OPERATIONS MANAGEMENT EXAM 1

Operations

The part of a business organization that is responsible for producing goods or services.

Operations Management

The management of systems or processes that create goods and/or provide services.

Supply Chain

A sequence of activities and organizations involved in producing and delivering a good or service.

Role of the Operations Manager

Consists of all activities directly related to producing goods or providing services.

Key function of Operations Manager

To guide the system by decision making.

System Design Decisions

Include decisions on capacity, facility location, layout, product/service planning, and equipment placement.

System Operation Decisions

Generally tactical and operational, including management of personnel and inventory control.

Key Issues for Operations Managers Today

Economic conditions, innovation, quality problems, risk management, cyber-security, and global competition.

Need for Supply Chain Management

Addresses oscillating inventory levels, stockouts, late deliveries, and quality problems.

Historical Evolution of Operations Management

Includes industrial revolution, scientific management, human relations movement, decision models, and influence of Japanese manufacturers.

How Businesses Compete Using Operations

Through product/service design, cost, location, quality, quick response, flexibility, inventory management, and service.

Reasons Why Organizations Fail

Neglecting operations strategy, not leveraging strengths, short-term focus, and failing to communicate customer wants.

Mission

The reason for an organization's existence.

Strategy

A plan for achieving organizational goals.

Order Qualifiers

Minimum standards of acceptability for a product or service.

Order Winners

Goods or services perceived as better than competition.

Productivity

A measure of the effective use of resources, expressed as the ratio of output to input.

Importance of Productivity

Links to higher standards of living and competitive advantage.

Factors Affecting Productivity

Method, capital, technology, quality, and management.

Common Features of All Forecasts

Assume past causal systems persist, are not perfect, and are more accurate for groups.

Elements of a Good Forecast

Timely, accurate, reliable, meaningful, written, simple to use, and cost-effective.

Steps in the Forecasting Process

Determine purpose, establish time horizon, analyze data, select technique, make forecast, monitor errors.

Qualitative Forecasting Techniques

Use subjective inputs from consumers, sales staff, and experts.

Executive Opinions Forecasting

A small group of upper-level managers develops a forecast collectively.

Salesforce Opinions Forecasting

Sales staff provide insights from direct contact with customers.

Consumer Surveys

Solicit consumer input to gauge demand from a sample of opinions.

Delphi Method

An iterative process to achieve consensus through expert opinions.

Reverse Engineering

Dismantling a competitor's product to find improvements.

3 Rs in Design

Reduce, reuse, and recycle.

Quality Function Deployment (QFD)

Integrates consumer voice into the product development process.

Product and Service Design Objectives

Translate customer needs into requirements and refine existing offerings.

Strategic Product and Service Design

Defines the essence of an organization through its offerings.

Key Questions of Product Design

Is there demand, can we do it, quality level, and economic sensibility?

Reasons for Design and Redesign

Economic, social, political, competitive, and technological factors.

Legal and Ethical Considerations in Product Design

Includes product liability, litigation, reputation, and ethical pressures.

Life Cycle Analysis

Assessment of environmental impact throughout a product's life.

Standardization

Extent of absence of variety in a product, service, or process.

Kano Model Categories

Basic (limited effect), performance (generates satisfaction), excitement (unexpected features).

Concurrent Engineering

Brings design and manufacturing personnel together early.

Key Issues in Service Design

Variation in requirements and customer involvement.

Phases in Service Design Process

Conceptualize, identify components, performance specs, design specs, delivery specs.

Characteristics of a Well-Designed Service System

Consistent with mission, user-friendly, sustainable, cost-effective, and reliable.

Operations Strategy

Effective design contributes to competitive advantage.