Operations Management Flashcards

Flashcards for Operations Management Lecture Review

Operations

Day-to-day activities and processes that a business carries out to produce goods, deliver services, and generate revenue.

Operations Management (OM)

Planning, organizing, and controlling business activities to ensure efficient production of goods and delivery of services.

Marketing

Identifies customer needs and promotes products/services, develops pricing/advertising strategies, & manages branding and customer relationships.

Finance

Handles budgeting, accounting, and financial planning; manages company funds, investments, and profitability.

Operations

Manages daily activities that turn raw materials into finished products/services; ensures efficiency and quality control.

Supply Chain

Entire process of producing and delivering a product or service, involving multiple organizations and activities.

Suppliers’ Suppliers

Companies that provide raw materials or essential components to direct suppliers.

Direct Suppliers

Companies that take raw materials and turn them into parts or components for production.

Producer (Manufacturer)

Company that assembles or creates the final product.

Distributor

Entities that store and transport products to wholesalers, retailers, or directly to customers.

Final Customers

End users who buy and use the product.

Transformation Process

Describes how businesses take inputs (resources) and convert them into valuable outputs (goods and services).

Land

Natural resources like raw materials, water, and energy.

Labor

Human effort, skills, and expertise.

Capital

Machinery, equipment, and money invested in production.

Information

Data, technology, and knowledge that improve efficiency.

Manufacturing

Converting raw materials into finished products.

Service Delivery

Processing information and human effort to offer services.

Value Addition

Improving the quality or usefulness of raw materials to increase value.

Goods

Physical products like cars, furniture, or smartphones.

Services

Intangible offerings like financial consulting, healthcare, or education.

Feedback

Data collected at different stages to measure performance.

Control

Comparing feedback with standards and making necessary improvements.

Goods-Service Continuum

Illustrates that most products are not purely goods-based or purely service-based but fall somewhere in between.

Pure Goods

Tangible, physical products that can be manufactured, stored, and sold.

Goods with Some Service Components

Products that require additional services to enhance their value.

Balanced Mix of Goods and Services

Industries that provide a combination of goods and services in nearly equal measure.

Service with Some Goods Components

Services which rely on goods to be delivered effectively.

Pure Services

Involve little to no tangible goods and are entirely service-based.

Forecasting

Predicting future demand for products and services.

Capacity Planning

Determining the maximum output a business can produce.

Scheduling

Planning when and how tasks should be completed.

Managing Inventories

Ensuring the right amount of raw materials, work-in-progress, and finished goods are available.

Assuring Quality

Ensuring products and services meet set standards and customer expectations.

Motivating Employees

Keeping the workforce engaged, productive, and satisfied.

Deciding Where to Locate Facilities

Selecting the best locations for facilities, warehouses, and offices.

Operations Manager

Overseeing the production of goods and services, ensuring efficient business processes, and making strategic decisions to optimize performance.

System Design Decisions

Strategic, long-term choices that define the structure and functionality of an organization's operations.

System Operation Decisions

Focus on managing and optimizing daily activities within a business.

Management of Personnel

Hiring, training, and supervising employees to maximize productivity.

Inventory Management and Control

Ensuring the right amount of materials are available, avoiding stockouts and excess inventory.

Scheduling

Allocating resources effectively to meet production and service goals.

Project Management

Planning, executing, and monitoring projects to ensure they are completed on time and within budget.

Quality Assurance

Ensuring products and services meet customer expectations and regulatory standards.

Model

A simplified version of reality—helps decision-makers focus on what really matters.

Physical Models

Models that physically resemble the real thing but in a smaller, simplified form.

Schematic Models

Models that use symbols, diagrams, or charts instead of real-life appearances.

Mathematical Models

Models that use numbers, formulas, and equations instead of physical or visual representations.

Quantitative Methods

A decision-making approach that uses numbers, formulas, and data to find the best possible solution.

Linear Programming

Used for optimizing resources (e.g., maximizing profits or minimizing costs).

Queuing Techniques

Helps manage waiting lines and improve service efficiency.

Inventory Models

Determines how much stock to keep to avoid shortages or excess inventory.

Project Models

Helps in planning and scheduling large projects efficiently.

Forecasting Techniques

Uses past data to predict future trends.

Statistical Models

Analyzes data trends to make informed business decisions.

Performance Metrics

Measurements that managers use to track and control how well operations are running.

Productivity

How efficiently resources are used to produce goods or services.

Forecast Accuracy

How well a business predicts future demand, sales, or expenses.

Trade-Offs

Giving up one thing to get something else—you can’t have everything at once.

Pareto Phenomenon (80/20 Rule)

80% of the results come from 20% of the causes (the most critical factors).

System

A collection of parts that work together to achieve a goal.

Industrial Revolution

Shift from handmade goods to machine-based production.

Scientific Management

Focused on efficiency and productivity, scientifically analyzing work to find the 'best way' to do a task.

Human Relations Movement

Recognized that workers' motivation and well-being affect productivity.

Decision Models & Management Science

Used mathematical models to optimize military logistics, later applied to business operations.

Influence of Japanese Manufacturers

Introduced lean manufacturing – eliminating waste while maintaining quality.

Craft Production

Highly skilled workers used simple tools to create small, customized products.

Division of Labor

Work divided into smaller tasks, with workers specializing in one task.

Rotative Steam Engine

Machines powered by steam engines instead of human/animal labor.

Interchangeable Parts

Introduced standardized machine-made parts that fit together easily, reducing manufacturing time and cost.

Scientific Management

Movement focused on efficiency and productivity using a scientific approach to work.

Standardized Work Methods

Workers should follow a standardized process instead of doing tasks their own way.

Frank Gilbreth

Focused on reducing unnecessary motions to increase efficiency.

Harrington Emerson

Efficiency ideas applied to organizational structure, setting clear goals and measuring performance.

Human Relations Movement

This movement shifted focus to workers' emotions, motivation, and well-being.

Lillian Gilbreth

Applied psychology to workplace efficiency, focusing on worker satisfaction and reducing fatigue.

Abraham Maslow

Workers need job security and fair pay before they can focus on career growth or creativity.

Management Science

It applies math, statistics, and scientific methods to improve decision-making.

Economic Order Quantity (EOQ) Model

A formula to determine how much inventory to order and when.

Dodge, Romig & Shewhart

sampling and quality control methods to check product quality without inspecting every single item

Operations Research (OR)

Used mathematical models to optimize troop movements, resource allocation, and attack strategies.

George Dantzig

Created linear programming, a math technique to optimize resources, costs, and production schedules.

The “Quality Revolution”

Focused on continuous improvement (Kaizen) and zero defects.

Just-in-Time (JIT) Production

Eliminates waste by producing only what is needed, when it is needed.

Lean Manufacturing & Waste Reduction (Lean Thinking)

Japanese manufacturers focused on removing anything that doesn’t add value.

E-Business & E-Commerce

The internet to conduct business activities.

Management of Technology

Businesses must adapt to new tech to stay competitive.

Globalization

Outsourcing, international trade, and global partnerships.

Management of Supply Chains

Coordinating suppliers, manufacturers, warehouses, and retailers to deliver goods efficiently.

Outsourcing

Companies hire external firms to handle tasks instead of doing everything themselves.

Agility

Businesses must adapt quickly to changes in the market.

Ethical Behavior

Businesses must operate responsibly, treating employees, customers, and the environment well.