OMIS 430 Test 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

value-added

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

product packages

a combination of good and services and they can make a company more competitive

supply chain

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

list the supply chain

suppliers’ suppliers - direct suppliers - producers - distributor - final customers

name the three basic functions of the business organization

marketing, operations, and finance

feedback

measurements taken at various points in the transformation process

control

the comparison of feedback against previously established standards to determine if corrective action is needed

manufacturing is _____ oriented and service is ______ oriented

goods; act

process

one or more actions that transform inputs into outputs

upper management processes

these govern the operation of the entire organization

operational processes

these are core processes that make up the value stream

supporting processes

these support the core processes

structural variation in demand

these are generally predictable, important for capacity planning

assignable variation

has identifiable source. can be reduced or eliminated by analysis and corrective action

variations can cause?

additional costs, delays, or shortages, poor quality

the operations function

consists of all activities directly related to producing goods or providing services

primary function of the operations managers

to guide the system by decision making through system design decisions and system operation decisions

forecast

a statement about the future value of a variable of interest

two important aspects of forecasts

expected level of demand and accuracy

error =

actual - forecast