60 Cards in this Set
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Operations Management
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The management of systems or processes that create goods and/or provide services
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Role of the Operations Manager
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Consists of all activities directly related to producing goods or providing services. One of their primary functions is to guide the system by decision making
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System Design Decisions
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Strategic decisions that usually require long-term commitment of resources and determine parameters of system operation (capacity, facility location, facility layout, product and service planning, and acquisition and placement of equipment)
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System Operation Decisions
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Generally tactical and operational decisions (Personnel management, inventory management and control, scheduling, project management, quality assurance)
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Scientific Management
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Led by efficiency engineer Frederick Winslow Taylor
"Science of Management" based on observation, measurement, analysis and improvement of work methods, and economic incentives
Emphasis on maximizing output
Management responsible for planning, carefully selecting and training workers, …
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Human Relations Movement
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Emphasized the importance of the human element in job design (Gilbreth, Mayo, Maslow, Hertzberg, McGregor, Ouchi)
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Need for Supply Chain Management
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Before organizations managed supply chains beyond their own operations and immediate suppliers which led to numerous problems: 1) oscillating inventory levels, 2) inventory stockouts, 3) late deliveries, and 4) quality problems
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Competitiveness
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How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services
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Strategy Overview
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A plan for achieving organizational goals
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Organizational Strategies
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Overall strategies that relate to the entire organization and support the achievement of organizational goals and mission
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Functional Level Strategies
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Strategies that relate to each of the functional areas and that support achievement of the organizational strategy
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Strategy Formulation
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To be effective these must be taken into account:
Core competencies
Environmental scanning
To be successful these must be taken into account:
Order qualifiers
Order winners
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Order Qualifiers
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Characteristics that customers perceive as minimum standards of acceptability for a product or service to be considered as a potential for purchase
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Order Winners
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Characteristics of an organization's goods or services that cause it to be perceived as better than the competition
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Time Based Strategies
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Strategies that focus on the reduction of time need to accomplish tasks. It is believed that by reducing time, costs are lower, quality is higher, productivity is higher, time-to-market is faster, and customer service is improved
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Quality-based Strategy
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Strategy that focuses on quality in all phases of an organization. Intended to overcome a poor quality reputation, maintain a quality image, catch up with competition, and continue cost reduction strategy.
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Productivity
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Measure of the effective use of resources, usually expressed as the ratio of output to input
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Why care about productivity?
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Tracking an operating unit's performance over time and judging the performance of an entire industry or country
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Productivity
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Output/Input
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Partial Measures
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-Output/Single Input
-Output/Labor
-Output/Capital
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Multifactor Productivity
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-Output/Multiple Inputs
-Output/Labor+Machine
-Output/Labor+Capital+Energy
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Total Productivity
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(Goods or Services Produced)/(All inputs used to produce them)
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Product and Service Design
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Every aspect of the organization is structured around the goods and services it offers. Product and service design and redesign should be closely tied to an organization's strategy
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Reasons Design or Re-design
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Market opportunities or threats
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Research and Development
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Organized efforts to increase scientific knowledge or product innovation.
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Basic Research
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Has the objective of advancing the state of knowledge about a subject without any near-term expectation of commercial applications
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Applied Research
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Has the objective of achieving commercial applications
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Development
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Converts the results of applied research into useful commercial applications
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Legal Considerations
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Product Liability - responsibility any manufacturer has for any injuries or damages caused by a faulty product
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Ethical Considerations
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Manufacturers decision to either release the product earlier and risk releasing a faulty product for the opportunity of sooner revenue or longer testing to perfect product and forego revenue
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Standardization
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Extent to which there is an absence of variety in a product, service, or process
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Mass Customization
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Producing basically standardized goods or services, but incorporating some degree of customization in the final product or service
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Delayed Differentiation
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Process of producing, but not quite completing a product or service until customer preferences are known
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Modular Design
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Form of standardization in which component parts are grouped into modules that are easily replaced or interchanged
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Reliability
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Ability of a product, part, or system to perform its intended function under a prescribed set of conditions. Always specified with respect to certain conditions.
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Robust Design
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Design that results in products or services that can function over a broad range of conditions. Pertains to product as well as process design.
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Quality Function Deployment
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An approach that integrates the "voice of the customer" into both product and service development. Purpose is to ensure customer requirements are factored into every aspect of the process
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Concurrent Engineering
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Bringing engineering design and manufacturing personnel together early in the design phase. Also may involve manufacturing, marketing and purchasing personnel in loosely integrated cross-functional teams in order to achieve product designs that reflect customer wants as well as manufactur…
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Computer-Aided Design
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Product design using computer graphics. Increases designer productivity, creates a database for manufacturing information, provides expanded engineering/cost analysis, and can reduce time to market
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Service Design
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Begins with a choice of service strategy, which determines the nature and focus of the service, and the target market
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Service Design Issues
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Degree of variation in service requirements and degree of customer contact and involvement
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Capacity Planning
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Upper limit or ceiling on the load that an operating unit can handle
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Strategic Capacity Planning
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Goal: To achieve a match between the long-term supply capabilities of an organization and the predicted level of long-term demand
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Overcapacity
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Operating costs that are too high
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Undercapacity
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Strained resources and possible loss of customers
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Design Capacity
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Maximum output rate or service capacity an operation, process or facility is designed for
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Effective Capacity
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Design capacity minus allowances such as personal time, maintenance, and scrap
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Actual Output
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Rate of output actually achieved - cannot exceed effective capacity
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Efficiency Calculation
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Actual Output/Effective Capacity
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Utilization Calculation
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Actual Output/Design Capacity
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Process Selection
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Refers to deciding on the way production of goods or services will be organized
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Job Shop Processing
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Customized goods or services.
Adv - Able to handle a wide variety of work
Disadv. - Slow, high cost per unit, complex planning and scheduling
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Batch
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Semi-standardized goods or services.
Adv. - Flexibility; easy to add or change products or services
Disadv. - Moderate cost per unit, moderate scheduling complexity
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Repetitive/Assembly
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Standardized goods or services.
Adv. - Low unit cost, high volume, efficient
Disadv. - Low flexibility, high cost of downtime
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Continuous
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Highly standardized goods or services.
Adv. - Very effiecient, very high volume
Disadv. - Very rigid, lack of variety, costly to change, very high cost of downtime
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Computer Integrated Manufacturing
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System for linking a broad range of manufacturing activities through an integrated computer system. Overall goal is to link various parts of an organization to achieve rapid response to customer orders and/or product changes, to allow rapid production and to reduce indirect labor costs
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Product Layout
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Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow
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Fixed Position Layout
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Layout in which the product or project remains stationary and workers, materials and equipment are moved as needed
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Cycle Time
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Maximum time allowed at each workstation to complete its set of tasks on a unit. Also establishes the output rate of a line.
(Operating time per day)/Desired Output Rate
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Output Rate
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(Operating time per day)/Cycle Time
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OPMT 303: Scheduling