Nature of OM
This is the development and administration of the activities involved in transforming resources into goods and services, and is of critical importance. This is at the core of every organization
Operations Management
Products are manufactured using one of three processes. Name the three. Can you describe each one? Look in your book.
Standardization. Identical and interchangeable
Modular design. Items in units or modules can be combined.
Customization. meets particular unique needs
This refers to connecting and integrating all parties or members of the distribution system in order to satisfy customers.
supply chain management
This refers to the contracting of manufacturing or other tasks to independent companies, often overseas. There could be heavy regulations.
has been Linked with competitive advantage due to
Improved product quality.
Customers obtain products sooner.
Overall supply chain becomes more efficient.
Outsourcing
This refers to the processes an organization uses to maintain its established quality standards.
Quality control
This represents the activities and processes used in making tangible products. Soda, candy, clothes, shoes.
This is meant to describe the making of tangible and intangible products. – health care, food services, spa services, etc.
Manufacturing or production
Operations
This is the maximum load that an organizational unit can carry or operate.
Capacity
This involves movement of raw materials, packaging, information, and other goods and services from suppliers to producers.
This follows finished products and information from the business customers and then to the final consumer.
This involves employing outside firms to move goods. This is because they can do this more efficiently than the company itself.
Inbound logistics.
Outbound logistics.
Third-party logistics.
This is a sequence of operations through which the product must pass.
This assigns the tasks to be done to departments or even specific machines, workers, or teams.
Routing
Scheduling
This is a philosophy that uniform commitment to quality in all areas of an organization will promote a culture that meets customers’ perceptions of quality. It requires constant improvement.
Total quality management (TQM)
These are the resources—such as labor, money, materials, and energy—that are converted into outputs.
These are the goods, services, and ideas that result from conversion of inputs.
Inputs
Outputs
What are the three types of facility layout?
Fixed position layout
process layout
product layout
This is a part in procurement involved in the buying of all the materials needed by the organization.
Purchasing
This scheduling appraoch identifies all major activities or events required.
Arranges them in sequence or path and determines critical path.
Estimates time required for each event.
Program Evaluation and Review Technique (P E R T).
This a system in which management collects and analyzes information about the production process to pinpoint quality problems in the production system.
statistical process control
Services differ in uniformity of [BLANK and BLANK) because of the individual customer needs (inputs) and employee processes (outputs).
Uniformity of inputs and outputs
This is the design of components, products, and processes on computers instead of on paper. This is used to develop 3-D images.
This goes a step further, employing specialized computer systems to actually guide and control the transformation processes. Sometimes the computer can take corrective action on its own.
Computer-assisted design (CAD)
Computer-assisted manufacturing (CAM)
These are all raw materials, components, completed or partially completed products, and pieces of equipment a firm uses. Name the three in business.
Inventory
Finished-goods inventory—products ready for sale. Assembled car ready to be shipped.
Work-in-process inventory—products partly completed. A hamburger that needs to be assembled.
Raw materials inventory—purchased
This can be significant due to the high costs involved and complex because it involves the evaluation of many factors, some of which cannot be measured with precision:
Proximity to market.
Availability of raw materials, transportation, power, labor.
Climatic influences and community characteristics. Political power. Religious beliefs.
Taxes and inducements.
Planning Facilities.
How to manage quality? Using the standards put in place by [BLANK_BLANK_BANK]
Product specifications and quality standards.
Must be set so company can compete in marketplace.
Company must first determine what standard of quality it desires.
International Organization for Standardization (ISO).
Name the FIVE distinction between service providers and manufacturers.
Nature and Consumption of Output
Uniformity of Inputs
Uniformity of Outputs
Labor Required
Measurement of Productivity
Using [BLANK_BLANK), computers can direct machinery to adapt to different versions of similar operations.
Flexible Manufacturing
What are some approaches to inventory control?
The Economic order quantity (EOQ) model identifies the optimum number of items to order to minimize the costs of managing (ordering, storing, and using) them.
Just-in-time (JIT) inventory management is a technique using smaller quantities of materials that arrive “just in time” for use in the transformation process and therefore require less storage space and other inventory management expense. So you are purchasing at smaller quantities, at higher rates but you must be able to rely on the supplier.
Material-requirements planning (MRP) schedules the precise quantity of materials needed to make the product. Basic components: master production schedule, bill of materials, inventory status file.
This allows for a company to pass entire batch of products through inspection by testing sample. Can be expensive.
Always risk of making incorrect conclusion based on sample.
More likely to be used when inspection tests are destructive to product.
Sampling
Sampling and Inspection are tow ways of managing what?
Managing Quality