Ch. 10: Operations Management, Productivity, and Quality

Time Utility

Making a product available when consumers want it.

Place Utility

Making a product available in a place convenient for consumers.

Ownership Utility

Making a product that consumers can take pleasure in owning.

Form Utility

Turning raw materials into finished goods.

Operations Management

The systematic direction and control of the processes that transform resources into finished goods and services.

Operation Managers

Individuals who bring raw materials, equipment, and labour together under a production plan that effectively uses all available resources.

Interaction with customers

One of the key differences between service and manufacturing operations.

Intangibility and unstorability

A characteristic of service operations contrasting with physical goods.

Analytic Processes

Processes that break down basic resources into their component parts.

Synthetic Processes

Processes that combine several raw materials to produce a finished product.

High Contact System

A service producing process where the customer is part of the process.

Low Contact System

A service producing process where customers are not in contact.

Capacity Planning

One of the five main categories of operations planning.

Location Planning

Determining the optimal location for production facilities.

The Master Operations Schedule

A schedule showing which products will be produced, when production will occur, and what resources will be used.

Material Management

Planning, organizing, and controlling the flow of materials in operations.

Labour Productivity

Compares the amount of labour used with the benefits, such as GDP, that result from using that resource.

Top Quality Management

Includes all activities necessary for getting high quality goods and services into the marketplace.

Performance Quality

The features of a product and how well it performs.

Supply Chain

The flow of information, materials, and services from raw material suppliers to end customers.

Supply Chain Management

The process of improving the overall flow through a system composed of companies working together.

Quality Improvement Teams

Groups of employees who meet regularly to define, analyze, and solve common production problems.