Management Chp. 21

• Facilities Decisions - _____ are the physical locations where products or services are created, stored, and distributed. - _____ is the physical positioning or geographic site of facilities. - ___ is the physical configuration of facilities, the arrangement of equipment within facilities, or both.

- Facilities are the physical locations where products or services are created, stored, and distributed. - Location is the physical positioning or geographic site of facilities. - Layout is the physical configuration of facilities, the arrangement of equipment within facilities, or both.

• Role of Operations in Organizational Strategy - Operations management has a direct impact on ______, _____, ___, and ________. - Operations management and organizational strategy have ____ effects on each other. - _____ goals cannot be met if there are deficiencies and insufficiencies in operations resources.

- Operations management has a direct impact on competitiveness, quality, productivity, and effectiveness. - Operations management and organizational strategy have reciprocal effects on each other. - Strategic goals cannot be met if there are deficiencies and insufficiencies in operations resources.

• Types of layouts - _____ layout—facilities arranged around the product; used when large quantities of a single product are needed. - _____ layout—facilities arranged around the process; used in facilities that create or process a variety of products. - ____ position layout- facilities arranged around a single work area, used for the manufacture of large and complex products - _____ layout—a configuration of facilities used when families of products can follow similar paths.

- Product layout—facilities arranged around the product; used when large quantities of a single product are needed. - Process layout—facilities arranged around the process; used in facilities that create or process a variety of products. - Fixed position layout- facilities arranged around a single work area, used for the manufacture of large and complex products - Cellular layout—a configuration of facilities used when families of products can follow similar paths.

• Levels of Productivity - The unit of analysis used to calculate or define productivity. - _____ productivity—the total level of productivity for a country. - ______ productivity—the total productivity of all the firms in an industry. - ____ productivity—the level of productivity of a single company. - ____ productivity—the productivity level of a unit or department. - _____ productivity - the productivity attained by a single person.

- The unit of analysis used to calculate or define productivity. - Aggregate productivity—the total level of productivity for a country. - Industry productivity—the total productivity of all the firms in an industry. - Company productivity—the level of productivity of a single company. - Unit productivity—the productivity level of a unit or department. - Individual productivity - the productivity attained by a single person.

1. _________. A product's primary operating characteristic; examples are automobile acceleration and a television's picture clarity. 2. ______. Supplements to a product's basic functioning characteristics, such as power windows on a car 3. ________. A probability of not malfunctioning during a specified period. 4. ________. The degree to which a product's design and operating characteristics meet established standards. 5. ______. A measure of product life. 6. _________. The speed and ease of repair. 7. ________. How a product looks, feels, tastes, and smells 8. _____ quality. As seen by a customer.

1. Performance. A product's primary operating characteristic; examples are automobile acceleration and a television's picture clarity. 2. Features. Supplements to a product's basic functioning characteristics, such as power windows on a car 3. Reliability. A probability of not malfunctioning during a specified period. 4. Conformance. The degree to which a product's design and operating characteristics meet established standards. 5. Durability. A measure of product life. 6. Serviceability. The speed and ease of repair. 7. Aesthetics. How a product looks, feels, tastes, and smells 8. Perceived quality. As seen by a customer.

Strategic commitment -----------> ______ involvement ------------------> ______ ------------------> _______ ------------------> _____ ---------------> Quality improvements

Strategic commitment -----------> Employee involvement ------------------> Materials ------------------> Technology ------------------> Methods ---------------> Quality improvements

TQM Tools and Techniques • ____________ - The process of learning how and what other firms do in an exceptionally high-quality manner. • _______ - Subcontracting operations/services to those who can do them cheaper and/or better. • _____ cycle time - Table 21.3 • Statistical quality control (SQC) - _____ sampling: testing and making a decision at the end. - _________ sampling: testing along the way, during the process.

• Benchmarking - The process of learning how and what other firms do in an exceptionally high-quality manner. • Outsourcing - Subcontracting operations/services to those who can do them cheaper and/or better. • Reducing cycle time - Table 21.3 • Statistical quality control (SQC) - Acceptance sampling: testing and making a decision at the end. - In-process sampling: testing along the way, during the process.

The Importance of Quality (cont'd) • __________ - Quality has become one of the most important competitive points in business today. • ________ - Quality enhancement programs decrease defects, reduce rework, and eliminate the need for inspectors as employees assume responsibility for quality. • ________ - Improved quality reduces costs from customer returns, warranty, and lawsuits for faulty products, and lost sales to future customers.

• Competition - Quality has become one of the most important competitive points in business today. • Productivity - Quality enhancement programs decrease defects, reduce rework, and eliminate the need for inspectors as employees assume responsibility for quality. • Costs - Improved quality reduces costs from customer returns, warranty, and lawsuits for faulty products, and lost sales to future customers.

• Determining _________ Mix - Involves deciding how many and what kinds of product to offer in the marketplace. • ____ Decisions - Can be high-risk decisions due to uncertainty about future product demand and incurred costs of additional, possibly excess, capacity. - Involve choosing amount of product, services, or both that can be produced by an organization. - Disney world changing there hours.

• Determining Product-Service Mix - Involves deciding how many and what kinds of products to offer in the marketplace. • Capacity Decisions - Can be high-risk decisions due to uncertainty about future product demand and incurred costs of additional, possibly excess, capacity. - Involve choosing amount of product, services, or both that can be produced by an organization. - Disney world changing there hours.

Improving Productivity • Improving Operations - Spending more resources on ___ and ___ helps identify new products, new uses for existing products, and new methods for making products. - Reworking _____ processes and facilities can boost productivity. • Increasing Employee Involvement - Increased employee participation can increase both ____ and _______. - ________ of employees allows firms to function with fewer workers. - _____ are essential to success in improving productivity.

• Improving Operations - 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. • Increasing Employee Involvement - Increased employee participation can increase both quality and productivity. - Cross-training of employees allows firms to function with fewer workers. - Rewards are essential to success in improving productivity.

• ______ organization (selling a product) - A form of business that combines and transforms resource inputs into tangible outcomes that are then sold to others. • _____ organization (selling an experience) - An organization that transforms resources into an intangible output and creates time and place utility for its customers.

• Manufacturing organization - A form of business that combines and transforms resource inputs into tangible outcomes that are then sold to others. • Service organization - An organization that transforms resources into an intangible output and creates time and place utility for its customers.

• ______ Management - The set of managerial activities used by an organization to transform resource inputs into products, services, or both. • Importance of Excellence in Operations - Is necessary for _______ and overall organization ______. - Creates value and utility through the production of _____ and _____.

• Operations Management - The set of managerial activities used by an organization to transform resource inputs into products, services, or both. • Importance of Excellence in Operations - Is necessary for competitiveness and overall organization performance. - Creates value and utility through the production of products and services.

• __________ - An economic measure of efficiency that summarizes the value of outputs relative to the value of the resources used to produce them.

• Productivity - An economic measure of efficiency that summarizes the value of outputs relative to the value of the resources used to produce them.

• ____ Management (Procurement) - Controlling the buying of the materials and resources is at the heart of effective supply chain management. • Inventory Management o ___ control (Materials control) - Managing the organization's raw materials, work-in-process, finished goods, and products in-transit. o _______ (JIT) method -An inventory system than has necessary materials arriving as soon as they are needed (just in time) so that the production process is not interrupted.

• Purchasing Management (Procurement) - Controlling the buying of the materials and resources is at the heart of effective supply chain management. • Inventory Management o Inventory control (Materials control) - Managing the organization's raw materials, work-in-process, finished goods, and products in-transit. o Just-in-time (JIT) method -An inventory system than has necessary materials arriving as soon as they are needed (just in time) so that the production process is not interrupted.

•_____ ______ Management - The process of managing operations control, resource and inventory acquisition and purchasing, and thus improving overall efficiency and effectiveness. • _____ Management as Control - Coordinating operations management with other functions helps insure the system focuses on critical elements crucial to goal attainment.

• Supply Chain Management - The process of managing operations control, resource and inventory acquisition and purchasing, and thus improving overall efficiency and effectiveness. • Operations Management as Control - Coordinating operations management with other functions helps insure the system focuses on critical elements crucial to goal attainment.

Manufacturing Technology • ______ - The set of processes and systems used by organizations to convert resources into products or services. •________ - The process of designing work so that it can be completely or almost completely performed by machines. • _______ - Any artificial device that can perform functions ordinarily thought to be appropriate for human beings. • ________ - The science and technology of the construction, maintenance, and use of robots. • ______ Technology - Services are rapidly moving toward automated systems and procedures (e.g., automated teller machines and room

• Technology - The set of processes and systems used by organizations to convert resources into products or services. •Automation - The process of designing work so that it can be completely or almost completely performed by machines. • Robot - Any artificial device that can perform functions ordinarily thought to be appropriate for human beings. • Robotics - The science and technology of the construction, maintenance, and use of robots. • Service Technology - Services are rapidly moving toward automated systems and procedures (e.g., automated teller machines and room

• The Meaning of _____ - The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. - __ is both a relative and absolute concept. - ____ is relevant to both products and services. • The Importance of Quality ______ ______ Award - Named after a former secretary of commerce, this award is given by the commerce department to firms that achieve major quality improvements.

• The Meaning of Quality - The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. - Quality is both a relative and absolute concept. - Quality is relevant to both products and services. • The Importance of Quality Malcolm Baldrige Award - Named after a former secretary of commerce, this award is given by the commerce department to firms that achieve major quality improvements.