Chapter 2 Value Chains
1. In order to increase value, an organization must do all of the following EXCEPT:
a. increase perceived benefits while holding price or cost constant.
b. increase perceived benefits while reducing
CHAPTER 10: LONG-TERM PLANNING
(FACILITIES, LOCATION AND LAYOUT)
Regional facilities planning calls upon a wealth of knowledge and great skills.
For facilities planning regarding location and layout, strategic thinking is essential t
CHAPTER 6: SCHEDULING
The final step of production scheduling assigns actual jobs to designated facilities with
unambiguous stipulations that they be completed at specific times.
Sequencing answers the question: What is the order in
CHAPTER 9: SUPPLY CHAIN MANAGEMENT
Materials management involves organizing and coordinating all management functions that
are responsible for every aspect of materials movements and transformations.
Internal MM systems do not requir
CHAPTER 4: CAPACITY MANAGEMENT AND AGGREGATE PRODUCTION
Actual capacity is the greatest throughput rate that can be achieved with the existing configuration
of resources and the accepted product or service mix plans.
E is th
Chapter 2: Strategy, Productivity and History
1. P/OM history shows that the overall trend in global economies is to decrease productivity.
Introduction to Chapter 2
2. High productivity is not necessary but is sufficient to assure
Chapter 7: Project Management
Projects are time-based endeavors that bring together skills and technology to accomplish goals.
Engineering change orders often appear to be major alterations in the product design but turn out
to be mi
Ch. 2 Measuring Performance in Operations and Value Chains
Act of quantifying the performance of:
o Organizational units and goods and services
o Processes, people, and other business activites
Provides a scorecard of performance
Chapter 1: Introduction to Production and Operations Management
1. Goals and strategies must be congruent and realistic.
2. Operations management is the systematic planning and control of operations.
3. Jobs in t
Ch. 1 Operations Management and Value Chains
Operation Management (OM)
Science and art of ensuring that goods and services are created and
delivered successful to customers. Includes:
o Design of goods, services, and the processes that create them.
Ch. 8 Facility and Work Design
Specific arrangement of physical facilities.
Studies are necessary when:
o New Facility is constructed.
o Significant change in demand or throughput volume is observed.
o New good or service is introduced t
Ch. 9 Forecasting and Demand Planning
Process of projecting values of one or more variables into the future.
Key component in:
o Supply chain management systems
o Customer relationship management systems
o Revenue management systems
Ch. 10 Capacity Management
Capacity: capability of a manufacturing or service resource to
accomplish its purpose over a specified time period. Viewed as
maximum rate of output per unit of time or units of resource
Economies of Scale
Ch. 4 Technology and Operations Management
Helps service and manufacturing systems operate productively and
meet customers needs.
Technological innovation in goods, services, manufacturing, and
service delivery is a competitive necessity.
Ch. 5 Goods and Services
Steps Involved in Designing Goods and Services
Strategic mission and vision development.
Strategic and market analysis, and understanding competitive
Customer benefit package design and configuration.
Ch. 7 Process Selection, Design, and Analysis
Types of Goods and Services
Custom/Make to Order: produced and delivered as one of a kind or in
small quantities. Designed to meet specific customers specifications.
Option/Assemble to Order: Configurations
Ch. 6 Supply Chain Design
Key subsystem of a value chain that focuses on physical movement of
goods and materials.
Supports information through the supply, production, and distribution
Ch. 3 Operations Strategy
Firms ability to achieve market and financial superiority over its
o Understanding customer needs and expectations.
o Building and leveraging operational capabilities to support
Chapter 8- Forecasting Cont.
Often, leading indicators can help to predict changes in future demand e.g.
Causal models establish a cause-and-effect relationship between independent and
A common tool of
Chapter 8 Forecasting
Identify Principles of Forecasting
Explain the steps in the forecasting process
Identify types of forecasting methods and their characteristics
Describe time series and causal models
Generate forecasts for data with
Chapter 3 Cont.
Process Selection Considerations:
Process selection is based on five considerations
1. Type of process; range from intermittent to repetitive or continuous
2. Mix between capital & human resources (capital intensity)
3. Degree of customer
Chapter 3 - Product Design & Process Selection
Understand product design and explain its strategic impact on organizations
Use break-even analysis as a tool in selecting between alternative products
Identify processes and explain their charact
Chapter 2 Operations Strategy and Competitiveness
Four Key Operations Questions:
Will you compete on
Competitive Dimensions: Sand Cone Model add flexibility
Competing on Cost:
Chapter 1 Continued:
Growth of Service Sector
Service sector growing to 50-80% of non-farm jobs
Demands for higher quality
Huge technology changes
Time based competition
Work force _
Operations Management Decisions