Operations Management Chapter 1 Review

define operations management
The management of systems or processes that create goods and/or provide services
What are some differences between goods and services
goods are tangible, and are physically produced by the business, services are activities that require a time, location and psychological value
What are the three primary functions of business
What is the operations side of the business concerned with
creation of goods and services
what is the finance side of the business concerned with
provision of funds necessary for operation
what is the marketing side of the business concerned with
promoting and/or selling goods or services
Define the operations function
consists of all activities that are directly related to producing goods or providing services
What are some operations functions
-inventory management
-quality assurance
-customer service
What are some differences between manufacturing and service operations
-nature and consumption of output
-uniformity of input
-labor content of jobs
-uniformity of output
-measurement of productivity
What are the two different types of production
-Craft Production
-Mass Production
What is craft production
Involves producing high variety of customized goods, low volume output with skilled workers, and utilizing general-purpose equipment.
-Ex. Tailoring, Machine Shop, Print shop, Landscaping
What is mass production
Involves producing a few standardized goods at high volume of output with low skilled workers utilizing specialized equipment. the main advantage of this is low cost, efficient
-automobiles, computers, mail sorting, appliances, paper, soft drink bottling
What is an important business objective for every business organization
match supply and demand
What is a model
provides an abstraction and simplification of reality.
-Ex. Mathematical models are the most abstract and most used in operations management