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operations management
getting the right goods/services in the right quantities at the right quality level in a cost-efficient manner
capacity utilization
measure existing level of output as a proportion of potential output
pros of capacity utilization
financially important as it spreads out costs over large level of output
lower fixed costs allowing for higher profit margins
effective
cons of capacity utilization
potential breakdown of machinery
lower standards of customer service
stressed workers
pros of JIT
reduced storage costs
reduces wastages if inventory is perishable
reduce break-even level
cons of JIT
cannot account for drastic increase in demands
reliance on dependable suppliers
cannot take advantage of economies of scale
lean production
streamlining operations/processes to reduce waster and achieve greater efficiency
Kaizen
small but continuous improvements to achieve efficiency
Kanban
inventory is based of actual customer orders not forecasted sales
Andon
a visual control indicating status of production
crisis management
response of an organization's to a crisis situation
factors affecting crisis management
transparency
communication
speed
control
contingency planning
being proactive to changes by planning in the case of unwanted events
pros of contingency planning
cost: minimizes negative reactions to reduce costs
time: saves time
risk: accounted for
safety: alleviates staff's concerns
cons of contingency planning
costs: may not even happen
time: uses up valuable time
risks: do not guarantee survival
quantitative factors influencing location decisions: (4)
cost of labour
proximity to market/raw materials
government incentives/limitations
cost of land
qualitative factors influencing location decisions: (4)
feasibility of e-commerce
local knowledge
political stability
infrastructure (transportation/communication networks)
R&D
extensive research into new productions and development of prototypes
pros of R&D
first movers advantage
competitive edge
growth opportunities
cons of R&D
costly
high failure rate
budget concerns
product innovation
new creations or development of existing products
process innovation
a change in the way a product is manufactured or distributed
positioning innovation
reposition the perception of brand
paradigm innovation
changes nature of certain market
mass production
manufacturing of large numbers of identical products
job production
customizing individual product to meet specific requirements
batch production
producing limited number of identical product
flow production
continuous production of identical products
cellular manufacturing
poduction whereby sets of tasks are completed by teams
adaptive creativity
incremental innovation that adjusts or develops something that already exists
innovative creativity
creating something new
JIT
stock control system where stocks are delivered as needed
Note 
Flashcard (125)