CH 10: Operations MGMT, Productivity, and Quality

Service Operations

production activities that yield tangible and intangible service products

Goods Production

production activities that yield tangible products

time utility

when the product is availalbe

place utility

where the product is available

ownership utility

(possession) consumption or use of product

form utility

product's form (the transformation of raw materials into a finished product)

importance

The decorations for a Christmas tree illustrate the ________ of the concepts of time, place, ownership, and form utility to consumers

interact

service operations _____ with customers

intangible

services can be ___ and unstorable

goods producing processes

methods and technologies used in the production of good & services

transformation

goods producing process are defined by: type of ___ tech

synthetic

goods producing process are defined by: type of process (analytic or ____)

contact

goods producing process are defined by: amount of customer ____

capacity

amount that a firm can product under normal conditions

exceed

capacity should slightly ___ normal demand

excess

you should consider how to address ways to use _____ capacity

Master Production Schedule

which products, when, what resources, what time period (top level)

low-contact services

based on desired completion dates and/or arrival

high-contact services

customer is directly involved (impacts scheduling)

Gantt Charts

planning charts used to schedule resources and allocate time

operations control

monitoring performance by comparing results to original plans and schedules

checking

operations control step 1: follow-up-________ to ensure that production decisions are being implemented

materials

operations control step 2: ______ management

control

operations control step 3: production-process _______

Materials Management

planning, organizing, and controlling the flow of materials from purchase to distribution of finished goods

training

tools for process control include: worker ___, material requirements training, just in time production systems, and quality control

just in time production system

- Goods are produced Just-in-time when the markets needs or demands for them. This system is designed to eliminate wastage of resources and to increase productivity.

Total Quality Management

Includes all activities and parts of the business (customers, suppliers, employees) ; Leadership and customer focus are key

defects

TQM Requires highest level of commitment (no ________ are tolerable) ; Highlights continuous improvement

Performance Quality

refers to the features of a product and how well it performs

Quality Reliability

refers to the consistency or repeatability of performance

Quality Ownership

the idea that quality belongs to each person who creates or destroys it while performing a job

Quality improvement Teams

Groups of employees from various areas meet to define, analyze, and solve quality problems

Benchmarking

compares the quality of a firm's output with the quality of the output of the industry's leaders

internal

compare to past performance

external

compare to competitors' best practices

Supply Chain

a group of companies and stream of activities involved in getting the product from the raw material stage to the end consumer