Operations Management by William J. Stevenson Ch. 1

Goods
Physical items produced by business organizations
Services
Activities that provide some combination of time, location, form, and psychological value
Operations Management
The management of systems or processes that create goods and/or provide services
Supply Chain
A sequence of activities and organizations involved in producing and delivering a good or service
Value-Added
The difference between the cost of inputs and the value or price of outputs
Lead Time
The time between ordering a good or service and receiving it
Process
One or more actions that transform inputs into outputs
Model
An abstraction of reality; a simplified representation of something
Three Types of Models
Physical, Schematic, Mathematical
Physical Model
Type of model; Looks like its real life counterpart (e.g. miniature car, truck, and scale-model buildings)
Schematic Model
Type of model; More abstract than their physical counterparts (e.g. graphs and charts, blueprints)
Mathematical Model
Type of model; The most abstract: does not looks like its real life counterpart (e.g. numbers, formula, symbol)
System
A set of interrelated parts that must work together
Pareto Phenomenon
A few factors account for a high percentage of the occurrence of some event(s)
Craft Production
System in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods.
Mass Production
System in which low-skilled workers use specialized machinery to produce high volumes of standardized goods
Interchangeable Parts
Parts of a product made to such precision that they do not have to be custom fitted
Division of Labor
The breaking up of a production process into small tasks, so that each worker performs a small portion of the overall job
E-Business
Use of the Internet to transact business
E-Commerce
Consumer-to-business transactions
Technology
The application of scientific discoveries to the development and improvement of goods and services
Six Sigma
A process for reducing costs, improving quality, and increasing customer satisfaction
Agility
The ability of an organization to respond quickly to demands or opportunities
Sustainability
Using resources in ways that do not harm ecological systems that support human existence
Ethics
A standard of behavior that guides how one should act in various situations
Five Principles for Thinking Ethically
Utilitarian, Rights, Fairness, Common Good, Virtue
Utilitarian Principle
The good done by any action or inaction should outweigh any harm it causes or might cause (e.g. not allowing someone to drive drunk)
Rights Principle
The actions should respect & protect the moral rights of others (e.g. not taking advantage of a vulnerable person)
Fairness Principle
Equals should be held to, or evaluated by, the same standards (e.g. equal pay for equal work)
Common Good Principle
Actions should contribute to the common good of the community (e.g. noise abatement ordinance)
Virtue Principle
Actions should be consistent with certain ideal virtues (e.g. honesty, compassion, generosity, tolerance, and fidelity)
Ethical Framework
A sequence of steps intended to guide thinking and subsequent action or inaction
Outsourcing
Buying goods or services instead of producing or providing