OPMAN - Chapter 1

1971

what year did hard rock cafe open?

hard rock cafe

a resto that creates value in the form of good food and entertainment

production

the creation of goods and services

Operations Management

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

marketing

a function that organizes to produce goods and services that generates demand

production

a function that organizes to produce goods and services that creates the product

finance/accounting

a function that organizes to produce goods and services that tracks how well the organization is doing, pays bills, collects the money

human resource 

manages a company’s entire employee lifecycle 

supply chain

global network of organizations and activities that supplies a firm with goods and services

design of goods and services

defines what is required of operations

managing quality

Establish policies and procedures to identify and achieve that quality

process and capacity design

Commits management to specific technology, quality, human resources, and investments

location strategy

Nearness to customers, suppliers, and talent

layout strategy 

Determine the efficient flow of materials, people, and information

human resources and job design

Recruit, motivate, and retain personnel with the required talent and skills

Supply chain management

Determine what is to be purchased, from whom, and under what conditions

Inventory management

Optimize considering customer satisfaction, supplier capability, and production schedules

scheduling

Determine and implement intermediate- and short-term schedules

Maintenance

Maintain a reliable and stable process

Eli Whitney

Showed that machine tools could make standardized parts to exact specifications

Frederick W. Taylor

father of scientific management

Frederick W. Taylor

created efficiency principles

Frank and Lilian Gilbreth

developed work measurement methods

Henry Ford

created Ford Motor Company

W. Edwards Deming

Credited with teaching Japan quality control methods in post-WW2

services

Economic activities that typically produce an intangible product

productivity

the ratio of outputs (goods and services) divided by the inputs (resources such as labor and capital)

quality

a measurement problem that may change while the quantity of inputs and outputs remains constant

external elements

a measurement problem that may cause an increase or decrease in productivity

Precise units of measure

a measurement problem that may be lacking

labor

a productivity variable that contributes to the 10 % of annual increase

capital

a productivity variable that contributes to the 38 % of annual increase

management

a productivity variable that contributes to the 52 % of annual increase