Operations Management
POINTERS TO REVIEW:
LEAD TIME
the time between ordering a good or service and receiving it
AGILITY
the ability of an organization to respond quickly to demands or opportunities
ETHICS
a standard of behavior that guides how one should act in various situations.
LEAN SYSTEMS
– systems that uses minimal amounts of resources to produce high volume of high-quality goods with some variety.
E- BUSINESS
the use of electronic technology to facilitate business transaction
VALUE ADDED
- The difference between the cost of inputs and the value or price of outputs.
INTERNAL PARTS
are part of the operations function itself, supplying operations with parts and materials, performing work on products, and/or performing services.
EXTERNAL PARTS
provide raw materials, parts, equipment, supplies, and/or other
FORECAST ACCURACY
Accurate forecasts are necessary for the success of daily activities of every business organization.
MIS (Management information system)
concerned with providing management with the information it needs to effectively manage
New/revised information systems, Internet services.
E- COMMERCE
consumer to business transaction
BUSINESSES
THE VARIETY OF GOODS AND SERVICES BEING OFFERED
The greater the variety of goods and services, the greater the variation in production or service requirements.
Structural variation in demand
These variations, which include trends and seasonal variations, are generally predictable. They are particularly important for capacity planning.
Random variation
This natural variability is present to some extent in all processes, as well as in demand for services and products, and it cannot generally be influenced by managers.
Assignable variation.
These variations are caused by defective inputs, incorrect work methods, out-of-adjustment equipment, and so on. This type of variation can be reduced or eliminated by analysis and corrective action.
GOODS
physical items produced by business organizations
OPERATIONS
responsible for producing the goods or providing the services offered by the organization
FINANCE
responsible for securing financial resources at favorable prices and allocating those resources throughout the organization, as well as budgeting, analyzing investment proposals, and providing funds for operations
OPERATIONAL FUNCTION
responsible for producing products and/or delivering services, it needs the support and input from other areas of the organization
ECONOMIC CONDITIONS
The impact of recession and slow recovery on business decisions, including cautious investment and reluctance to rehire laid-off worker
QUALITY PROBLEMS
Issues in operations management related to product design, supplier oversight
CYBER SECURITY
Protecting against hacker intrusions
SERVICES
Activities that provide some combination of time, location, form, and psychological value
FAIRNESS PRINCIPLE
Equals should be held to, or evaluated by, the same standards. An example is equal pay for equal work
COMMON GOOD PRINCIPLE
Actions should contribute to the common good of the community. An example is an ordinance on noise abatement.
VIRTUE PRINCIPLE
Actions should be consistent with certain ideal virtues. Examples include honesty, compassion, generosity, tolerance, fidelity, integrity, and self-control.
RIGHT PRINCIPLE
Actions should respect and protect the moral rights of others. An example is not taking advantage of a vulnerable person.
UTILITARIAN PRINCIPLE
the good done by an action or inaction should outweigh any harm it causes or might cause. An example is not allowing a person who has had too much to drink to drive.
QUALITY
Refers to materials, workmanship, design, and service.
FLEXIBILITY
The ability to respond to changes
SERVICE
Might involve coordinating internal and external operations to achieve timely anf cost-effective delivery of good
QUICK RESPONSE
Can be a competitive advantage. Quickly bringing new and improve products
MODEL
an abstraction of reality; a simplified representation of something.
QUANTITATIVE APPROACHES
problem solving often embody an attempt to obtain mathematically optimal solutions to managerial problems
PRODUCT AND SERVICE TECHNOLOGY
refers to the discovery and development of new products and services. This is done mainly by researchers and engineers, who use the scientific approach to develop new knowledge and translate that into commercial applications.
PROCESS TECHNOLOGY
Refers to methods, procedures, and equipment used to produce goods and provide services. They include not only processes within an organization but also supply chain processes.
CONSUMER
Loyalty, existing relationships, and understanding of wants and needs are important.
EXECUTIVE OPINION
A small group of upper-level managers (e.g., in marketing, operations, and finance) may meet and collectively develop a forecast. This approach is often used as a part of long-range planning and new product development
SALESFORCE STORE OPINION
Members of the sales staff or the customer service staff are often good sources of information because of their direct contact with consumers. They are often aware of any plans the customers may be considering for the future. There are, however, several drawbacks to using salesforce opinions.
HUMAN FACTOR
Human factor issues often arise in the design of consumer products. Safety and liability are two critical issues in many instances, and they must be carefully considered
CULTURAL FACTOR
Product designers in companies that operate globally also must take into account any cultural differences of different countries or regions related to the product.
PERSONNEL OR HUMAN RESOURCE
These include the skills and abilities of managers and workers, special talents (creativity, designing, problem solving), loyalty to the organization, expertise, dedication, and experience.
PUBLIC RELATIONS
LEGAL DEPARTMENT
ACCOUNTING SUPPLIES
SCHEMATIC MODELS
are more abstract than their physical counterparts; that is, they have less resemblance to the physical reality.
MATHEMATICAL MODELS
the most abstract: They do not look at all like their real-life counterparts.
PHYSICAL MODEL
look like their real-life counterparts