Introduction to Production Management

These vocabulary flashcards cover the fundamental definitions, transformation processes, historical evolution, and productivity measurements within Production and Operations Management.

Production

The act of manufacturing items from raw materials

Management

The process of dealing with or controlling things or people

Production Management

The process of controlling a company’s operations to provide the services and products it wants to produce

Operations function

The collection of people, technology, and systems in the organization that has primary responsibility for providing the organization’s products or services

Supply chain

A network of manufacturers and service providers (linked together through physical, information, and monetary flows) that work together to create products or services needed by end users

Operations Management

The planning, scheduling, and control of the activities that transform inputs into finished goods and services

Physical Transformation Process

A transformation process found in manufacturing operations

Locational Transformation Process

A transformation process found in transportation or warehouse operations

Exchange Transformation Process

A transformation process found in retail operations

Physiological Transformation Process

A transformation process found in health care

Psychological Transformation Process

A transformation process found in entertainment

Informational Transformation Process

A transformation process found in communication

Supply Chain Management

Managing all activities starting from point of origin through point of consumption till End of Life of the Product or Service, including planning and execution to satisfy customer demand

Craft production

The process of handcrafting products or services for individual customers

Division of labor

Dividing a job into a series of small tasks each performed by a different worker

Interchangeable parts

The standardization of parts initially as replacement parts, which enabled mass production

Scientific management

The systematic analysis of work methods

Mass production

High-volume production of a standardized product for a mass market

Quality revolution

An emphasis on quality and the strategic role of operations

Lean production

An adaptation of mass production that prizes quality and flexibility

Frederick W. Taylor

Orignator associated with the Principles of scientific management in $1911$

Taiichi Ohno (Toyota)

Originator associated with JIT (just-in-time) in the $1970s$

Efficiency

Doing something at the lowest possible cost

Effectiveness

Doing the things that will create the most value for the customer

Value

The attractiveness of a product relative to its price

Competitiveness

The degree to which a nation can produce goods and services that meet the test of international markets while maintaining or expanding real incomes of its citizens

Productivity Formula

$$\text{Productivity} = \frac{\text{Output}}{\text{Input}}$$

Single-factor productivity

Compares output to individual inputs, such as labor hours, material usage, or investment in equipment

Multifactor productivity

Relates output to a combination of inputs, such as $\frac{\text{Output}}{\text{Labor} + \text{Capital}}$

Total factor productivity

Compares the total quantity of goods and services produced with all the inputs used to produce them