,Introduction to quality management 1
Operations management is the business function responsible for planning, coordinating and
controlling the resources needed to produce a company goods and services.
The role of operations management is to transform organizational inputs into outputs.
Strategic decisions are long term and broad scope.
Tactical decisions are narrow scope short term in general and concerning a small group of issues.
Global marketplace is a trend in business focussing on customers, suppliers, and competitors in a
global perspective.
Lean systems is a concept that takes a total system approach to creating efficient operations.
Enterprise Resource Planning ERP is large sophisticated software systems used for identifying and
planning the enterprise-wide resources needed to coordinate all activities involved producing and
delivering products and services.
Customer relationship management CRM is software solutions that enable the firm to collect
customer-specific data.
Cross-functional decision making is the coordinated interaction and decision making that occur
among the different functions of the organization.
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, Operations strategy and competitiveness 2
Operations strategy is a long range plan for the operations function that specifies the design and use
of resources to support the business strategy. It defines a plan to make optimal use of resources
within the organization.
Operations strategy specifies the design and use of resources within a business strategy.
A business strategy includes the location, size, type of facilities available and worker skills required.
Also the use of technology, special processes needed, special equipment and quality control
methods.
A trade-off is a segmentation.
Order qualifiers are those competitive priorities that a company has to meet if it wants to do
business in a particular market.
Order winners are the competitive priorities that help a company to win orders in a market.
Structure are operations decisions related to the design of the production process such as facilities,
technology, and flow of goods and services through the facility.
Infrastructure is the operation decisions related to the planning and control systems of the
operation, such as organization of the operations function, skills and pay of workers and quality
control approaches.
productivity is a measure of how efficiently an organization converts inputs into outputs.
Productivity is output/ input
Total productivity is productivity computed as a ratio of output to all organizational inputs.
Partial productivity is productivity computed as a ratio of output to only one input.
Multifactor productivity is productivity computed as a ratio of output to several, but not all, inputs.
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