P370 Midterm Exam Solved 100% Correct!!
operations management
-Oversees all activities that are directly related to making a product or providing a service
-Responsible for the transformation of inputs of material, money, energy, people, and information
into useful goods and services
-The design, operation, and improvement of the production system that creates the firm's primary
products and services
Strategic
-long-term horizon
-type of OM decision that often involve acquiring new resources
-example is buying a electric utility
Tactical
-medium-range decisions
-type of OM decision typically for the utilization of existing resources
-example is an assembly plant
Operational
-short term and narrowly focused decisions
-type of OM decision usually involving the execution of schedules or control activities
-example is shift scheduling at a hospital
transformation systems
using resources to transform inputs into some desired output
Physical transformation
type of transformation that involves manufacturing
ex: oil refinery
Locational transformation
type of transformation that involves transportation
ex: trucking company
Exchange transformation
type of transformation that involves retail
Storage tranformation
type of transformation that involves warehousing
Physiological transformation
type of transformation that involves healthcare
ex: hospital
Information transformation
type of transformation that involves telecommunications
, ex: AOL or any web-based business
The 5 P's to successfully transform inputs to outputs
People, plants, parts, processes, and planning and control
Operations strategy
Concerned with setting broad policies and plans for using the production resources of the firm to best
support the firm's long term competitive strategy
Operational Priorities
Cost or price
Quality
Delivery speed and reliability
Flexibility
Order qualifier
a feature that must be present in the product for its purchase to even be considered
Order winner
a product feature used to select the product to be purchased from the pool of "acceptable" products
Four step process to developing strategy
1. Segment the market according to the market group
2. Identify product requirements
3. Determine order winners and qualifiers for each group
4. Convert order winning criteria. into specific performance requirements
productivity
outputs/inputs
labor productivity
outputs/labor
total productivity
outputs/(labor+materials+...+energy)
Multi-factor productivity
outputs/(labor+materials)
Sources of productivity
External factors: safety, the environment, crime
Improved labor inputs: education, changing demographics
Capital-labor substitutions: the exchange of manual labor for some level automation
Economies of scale: in general, the bigger the better, at least for certain industries
Technological change: new equipment and management
operations management
-Oversees all activities that are directly related to making a product or providing a service
-Responsible for the transformation of inputs of material, money, energy, people, and information
into useful goods and services
-The design, operation, and improvement of the production system that creates the firm's primary
products and services
Strategic
-long-term horizon
-type of OM decision that often involve acquiring new resources
-example is buying a electric utility
Tactical
-medium-range decisions
-type of OM decision typically for the utilization of existing resources
-example is an assembly plant
Operational
-short term and narrowly focused decisions
-type of OM decision usually involving the execution of schedules or control activities
-example is shift scheduling at a hospital
transformation systems
using resources to transform inputs into some desired output
Physical transformation
type of transformation that involves manufacturing
ex: oil refinery
Locational transformation
type of transformation that involves transportation
ex: trucking company
Exchange transformation
type of transformation that involves retail
Storage tranformation
type of transformation that involves warehousing
Physiological transformation
type of transformation that involves healthcare
ex: hospital
Information transformation
type of transformation that involves telecommunications
, ex: AOL or any web-based business
The 5 P's to successfully transform inputs to outputs
People, plants, parts, processes, and planning and control
Operations strategy
Concerned with setting broad policies and plans for using the production resources of the firm to best
support the firm's long term competitive strategy
Operational Priorities
Cost or price
Quality
Delivery speed and reliability
Flexibility
Order qualifier
a feature that must be present in the product for its purchase to even be considered
Order winner
a product feature used to select the product to be purchased from the pool of "acceptable" products
Four step process to developing strategy
1. Segment the market according to the market group
2. Identify product requirements
3. Determine order winners and qualifiers for each group
4. Convert order winning criteria. into specific performance requirements
productivity
outputs/inputs
labor productivity
outputs/labor
total productivity
outputs/(labor+materials+...+energy)
Multi-factor productivity
outputs/(labor+materials)
Sources of productivity
External factors: safety, the environment, crime
Improved labor inputs: education, changing demographics
Capital-labor substitutions: the exchange of manual labor for some level automation
Economies of scale: in general, the bigger the better, at least for certain industries
Technological change: new equipment and management
