Operations Management Overview

A comprehensive set of vocabulary flashcards covering key terms and concepts associated with operations management.

Operations Management

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

Three Major Functional Areas of Organizations

Finance, Operations, Marketing.

Service Operations

Operations involved in providing services to customers rather than producing tangible goods.

Manufacturing Operations

Operations focused on producing physical goods.

Transformation Process

The process of converting inputs (materials and resources) into outputs (goods and services).

Input

Resources used in the transformation process, including materials, machines, labor, management, and capital.

Output

Products and services generated from the transformation process.

Productivity

A measure of efficiency, represented by the ratio of outputs produced to the inputs used.

Production

The process of creating goods and services.

Supply Chain

A global network of organizations and activities involved in supplying goods and services.

Key Decisions in Operations Management

What resources are needed, when they are needed, where work is to be done, how it is designed, and who will do the work.

Lean Production

A systematic method for waste minimization without sacrificing productivity.

Quality Assurance

A way of preventing errors or defects in manufactured products and avoiding problems when delivering solutions or services.

Capacity Planning

Determining the production capacity needed to meet changing demands for its products.

Scheduling

The process of planning the times and resources needed to produce goods or provide services.

Inventory Management

The supervision of non-capitalized assets, or inventory, and stock items.

Design Layout

The arrangement of physical facilities to support the smooth flow of operation.

Human Resources

The personnel of a business or organization, often seen as an asset.

Natural Resources

Raw materials found in nature that are used to produce goods.

Ethical Issues in Operations Management

Moral challenges related to conduct in businesses, such as labor practices and environmental impacts.

Historical Evolution of Operations Management

The development through time of methods and principles for effectively managing operations.

Craft Production

The process of handcrafting products or services for individual customers.

Scientific Management

The study of work methods to improve efficiency, developed by Frederick W. Taylor.

Mass Production

The production of goods in large quantities, typically using assembly line techniques.

Transforming Resources

Resources that are used to transform other inputs into outputs, such as facilities and staff.

Transformed Resources

Resources that are changed or converted in the transformation process, like materials and information.

Just-In-Time (JIT)

An inventory strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs.

Total Quality Management (TQM)

A management approach focused on continuous improvement, customer satisfaction, and employee involvement.

Moving Assembly Line

A manufacturing process in which the product moves from workstation to workstation.

Hawthorne Studies

Research conducted to examine the effects of social relations, motivation, and employee satisfaction on productivity.

Motivation Theories

Theories that explain what drives individuals to perform and behave in certain ways in the workplace.

Feedback

Information returned to the operation to assess performance and improve future operations.

Process Layout

A layout design for environments where the exact flow of operations is not predictable.

Project Management

The discipline of planning, organizing, and managing resources to bring about the successful completion of specific project goals.

Financial Management

The management of the organization's finances, including tracking performance and paying bills.

Quality Control

A process by which entities review the quality of all factors involved in production.

Customer Satisfaction

A measure of how products and services supplied by a company meet or surpass customer expectations.

Interchangeable Parts

Standardized parts that can be used in place of one another in the manufacturing process.

Process Analysis

The examination of a process to identify areas for improvement.

Operations Research

The application of scientific methods to analyze complex organizational problems and improve operations.

Forecasting

The process of predicting future events based on past and present data.

Capacity Utilization

A measure of how much of the available capacity is being used to produce goods or services.

Scheduling Systems

Methods used to allocate resources and manage time for efficient operations.

Product Development

The process of bringing new products to market.

Facilities Design

The planning of the physical arrangement of operations to maximize efficiency.

Marketing Function

The area of an organization responsible for generating demand for products or services.

Productivity Improvement

Actions taken to increase the efficiency of producing goods or services.

Service Quality Measurement

Metrics used to assess the quality of service delivered.

Lean Systems

Systems that minimize waste and maximize productivity.

Inventory Tracking Systems

Tools used to monitor and control inventory levels, ensuring optimal stock availability.

Output Ratio

The ratio of inputs to outputs in a production process, impacting overall efficiency.

Multi-Factor Productivity

A measure of productivity that incorporates multiple inputs such as labor, capital, and materials.

Value Chain Analysis

A systematic approach to examining the development of competitive advantage.

Stakeholder Commitments

The responsibilities of a business to various parties that are affected by its operations.

Competitive Advantage

An advantage over competitors gained by offering consumers greater value.

Education and Training for Productivity

Programs designed to enhance the skills of employees to improve efficiency.

Social Responsibility in Operations Management

The ethical framework that suggests an organization has an obligation to act for the benefit of society.

Sustainability in Operations Management

Practices aimed at minimizing the environmental impact of operations.

Operations Strategy

The plans and policies that guide the operational workforce toward achieving overall business goals.

Incentives and Compensation

Strategies companies use to motivate and reward employee performance.

Root Cause Analysis

A method of problem-solving that seeks to identify the underlying causes of a problem.

Supplier Relationships

The management of relationships with the suppliers of goods and services.

Operations Planning

The process of establishing operations objectives and determining the methods to achieve them.

Technology in Operations Management

The use of advanced tools, techniques, and systems to enhance operational efficiency.

Workforce Diversity

The inclusion of individuals with a range of differences, such as race, gender, and age, in the workplace.

Product Design

The process of creating a new product to be sold by a business.

Cost Control

The practice of minimizing expenses or costs in an organization to maximize profits.

Manufacturing Variability

The difference between actual and expected production outputs.

Service Encounter

The interaction between a service provider and a customer.

Continuous Improvement

An ongoing effort to improve products, services, or processes.

Benchmarking

The practice of comparing an organization's processes and performance metrics to industry bests.

Global Supply Chain

A worldwide network between a company and its suppliers to produce and distribute a specific product.

Operations Function

The area responsible for producing goods and services in an organization.

Quantitative Decision Making

Using mathematical and statistical techniques to make informed operational choices.

Organization Structure in Operations Management

The way in which different parts of an organization relate to each other in managing operations.

Environmental Management Systems

A framework for organizations to manage their environmental responsibilities.

Product Lifecycle Management

The process of managing the entire lifecycle of a product from inception to disposal.

Scheduling Techniques

Different methods for optimizing scheduling efficiency.

Resource Allocation

The process of distributing available resources for various projects or operations.

Risk Management in Operations

The process of identifying, assessing, and controlling threats to an organization's capital and earnings.

Software for Operations Management

Technology solutions designed to optimize operational processes.

Performance Metrics in Operations Management

Standards used to measure the efficiency and effectiveness of operational processes.

Educational Requirements for Operations Management

The qualifications and training needed to pursue a career in operations management.

Ethics in Supply Chain Management

Moral principles that guide the responsible management of supply chains.

Sustainability in Supply Chain

Adopting green policies to improve sustainability in supply chains.

Operations Manager Role

The job whose main tasks include overseeing production, managing quality, and ensuring customer satisfaction.

Collaborative Decision Making in Operations

The process where multiple stakeholders contribute to decisions about operations.

Tools for Productivity Improvement

Methods or instruments used to enhance the productivity of organizations.

Market Research for Operations

The process of gathering, analyzing, and interpreting information about a market.

Sales and Operations Planning (S&OP)

A process where demand and supplyplanning are aligned.

Integrated Operations Management

An approach that cohesively combines all aspects of operations into the organization's strategy.

Time Management in Operations

The procedure of planning and exercising conscious control over the amount of time spent on specific activities.

Capacity Adjustment

Modifying production capacity to meet the demand.

Process Quality Management

A focus on maintaining a high standard of quality in all business processes.

Customer Service Management

Managing the relationship with customers to increase satisfaction and loyalty.