Operations Management: Processes and Technology

Flashcards related to Chapter 6 of Operations Management focusing on processes, strategies, and technology.

Process

A group of related tasks with specific inputs and outputs.

Process design

Tasks that need to be done and coordinated among functions, people, and organizations.

Process strategy

An organization’s overall approach for physically producing goods and services.

Process planning

Converts designs into workable instructions for manufacture or delivery.

Capital intensity

Mix of capital (equipment, automation) and labor resources used in the production process.

Process flexibility

Ease with which resources can be adjusted in response to changes in demand, technology, and resource availability.

Vertical integration

Extent to which a firm will produce inputs and control outputs of each stage of the production process.

Customer involvement

Role of the customer in the production process.

Make-or-Buy Decisions

Related to Vertical Integration; the decision of whether to produce in-house or outsource to suppliers.

Process Selection

The next step in Process Planning for items produced in-house.

Project production

One-of-a-kind production of a product to customer order.

Batch production

Processes many different jobs through the system in groups or batches.

Mass production

Produces large volumes of a standard product for a mass market.

Continuous production

Used for very-high volume commodity products.

Break-Even Analysis

Analysis to identify the volume at which total revenue equals total cost.

Total revenue

The price at which an item is sold multiplied by the number of units sold.

Profit

Difference between total revenue and total cost.

Process Plans

Set of documents that detail manufacturing and delivery specifications.

Process Analysis

Systematic examination of all aspects of a process for improvement.

Process Flowcharts

Tools that look at the manufacture of a product or delivery of a service from a broad perspective.

Process Innovation

The continuous improvement and redesign of processes to achieve better performance.

Pilot Study

A preliminary study before full-scale implementation of a new process.

Full-Scale Implementation

Transitioning a new process into day-to-day operations after a successful pilot study.