OMIS 4300 test 1

Operations Management

the management of systems or process that create goods/services

3 functions of business organizations

Marketing,Operations,finance

marketing

sales. help manage demand of the product

finance

making sure there is enough capital and resources available

Operations

heart of what they do, focused on cost

Supply chain management

how inputs become outputs

Supply chain process

inputs(land, Labor, Capital, Information)>Transformation process>Outputs(goods and services)

products

a physical item that incudes raw materials, parts and final products

services

activities that produce some combination of a time, location, form or physical value

How do manufacturing and services differ?

Manufacturing is goods-oriented and services are act oriented

Value added

the difference between cost of inputs and value of outputs(how much customers are willing to pay)

managing services challenge

are less structured because of more variability, employee turnover is higher in services

productive

What did you create?

Managing Manufacturing is easier service manufacturing because

it is easier to fix problems

3 process management areas

Upper management process(govern the operation of the entire organization), Operational process(these are process thar make up the value stream), Supporting process(these support core process)

4 Process variation concepts

Varity of goods or services being offered, structural variation in demand, Random variation, Assignable variation

Varity of goods or services being offered

the greater Varity of goods/services, the greater the variation in production requirements

Structural variation in demand

these are predicable, important for capacity planning

Assignable Variation

has a definable source

How do variations effect the supply chain?

Variations can be disruptive to operations and supply chain processes

Test model

an abstraction of reality, a simplification of something

Physical model

diorama

Schematic

blueprint

Model benefits

it is easier to use and less expensive than real system, Increase understanding of the problem, Enable users to bring the power of mathematics to bear on a problem. ect:Slide 27

Pareto Principle

80% of our sales comes from 20% of our clients

System

a set of interrelated parts(subsystems) that must work together, marketing subsystem, operations subsystem, finance subsystem.

The systems approach

Emphasizes interrelationships among subsystems, the Main theme is that the whole is greater than the sum of its parts, The output and objectives of the organization take precedence over those of any one subsystem.

Forecast

a statement about the future value of a variable of interest

Forecast Accuracy and control

goal is to minimize error, error =actual-forecast

MAD

weights all errors evenly, perfect score is 0

MSE

weights errors according to their squared values

MAPE

weights errors according to relative error

Time-Series Forecasting - Naïve Forecast

Uses a single previous value of a time series as the basis for a forecast

Trend

A long-term upward or downward movement in data

Seasonality

Short-term, fairly regular variations related to the calendar or time of day

Cycle

Wavelike variations lasting more than one year

Random Variation

Residual variation that remains after all other behaviors have been accounted for

Irregular variation

ex labor strike ,weather event

Associative Forecasting Techniques

Associative techniques are based on the development of an equation that summarizes the effects of predictor variables

Correlation, r

A measure of the percentage of variability in the values of y that is "explained" by the independent variable, ranges between 0-1.00

Reverse engineering

copying competitors products

Re design

the driving forces for product and services design or redesign are markets opportunities or threats

basic redesign

not interested in solving problems

Applied redesign

solving problems

design for disassembly

design a product that can be easily taken apart

Standardization

good in production, absence of variety
Advantages(fewer parts, reducing cost)
Disadvantages(freeze design with imperfections, high cost of design changes, demand in variably causes less consumer appeal)

QFD -Quality function deployment

voice of the customer

Kano Model Notes

Notes picture

CAD

Computer Aided Design

DFM

design for manufacturing

DFA

Design for Assembly

Product bundle

the combination of goods and services provided to a customer

Queuing theory

Mathematical approach to analyst for waiting in line ex: call centers, banks post office, theme parks

Single channel single phase

barber

Single channel multiple phase

car wash

multiple channel single phase

tellers at a bank, choose 1/3 windows

Multi channel multi phase

old registration process

Cost Analysis

optimal capacity is one that minimized the sum of all waiting cost and capacity/server cost

infinite

1.Single server, exponential service time ex drive through

2.Single server, constant service time ex vending machine