INTRO TO OPMAN

Operations Management

The set of activities that creates value in the form of goods and

services by transforming inputs into outputs

Supply Chain

This is the sequence of organizations—their facilities, functions, and activities— that are involved in producing and delivering product or a service.

Goods

These are physical items that include raw materials, parts, and subassemblies.

Services

These are activities that provide some combination of time, location, form or psychological value.

Finance

Securing financial resources at favorable prices and allocating those resources

Operations

Producing the goods and delivering the services offered by the organization

Marketing

Assessing consumer wants and needs, selling and promoting the organization`s goods and services.

Craft Production

A system in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods.

Value-added

The difference between the cost of inputs and the value or price of outputs.

Frederick Winslow Taylor

He is often referred to as the father of scientific management. He emphasized maximizing output and promoted the idea of “a fair day’s pay for a fair day’s work”

Frank Gilbreth

He was an industrial engineer who is often referred to as the father of motion study.

Henry Gantt

He recognized the value of nonmonetary rewards to motivate workers, and developed a widely used system for scheduling.

Harrington Emerson

He applied Taylor’s ideas to organization structure and encouraged the use of experts to improve organizational efficiency.

Henry Ford

He employed the scientific management techniques in his factories

Mass Production

A system in which low-skilled workers use specialized machinery to produce high volumes of standardized goods.

Interchangeable parts

Parts of a product made to such precision that they do not have to be custom-fitted.

Division of Labor

The breaking up of a production process into small tasks, sot hat each person performs a small portion of the overall job.

Human Relations Movement

This emphasized the importance of the human element in job design

Lillian Gilbreth

A psychologist who focused on the human factor in work and emphasized worker fatigue in most of her studies.

Elton Mayo

His studies revealed that in addition to the physical and technical aspects of work, worker motivation is critical for improving productivity

E-business

Use of electronic technology to facilitate business transactions

E-commerce

Business to consumer transactions

E-procurement system

Business to business transactions

Technology

The application of scientific discoveries to the development and imprvement of products and services and operations processes

Product and service technology

refers to the discovery and development of new

products and services

Process technology:

refers to methods, procedures, and equipment used to

produce goods and provide services

Information technology (IT):

refers to the science and use of computers and other electronic equipment to store, process, and send information.

Agility

refers to the ability of an organization to respond quickly to demands or opportunities

Lean systems

a system that uses minimal amounts of resources to produce a high volume of high-quality goods with some variety.

Ethics

A standard of behavior that guides how one should act in various situations

Codes of ethics

a guiding set of principles intended to instruct professionals to act in a way that aligns with the organization's values and benefits all stakeholders

Ethical framework

Sequence of steps intended to guide thinking and subsequent decision or action