Operations Management Midterm Review Flashcards

Flashcards for Operations Management Midterm Review

Operations Management

The planning and control of how inputs (like materials and labor) are turned into products and services for both customers and employees.

Supply Chain Management

Coordinating a company's processes with suppliers and customers to ensure materials, services, and information flow smoothly to meet customer demand.

Good

Physical product that a person can see, touch, or consume

Durable good

Product that does not quickly wear out and lasts at least three years

Non-durable good

Perishable and lasts for less than three years

Service

Primary or complementary activity that does not directly produce a physical product

Service Management

Integrates marketing, human resources, and operations functions to plan, create, and deliver goods and services and deal with service encounters.

Moments of truth

Episodes, transactions, or experiences in which a customer comes into contact with any aspect of the delivery system

Customer Benefit Packages (CBP)

Clearly defined set of tangible and intangible features that the customer recognizes, pays for, uses, or experiences.

Input-Output Model

A value chain begins with suppliers who provide inputs that are transformed into value-added goods and services through processes that are supported by resources such as equipment and facilities, labor, money, and information.

Strategy

A pattern or plan that integrates an organization’s major goals, policies, and action sequences into a cohesive whole.

Corporate Strategy

Defines the businesses in which the corporation will participate and develop plans for the acquisition and allocation of resources among those businesses.

Business Strategy

Defines the focus for SBUs. The major decisions involve which markets to pursue and how best to compete in those markets

Functional Strategy

The set of decisions that each functional area develops to support its particular business strategy.

Operations Strategy

Defines how an organization will execute its chosen business strategies.

Voice of the customer

Customer requirements, as expressed in the customer’s own terms

Quality function deployment (QFD)

An approach to guide the design, creation, and marketing of goods and services by integrating the voice of the customer into all decisions

Option, or assemble-to-order

Configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set.

Standard, or make-to-stock

Goods and services are made according to a fixed design, and the customer has no options from which to choose.

Job shop processes

Processes are organized around particular types of general-purpose equipment that are flexible and capable of customizing work for individual customers.

Flow shop processes

Processes are organized around a fixed sequence of activities and process steps to produce a limited variety of similar goods or services.

Continuous flow process

A process creates highly standardized goods or services, usually around the clock in very high volumes.

Facility Layout

Refers to the specific arrangement of physical facilities.

Product Layout

An arrangement based on the sequence of operations that are performed during the manufacturing of a good or delivery of a service.

Process Layout

Consists of a functional grouping of equipment or activities that do similar work.

Cellular Layout

The design is not according to the functional characteristics of equipment, but rather by self-contained groups of equipment, needed for producing a particular set of goods or services.

Fixed-position layout

Consolidates the resources necessary to manufacture a good or deliver a service, such as people, materials, and equipment, in one physical location.