Key Concepts from Operations Management Lecture

These flashcards cover essential terms and concepts related to operations management, product design, project management, and customer relations.

QFD

Quality Function Deployment; an approach to guide the design and development of products and services based on the voice of the customer.

Reliability

Probability that a manufactured good performs its intended function for a stated period of time.

DFM

Design for Manufacturing; process of designing products for efficient production.

DFE

Design for the Environment; consideration of environmental impacts in product design.

Critical Path

The sequence of activities that takes the longest time and defines the total project completion time.

Crash Time

The shortest possible time in which an activity can be realistically completed.

Crash Cost

The total additional cost incurred by completing an activity in its crash time.

Project Management

The discipline of planning, executing, and closing projects.

Work Breakdown Structure

A hierarchical representation of tasks or items that need to be accomplished to complete a project.

Supply Chain

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

Customer Relationship Management (CRM)

A business strategy designed to learn more about customers' needs and behaviors to enhance relationships and loyalty.

Competitive Advantage

A firm's ability to achieve superior market and financial performance over its competitors.

Total Cost

Sum of fixed costs and variable costs associated with production.

Inventory

All materials and goods that a company holds for the purpose of resale or production.

Automation

The use of technology to perform tasks with minimal human intervention.

Mass Customization

The ability to produce goods and services tailored to individual customer preferences at scale.

Triple Bottom Line

A framework for measuring a company's commitment to social, environmental, and economic sustainability.

Quality Improvement

The ongoing effort to improve products, services, or processes to meet customer expectations.

Descriptive Statistics

Methods of summarizing and describing data collected for analysis.

Service Quality

The measure of how well a delivered service meets customer expectations.

Service-Profit Chain

The connection between employee satisfaction and customer loyalty leading to profitability.

Flexibility in Operations

The ability to adapt processes quickly and efficiently to changing requirements.

Decision Analysis

A collection of techniques to support the analysis of decision problems under uncertainty.

Product Development Stages

Product Development Stages

1. Idea Generation: Generate a pool of ideas.

2. Idea Evaluation: Assess feasibility and potential impact.

3. Concept Testing: Test concepts with target consumers.

4. Product Development: Develop product specifications and prototypes.

5. Support & Maintenance: Ongoing updates and customer support.

6. Testing & Execution: Final testing prior to market launch.

• Statistical Process Control (SPC)

• Monitors quality by using various control charts to identify unwanted variations.

• C-Chart

• Monitors the total number of nonconformances per unit when the sampling unit size is constant.

• P-Chart

• Monitors the proportion of nonconforming items.

• Internal Failure Costs

• Costs arising from quality failures detected before products reach the customer.

• External Failure Costs

• Costs incurred when poor-quality products reach customers.

• Cost of Quality (CoQ)

• Categorization of costs related to achieving good quality and preventing defects.

  • Prevention Costs: Expenditures to prevent defects.

  • Appraisal Costs: Costs related to measurement and evaluation of quality.

Diagnostic Analytics

A type of analytics used to identify root causes and improve processes by comparing actual outcomes to expected outcomes.

Prescriptive Analytics

A type of analytics that combines historical data with real-time inputs to recommend specific actions.

Centralized Networks

A network type that is efficient and easy to manage but serves as a single point of failure.

Distributed Networks

A type of network characterized by being more resilient, though harder to manage and secure.

Moment of truth

The moment during a service interaction when a customer evaluates the quality and effectiveness of that service, impacting their overall satisfaction.

Customer benefit pacakage

A combination of tangible and intangible elements that a customer receives as part of a service or product, designed to create value and enhance satisfaction.

Value chain

A model that describes the full range of activities required to create a product or service, from design to delivery, highlighting ways to add value and optimize efficiency. 21`

General management process

The set of activities and decisions involved in planning, organizing, leading, and controlling an organization's resources to achieve its goals and objectives effectively.

Balanced scoreboard

A strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals.

Functional Strategy

A plan that outlines how a specific function within an organization, such as marketing or production, will support the overall business strategy and contribute to achieving the organization's goals.

Flexible manufacturing systems

2 or more computer controlled machines or robots linked by automated handling devices

information value chain

Date, information, knowledge, wisdom

Plan

Breaking down project into smaller activities and developing project schedule

crash cost per unit of time

Crash cost - normal cost divided by normal time - crash time

Service delivery system design

Facility location and layout, servicescape, service process design, and service quality management.

Servicescape

The physical environment in which a service is delivered, influencing customer perceptions and behaviors.

Strategic mission development

First step a company must take when beginning to design a new good or service

Center of gravity method

Determines the x and y coordinates for a single facility

Transportation model

A mathematical model used to determine the most efficient way to distribute goods from multiple suppliers to multiple consumers. It minimizes transportation costs while satisfying demand and supply constraints.

Projects

Large scale customized initiatives. consist of many smaller tasks & activities

Job shop process

Organized around particular types of general purpose equipment , capable of customizing work for individual customers

Flow shop process

Organized around fixed sequence of activities & process steps

Product-process matrix

A framework that correlates the product life cycle with the production processes used to manufacture them, helping to identify the optimal production method for different product types.

Customer routed services

offer customers broad freedom to select the pathways

Process map

Sequence of all process activities & tasks necessary to create and deliver a desired output or outcome

Value stream

All value added activities involved in designing, producing and delivering goods & services to customers

Product layout

Sequence of event performed during manufacturing

Process layout

Functional grouping of equipment or activities that do similar work

Cellular layout

self contained groups of equipment called cells

fixed position layout

Consolidates the resources necessary to manufacture a good or deliver a service

Cycle time

available time / demand forecast

minimum number of workstations

Sum of task times / cycle time needed to meet production goals.

Normal time

Observed time x performance rating factor

Ergonomics

improving productivity , take into account physical capabilities of people

capacity required

(setup time + processing time) x demand

Manufacturing work orders

setup time + (processing time x order quantity)

Theoretical capacity

Safety capacity + effective capacity

Learning curve

y= AX -b

x=number of units produced, b= constant that defines a 100p percent learning curve

Single period inventory model

Firm makes one ordering ordering decision for a product before demand is known

Fixed inventory system

inventory reviewed at fixed time intervals, order size varies

order quantity

T- inventory position

Inventory turnover

Sales/ average inventory

TBL

measures a companies CSR initiatives impact on environmental, social, and economic factors

Long term perspective

Recognizes the impacts of a business decision may not manifest for a longer time

CSR

coporations certain implicit social obligations & environmental responsibiliites

Triadic sourcing

Two suppliers collaborate while trying to take business away from each other

Arms length model

minimum dependence, maximum bargaining power

Benchmarking

Search for industry best practices to lead to superior performance and competitive advantage.

Run chart

show the performance or variation of a process or productivity indicator over time

histogram

frequency or number of observations of a particular value or within a specified group

Pareto analysis

seperates vital few from the trivial many, direction for selecting projects for improvement

Scatter diagrams

important relationships between variables

Baldridge program

Managing quality through self assessment of processes and improvement over time

R chart

monitor the variation in the process

Process capability

Variation in a process that occurs from common natural causes

SMED

Quick setup or changeover of tooling & fixtures, multiple products in smaller batches can be run on the same equipment