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Term
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Definition
the set of managerial activities used by an organization to transform resource inputs into products, services, or both |
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The importance of operations |
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Efficient and effective management of operations is necessary for competitiveness and overall organization performance
operations management creates value and utility through the production of products and services |
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a form of business that combines and transforms resource inputs into tangible outcomes that are then sold to others |
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an organization that transforms resources into an intangible output and creates time and place utility for its customers |
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Operations management has direct impact on.... |
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Definition
competitiveness, quality, productivity, and effectiveness |
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The type of effect operations management and organizational strategy have on each other |
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strategic goals cannot be met if.... |
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there are deficiencies and insufficiencies in operations resources |
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Determining product-service mix |
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involves deciding how many and what kinds of products to offer in the marketplace |
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involve choosing the amount of products, services, or both that can be produced by an organization |
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high-risk decisions are due to uncertainty about future product demand and the significant costs of additional, possibly excess, capacity |
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the physical locations where products or services are created, stored, and distributed |
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the physical positioning or geographic site of facilities |
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the physical configuration of facilities, the arrangement of equipment within facilities, or both |
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the set of processes and systems used by organizations to convert resources into products or services |
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the process of designing work so that it can be completely or almost completely performed by machines |
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Computer-assisted manufacturing |
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technology that relies on computers to design or manufacture products
Computer-aided manufacturing Computer-aided design Flexible manufacturing systems |
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Definition
the science and technology of the construction, maintenance, and us of robots
robot- any artificial device that can perform functions ordinarily thought to be appropriate for human beings |
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services are rapidly moving toward automated systems and procedures
retail, airlines, banks, restaurants, hospitals, and universities are all big investments in technology across the service industry in the last 20 years |
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the process of managing operations control, resource, and inventory acquisition and purchasing, and thus improving overall efficiency and effectiveness |
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operations management as control |
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operations management can be used as a control by coordinating it with other organizational functions to insure that the system focuses on the elements that are most crucial to goal attainment |
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controlling the buying of the materials and resources is at the hart of effective supply chain management |
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managing the organization's raw materials, work-in progress, finished goods, and products in-transit |
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just-in-time (JIT) method |
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an inventory system that has necessary materials arriving as soon as they are needed (just in time) so that the production process is not interrupted |
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the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs |
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quality is both a ________ and _______ concept |
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quality is relevant to both _______ and _________ |
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quality enhancement programs |
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Definition
decrease the number of defects, reduce resources dedicated to rework, and reduces the need for inspectors as employees become responsible for quality |
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improved quality reduces costs from customer returns, warranty, and lawsuits for faulty products, and lost sales to future customers |
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TQM Tools and techniques
Value-added analysis |
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a comprehensive evaluation of all work activities, material flows, and paperwork to determine that value was added |
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TQM Tools and techniques
Benchmarking |
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the process of learning how and what other firms do in an exceptionally high-quality manner |
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TQM Tools and techniques
Outsourcing |
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subcontracting operations/services to those who can do them cheaper and/or better |
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TQM Tools and techniques
Reducing cycle time |
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the time need by the organization to get something accomplished |
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TQM Tools and techniques
ISO 9000 |
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quality standards created by the International Organization for Standardization by which firms can be certified |
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TQM Tools and techniques
Statistical Quality Control |
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a set of statistical techniques that is used to monitor quality; includes acceptance sampling and in-process sampling |
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= outputs / inputs
an economic measure of efficiency that summarizes the value of outputs relative to the value of the resources used to produce them |
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Aggregate, industry, organizational, unit, individual |
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Total factor productivity |
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an overall indicator of how well an organization uses all of its resources to create all of its products and services |
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a partial productivity ratio that uses only one category of resource (labor) to gage the organization's productivity in utilizing that resource
labor productivity = outputs / direct labor |
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The importance of productivity |
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productivity is a primary determinant of an organization's level of profitability and its ability to survive
productivity partially determines people's standard of living with a particular country |
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Definition
spending more resources on research and development helps identify new products, new uses for existing products, and new methods for making products
reworking transformation processes and facilities can boost productivity |
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Increasing employee involvement |
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Definition
increasing employee participation can increase quality and productivity
cross-training of employees allows the firm to function with fewer workers
rewards are essential to the success in improving productivity |
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