Chapter 11 – Operations Management

Vocabulary flashcards covering key terms and definitions from Chapter 11 on Operations Management, including transformation processes, process types, design, planning and control, quality management and continuous improvement.

Operations Management

The management of the transformation process that converts inputs into outputs in order to reduce costs, increase revenue, minimise investment and drive innovation.

Operations Function

That part of an organisation responsible for managing the transformation process and delivering products or services.

Operations Manager

A person who plans, organises and controls resources to achieve efficient and effective transformation of inputs into outputs.

Customer / Client Needs (Six)

Higher quality, lower costs, shorter lead time, greater adaptability, lower variability and high level of service.

Transformation Model

A framework describing operations as Inputs → Transformation Process → Outputs, applicable to both manufacturing and service environments.

Inputs (to be transformed)

Materials, customers and information that undergo change in the transformation process.

Inputs (facilitating resources)

Human resources, equipment & facilities and technology required to enable transformation.

Transformation of Materials

Changing the physical properties or location of raw materials to create products.

Transformation of Information

Processing data or knowledge to add value or deliver services.

Transformation of Customers/Clients

Changing the state, location or physiological/psychological condition of customers in a service process.

Outputs

Goods or services produced by transforming inputs; their characteristics dictate specific managerial implications.

Four Vs of Operations

Volume, Variety, Variation (in demand) and Visibility (to customers), four characteristics that shape cost and design choices.

Project Process

A one-off, highly customised manufacturing process with unique, large-scale outputs.

Jobbing Process

Low-volume production where each job is different, requiring high skill and flexibility.

Batch Process

Manufacturing in job lots where similar items are produced together before switching to the next batch.

Mass Process

High-volume, low-variety production of standardised goods using repetitive operations.

Continuous Process

Non-stop, high-volume production of highly standardised products, often using flow technology.

Professional Service

High-contact, customised service processes relying on specialist knowledge (e.g., doctors, lawyers).

Service Shop

Medium contact and variety services that balance customisation and standardisation (e.g., car repair).

Mass Service

High-volume, low-contact services offering standardised outputs (e.g., retail banking).

Product and Service Design

The activity that specifies the concept, package and creation process of goods or services to satisfy customer needs.

Competitive Advantage of Good Design

Reinforcement of a firm’s market position through the development of high-quality products or services focused on customer requirements.

Concept (Design Component)

The core idea or benefit proposition offered to the customer.

Package (Design Component)

The mix of tangible products and intangible services delivered to the customer.

Process (Design Component)

The sequence of activities required to create the product/service package.

Stages in Design

Concept generation → Screening → Preliminary design → Evaluation & improvement → Prototype & final design.

Supply Network Design

Structuring the web of suppliers, intermediaries and customers to determine inputs and achieve competitive position.

Fixed-Position Layout

Layout where the product remains stationary and resources move to it (e.g., shipbuilding).

Process Layout

Grouping similar processes together; also called flexible-flow layout.

Product Layout

Arranging resources in line with the sequence of operations; also called line-flow layout.

Cellular Layout

Hybrid layout where workstations are arranged in cells to produce a family of products with similar processes.

Process Technology

Machines, equipment and apparatus used to transform materials, information and customers.

Job Design

Specification of work activities and responsibilities for individuals in the operations process.

Method Study

Systematic recording and critical analysis of current and proposed work methods to find improvements.

Work Measurement

Determining the time required for a trained worker to perform a task at a defined performance level.

Operations Planning & Control (Dimensions)

Balancing supply with demand in terms of volume, timing and quality.

Loading, Sequencing, Scheduling

Integrated activities that assign work (loading), decide order (sequencing) and set timing (scheduling) of tasks.

Capacity

Maximum value-added activity level an operation can achieve over a period under normal conditions.

Level-Capacity Plan

Maintaining constant capacity while allowing inventory or backlog to absorb demand fluctuations.

Chase-Demand Plan

Adjusting capacity to match demand levels.

Demand-Management Plan

Shaping or influencing demand to fit existing capacity.

Quality (Operations Definition)

Consistent conformity to customer or client expectations.

Quality Gap

The difference between expected quality and perceived quality.

Steps in Quality Planning & Control

Define quality characteristics → Measure → Set standards → Control → Identify & rectify causes → Continuous improvement.

Performance Standards (Four Types)

Historical, Target, Competitors', and Absolute standards used for performance comparison.

Breakthrough Improvement

Large, radical changes that achieve significant performance gains.

Continuous Improvement

Ongoing, incremental enhancements to processes and products.

Design Failure

Malfunction or inadequacy originating from the product or service design itself.

Facility Failure

Breakdown due to equipment, infrastructure or technology issues.

Total Quality Management (TQM)

A philosophy focused on meeting customer needs, involving every part and employee, doing things right first time and fostering continuous improvement.

ISO 9000

International quality management system standard covering documentation, management responsibility, resource management, product realisation and measurement/analysis/improvement.