Operations Management Chapter 1 Flashcards

Comprehensive vocabulary flashcards covering the core concepts, history, and roles within Operations Management based on the Chapter 1 lecture notes.

Operations Management

Business function of planning, organizing, and controlling the process that transforms inputs into valuable goods/services to maximize efficiency, productivity, quality, and profitability.

Efficiency

Using the least resources with minimum waste while producing the desired output.

Productivity

Output produced from a given input ($Output \div Input$).

Quality

Degree of excellence that satisfies customer needs.

Profitability

Ability to earn more income than expenses.

Process Optimization

Improving a process by removing unnecessary steps and increasing efficiency.

Optimize

Make something as effective and efficient as possible.

Resource Allocation

Assigning resources where they are needed.

Optimizing Resource Allocation

Assign resources in the best way to maximize efficiency and minimize waste.

Supply Chain

Flow of goods, information, and resources from supplier to customer.

Supply Chain Management

Managing the flow of goods, information, and resources throughout the supply chain.

Scientific Management

Taylor's approach using scientific methods to find the most efficient way to work.

Lean Management

Eliminate waste and create value.

Agile Management

Flexibility and quick adaptation to change.

TQM

Continuous quality improvement involving everyone.

Sustainability

Continuing over time while using resources responsibly.

CSR

Business responsibility to society and the environment.

Frederick Taylor

Father of Scientific Management.

Henry Ford

Introduced the Assembly Line Technique.

W. Edwards Deming

Associated with Total Quality Management.

Frank & Lillian Gilbreth

Developed Motion Studies.

Evolution of Operations Management

Industrial Revolution $\rightarrow$ Scientific Management $\rightarrow$ Assembly Line $\rightarrow$ TQM $\rightarrow$ SCM $\rightarrow$ Lean $\rightarrow$ Agile $\rightarrow$ AI/Big Data/IoT $\rightarrow$ COVID-19

Input-Transformation-Output

Resources $\rightarrow$ Process $\rightarrow$ Goods/Services

Supply Chain Flow

Supplier $\rightarrow$ Manufacturer $\rightarrow$ Distributor $\rightarrow$ Retailer $\rightarrow$ Customer

Functions of OM

Planning, Organizing, Controlling

Goals of OM

Efficiency, Productivity, Quality, Profitability

Desired Outcomes

Profitability, Production Performance, Supply Chain Performance, Competitiveness, Sustainability, CSR

Efficiency vs Productivity

Efficiency focuses on minimal waste, while Productivity focuses on output from a given input.

Supply Chain (SC) vs Supply Chain Management (SCM)

SC is the flow, while SCM is managing the flow.

Lean vs Agile

Lean focuses on eliminating waste; Agile focuses on adapting quickly.

Operations Manager Roles

Oversee operations, manage resources, coordinate, improve processes, lead teams.

Analyze

Examine carefully.

Allocate

Assign resources.

Streamline

Simplify and improve a process.

Competitiveness

Ability to compete successfully.

Resilience

Recover quickly from disruptions.

Time Study

Measure task time.

Motion Study

Study movements to remove unnecessary motion.

Scientific Methods

Observation, Measurement, Analysis, Experimentation, Standardization.

Building upon Taylor's contributions

Using Taylor's ideas as a foundation.

Delineating into specialized tasks

Dividing work into specific jobs.

Supply Chain Performance

Efficiency and effectiveness of the supply chain.

Inputs

Labor, materials, machines, money, information, time.

Outputs

Goods and services.

Importance of OM

Improves efficiency, productivity, quality, profitability, competitiveness, sustainability.

Assembly line technique

A production method introduced by Henry Ford in which the production process is divided into specialized tasks, with each worker performing one specific task to increase efficiency, productivity, and output.

AI

____is technology that enables computers or machines to perform tasks that normally require human intelligence, such as learning, analysing data, making decisions, and solving problems.

Big Data

____refers to extremely large amounts of data that are analysed to identify patterns, trends, and insights for better decision-making.

Internet of Things

is a network of physical devices connected to the internet that collect and share data automatically.