Production Operations Management Test 1

Operations Management 1
The management of resources used to create salable products and services.
Operations Management 2
The management of an organizations productive resources or its production system, which coverts inputs into the organizations product and services.
Operations Management 3
The planning, scheduling and control of the activities that transform inputs into finished goods and services
Supply Chain
A network of companies and service provides that work together to create products or services needed by end users
3 Components of Supply Chain
Converters
Fabricators
Assemblers
Converter
refine natural resources
Fabricator
converts refined material into usable substances
Assembler
assembles components into finished product
Supply Chain Management
The active management of supply chain activities and relationships in order to maximize customer value and achieve a sustainable competitive advantage
Need for studying supply chain management 1
every organization must make a product or provide a service that someone values. (Ex.Peppered Chicken)
Need for studying supply chain management 2
Most organization function as part of larger supply chains
Need for studying supply chain management 3
Organizations must carefully manage their operations and supply chain in order to prosper and survive
Reasons for adopting SCM
-Increased competition (Ex. Connect, Blackboard)
-The impact of customers on suppliers
-The impact of suppliers on customers
-Technology advances
5 Components of SCM
Planning activities-seek to balance demand requirements
Sourcing activities- identifying and developing with suppliers
“Make” or production activities
Delivery activities
Return activities
Historical developments
Industrial revolution (machines)
Post civil war period (OSHA)
Scientific Management (Taylor)
Human Relations and behaviorism (Incentives)
Operations research (Math and Stats)
Service revolution (Transition to service)
How Operations Management contributed to society
Provides a higher standard of living
Provides better quality and services
Concern for the environment
Improve working conditions
3 Trends influencing SCM
Electronic Commerce (online purchases)
Increasing competition and globalization
Relationship management (bond with customer)
Tangible resources used to create value
Inventory (can be asset or liability)
Workforce( most important) (creativity)
Capacity
Facilities (office, factories)
Intangible resources to create value
Customer relationships (important)
Resource planning
Lean systems (making process thinner and faster)
Total quality management
Constraint management (finding the best option)
Supply chain management
2 Elements of business
Structural- tangible resources
Infrastructural
Strategy
A mechanism by which a business coordinates its decisions regarding structural and infrastructural elements (mission statement)
3 Elements of strategic hierarchy
Business strategy
Core competency (Strength)
Functional Strategy
Core competency
An organizations strength or ability that customers find valuable and competitors find difficult to copy
Attributes of consumers
cost
quality
convenience
timeliness
personalization
ethical issues
Attributes of business consumer
Cost
Quality
Delivery dependability
Flexibility
Response time
4 types of performance dimensions of value
Quality
Time
Flexibility
Cost
Order winner
A performance dimension that differentiates a companies product and service from its competitors
Order loser
A performance dimension that repel particular customers
Order Qualifier
A performance dimension on which customers expect a minimum level of performance
Profit margin
how much profit is generated per dollar
Return on assets (ROA)
Net income/ total assets
Return on equity (ROE)
Net income/ total equity
Net income
Net sales- cost of goods sold- selling and administrative costs- depreciation- interest taxes
Economic Value added (EVA)
operating profit- cost of capital
Profitability measures that can be used in measuring resources
Inventory
Capacity
Workforce
Facilities
Customer relationships
4 Perspectives of the Balanced Scorecard approach
Financial objectives
Internal business processes
Learning and growth
Customer outcomes
Strategic decision factors for process requirements
General Layout alternatives
Impact of volume requirements
Demand linkages
General Layout alternatives
Product oriented layout (pros and cons)
Cellular layout (pros and cons)
Impact of volume requriments
Project
job shop
batch production
assembly line
continuos flow
Demand linkages
MTO
MTS
ATO
ETO
3 Dimensions of service manufacturing processes
Service package
Degree of customization
Level of customer contact
Service Blueprinting
Lays out the service process from direct interaction with the customer
4 Layers of service blueprinting
Customer actions
Onstage activities
Backstage activities
Support processes
Design Capacity
the capacity a facility is designed to accommodate on an ongoing basis
Protective capacity
A layer of capacity above which is absolutely required to meet known demand