Operations Management and Process Strategy Flashcards

Vocabulary flashcards created from lecture notes covering process strategy, operational time allocation, operations management responsibilities, productivity metrics, and competitive advantage strategies.

Process Strategy

An organization's approach to transforming resources into goods & services.

Process Focus

A process strategy characterized by low volume and high variety.

Repetitive Focus

A modular process strategy.

Product Focus

A process strategy characterized by high volume and low variety.

Mass Customization

A process strategy characterized by high volume and high variety.

Tools for Process Analysis and Design

Tools including flowchart, time-function mapping, process charts, value-stream mapping, and service blueprinting.

Time Allocation: Meeting w/ Direct Reports

Accounts for $27\%$ of allocated time.

Time Allocation: Reactive Issue Resolution

Problem solving that accounts for $18\%$ of allocated time.

Time Allocation: Planning + Strategy Development

Accounts for $18\%$ of allocated time.

Time Allocation: External Meetings

Meetings w/ customers, suppliers, and unions account for $13\%$ of allocated time.

Time Allocation: Executive / Board Meetings

Accounts for $13\%$ of allocated time.

Time Allocation: Administrative Tasks

Accounts for $11\%$ of allocated time.

Production

The creation of goods + services.

Operations Management (OM)

The set of activities that creates value in the form of goods, services by transforming inputs into outputs.

Organizing to Produce Goods & Services

The three required organizational functions: 1. Marketing, 2. Production/operations, 3. Finance / accounting.

Responsibilities of OMs

Planning (# of production), organizing (schedule), staffing (which people), leading, and controlling (meets requirements).

Productivity

The ratio of outputs (goods + services) divided by inputs (resources, like labor + capital), calculated as $\text{Productivity} = \frac{\text{units produced}}{\text{input used}}$. It measures output rather than efficiency or performance.

Achieving Competitive Advantage w/ Operations

Achieved by competing on differentiation (e.g., Hermes), competing on cost (e.g., Walmart), or competing on response (e.g., Amazon).

CA vs. SCA

Competitive Advantage (CA) is shorter-term, whereas Sustainable Competitive Advantage (SCA) is longer-lasting.

Manager's Priorities

Managing costs, dealing w/ safety + quality issues, motivating the workforce, identifying measurement systems for tracking performance, and implementing projects for improving site operations.