Operations Management Cycle
Plan - Capacity Planning, Strategic Plan
Do - Supply Chain Management, Forecasting
Check - Quality Management,
... [Show More] Scheduling
Act - Customer Service, Facility Planning
Operations Management
Multidisciplinary science that organization use to acquire inputs (such as people, capital, material or energy) and transform them into outputs (products or services) that ultimately provide value to the end customer.
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Operations
Process within organizations that acquire inputs and transform them into outputs for public to consume.
Process through which people, capital and material are combined to produce the services and goods consumed by public.
Employs labor/management, uses facilities and equipment (capital) to change resources (raw materials) into finished goods or to provide services.
Success requires outputs to be worth more than total cost of inputs.
Supply Chain Management (SCM)
Broadens the definition to include supply (vendors and suppliers), operations (as described above), logistics (transportation), and the integration of information and technology among the supply and operations elements with downstream customers and end-user customers.
Productivity
The control of resources to ensure the effective and efficient use of inputs and to create the goods and services provided to the end-user.
Module 1
Fundamental Operations Concepts
Objective: Explain how operations management improves an organization's ability to deliver goods and services.
Inputs
the resources—such as labor, money, materials, and energy—that are converted into outputs
operations definition
Processes within organization that acquire inputs and transform them into outputs that the public can consume
The operations within an organization produce the goods and services that meet the demands of society and create value for the consumers who benefit from the which are worth more to the consumer than the total cost of the .
Outputs; Inputs
T/F: Producers of goods and services both acquire and manage inputs throughout a transformation process that produces a final output.
True
T/F: Service providers do not produce products because they are not part of the manufacturing sector.
False - final output for both producers of goods and producers of services represent a good or service, both of which are considered products.
Service Sector
The sector of the economy that provides services--such as health care, banking, and education--contrast to the sector that produces goods. ( other examples legal services, transportation, utilities, lodging, entertainment, legal services, education, communications, wholesale and retail trade, public administrations, insurance, and real estate)
Goods
Articles of trad, merchandise, or wares.
Manufacturing
production of goods
Service Operations
88% of US Economy and growing in global economy.
Producers of goods exist in manufacturing sector and manage the operations for products such as --------------------- that customers value.
Bridges are tangible and many are constructed by some level of government, which is part of the public sector.
Operations management refers to
decision-making processes for the design, planning, and management of the many factors that affect operations.
Operations managers apply ideas and knowledge to:
* Decrease production time.
* Increase the speed of bringing new services and goods to market.
* Improve flexibility to meet rapidly changing customer needs.
* Enhance product quality.
* Improve customer service.
* Increase productivity.
* Reduce costs.
How does teamwork in operations benefit or add value to customers?
Teamwork in operations benefit the customer when coordinated decisions within an organization produce high quality products that customer value.
T/F: High-quality outputs that add value to customers represent physical goods, not services.
False: high-quality products, whether a good or service, can create customer satisfaction and ultimately a competitive advantage in the marketplace.
T/F: Operations in the service and manufacturing sectors operate independently from each other in creating a value chain that ultimately brings products to customers.
False: The service sector depends on the manufacturing sector in many ways and their value chain is tightly linked.
When managers of service operations consider capacity, they should focus on maximum demand and variability in demand, not average demand.
T/F: The management of inventory is more important to producers of goods and producers of services.
False: Managing inventory is important to both producers of goods and producers of services. They both rely on it in different ways.
Designing Products for Goods
Requires consideration of physical properties because goods are tangible. Usually requires training in engineering because strength, durability and performance are important.
Designing Products for Services
Similar to goods when involves selling a good, such as food. Quality will be important. Quality also important when service is performed by a person such as a doctor or lawyer.
T/F: Product design is just as important with respect to producers of products (tangible goods) and producers of service (intangible goods).
True
Understanding Operations
* The value-added nature of operations.
* The impact that technology can have on performance.
* The importance of teamwork in achieving operating and organizational objectives.
Operations Add Value
For profit organizations - profits and investments in new technology and new facilities - improve operations and lower prices
Not-for-profit - improved wealth to society (ex fire protection saves more money in damages than cost of service - makes more money for other wealth-creating activities)
T/F: Operations can only add value when producing a product for profit.
False: Not-for-profit organizations can add value. The value added to products represents improved wealth to society. The wealth created or preserved by value-added operations contribute to economic growth and makes more resources available for other wealth-creating activities. This ultimately improves the living standard because more wealth is created than consumed.
Technology
Application of knowledge, usually in form of recently developed tools, processes, and procedures, to solve probl [Show Less]