opsman prelims

Operations Management

The management of systems or processes that create goods and/or provide services.

Supply Chain

The sequence of organizations, including their facilities, functions, and activities, involved in producing and delivering a product or service.

Goods

Physical items that include raw materials, parts, subassemblies, and finished products.

Services

Activities that provide some combination of time, location, form, or psychological value.

Operations Function

All activities related directly to producing goods or providing services.

Value-added

The difference between the cost of inputs and the value or price of outputs.

Planning

The function of management that involves deciding on a future course of action to achieve predetermined goals.

Organizing

The process of bringing together resources and developing productive relationships to achieve organizational goals.

Staffing

The function of manning the organization structure and ensuring appropriate personnel are in place.

Directing

The part of management that deals with influencing, guiding, supervising, and motivating subordinates.

Controlling

The process of measuring accomplishment against standards and taking corrective action if necessary.

Decision Making in Operations Management

The process of deciding on the design, management, and improvement of operations systems.

Productivity

The ratio of input to output used to measure the effectiveness of resource use.

Competitiveness

How effectively an organization meets the wants and needs of customers relative to competitors.

Cost Management

Managing costs related to production and operations to gain a competitive edge.

Inventory Management

The process of overseeing and controlling the ordering, storage, and use of inventory.

Quality Assurance

The practice of ensuring that a product or service meets specified quality standards.

Customer Satisfaction

The degree to which a product or service meets the needs and expectations of customers.

Mission Statement

A statement expressing the reason for an organization's existence and its primary objectives.

Strategic Operations Management

The approach used to guide the operations function to support overall business strategy.

Order Qualifiers

Characteristics perceived as minimum standards for a product or service to be considered for purchase.

Order Winners

Characteristics that cause a product or service to be perceived as better than competitors' offerings.

operations, finance, marketing

3 primary business function

finance

is responsible for securing financial resources at favorable prices and allocating those resources throughout the organization, as well as budgeting,

marketing

 is responsible for assessing consumer wants and needs, and selling and promoting the organization’s goods or services.

operations

is responsible for producing the goods or providing the services offered by the organization.

operations and supply chain

 are intrinsically linked, and no business organization could exist without both.

intangible

a service cannot be seen, smelled, heard, or touched prior to purchase

perishable

a service cannot be stored like a physical good. if it is not delivered, it is lost or it does not exist

inseparable

a service is performed and consumed at the same time

variable

each time a service is performed it will be performed, it will be performed in a different way

operations manager

in charge of the operations management

customer satisfaction

A customer review can make or break a business. If a negative word spreads, it could be a challenge to retain clients.

quality management

To ensure the organization maintains a consistent and good service. element of customer satisfaction

employee capacity

Making sure the right people are in the right roles, which helps produce a good product/service. element of customer satisfaction

planning

To make sure that there is no lapse in production and that goods/services are on time. element of customer satisfaction

enough inventory

to keep up with customer demand, element of customer satisfaction

revenue increase

An organization will have a good reputation thanks to great product/service quality and customer satisfaction.

reduced operating cost

Through productivity, quality products and customer satisfaction, cost incurred on products servicing is maximally reduced.

planning

It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals.

planning

 is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be”.

directing

It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because

supervision

 implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers

motivation

means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose.

controlling

It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals.

operations management

“The control of the activities involved in producing goods and providing services, and the study of the best ways to do this.”

human resources management

•  the people employed by an organization either work directly to create a good or service or provide support to those who do. People and the way they are managed are a key resource of all organizations. operations managers responsibility

asset management

•  an organization's buildings, facilities, equipment and stock are directly involved in or support the operations function. operations manager responsibility

cost management

most of the costs of producing goods or services are directly related to the costs of acquiring resources, transforming them or delivering them to customers.

introduction stagea

the stage in which a new product is first distributed and made available for purchase, after having been developed in the product

perishability

perishability a 100 room hotel that sells only 60 rooms on a particular night cannot inventory the 40 unused rooms and then sell 140 rooms the next night. revenue lost from not selling those 40 rooms is gone forever. this is because of what characteristics of service?

strategy

a plan in achieving organizational goal

process flow chart

visual representation of the steps involved in a process

operations management

management of systems and processes that creat goods and services

goals

provides detail and scope of the mission

goals

foundation for development of organizational strategies

growth stage

the stage in which the product’s sales start climbing quickly

services

aa higher degree of labor, activities that provide some combination of time, location, form of psychological value

productivity

a measure of the effective use of resources usually expressed as the ratio of output to input

planning

deciding in advance what to do, when to do and how to do it

true

true or false: operations are processes that either provide services or create goods

goods

physical items that include raw materials, parts, sub-assemblies such as motherboards that go into computers, and final product such as cell phones and automobiles

true

true or false: productivity is defined as the ratio of output to input

supply chain

is the sequence of organizations— their facilities, functions, and activities that are involved in producing and delivering a product or service

productivity

a measure of the efficiency with which goods and services are produced

operations

responsible for producing the goods or providing the services offered by the organization

intangible

service cannot be seen, tasted, felt, heard, or smelled before purchase pertains to _______ characteristic of service

maturity stage

the stage in which the product’s sales growth slows down after reaching a peak

mission

what business are we in

true

true or false: operations managers are responsible for assessing consumer wants and needs and promoting the organizations goods or services

variability

the food in the restaurant may be outstanding but if the service person has a poor attitude or provides inattentive service, customers will not be satisfied with their experience.

supply chain

one or more actions that transforms inputs into outputs

organizing

process of bringing together physical financial and human resources

inputs

land, labor, capital