

Service Reliability

The consistency of service delivery meeting customer expectations.

Environmental Sustainability Practices

Incorporating strategies that minimize negative environmental impacts in operations.

Customer Feedback in Product Design

Utilizing customer opinions as a crucial input to guide design and development processes.

Market Trends in Product Planning

Shifts in consumer preferences that influence product and service design decisions.

Product Recall Issues

Problems arising from quality failures necessitating returns of faulty products.

Innovation Drivers

Key factors that motivate organizations to develop new ideas and solutions.

Competitive Advantage through Design

Achieving superior business performance through strategic product and service features.

Supply Chain Efficiency

The optimization of supply chain processes to reduce costs and enhance performance.

Prototype Testing in Service Design

Evaluating potential service offerings before full implementation through trial runs.

Integrated Design Approach

Combining multiple disciplines in designing products and services for improved outcomes.

Service Process Optimization

Enhancing service delivery mechanisms to reduce waste and increase customer satisfaction.

Responsive Service Strategies

Adjusting service operations based on real-time customer feedback and demand fluctuations.

Mass Customization

The ability to produce custom products efficiently at scale.

Service Experience Design

Creating services to maximize customer satisfaction through careful planning.

Design Thinking in Operations

An approach focusing on understanding user experiences and iteratively improving designs.

Environmental Impact Assessment in Design

Evaluating and mitigating negative effects of products during their lifecycle.

User Engagement in Design Processes

Involving users actively to shape the design and functionality of offerings.

Feedback Mechanisms in Production Processes

Systems in place to collect data on product performance and customer satisfaction.

Cost-effective Solutions in Design

Finding ways to reduce expenses while maintaining quality and functionality.

Aligning Operations with Business Strategy

Ensuring that daily operational tactics support overarching business goals.

Innovation in Product Lifecycle Management

Implementing new ideas at every stage of a product's life to enhance viability.

Environmental Compliance in Manufacturing

Adhering to regulations to minimize ecological footprints during production.

Customer-Centric Design

A design philosophy prioritizing user needs and preferences in product development.

Proactive Quality Control

Preventative measures taken to ensure product quality before market introduction.

Sustainable Supply Chain Practices

Methods ensuring the supply chain operations are environmentally responsible.

Value-Added Features in Product Design

Additional elements incorporated in a product to increase perceived value by customers.

Regulatory Impacts on Product Design

Effect of laws and regulations on how products are created and marketed.

Manufacturing Flexibility

The ability of a production system to adapt to changes in product types and volumes.

Consumer Behavior Insights

Understanding how customers make purchasing decisions to inform design and strategy.

Profitability through Quality Assurance

Maximizing profit margins by maintaining high quality in production.

Change Management in Operations

Strategies for smoothly transitioning during operational shifts.

User-Driven Innovation

Enhancements based on direct feedback and suggestions from end-users.