test 1 review - Test 1 Review Operations Management What...

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Test 1 Review Operations Management What Operations Managers do: (Basic Management Functions- POSLC) o Planning o Organizing o Staffing o Leading o Controlling Operations as a Transformation Process- Value is added as the inputs are transformed to output o The difference between the cost of inputs and the value or price of outputs o Draw: Characteristics of Goods: o Tangible product (nuts and bolts) o Consistent product definition o Production usually separate from consumption o Can be inventoried o Low customer interaction Characteristics of Services: o Intangible product o Inconsistent product definition o Produced & consumed at same time o Cannot be inventoried o High customer interaction between service provider and consumer Good-Service Content Chart Responsibilities of Operations Management o Planning Capacity Location Products and services Make or buy Layout
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Projects Scheduling o Organizing Degree of centralization Subcontracting o Directing (Leading) Incentive plans Issuance of work orders Job Assignments o Staffing Hiring/laying off Use of Overtime o Controlling Inventory Quality Key Decisions of Operations Managers o What- What resources/what amounts o When- Needed/scheduled/ordered o Where- Work to be done o How- Designed o Who- To do the work Operations Management Decisions o Can be broken down to two types: Strategic decisions : (Year to Year) (upper level) Decisions that set the direction for the entire company Broad in scope and long-term in nature Tactical decisions : (Day to Day) (lower level) Short-term and specific in nature Bound by the strategic decision Pareto Phenomenon o A few factors account for a high percentage of the occurrence of some event(s). o 80/20 Rule - 80% of problems are caused by 20% of the activities. o These can be manufacturing issues, customer complaints or some other issue. Developments in Operations Management: 1980s o Japanese Influence Just-In-Time (JIT): techniques designed to achieve high-volume production using coordinated material flows, continuous improvement, & elimination of waste Total Quality Management (TQM): techniques designed to achieve high levels of product quality through shared responsibility & by eliminating the root causes of product defects
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Business Process Reengineering: ‘Clean sheet’ redesign of work processes to increase efficiency, improve quality & reduce costs Developments in Operations Management: 1990s o Flexibility: Offer a greater variety of product choices on a mass scale (mass customization) o Time-based competition: Developing new product designs & delivering customer orders more quickly than competitors o Supply Chain Management: Cooperating with suppliers & customers to reduce overall costs of the supply chain & increase responsiveness to customers Productivity Competitiveness : How effectively an organization meets the needs of customers relative to others that offer similar goods or services
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