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Operation management flashcards
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Card 1
Why is it important to study Operations Management (OM)?
Studying OM is crucial because it is one of the three major functions of any organization, helping us understand how people organize for productive enterprise. It also provides insight into how goods and services are produced, what operations managers do, and why OM is a significant cost factor within an organization.
Card 2
What are the basic management functions that operations managers perform?
Operations managers perform the basic management functions of Planning, Organizing, Staffing, Leading, and Controlling to ensure efficient and effective operations within an organization.
Card 3
How does the 'Design of goods and services' strategic decision impact operations?
The 'Design of goods and services' strategic decision defines what is required of operations. Product design specifically determines aspects such as quality, sustainability, and the necessary human resources for production.
Card 4
What does 'Managing quality' involve as a strategic decision in operations?
'Managing quality' involves determining the customer's quality expectations and then establishing the appropriate policies and procedures to identify and achieve that desired level of quality in goods and services.
Card 5
Explain the significance of 'Process and capacity design' in operations management.
'Process and capacity design' determines how a good or service is produced. This strategic decision commits management to specific technology, quality standards, resource allocation, and investment, shaping the operational capabilities of the organization.
Card 6
What factors are considered in a 'Location strategy' for an organization?
A 'Location strategy' considers factors such as nearness to customers, suppliers, and talent. It also takes into account costs, available infrastructure, logistical considerations, and government regulations.
Card 7
How does 'Layout strategy' contribute to efficient operations?
'Layout strategy' integrates capacity needs, personnel levels, technology, and inventory to determine the efficient flow of materials, people, and information within a facility, optimizing operational efficiency.
Card 8
What is the role of 'Human resources and job design' in the total system design?
'Human resources and job design' involves recruiting, motivating, and retaining personnel with the required talent and skills. It is an integral and often expensive part of the total system design, crucial for operational success.
Card 9
How does 'Supply chain management' integrate into a firm's strategy?
'Supply chain management' integrates into a firm's strategy by determining what is to be purchased, from whom, and under what conditions. This ensures a cohesive approach to sourcing and managing the flow of goods and services.
Card 10
What are the key considerations in 'Inventory management'?
'Inventory management' involves making decisions about inventory ordering and holding. The goal is to optimize these decisions by considering customer satisfaction, supplier capability, and production schedules.
Card 11
What is the purpose of 'Scheduling' in operations management?
'Scheduling' involves determining and implementing intermediate- and short-term schedules. Its purpose is to efficiently utilize personnel and facilities while simultaneously meeting customer demands.
Card 12
Why is 'Maintenance' an important strategic decision in operations?
'Maintenance' is an important strategic decision because it considers facility capacity, production demands, and personnel to maintain a reliable and stable process. This ensures continuous and uninterrupted operations.
Card 13
Define productivity and explain its significance for the standard of living.
Productivity represents output relative to input. Its significance is that only through increases in productivity can the standard of living improve, as it signifies more efficient use of resources to produce goods and services.
Card 14
Distinguish between single-factor productivity and multi-factor productivity.
Single-factor productivity measures output relative to a single resource input, such as labor productivity. Multi-factor productivity, also known as total factor productivity, measures output relative to multiple resource inputs, often expressed in dollars, such as labor, material, energy, capital, and miscellaneous costs.
Card 15
What are the three major variables that contribute to the annual increase in productivity?
The three major variables that contribute to the annual increase in productivity are labor, which contributes about 10%; capital, contributing about 38%; and management, which accounts for about 52% of the annual increase.
Card 16
How does 'Differentiation' serve as a strategy for competitive advantage?
'Differentiation' serves as a strategy for competitive advantage by offering products or services that are perceived as better, or at least uniquely different, from those of competitors. This allows a firm to stand out in the market.
Card 17
Explain 'Cost leadership' as a strategy for competitive advantage.
'Cost leadership' is a strategy for competitive advantage where a firm aims to offer goods or services at a cheaper price than its competitors. This typically involves optimizing processes and supply chains to minimize production costs.
Card 18
What does the 'Response' strategy for competitive advantage entail?
The 'Response' strategy for competitive advantage entails being more responsive to customer needs or market changes than competitors. This can involve faster delivery, quicker product development, or more agile service provision.
Card 19
What are PERT and CPM, and when were they developed?
PERT (Program Evaluation and Review Technique) and CPM (Critical Path Method) are project management techniques developed in the 1950s. They were created to help managers schedule, monitor, and control large and complex projects.
Card 20
What was the initial purpose and origin of CPM?
CPM (Critical Path Method) was initially developed as a tool to assist in the building and maintenance of chemical plants at DuPont. It was one of the first techniques designed to manage complex project schedules.
Card 21
When and for whom was PERT developed?
PERT (Program Evaluation and Review Technique) was developed independently in 1958 for the US Navy. It was created to manage complex projects, particularly those involving research and development with uncertain activity times.
Card 22
What are the first three basic steps common to both PERT and CPM?
The first three basic steps common to both PERT and CPM are: defining the project and preparing the work breakdown structure; developing the relationships among the activities; and deciding which activities must precede and which must follow others.
Card 23
How is the critical path determined in PERT and CPM?
The critical path in PERT and CPM is determined by computing the longest time path through the network of activities. This path represents the minimum time required to complete the entire project.
Card 24
What is a key difference between PERT and CPM regarding time estimates?
A key difference is that PERT employs three time estimates (optimistic, most likely, pessimistic) for each activity to account for uncertainty, whereas CPM uses only one time factor per activity, assuming more deterministic activity durations.
Card 25
What is a Gantt chart and what is its primary use?
A Gantt chart is a popular project scheduling approach that uses planning charts. Its primary use is to visually represent project schedules, showing the start and end dates of individual activities and their dependencies.
Card 26
How do Gantt charts contribute to project scheduling?
Gantt charts are planning charts used to schedule resources and allocate time in a project. They are widely used due to their simplicity and visual nature.
Card 27
Explain the concept of a bottleneck in a production system.
A bottleneck is a limiting factor or constraint in a system, characterized by having the lowest effective capacity. It is the workstation that takes the longest time in a production process.
Card 28
How is bottleneck time defined in a production system?
The bottleneck time is the time taken by the slowest workstation in a production system. This workstation determines the overall pace of production.
Card 29
What is throughput time in the context of production?
Throughput time is the total time it takes for a unit to move through the entire production process, from start to end, without accounting for any waiting time.
Card 30
How do work cells contribute to reorganizing production?
Work cells reorganize people and machines into groups specifically focused on producing single products or groups of similar products. This arrangement helps in streamlining production processes.
Card 31
What are the key requirements for implementing work cells effectively?
Effective work cells require the identification of product families, a high level of training, flexibility, and empowerment among employees, and the cell must be self-contained with its own equipment and resources, including testing at each station.
Card 32
Explain how a U-shaped line in a work cell can improve efficiency.
A U-shaped line in a work cell can reduce employee movement and space requirements, enhance communication among workers, potentially reduce the number of workers needed, and facilitate inspection processes.
Card 33
What is a Focused Work Center?
A Focused Work Center is an organizational structure where cells are organized as a 'plant within a plant.' This moves production from a general-purpose facility to a large, specialized work cell.
Card 34
How does a Focused Factory differ from a Focused Work Center?
A Focused Factory is essentially a focused work cell that is located in a separate facility. It can be specialized by product line, layout, quality, new product introduction, flexibility, or other specific requirements.
Card 35
What is the primary objective of supply chain management?
The primary objective of supply chain management is to structure the supply chain in a way that maximizes its competitive advantage and delivers the greatest benefits to the ultimate consumer.
Card 36
How can third-party logistics (3PL) benefit a supply chain?
Outsourcing logistics to 3PL providers can lead to reduced inventory, lower costs, and improved delivery reliability and speed. They can coordinate supplier inventory with delivery services and provide services like warehousing, assembly, testing, and customs.
Card 37
What is the main objective of aggregate planning?
The main objective of aggregate planning is to meet forecast demand over a specific planning period while simultaneously minimizing the associated costs.
Card 38
How does aggregate planning relate to overall production planning?
Aggregate planning is a component of a larger production planning process. It involves combining appropriate resources into general terms to create a broad production plan.
Card 39
How does technology impact the hotel industry, according to the provided examples?
In the hotel industry, technology's impact includes electronic check-in/check-out systems, electronic key/lock systems, and mobile web bookings, all enhancing customer experience and operational efficiency.
Card 40
Provide examples of how technology influences the wholesale/retail trade sector.
Technology in wholesale/retail trade includes point-of-sale (POS) terminals, e-commerce platforms, electronic communication between stores and suppliers, bar-coded data, and RFID technology, all streamlining operations and inventory management.
Card 41
How has technology transformed the transportation industry?
Technology has transformed transportation through automatic toll booths, satellite-directed navigation systems, and the provision of Wi-Fi in automobiles, improving efficiency and connectivity.
Card 42
What are some examples of technology's impact on the healthcare industry?
In healthcare, technology's impact is seen in online patient-monitoring systems, online medical information systems, and robotic surgery, which enhance patient care and operational capabilities.
Card 43
Describe the technological advancements in the airline industry.
Technological advancements in the airline industry include ticketless travel, sophisticated scheduling systems, internet purchases, and boarding passes downloadable as two-dimensional bar codes on smartphones, improving convenience and efficiency.
Card 44
What is demand management in the context of service-sector operations?
Demand management in the service sector involves strategies like appointments, reservations, and the First-Come, First-Served (FCFS) rule to regulate and organize customer demand.
Card 45
How is capacity management typically handled in the service sector?
Capacity management in the service sector is typically handled by adjusting staffing levels, utilizing full-time, temporary, or part-time staff to match fluctuating demand.
Card 46
Why is capacity analysis important in understanding a production system?
Capacity analysis is important because it determines the throughput capacity of individual workstations within a system, which is crucial for identifying bottlenecks and optimizing overall production flow.
Card 47
What are the advantages of implementing work cells in a production environment?
Advantages of work cells include reduced work-in-process inventory, less required floor space, reduced raw material and finished goods inventories, lower direct labor costs, heightened employee participation, increased equipment utilization, and reduced investment in machinery.
Card 48
How does group technology relate to the implementation of work cells?
Group technology is crucial for work cells as it identifies products that share similar characteristics, allowing them to be grouped together for processing within particular cells, which justifies the creation of these cells.
Card 49
Why is flexibility and empowerment of employees important in work cells?
Flexibility and empowerment of employees are important in work cells because they allow workers to adapt to changes in design or volume, contributing to the cell's reconfigurability and overall efficiency.
Card 50
How does the concept of 'poka-yoke' apply to work cells?
Poka-yoke, or mistake-proofing, applies to work cells through testing at each station within the cell. This ensures that errors are detected and prevented early in the production process, improving quality.
Card 51
How does disaggregation relate to aggregate planning?
Disaggregation is the process of breaking down the general aggregate plan into greater detail. This detailed breakdown ultimately results in the creation of a master production schedule.
Card 52
What are some strategies an organization might consider in aggregate planning to accommodate changes in demand?
Organizations might consider using inventories to absorb demand changes, varying workforce size, utilizing part-timers, overtime, or idle time, employing subcontractors to maintain a stable workforce, or altering prices and other factors to influence demand.
Card 53
Define Material Requirements Planning (MRP).
MRP is a computerized planning and decision-making tool used in production. It analyzes current inventory levels versus production capacity and the need for goods based on forecasts, scheduling production according to bills of materials while aiming to minimize inventory within a fixed period.
Card 54
What is Enterprise Resource Planning (ERP)?
ERP refers to a type of software that organizations use to manage various day-to-day business activities. These activities include accounting, procurement, project management, risk management and compliance, and supply chain operations.
Card 55
How does Lean Operations contribute to customer satisfaction and resource utilization?
Lean operations aim to provide greater customer satisfaction by focusing on using as few resources as possible. This approach streamlines processes and eliminates waste to enhance value for the customer.
Card 56
What are the five core principles of Lean Operations?
The five lean principles are: specifying value from the customer's point of view, identifying the value stream, making value flow through the value stream, having the customer pull value through the value stream, and pursuing perfection.
Card 57
Explain the concept of 'value stream' in the context of Lean Principles.
The value stream refers to the complete set of activities required to create the output that is valued by the customer. Identifying it is crucial for eliminating non-value-added activities and streamlining the remaining steps.
Card 58
What is the historical origin and an alternative name for Lean production?
Lean production is the name given to the Toyota Production System. It is also known as synchronous manufacturing or simply lean.
Card 59
How does Just-in-Time (JIT) relate to the Toyota Production System?
Just-in-Time (JIT) is a substantial portion of the Toyota Production System. It is an integral element of supply chain management, focusing on minimal resource use and waste elimination.
Card 60
What are the three primary tenets of the Japanese approach to work systems, particularly in relation to JIT?
The three primary tenets are minimizing waste in all forms, continually improving processes and systems, and maintaining respect for all workers.
Card 61
Why do Japanese work systems emphasize minimizing waste?
Japanese work systems emphasize minimizing waste due to Japan being a small country with minimal resources and a large population. This focus extends to materials, space, and labor, with constant fine-tuning to increase productivity and yield.
Card 62
List the first four categories of waste identified in lean operations.
The first four categories of waste are overproduction (creating more than needed), inventory (raw materials, work-in-process, finished goods), waiting (delays preventing work), and unnecessary transport (any movement of a worker or part).
Card 63
Describe the last three categories of waste in lean operations.
The last three categories of waste are unnecessary processing (extra steps in a process), unnecessary human motions (inefficient body use), and defects (parts requiring rework or being scrapped).
Card 64
In aggregate planning, what does 'combining appropriate resources into general terms' mean?
This refers to the initial high-level planning stage where various resources like labor, equipment, and materials are grouped and considered broadly to create a general production plan, rather than focusing on specific details immediately.
Card 65
How does an MRP system minimize inventory?
An MRP system minimizes inventory by precisely scheduling production based on bills of materials and forecast demand, ensuring that materials are available only when needed for manufacturing, thereby reducing excess stock.
Card 66
Why is 'pursue perfection' a key principle in Lean Operations?
Pursuing perfection is a key principle because lean operations are about continuous improvement. It drives the ongoing effort to eliminate all forms of waste and optimize processes to deliver maximum value to the customer with minimal resources.
Card 67
What role does 'respect for all workers' play in the Japanese approach to work systems?
Respect for all workers is a primary tenet that fosters a culture where employees are valued, encouraged to contribute to process improvements, and involved in identifying and correcting problems that could lead to waste, ultimately enhancing productivity.
Card 68
How does 'making value flow through the value stream' contribute to Lean Operations?
Making value flow involves eliminating non-value-added activities and streamlining the remaining value-added steps. This ensures that the product or service moves smoothly and efficiently through the production process, reducing delays and waste.
Card 69
What is the difference between aggregate planning and the master production schedule?
Aggregate planning is a high-level plan combining resources in general terms to meet forecast demand. The master production schedule is a more detailed plan that results from the disaggregation of the aggregate plan, specifying exact quantities and timing for specific products.
Card 70
How does 'having the customer pull value through the value stream' work in Lean Operations?
This principle means that production is initiated only when there is actual customer demand, rather than producing based on forecasts and pushing products to the market. This minimizes overproduction and inventory, aligning production directly with customer needs.
Card 71
Why is 'unnecessary transport' considered a form of waste in lean operations?
Unnecessary transport is considered waste because any movement of a worker or part that does not directly add value to the product consumes time, energy, and resources without contributing to customer satisfaction. It also increases the risk of damage or loss.
Card 72
What does 'unnecessary processing' entail as a category of waste?
Unnecessary processing refers to having extra steps in a process that do not add value from the customer's perspective. These additional steps consume resources, time, and effort without enhancing the final product or service's quality or utility.
Card 73
How does a 3PL service provider coordinate supplier inventory with delivery services?
A 3PL service provider coordinates supplier inventory with delivery services by managing the flow of goods from suppliers, often through their own warehousing and logistics networks, to ensure timely and efficient delivery to the final destination, optimizing the supply chain.
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