Key Terms in Operations Management

Operations

A transformation process in systems (input - process - output)

S.I.P.O.C

Supplier, Input, Process, Output, Customers

Order Winners (OW)

Things that directly and significantly contribute to winning business. Customers regard them as key reasons for buying the product or service. Raising performance in an order-winning factor will either result in more business or at least improve the chances of gaining more business.

Order Qualifiers (OQ)

Factors where the operation's performance has to be above a standard level just to be considered by the customer. Performance below this 'qualifying' level of performance often disqualifies the organisation from being considered by many customers. Further improvement above the qualifying level is unlikely to gain the company much competitive benefit.

Less important factors with OW/OQ

Neither order winning nor qualifying. They do not influence customers in any significant way. They are worth including in any analysis only because they may be of importance in other parts of the operation's activities

Effective

Delivers exactly what the process intended to do. If its a different product, its not effective. Not the same as efficient

Efficient

how much you get out of what you put in, quality of input affects quality of output.

Economical

Its monetary value

Ethical

How harmful is it to people, profits, enviornment

Organizational design

creation process (input) where they make designs about their goals + put S.I.P.O.C into consideration

Organizational form

the actual structure/shape the organization decides to do (outcome), determining how the work is organized & coordinated

Front Office

Interacts with (transform) customers (front-of-house)

Back Office

Little/no direct contact with customers, perform activities that support the front office (back-of-house)

Upstream operations

Materials processing (crude oil, computer manufacturing)

Mid-stream operations

Information processing (fast-food meat, autorepair)

Downstream

Customer processing (hospital,counselling) back-of-office