MGMT 231 CH20-Managing Operations, Quality, and Productivity

The level of productivity refers to the units of analysis used to define productivity.... - Aggregate productivity - Industry productivity - Company productivity - Unit and individual productivity

- Aggregate productivity is the total level of productivity achieved by a country. - Industry productivity is total productivity achieved by all the firms in an industry. - Company productivity is the level achieved by an individual company. - Unit and individual productivity is achieved through a department (unit) or an individual.

Operations managers are responsible for different kinds of results depending on the strategic role of operations.

- If using bureaucratic control, accountability is defined by rules and regulations. - If decentralized, it is understood by everyone.

Why operations management very important?

- It directly impacts competitiveness, quality, and productivity. - It directly influences the organization's overall effectiveness. - STRATEGY affects OPERATIONS MANAGEMENT and OPERATIONS MANAGEMENT affects STRATEGY

(*)Productivity is responsible for two things:

- Organizational profitability and survival. - People's standard of living.

What is product-service mix?

- determines how many and what kinds of products and services, or both, to offer. • Based on corporate, business and marketing strategies. (Clothing stores have both by providing service and products at the same time. The product being clothing and service being customer service)

What are capacity decisions?

- involve choosing the amount of products,services, or both that can be produced. • A critical decision, based on demand.

What is purchasing management?

- is concerned with buying materials/resources needed to produce products and services. • Also called procurement.

What is the importance of quality?

-Quality is one of the most competitive points. -Productivity and quality are related but it is possible for both to increase. -Improved quality can lower costs.

What are the eight dimensions of quality?

-performance -features -reliability -conformance -durability -serviceability -aesthetics -perceived quality

Operation systems decisions are:

-product-service mix -capacity -facilities

There are two forms of productivity?

-total factor productivity -labor productivity

What is aesthetics?

How a product looks, feels, tastes, and smells

What is Total quality management (TQM)?

Is a strategic commitment by top management to change its whole approach to business to make quality a guiding factor in everything the organization does. -Sometimes called quality assurance.

What is Productivity?

Is an economic measure of efficiency and summarizes what is produced relative to the resources used to produce it.

What is supply chain management?

Is the process of managing operations control, resource acquisition and inventory to improve overall efficiency and effectiveness.

What is quality?

Is the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs.

What is the heart of effective supply chain management?

Purchasing management/procurement (integration)

What is durability?

a measure of product life

What is reliability?

a probability of not malfunctioning during a specified period.

What is performance?

a product's primary operating characteristic; examples are automobile acceleration and a television's picture clarity

What are facilities?

are the physical locations where products or services are created, stored, and distributed.

What is perceived quality?

as seen by a customer

What is Total factor productivity?

defines productivity as outputs divided by inputs. Productivity=outputs/inputs -An overall indicator of how well an organization uses all of its resources (i.e., labor, capital, materials, and energy) to create all of its products and services.

What just-in-time (JIT) method?

has necessary materials arriving as soon as they are needed so the production process is uninterrupted. • Reduces investment in storage space and material costs. • Requires high levels of coordination and cooperation.

What is product layout?

is a physical arranged around the product.

What is ISO 9000:2000?

is a set of quality standards created by the International Organization for Standardization. - Covers such areas as product testing, employee training, supplier relations and more. - Firms apply for certification and get audited.

What is Statistical quality control (SQC)?

is a set of specific techniques used to monitor quality. - Acceptance sampling involves sampling finished goods for quality standards. - In-process sampling involves evaluating products during production, making changes if needed.

What is ISO 14000?

is a similar set of standards for environmental performance.

What is a robot?

is any artificial device performing functions ordinarily thought to be appropriate for humans. -robotics is the science and technology of the construction, maintenance and use of robots

What is fixed-position layout?

is arranged around a single work area.

What is process layout?

is arranged around the process.

What is the Malcom Baldrige Award?

is given to firms who achieve major quality improvements.

What is Labor productivity?

is outputs divided by labor costs. Labor productivity= Outputs/direct labor -A partial productivity ratio that uses only one category of resource (labor) to gage the organization's productivity in utilizing that resource.

What is outsourcing?

is subcontracting services and operations to other firms that can perform them cheaper and/or better.

What is value-added analysis?

is the evaluation of all work activities, material flows, and paperwork to determine the value they add for customers.

What is location?

is the organization's physical positioning or geographic site. • A company may need to be near amenities such as a railroad, or an airport. • Some companies may need to locate near their customers.

What is layout?

is the physical configuration of the facilities, the arrangement of equipment, or both.

What is automation?

is the process of designing work so it can be partly or wholly performed by machines.

What is benchmarking?

is the process of learning how other firms do things in an exceptionally high quality manner.

What is technology?

is the set of processes and systems used to convert resources into products or services.

What is operation management?

is the total set of managerial activities used by an organization to transform resource inputs into products, services, or both.

What is cellular layout?

is used when families of products follow similar flow paths.

What is inventory control?

manages raw materials, work-in-progress, finished goods, and products in transit. • Also called materials control.

Under purchasing management the manager must pay attention to...

quality, reliability of the supplier, and getting the best financial terms.

What is cycle time?

refers to the time needed by the organization to accomplish activities such as developing, making, and distributing products or services.

What is computer assisted manufacturing?

relies on computers to design or manufacture products.

What is features?

supplements to a product's basic functioning characteristics, such as power windows on a car.

What is conformance?

the degree to which a product's design and operating characteristics meet established standards

What is serviceability?

the speed and ease of repair

What is manufacturing?

transforms inputs into tangible outputs. Example:Engine, furniture

What is service organization?

transforms resources into intangible output. Examples:US is service oriented. Airplane is transportation services.

(*)What is Six Sigma?

tries to limit mistakes to within six standard deviations.

Operations management is at the core of what organizations do as they add...

value and create products and services.