Operations Management Test 1

Production
creation of goods and services
Operations Management
set of activities that creates value in the form of goods and services by transforming input into output
Operations Management
science and art of enduring that goods and services are created and delivered successfully to customers
Operations Management Principles
help one to view a business as a total system
Total System
activities are coordinated vertically and horizontally across functions
Operations Management affects:
companies ability to compete
nation’s ability to compete internationally
Goods
physical items produced by business organizations
Services
activities that provide some combination of time, location, form, and psychological value
Operations Management
management of systems or processes that create goods ad/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
Process
consists of one or more actions that transform inputs into outputs. Central role of all management is process management
Operations manager’s daily concerns include
cost, quality, and scheduling
A model
an abstraction of reality; a simplified representation of something
Physical Models
look like their real life counterparts ex: miniature cars
Schematic Models
more abstract than their physical counterparts that is they have less resemblance tot heir physical reality. Graphs and charts
Mathematical Models
the most abstract. They do not look like their real life counterparts. numbers, formulas, and symbols
Quantitative Approaches
often embody an attempt to obtain mathematically optimal solutions to managerial problems
Economic order quantity
developed by Harris
how many units to order each time so that we minimize the total inventory cost
Carrying cost of inventory
is extremely high
Batch Size
Queuing Techniques
study of waiting in line
Erlang in 1920s
decided to study people’s behavior of waiting in line fortelephone calls
Pareto phenomenon
Italian mathematician who noticed that a minority causes majority. the 80-20 rule
80% of business is cause by 20% of your customers
Craft production
system in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods
Craft production cons
Slow and costly, and when parts failed the replacement also had to be custom made
Production costs did not decrease as volume increased
Henry Gantt
Recognized the value of nonmonetary rewards to motivate workers, and developed a widely used system for scheduling, called Gantt Charts
Frank Gilbreth
was an industrial engineer who is often referred to as the father of motion stufy. He developed principles of motion economy that could be applied to incredibly small portions of task
Frederick Winslow Taylor
father of scientific management. His methods emphasized maximum output. Not Always popular with workers
Harrington Emerson
applied Taylor’s ideas to organization structure and encouraged the use of experts to improve organizational efficiency
Henry Ford
the great industrialist, employed scientific management techniques in his factories
Mass production
system in which low-skilled workers use specialized machinery to produce high volume 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
second concept used by Ford
the breaking up of a productions process into small tasks, so that each worker performs a small portion of the overall job
Adam Smith
wrote the Wealth of Nations in 1776 about division of labor
Human Relations Movement
emphasized the importance of the human element in job design
Lillian and Frank Gilbreth
focused on the human factor in work
Many of her studies dealt with worker fatigue and motivation
E- business
involves the use of internet to transact business
E-commerce
consumer-to-business transactions
technology
application of scientific discoveries to the development and improvement of goods and services