Introduction to Operations Management

Flashcards covering the fundamentals of operations management, including defining the role, the transformation process, the four Vs (Volume, Variety, Variation, Visibility), and organizational functions.

What is the primary concern of operations management (OM)?

Operations management is concerned with managing the resources that directly produce the organization’s service or product.

What are the '7 M’s' of management mentioned in the text?

Manpower, machine, methods, materials, management, money, and marketing.

In terms of process, how is operations defined?

Operations is concerned with managing inputs (resources) through transformation processes to deliver outputs (service or products).

What are some examples of 'inputs' defined in the lecture?

Human resources (workers and managers), facilities and processes (buildings and equipment), materials, technology, and information.

What are the responsibilities involved in orchestrating resources for a final product?

Designing the product; deciding what resources are needed; arranging schedules, equipment, and facilities; managing inventory; controlling quality; designing the jobs; and designing work methods.

Why is identifying the operations function sometimes difficult in an organization?

Job titles such as Hospital Manager, Technical Director, and Store Manager often do not have the word ‘operations’ in them, despite being operations management roles.

Definition of a 'stakeholder' within operations management:

Any person or organization with an interest in the performance of the operation, such as customers, the government, and the media.

How is 'value added' defined?

The net increase between the final value of a product and the value of all the inputs.

What is the relationship between 'value added' and productivity?

The greater the value added, the more productive a business is.

What is the definition of 'efficiency' in operations?

Being able to perform activities well and at the lowest possible cost, minimizing resource use (time, effort, materials) while maximizing output.

What is an 'Operating System'?

A configuration of resources combined for the provision of goods or services.

What are the four elemental transformation functions?

Alter, inspect, store, and transport.

What are 'transformed resources' and what are the three types mentioned?

Resources that are treated or converted in the process; they include Materials, Information, and Customers.

What are 'transforming resources' and what are the two types?

The resources which act upon the transformed resources: Facilities (buildings, equipment, technology) and Staff (people who operate, maintain, plan, and manage).

How do operations transform 'Information' as an input?

By transforming informational properties (purpose/form), changing possession, storing information (archives/libraries), or changing its location (telecommunications).

How do operations transform 'Customers' as an input?

By changing physical properties (hairdressers), storing/accommodating them (hotels), transforming location (airlines), transforming physiological state (hospitals), or transforming psychological state (entertainment).

What is the difference between 'facilitating goods' and 'facilitating services'?

Facilitating goods enable a customer to receive a service (e.g., an airplane ticket), while facilitating services support products (e.g., technical advice or training provided with a machine tool).

What are the 'four Vs' used to characterize operations processes?

Volume, Variety, Variation, and Visibility.

How does 'Volume' affect the characteristics of a business operation?

High-volume businesses typically have high repeatability, specialization, and systemization, and are capital-intensive with low unit costs.

What are the challenges of a 'high-variety' business?

Complex process routings, complex supply chains, a need for flexibility, matching exact customer needs, and higher unit costs.

What does 'Visibility' refer to in the 4 Vs model?

The amount of value-added activity that takes place in the presence (reality or virtual) of the customer, also known as customer contact.

What are the three 'core functions' of any organization?

Marketing (including sales), Product/Service Development, and Operations.

What are 'support functions' in an organization?

Functions that enable core functions to operate, such as Accounting and Finance (financial resources) and Human Resources (recruitment and development).

What are the five general classes of activities for operations managers?

(1) Understanding strategic objectives, (2) Developing operations strategy, (3) Designing products/services/processes, (4) Planning and controlling the operation, and (5) Improving performance.

What four types of advantage can an effective operation provide a business?

(1) Reduce costs, (2) Increase revenue through satisfaction, (3) Reduce necessary investment (capital employed), and (4) Provide a basis for future innovation.