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Operation Management

This refers to the administration of business practices to create the highest degree of efficiency possible within an enterprise.

Capacity Planning

A role of Operation Management that involves evaluating the number of products or services a business can sell or distribute in a given time frame.

Quality Control

A role of Operation Management that involves checking for potential problems or errors in services or products at every stage of the production process during service operations.

Products design and service design

A role of Operation Management that involves a product’s cost-effectiveness and meeting customer requirements.

Process Improvement and optimization

A role of Operation Management that involves evaluating the steps in a process, either completely rewriting it or rearranging the steps to work best.

Supply Chain Management

A role of Operation Management that involves controlling the sourcing of supplies, the production process, inventory management, sales, and distribution at reasonable rates while managing the supply chain process.

Facilities Management

This is under the umbrella of operations management. It integrates people, places, and processes, as well as the handling and care of structures, buildings, equipment, and other physical necessities.

Hard Services

A category of facilities management that relates to any physical alterations and adjustments in the building or its structure.

Soft Services

A category of facilities management responsible for making the workplace bearable and comfortable.

Facility Location

It involves learning a geographic site for an enterprise’s operations.

Open Office Design

A type of workplace layout where workstations are arranged in various ways, some touching each other and others clustered in work zones of varying sizes.

Cellular Office Design

A type of workplace layout that divides the entire office space into individual cubicles, giving employees private areas.

Product or Line Layout

A type of manufacturing layout where a single product type is created in an operating area, standardized and produced in large quantities.

Process or Functional Layout

A type of manufacturing layout helpful for low production needs; equipment is positioned according to operation type.

Fixed Position Layout

A type of manufacturing layout where the product remains in a fixed position or location.

Seiri

It means sorting in English. Organizing important tools/materials and discarding unneeded ones.

Seiton

It means to set in order. Arrange tools so few movements are needed to locate them.

Seiso

It means cleanliness or shine. Emphasizes cleaning the workplace as a daily habit.

Seiketsu

It means standardized. Emphasizes maintaining the first three “S”s in the 5S system.

Shitsuke

It means discipline or sustain. Emphasizes 5S as an ongoing process and responsibility.

Organizational Structure

Defines each worker’s job and how it fits inside the system.

Decentralized Organizational Structure

Several people make decisions and run departments.

Centralized Organizational Structure

One individual makes decisions and directs the enterprise.

Simple Structure

A centralized structure suitable for small businesses with 1

Functional Structure

Suitable for medium-sized firms with several product lines in one industry.

Divisional Structure

Suitable for large corporations with many product lines across industries.

People Strategy

A prioritized people plan enabling business success by attracting, developing, retaining, and inspiring the workforce.

Milton Friedman

Proposed that the primary social responsibility of a business is to increase profit within legal and ethical limits.

Archie Carroll

Proposed that businesses have four social responsibilities beyond profit maximization.

Peter Drucker

Suggested that companies should ensure their social responsibilities also become business opportunities.

Income Statement

This financial statement includes revenue and expense balances from the Adjusted Trial Balance.

Balance Sheet

This financial statement shows the company’s total assets and financing methods.

Statement of Cash Flow

Shows a comprehensive picture of a company’s cash flow over a period.

ROI (Return on Investments)

The return on the owner's equity.

ROA (Return on Assets)

Profitability measure of how effectively a company has utilized its assets.

Profit Margin

Return on sales or income

Break-even

The point where total costs and revenue are equal.

Revenue

The income amount after a product/service is sold.

Fixed Costs

Expenses that do not change with production volume.

Variable Costs

Costs that increase or decrease depending on production volume.