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58 Cards in this Set
- Front
- Back
_____ is the set of managerial activities used by an organization to transform resource inputs into products and services |
Operations management |
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In an economic sense, operations management creates _____ and _____ of one type or another, depending on the nature of the firm's products or services |
Value Utility |
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The entire area of operations management used to be called _____ |
Production management |
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During the 1970s manufacturing entered a long period of decline in the US primarily because of _____ |
Foreign competition |
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During the decline of the manufacturing sector in the US, a tremendous growth in the _____ kept the US economy from declining at the same rate |
Service sector |
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A _____ is one that transforms resources into an intangible output and creates time or place utility for its customers |
Service organization |
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_____ directly influences the organization's overall level of effectiveness |
Operations management |
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The most basic issues and decisions that must be addressed when designing operations systems: (3) |
Product service mix Capacity Facilities |
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A natural starting point in designing operations systems is determining the _____ which is how many and what kinds of products or services (or both) to offer |
Product service mix |
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The _____ decision involves choosing the amount of products, services, or both that can be produced by the organization |
Capacity
(this is a high risk decision) |
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A major consideration in determining capacity is _____ |
Demand |
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_____ are the physical locations where products or services are created, stored, and distributed. Major decisions pertaining to this are _____ and _____ |
Facilities
Facilities location Facilities layout |
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_____ is the physical positioning or geographic site of facilities and must be determined by the needs and requirements of the organization |
Location |
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_____ is the physical configuration of facilities, the arrangement of equipment within facilities or both |
Layout |
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Name and describe the 3 layout alternatives |
Product layout: appropriate when large quantities of a single product are needed (assembly lines)
Process layout: used in settings that create or process a variety of products (auto repair shops); each type of conversion task is centralized in a single workstation
Fixed position layout: used when the organization is creating a few very large and complex products (aircraft manufacturers) |
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One central element of effective operations management is _____ |
Technology |
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2 newer forms of technology that were not considered by Woodward are: |
Automation Computer assisted manufacturing |
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_____ is the process of designing work so that it can be completely or almost completely performed by machines |
Automation |
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Automation increases the amount of work that can be done and relies on _____, _____, _____ and a _____ |
Feedback Information Sensors Control mechanism |
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_____ is technology that relies on computers to design or manufacture products |
Computer assisted manufacting |
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4 types of computer assisted manufacturing |
Computer aided design (CAD) Computer aided manufacturing (CAM) Computer integrated manufacturing (CIM) Flexible manufacturing systems (FMS) |
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_____ refers to the science and technology of the construction, maintenance, and use of robots |
Robotics
Welding was one of the first applications for robots, a close second is materials handling |
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_____ is the process of managing operations control, resource acquisition and purchasing, and inventory so as to improve overall efficiency and effectiveness |
Supply chain management |
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_____ is concerned with buying the materials and resources needed to create products and services |
Purchasing management (also called procurement) |
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_____ is at the heart of effective supply chain management |
Purchasing |
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_____ is essential for effective operations management, it is managing the organization's raw materials, work in process finished goods, and products in transit |
Inventory control (also called materials control) |
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The 4 basic kinds of inventories are: |
Raw materials Work in process Finished goods In transit inventories |
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Inventory management has changed in recent years; first popularized by the Japanese, the _____ reduces the organization's investment in storage space for raw materials and in the materials themselves |
Just in time method (JIT) |
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A manager using the JIT approach order materials and parts _____ often and in _____ quantities |
More Smaller |
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_____ and _____ have become major determinants of business success or failure and are central issues in managing organizations |
Quality Productivity |
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8 basic dimensions that determine the quality of a particular product or service |
Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived quality |
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To help underscore the importance of quality, the US government created the _____ named after former secretary of commerce who championed quality in US industry. |
Malcolm Bridge Award |
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The Malcolm Bridge award is based on _____ |
Changes in quality
(as opposed to absolute quality) |
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Quality is also an important concern for individual managers and organizations for 3 specific reasons: |
Competition Productivity Costs |
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The most pervasive approach to managing quality has been called _____ |
Total quality management (TQM)
(sometimes called quality assurance) |
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The starting point for TQM is a _____ by _____ |
Strategic commitment Top management |
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Major ingredients in TQM: |
Strategic commitment Employee involvement Technology Materials Methods |
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TQM tools and techniques that can help improve quality: (7) |
Value added analysis Benchmarking Outsourcing Reducing cycle times ISO 9000:2000 and ISO 14000 Statistical quality control Six sigma |
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_____ is the comprehensive evaluation of all work activities, materials flows, and paperwork to determine the value that they add for customers |
Value added analysis
(often reveals wasteful or unnecessary activities that can be eliminated w/o jeopardizing customer service) |
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_____ is the process of learning how other firms do things in an exceptionally high quality manner |
Benchmarking |
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_____ is the process of subcontracting services and operations to other firms that can perform them more cheaply or better |
Outsourcing |
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_____ is the time needed by the organization to develop, make, and distribute products or services |
Cycle time |
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_____ refers to a set of quality standards created by the International Organization for Standardization; the standards were revised and updated in 2000 |
ISO 9000:2000
(firms that want to meet these standards apply for certification and are audited by a firm chosen by the organization's domestic affiliate) |
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_____ is concerned primarily with managing quality; it is a set of specific statistical techniques that can be used to monitor quality |
Statistical quality control (SCQ) |
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Statistical quality control (SCQ) methods: (name and describe both) |
Acceptance sampling: sampling finished goods to ensure that quality standards have been met
In process sampling: evaluating products during production so that needed changes can be made |
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The _____ method tries to eliminate mistakes; it was developed in the 1980s for Motorola |
Six sigma
(Firms rarely obtain six sigma quality) |
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Six sigma is obtained when a firm produces a mere _____ mistakes per million |
3.4 |
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_____ is an economic measure of efficiency that summarizes the value of outputs relative to the value of the inputs used to create them |
Productivity |
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_____ is the units of analysis used to calculate or define productivity; name and describe the 4 |
Levels of productivity
- Aggregate productivity: total level of productivity achieved by a country - Industry productivity: by all firms in a particular industry - Company productivity: by a company - Unit and individual productivity: by a unit or department within an organization; by a single person |
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2 different forms of productivity |
Total factor productivity Partial productivity (such as labor productivity) |
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_____ is an overall indicator of how well an organization uses all of its resources to create all of its products and services; what is the formula? |
Total factor productivity
= outputs / inputs |
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The biggest problem with total factor productivity is that _____ |
All the ingredients must be expressed in the same terms - dollars |
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A partial productivity ratio uses only one category of _____; give the formula |
Resource
Labor productivity = outputs / direct labor |
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Firm productivity is a primary determinant of an organization's level of _____ and ultimately its ability to _____ |
Profitability Survive |
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Productivity also partially determines people's _____ within a particular country |
Standard of living |
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One important factor that hurt US productivity indices is the growth of the _____ sector in the US |
Service
(although the service sector grew, it's productivity levels did not) |
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When improving productivity, suggestions made by experts generally fall into 2 broad categories: |
Improving operations Increasing employee involvement |
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What 2 ways can firms improve operations? |
- By spending more on research and development
- By reassessing and revamping their transformation facilities |