OPMT CH 1
Many service jobs are closely related to operations
Financial services Marketing services Accounting services Information services
scientific mgmt: henry ford did
mass production moving assembly line
better benefits, better pay
maunfacturing
scientific mgmt emphasis was on - output
max
supply < demand
opportunity loss, customer dissatisfaction
The Need for Supply Chain Management: what happens to inventory levels
oscillating
The Decline in Manufacturing Employment: Some manufacturing work has been --- to more productive companies
outsourced
Supply Chain Issues: inc levels of - inc - costs increase - increase importance of
outsourcing transportation globalication e-business
Managing the supply chain has become more important as a result of firms increasing their levels of: promotions. shipping. outsourcing. marketing. overtime.
outsourcing.
Environmental Concerns: Using resources in ways that do not harm ecological systems that support human existence
sustainability
Employee - is high in services, especially in low-skill jobs
turnover
Three Categories of Business Processes:
upper-mgmt operational supporting
These govern the operation of the entire organization.
upper-mgmt process
Elements of Supply Chain Management: matching supply and demand
capactiy planning
cotton gin and interchangable parts
eli whitney
where did the industrial revolution begin
england
parts of a supply chain provide raw materials, parts, equipment, supplies, and/or other inputs to the organization, and they deliver outputs that are goods to the organization's customers
external
TEST QUESTION: measurements taken at various points in the transformation process
feedback
end of supply chain
final customer
The Decline in Manufacturing Employment: Manufacturers are increasingly using contract and temporary labor which no longer show up in the statistics as
manufacturing employment
What is credited with gains in industrial productivity, increased standards of living, and affordable products? the Internet multilevel marketing mass production mass transportation personal computers
mass production
manufacturing VS service: higher measurement of productivity
manufacturing
manufacturing VS service: more uniformity of input
manufacturing
manufacturing VS service: who has more uniformity of output
manufacturing
measurement and feedback are part of what
transformation process
Decision Models & Management Science: - mathematical model for inventory management
F.W. Harris
Believed in a --- based on observation, measurement, analysis and improvement of work methods, and economic incentives
"science of management"
2 main reasons for decline in manufacturering
- increase in faster production - outsource jobs
is the term used to describe the difference between the cost of inputs and the value or price of outputs.
: Value-added
Human Relations Movement: - motivation theory, hierarchy of needs,
Abraham Maslow
who did the division of labor
Adam Smith
uses descriptive and predictive models to obtain insight from data and then uses that insight to recommend action or to guide decision making.
Analytics
Assembly lines achieved productivity but at the expense of standard of living. True False
F
Decision Models & Management Science: - statistical procedures for sampling and quality control
Dodge, Romig, and Shewart
Why Manufacturing Matters: is eroded with the loss of manufacturing jobs
Domestic intellectual capital (human capital)
Human Relations Movement: - Theory X and Theory Y
Douglas McGregor
These theories represented the two ends of the spectrum of how employees view work.
Douglas McGregor added Theory X and Theory Y
Human Relations Movement: - Hawthorne studies on worker motivation,
Elton Mayo
"Value added" by definition is always a positive number since "added" implies increases. True False
F
Service operations require additional inventory because of the unpredictability of consumer demand. True False
False
The operations manager has primary responsibility for making operations system design decisions, such as system capacity and location of facilities. True False
False
Among ---many contributions was the introduction of mass production to the automotive industry, a system of production in which large volumes of standardized goods are produced by low-skilled or semiskilled workers using highly specialized, and often costly, equipment.
Ford's
was an industrial engineer who is often referred to as the father of motion study. He developed principles of motion economy that could be applied to incredibly small portions of a task.
Frank Gilbreth
Human Relations Movement: - Two Factor Theory
Frederick Hertzberg
Decision Models & Management Science: - linear programming
George Dantzig
applied Taylor's ideas to organization structure and encouraged the use of experts to improve organizational efficiency. He testified in a congressional hearing that railroads could save a million dollars a day by applying principles of scientific management.
Harrington Emerson
scientific mgmt: - applied Taylor's ideas to organization structure
Harrington Emerson
, the great industrialist, employed scientific management techniques in his factories.
Henry Ford
scientific mgmt: - employed scientific management techniques to his factories
Henry Ford
recognized the value of nonmonetary rewards to motivate workers, and developed a widely used system for scheduling
Henry Gantt
models are widely used to control inventories.
Inventory
Economic conditions Innovating Quality problems Risk management Competing in a global economy
Key Issues for Operations Managers Today
and related mathematical techniques are widely used for optimum allocation of scarce resources.
Linear programming
scientific mgmt: is responsible for planning, carefully selecting and training workers, finding the best way to perform each job, achieving cooperate between management and workers, and separating management activities from work activities
Management
models are the most abstract: They do not look at all like their real-life counterparts. Examples include numbers, formulas, and symbols. These models are usually the easiest to manipulate, and they are important forms of inputs for computers and calculators.
Mathematical
Decision Models & Management Science: - OR applications in warfare
Operations Research (OR) Groups
people are involved in product and service design, process selection, selection and management of technology, design of work systems, location planning, facilities planning, and quality improvement of the organization's products or services.
Operations management
----spend more time on system operation decision than any other decision area
Operations managers
Project models such as ---are useful for planning, coordinating, and controlling large-scale projects. Forecasting techniques are widely used in planning and scheduling. Statistical models are currently used in many areas of decision making.
PERT (program evaluation and review technique) and CPM (critical path method)
A few factors account for a high percentage of the occurrence of some event(s).
Pareto phenomenon.
The fact that a few improvements in a few key areas of operations will have more impact than many improvements in many other areas is consistent with the: Adam Smith phenomenon. Stevenson phenomenon. Tellier phenomenon. Pareto phenomenon. Irwin phenomenon.
Pareto phenomenon.
models look like their real-life counterparts. Examples include miniature cars, trucks, airplanes, toy animals and trains, and scale-model buildings. The advantage of these models is their visual correspondence with reality.
Physical
- one or more actions that transform inputs into outputs
Process
to problem solving often embody an attempt to obtain mathematically optimal solutions to managerial problems.
Quantitative approaches
are useful for analyzing situations in which waiting lines form.
Queuing techniques
models are more abstract than their physical counterparts; that is, they have less resemblance to the physical reality. Examples include graphs and charts, blueprints, pictures, and drawings. The advantage of schematic models is that they are often relatively simple to construct and change. Moreover, they have some degree of visual correspondence.
Schematic
- performance can be adversely affected by many factors outside of the manager's control
Service
Environmental Concerns: measures often go beyond traditional environmental and economic measures to include measures that incorporate social criteria in decision making
Sustainability
involves decisions that relate to system capacity, the geographic location of facilities, arrangement of departments and placement of equipment within physical structures, product and service planning, and acquisition of equipment
System design
Lean production systems incorporate the advantages of both mass production and craft production. True False
T
Decision Models & Management Science: - statistical sampling theory
Tippett
Among Ford's many contributions was the introduction of mass production, using the concepts of interchangeable parts and division of labor. True False
True
Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their apprentices using custom-made parts. True False
True
can be disruptive to operations and supply chain processes. They may result in additional costs, delays and shortages, poor quality, and inefficient work systems
Variations
Human Relations Movement: Theory
William Ouchi
which combined the Japanese approach with such features as lifetime employment, employee problem solving, and consensus building, and the traditional Western approach that features short-term employment, specialists, and individual decision making and responsibility.
William Ouchi added Theory Z,
Theory -, on the negative end, assumed that workers do not like to work, and have to be controlled—rewarded and punished—to get them to do good work.
X
Theory -, on the other end of the spectrum, assumed that workers enjoy the physical and mental aspects of work and become committed to work.
Y
A "product package" consists of: customer relations if a service organization. the shipping container. the exterior wrapping. goods if a manufacturing organization. a combination of goods and services.
a combination of goods and services.
similarities between managing the production of products and managing services
a. Forecasting and capacity planning to match supply and demand. b. Process management. c. Managing variations. d. Monitoring and controlling costs and productivity. e. Supply chain management. f. Location planning, inventory management, quality control, and scheduling.
All other functions——support the two line functions
accounting, finance, marketing, IT, and so on
Which of the following is not a type of operations? storage/transportation goods production advertising
advertising
Process Variation: Variation that has identifiable sources. This type of variation can be reduced, or eliminated, by analysis and corrective action
assignable variation
are supply chains intrinsic or external to org
both
Supply Chain Issues: what kind of pressures
competititve
TEST QUESTION transformation process: outputs lead to
control
TEST QUESTION transformation process: transformation/ conversion process leads to what
control
TEST QUESTION: The comparison of feedback against previously established standards to determine if corrective action is needed.
control
System in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods.
craft production
System in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods
craft productiono
Elements of Supply Chain Management: what products/services do customers want
customers
Historical Evolution of OM: - models and - science
decision mgmt
A primary function of an operations manager is to guide the system by
decision making
The management of systems or processes that create goods and/or provide services
define operations management
The Need for Supply Chain Management: lead to late
deliveries to final customers
Elements of Supply Chain Management: incorporating customer wants, manufacturability, and time to market
design
The research and development activity which starts after positive research results are available and attempts to turn these results into useful commercial applications is: applied research. development. redesign. basic research. commercial research.
development
lean production lead to
flat org
Elements of Supply Chain Management: predicting timing and volume of customer demand
forecasting
scientific mgmt: father of motion studies
frank gilbreth
the greater the value-added, the greater the amount of ---available for these purposes.
funds
ex: computer repair, resturant meal
good/service
Production of ---results in a tangible output
goods
The management of systems or processes that create goods and/or provide services
goods
examples of: Automobile Computer Oven Shampoo
goods
uniformity of input and outputs is for goods or services
goods
Process Variation: The greater the variety of--- offered, the greater the variation in production or service requirements.
goods and services
scientific mgmt: developed the Gantt chart scheduling system and recognized the value of non-monetary rewards for motivating employees
henry gantt
Input variability tends to be - in many service environments than in manufacturing
higher
when manufacturers shut down what do you loose, what becomes eroided
human capital
Historical Evolution of OM: what type of movement
human relations
The - movement emphasized the importance of the human element in job design
human relations
supply = demand
ideal
Refined and developed management practices that increased productivity Credited with fueling the "quality revolution" Just-in-Time production
influence of Jap manufacturers
TEST QUESTION transformation process: what do you control
inputs and transformation/ conversion process
TEST QUESTION: transformation process steps
inputs, transformation/ conversion process, and outputs
The ---parts of a supply chain are part of the operations function itself, supplying operations with parts and materials, performing work on products, and/or performing services.
internal
Operations and supply chains are ---linked, and no business organization could exist without both
intrinsically
Supply Chain Issues: need to manage
inventories
Elements of Supply Chain Management: - meeting demand requirements while managing costs
inventory
Which of the following does not relate to system design? location of facilities inventory management altering the system capacity physical arrangement of departments selection and acquisition of equipment
inventory management
supply chain: no org stands in
isolation
Historical Evolution of OM: influence of
japanese manufactrers
One important piece of information marketing needs from operations is the manufacturing or service ---time in order to give customers realistic estimates of how long it will take to fill their orders.
lead
Marketing depends on operations for information regarding: cash flow. budgeting. lead time. corporate intelligence. productivity.
lead time.
Marketing depends on operations for information regarding: cash flow. corporate intelligence. lead time. budgeting. productivity.
lead time.
with an emphasis on quality, flexibility, time reduction, and teamwork
lean production
System that uses minimal amounts of resources to produce a high volume of high-quality goods with some variety.
lean systems
Jobs in services are often - structured than in manufacturing
less
Operations and sales are the two --functions in a business organization
line
Elements of Supply Chain Management: determining the location of facilities
location
Elements of Supply Chain Management: - deciding how to best move information and materials
logistics
System Design Decisions are strategic decisions that usually require --- commitment of resources
long-term
In many services, worker skill levels are - compared to those of manufacturing employees
low
pure manufacturing goods are going to be - customer contact
low
Services are adding many new workers in - positions
low-skill, entry-level
ex: automobile assembly, steelmaking
mainly good
Example: surgery, teaching
mainly service
Why Manufacturing Matters: Average full-time compensation tends to be higher for ---jobs
manufacturing
goods-oriented
manufacturing
manufacturing VS service: higher ability to patent design
manufacturing
TEST QUESTION transformation process: as you're leading to control what are you doing
measurement/feedback
All managers use --to manage and control operations
metrics
back in the day which was employeed more? services or manufacturers
mfg
3 basic functions of the business org
mktg, operations, fin
A --is an abstraction of reality, a simplified representation of something.
model
are there uniformity of inputs with services
no
did mgmt theory and practice advance during the industrial revolution
no
are things normally PURELY goods or services
no, normally a mix
farming and restaurants produce ---goods
nonmanufactured
Farming is an example of: customized manufacturing. a virtual organization. nonmanufactured goods. a growth industry. an obsolete activity.
nonmanufactured goods.
outsourcing becomes
offshoring
These are core processes that make up the value stream.
operational process
Every aspect of business affects or is affected by
operations
Supply Chain Issues: need to imrpove
operations
The part of a business organization that is responsible for producing goods or services
operations
This is because every aspect of business affects or is affected by .
operations
The--- includes many interrelated activities, such as forecasting, capacity planning, scheduling, managing inventories, assuring quality, motivating employees, deciding where to locate facilities, and more.
operations function
consists of all activities directly related to producing goods or providing services.
operations function
A primary function of the ---- is to guide the system by decision making
operations manager
The --- is the key figure in the system: He or she has the ultimate responsibility for the creation of goods or provision of services.
operations manager
The chief role of an --- is that of planner/decision maker.
operations manager
the --- exerts considerable influence over the degree to which the goals and objectives of the organization are realized
operations manager
the --- is more involved in day-to-day operating decisions than with decisions relating to system design.
operations manager
the --- has a vital stake in system design because system design essentially determines many of the parameters of ---
operations manager system operation
An --- daily concerns include costs (budget), quality, and schedules (time).
operations manager's
who decides this: What: What resources will be needed, and in what amounts? When: When will each resource be needed? When should the work be scheduled? When should materials and other supplies be ordered? When is corrective action needed? Where: Where will the work be done? How: How will the product or service be designed? How will the work be done (organization, methods, equipment)? How will resources be allocated? Who: Who will do the work?
operations mgr
Historical Evolution of OM: what kind of mgmt
scientific
Historical Evolution of OM: what revolution
scientific
craft production was during what
pre-industrial revolution
Two basic aspects of this for operations and supply chain management are managing --to meet demand and dealing with process --.
processes variability
Elements of Supply Chain Management: controlling quality, scheduling work
processing
The Decline in Manufacturing Employment: Increasing ---allows companies to maintain or increase their output using fewer workers
productivity
Elements of Supply Chain Management: - evaluating potential suppliers, supporting the needs of operations on purchased goods and services
purchasing
The Need for Supply Chain Management: issues in
quality
Process Variation: Natural variation that is present in all processes. Generally, it cannot be influenced by managers.
random variation
Dealing with the fact that certain aspects of any management situation are more important than others is called: analysis of variance. decision table analysis. analysis of trade-offs. recognition of priorities. sensitivity analysis.
recognition of priorities.
Dealing with the fact that certain aspects of any management situation are more important than others is called: decision table analysis. analysis of trade-offs. sensitivity analysis. recognition of priorities. analysis of variance.
recognition of priorities.
Some companies attempt to maximize the revenue they receive from fixed operating capacity by influencing demands through price manipulation. This is an example of: collusion. outsourcing. illegal price discrimination. revenue management. volume analysis.
revenue management.
Management is responsible for planning, carefully selecting and training workers, finding the best way to perform each job, achieving cooperate between management and workers, and separating management activities from work activities
scientific mgmt
this movement was led by efficiency engineer, Frederick Winslow Taylor
scientific mgmt
The -of operations management ranges across the organization.
scope
examples of: Forecasting Capacity planning Facilities and layout Scheduling Managing inventories Assuring quality Motivating employees Deciding where to locate facilities
scope of operation functions
The --sector now accounts for more than 70 percent of jobs in the United States
service
The U.S. economy is becoming more and more -based.
service
Why Manufacturing Matters: Losses in manufacturing job leads to losses in --- jobs as well
service
act-oriented
service
ex: songwriting, software development
service
manufacturing VS service: who has more customer contact
service
Customer contact is generally much higher in ---
services
are activities that provide some combination of time, location, form or psychological value.
services
examples of: Air travel Education Haircut Legal counsel
services
nowadays, which employs more? services or manufacturing
services
Which one of the following would not generally be classified under the heading of transformation? assembling staffing farming teaching consulting
staffing
The Need for Supply Chain Management: lead to inventory
stockouts
Operations and sales are the two ________ functions in businesses. line tactical strategic support value-adding
strategic
Process Variation: These are generally predictable. They are important for capacity planning.
structural variation in demand
Elements of Supply Chain Management: - monitoring supplier quality, on-time delivery, and flexibility; maintaining supplier relations
suppliers
downstream supply chain
supplliers' suppliers - direct suppliers - producer - distributor - final customer
Functions and activities include forecasting, purchasing, inventory management, information management, quality assurance, scheduling, production, distribution, delivery, and customer service.
supply chain
In the past, organizations did little to manage the --- beyond their own operations and immediate suppliers which led to numerous problems:
supply chain
a sequence of activities and organizations involved in producing and delivering a good or service
supply chain
Environmental Concerns: require less physical space, change packaging
supply chain waste mgmt
Business organizations consist of three major functions which, ideally: do not interface with each other. support one another. exist independently of each other. function independently of each other. are mutually exclusive.
support one another.
These support the core processes.
supporting processes
Environmental Concerns: Product and service design Consumer education programs Disaster preparation and response Supply chain waste management Outsourcing decisions
sustainability
Taking a systems viewpoint with regard to operations in today's environment increasingly leads decision makers to consider ______________ in response to the ___________. forecasting; stabilization of demand flexibility; pressure to be more efficient sustainability; threat of global warming offshoring; need to promote domestic production technology; impact of random variation
sustainability; threat of global warming
Product design and process selection are examples of _______ decisions. financial system operation forecasting system design tactical
system design
Product design and process selection are examples of _______ decisions. forecasting system operation tactical financial system design
system design
Operations managers spend more time on ---- decision than any other decision area
system operation
System Design Decisions are strategic decisions determine parameters of
system operation
who still has a vital stake in the system design
system operation managers
A --viewpoint is almost always beneficial in decision making
systems
The --approach emphasizes interrelationships among subsystems, but its main theme is that the whole is greater than the sum of its individual parts
systems
These decisions usually, but not always, require long-term commitments. Moreover, they are typically strategic decisions.
systems design
what kind of decisions are these: Capacity Facility location Facility layout Product and service planning Acquisition and placement of equipment
systems design decisions
System operation involves management of personnel, inventory planning and control, scheduling, project management, and quality assurance.
systems operation
These are generally tactical and operational decisions
systems operation
These are generally tactical and operational decisions. Feedback on these decisions involves measurement and control
systems operation
short term descisions, more tactical, managing inventory, quality assurance, require bulk of time bc they're day to day
systems operation
what kind of decisions are these: Management of personnel Inventory management and control Scheduling Project management Quality assurance
systems operation
the output and objectives of the organization as a whole take precedence over those of any one subsystem.
systems viewpoint
Often, the collective success or failure of companies' operations functions will impact the ability of a nation to compete with other nations. True False
t
Why Manufacturing Matters: The loss of manufacturing jobs results in a decreased
tax base (due to loss of taxable income and physical capital)
Why Manufacturing Matters: For each manufacturing job lost, up to --- service jobs are lost
three
The essence of the operations function is to add --during the transformation process
value
supply chain: must have trading partners to create
value
Process Variation: 4 sources of variation
variety of goods and services being offered, structural variation in demand, random variation, assignable variation
if supply > demand
wasteful and costly
Supply Chain Issues: is it complex
yes
do diff functional areas interact and collaborate
yes