exam 1 guide

exam 1 guide - EXAM 1 Study Guide= 1 Intro to Operations...

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EXAM 1 Study Guide=] 1. Intro to Operations Management (Chapter 1 p. 1-10) o Operations management (OM) : business function responsible for planning, coordinating, and controlling the resources needed to produce a company's goods and services Management function Central core function of every company o Role of operations management : to transform organization inputs into outputs o Value added : net increase created during the transformation of inputs into final outputs Greater the value added, the more productive a business is One way to do so: reduce cost of activities in transformation process o Efficiency : performing activities at the lowest possible cost Eliminate activities that don’t add value o Manufacturing organizations : primarily produce a tangible product and typically have low customer contact Quasi manufacturing companies: low customer contact and are capital intensive but provide a service Ex. Postal service o Service organizations : primarily produce an intangible product, such as ideas, assistance, or info, and typically have high customer contact Since 1960s, % jobs in service industries of US economy have increased to over 80% of nonfarm jobs o Strategic decisions : set the direction for the entire company; broad in scope and long term in nature o Tactical decisions: specific and short term in nature and bound by strategic decisions Focus on day-to-day issues 2. Operations Strategy (Chapter 2 p. 29-41; Chapter 3 p. 65-69) o Business strategy: long range plan for a business Must be supported by individual business functions o Operations strategy: long range plan for the operations function that specifies the design and use or resources to support business strategy Role: make best use of resources Importance: Didn’t come to forefront until 1970s Understand difference between operational efficiency and strategy Efficiency: performing tasks well, even better than competitors Strategy: plan for competing in marketplace Must be aligned together o Developing a business strategy Include strategic decisions like: What business company is in
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Mission : statement defining what business an organization is in, who its customers are, and how its core beliefs shape its business Defines the company Analyzing and developing an understanding of the market Environmental scanning: monitoring the external environment for changes and trends to determine business opportunities and threats Economic, political, and societal Trends? Changes in customer expectations and wants and how competitors are meeting these demands Changes in use of technology e-commerce Global opportunities Making strategic alliances Forming partnerships with international firms Identifying company's strengths Core competencies: unique strengths of a business Examples Workforce Highly trained, responsive Facilities Technologically advanced, efficient
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exam 1 guide - EXAM 1 Study Guide= 1 Intro to Operations...

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