SCO 3001 Operations Management Midterm #1

Purchasing Function
Responsible for finding other organizations to serve as sources and then buying the material and service inputs for the transformation process of the organization
Logistics Function
Typically responsible for the actual movement of of goods and/or services across organizations
Supply Chain
The network of manufacturing and service operations (often multiple organizations) that supply one another from raw materials through production to the ultimate customers
Operations Management
Responsible for producing and delivering goods/services of value to customers. Operations Managers make decisions to manage the transformation process that converts inputs into desired finished goods/services
Four Major Decision Responsibilities of Operations Management
Process, Quality, Capacity, and Inventory
Corporate Strategy
Defines the business that the company is pursuing
Ex. Disney is in there business of “making people happy”
Business Strategy
Follows corporate strategy and defines how each particular business will compete
Continuous Process
Output is highly-standardized with very high volumes of production, made continuously
Ex. Sugar, paper, oil, electricity
Assembly Lines
Characterized by a linear sequence of operations
Ex. Cars, computers, etc.
Batch Flow
Characterized by the production of the product in batches or lots. Allows more variety than assembly lines. Often use general-purpose equipment
Job Shop
Make products to customer order (special case of batch process) General purpose equipment, highly flexible
Project
Unique/creative projects, like building a house or bridge
Process-Flow Analysis
Viewing and analyzing the transformation process as a sequence or steps connecting inputs to outputs
Capacity
Maximum rate of output from a transformation process or the maximum flow rate that can be sustained over a period of time
Bottleneck
The capacity of the most constraining resource
Little’s Law
I=TxR
Applies to any steady-state transformation process including manufacturing, people waiting in lines, etc.
Delphi
Method of qualitative forecasting that consists of several rounds of anonymous data collection before reaching a forecast