1/42
Vocabulary flashcards covering key terms and concepts from Chapter 1 notes on Operations Management and Supply Chain Management.
Name | Mastery | Learn | Test | Matching | Spaced |
---|
No study sessions yet.
Operations Management
The management of systems or processes that create goods and/or provide services.
Supply Chain
A sequence of activities and organizations involved in producing and delivering a good or service (suppliers’ suppliers → direct suppliers → producer → distributor → final customers).
Goods
Physical items that include raw materials, parts, subassemblies, and final products.
Services
Activities that provide some combination of time, location, form or psychological value.
Transformation Process
The set of activities that convert inputs into outputs; includes feedback and control.
Feedback
Measurements taken at various points in the transformation process.
Control
The comparison of feedback against established standards to determine if corrective action is needed.
Goods-service Continuum
Products are typically neither purely service- nor purely goods-based; they lie on a continuum.
Input
Resources entering a transformation process (land, labor, capital, information, etc.).
Processing
The actions that convert inputs into outputs.
Output
The final goods or services produced by a process.
Customer contact
Degree of interaction between customers and the process; high in services, low in goods.
Labor content
The amount of labor involved in a process.
Inventory
Stock of inputs or outputs held to support operations.
Pareto Phenomenon
A small number of factors account for a large percentage of occurrences; focus on the critical few.
System
An interrelated set of parts forming a whole; a organization is made up of subsystems (Marketing, Operations, Finance).
System Design Decisions
Long-term decisions about capacity, facility location and layout, product/service planning, and equipment.
System Operation Decisions
Tactical and operational decisions such as managing personnel, inventory, scheduling, project management, and quality assurance.
Decision making: What, When, Where, How, Who
Common questions guiding resources, timing, location, design, and assignment in operations decisions.
Model
An abstraction or simplified representation of reality used to analyze and support decisions.
Physical Model
A tangible, miniature representation of a system.
Schematic Model
A drawn or schematic representation of a system.
Mathematical Model
A model expressed with mathematical relationships (e.g., inventory optimization).
What-if analysis
Exploring alternative scenarios to assess potential outcomes and inform decisions.
Benefits of Models
Easier and cheaper than experimenting with the real system; clarifies problems; supports what-if analysis and standardized decision tools.
Model limitations
Overemphasis on quantitative data; risk of misapplication; models do not guarantee good decisions.
Quantitative Approaches
Decision-making methods that seek mathematically optimal solutions, often with computer calculations, and used alongside qualitative methods.
Metrics
Performance measures used to manage and control operations (profits, costs, quality, productivity, flexibility, inventories, schedules, forecast accuracy).
Trade-offs
Giving up one thing in return for something else (e.g., more inventory for better service).
Systems Perspective
Viewing the organization as a system of interrelated subsystems; the whole is greater than the sum of its parts.
Industrial Revolution
Early period of mass production; development of division of labor, steam power, interchangeable parts; began in England in the late 18th century.
Scientific Management
Taylorism; management as a science based on observation, measurement, and optimization of work methods to maximize output.
Human Relations Movement
Emphasized the human element (motivation, teamwork) in job design and performance.
Operations Research
Application of mathematical methods to decision making; development of linear programming and other optimization tools.
Linear Programming
A mathematical method for optimizing a linear objective subject to linear constraints.
Just-in-Time (JIT)
A production approach from Japan aimed at reducing waste and inventory by pulling production with demand.
Lean Production
A system emphasizing flexibility and waste reduction to improve speed and quality.
Quality Revolution
Intense focus on improving quality, associated with Deming, Juran, and Ishikawa.
Internet, Supply Chain Management
The 1990s development integrating the Internet into supply chain management and coordination.
Sustainability
Using resources in ways that do not harm ecological systems; includes social criteria and broad decision-making implications.
Ethics in Operations
Ethical issues across financial statements, safety, product safety, environment, community, and workers’ rights.
Need for Supply Chain Management
Growing importance of managing beyond a company’s own operations to coordinate with suppliers and customers to prevent oscillations, stockouts, and quality problems.
Forecasting
Predicting future demand or requirements used for planning and decision making.