Operations Management - Key Concepts

This set of flashcards covers key vocabulary and concepts discussed in an Operations Management lecture, helping students prepare for their exam.

Operations

The production and delivery of goods and services.

Management

The process of planning, implementing, and controlling business operations.

Logistics Management

Plans, implements, and controls the flow of goods and storage and related information between origin and consumption.

Derived Demand

Demand that originates from consumer wants and needs and propagates through the supply chain.

Reverse Logistics

The process of handling returns, repairs, and unsold merchandise to improve customer satisfaction.

Supply Chain Evolution

The process of identifying, evaluating, and implementing opportunities in supply chains.

GIGO (Garbage In, Garbage Out)

The principle that the quality of input materials dramatically affects the quality of finished goods.

Bottleneck

An activity in a process that slows down the entire process, where demand exceeds capacity.

Kaizen

A continuous improvement approach focused on incremental changes to enhance efficiency.

Value Adding Activity

An activity that moves an item closer to the desired form or location by the customer, generating revenue.

Maximum Capacity

The highest achievable output level under ideal conditions for a limited time.

Effective Capacity

The achievable output level under normal conditions for an extended time frame.

Push System

A production strategy where products are made before receiving customer orders based on demand forecasts.

Pull System

A production strategy where products are made after receiving customer orders, minimizing finished goods inventory.

Mass Customization

The production of standardized products with the option for some level of customization.

Standardization

The practice of minimizing variety in products and services to simplify inventory and manufacturing.

Competitive Advantage

An attribute that allows a firm to outperform its competitors, such as cost leadership or differentiation.

Mission Statement

A declaration of a firm's purpose, key customers, processes, and values.

Unique Value Proposition

The specific features of a firm's offerings that add value for customers and differentiate from competitors.

Process Specifications

Detailed definitions of how a product will be manufactured, including materials, processes, and quality control.