Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
30 Cards in this Set
- Front
- Back
- 3rd side (hint)
what is operations management?
|
activities that relate to the creation of goods and services through the transformation of inputs and outputs
|
|
|
what is production?
|
creation of goods and services
|
|
|
what is a service?
|
an intangible good or product
|
|
|
to create goods and services all organization must perform what 3 functions?
|
marketing, production/operations, finance/accounting
|
|
|
marketing
|
generates the demand, or at least takes the order for a product or service (nothing happens until there is a sale)
|
|
|
production/operations
|
creates the product
|
|
|
finance/accounting
|
tracks how well the organization is doing, pays the bills, and collects the money
|
|
|
management process consists of...
|
planning, organizing, staffing, leading, & controlling to the achievement of objectives
|
|
|
what are services?
|
economic activities that typically produce an intangible product (such as education, entertainment, lodging, government, financial, & health services)
|
|
|
services are....
|
usually intangible, often produced & consumed simultaneously, often unique, have high customer interaction, have inconsistent product definition, often knowledge based, and frequently dispersed.
|
|
|
what is the US service sector?
|
the segment of the economy that includes trade, financial, lodging, education, legal, medical, & other professional occupations
|
|
|
challenges to OM..
|
ethics, global focus, rapid product development, environmentally sensitive production, mass customization, empowered employees, supply-chain partnering, just-in-time performance
|
|
|
what is productivity?
|
the ratio of outputs (goods and services) divided by one or more inputs (such as labor, capital, or management)
|
|
|
improvement in productivity can be achieved in two ways:
|
1- reducing inputs while keeping output constant 2- increasing output while keeping inputs constant
|
|
|
inputs are labor, capital & management, which are integrated into a production system
|
outputs are goods and services, including such diverse items such as guns, butter, education...
|
|
|
production is
|
the making of goods and services
|
|
|
only through increases in productivity can
|
the standard of living improve
|
|
|
If returns to labor, capital, or management are increased without increased productivity prices rise.
|
On the other hand, downward pressure is placed on prices when productivity increases, because more is being produced with the same resources.
|
|
|
Since 1869 the U.S. has been able to increase productivity at an average rate of almost 2.5% per year.
|
Such growth has doubled U.S. wealth every 30 years.
|
|
|
measurement of productivity
|
units produced/input used
|
units produced/labor-hours used
|
|
single-factor productivity
|
the use of just one resource input to measure productivity
|
|
|
Multifactor productivity
|
a broader view of productivity that is calculated by combining the input units
|
|
|
multifactor productivity measurement
|
output/(labor + material + energy + capital + miscellaneous)
|
|
|
productivity increases are dependent on three productivity variables:
|
Labor (contributes about 10% of the annual increase), capital (contributes about 38% of the annual increase) & management (contributes about 52% of the annual increase)
|
|
|
Improvement in the contribution of labor to productivity is hte result of a healthier, better-educated, and better-nourished labor force.
|
3 key variables for improved labor productivity are:
|
basic education approprate for an effective labor force, diet of the labor force, social overhead that makes lavor available (such as transportation and sanitation)
|
|
Capital investment provides tools for human beings
|
inflation and taxes increase the cost of capital, making capital investment increasingly expensive
|
when the capital invested per employee drops, we can expect a drop in productivity
|
|
management is a factor of production and economic resource.
|
management is responsible for ensuring that labor and capital are effectively used to increase productivity.
|
management accounts for over half of the annual increase in productivity
|
|
knowledge societies are
|
those in which much of the labor force has migrated from manual work to technical and information-processing tasks requiring ongoing education
|
|
|
productivity of the service sector has proven difficult to improve because service sector work is:
|
typically labor intensive (counseling, teaching), frequently focused on unique individual attributes or desires (investment advice), often an intellectual task performed by professionals (medical diagnosis), often difficult to mechanize and automate (haircut), often difficult to evaluate for quality (performance of a law firm)
|
|
|
ten critical decisions in OM;
|
1 designs of goods & services (what good or service should we offer? 2 managing quality (how do we define quality) 3 process and capacity design (what process and what capacity will these products require) 4 location strategy (on what criteria should we base the location decision?)
|
5 layout strategy (how large must the facility be to meet our plan) 6 human resources and job design (how do we provide a reasonable work environment) 7 supply-chain management (who should be our suppliers and how can we integrate them into our strategy) 8 inventory, material requirements planning, and JIT (just in time) (how much inventory of each item should we have & when do we reorder) 9 intermediate and short-term scheduling (are we better off keeping people on the payroll during slowdowns) 10 maintenance (who is responsible for maintenance and how do we build reliability into our processes)
|