Operations Management Study Guide

In: Business and Management

Submitted By bnickel37
Words 3826
Pages 16
CHAPTER 1 – Operations and Productivity
Learning objectives
Define operations management
Explain the distinction between goods and services
Explain the difference between production and productivity
Compute single-factor productivity
Compute multifactor productivity
Identify the critical variables in enhancing productivity
What is operations management?
Production – the creation of goods and services
Operations Management – activities that relate to the creation of goods and services through the transformation of inputs to outputs
Organizing to Produce Goods and Services
Marketing – generates the demand, or at least takes the order for a product or service (nothing happens until there is a sale)
Production/Operations – creates the product
Finance/Accounting – tracks how well the organization is doing, pays the bills, and collects the money
Page 5 exhibit
The Supply Chain
A global network of organizations and activities that supplies a firm with goods and services
Members of the supply chain collaborate to achieve customer satisfaction, efficiency and competitive advantage
Big rise in global supply chain recently
1st ripple – stopping work at a plant immediately following disaster (skilled labor layoff)
2nd ripple – try to move production to a new area due to long term impact (try to recover skilled workers
Reasons to globalize
Reduce costs
Improve supply chain
Provide better goods and services
Better understand markets
Learn to improve operations
Attract and retain global talent
Cost drivers
Cost of cheaper unskilled workers offsets costs associated with remote locations
So many people, willing to work for less to have a job
Risks of global logistics
Delays in production
Expensive inventories
Lack of coordination
Poor demand forecast
Interference with production
Poor qualities
Uncertainties in…...

Similar Documents

Operation Management

...Chapter one 1.1 Introduction For many manufacturers the task of meeting the ever rising demand and customer expectations and lowering production cost and maximizing profit in an environment of more products, more complexity, more choice and competition is placing great stress on the effectiveness of their planning of activities in the product kind. Organizations have already adopted solutions with varying degrees of planning and scheduling capabilities. Yet, operations executive acknowledge that these same systems are becoming out dated, lacking the speed, flexibility and responsiveness to manage their increasing complex production environment. Optimization techniques are applied to find out whether resources available are effectively utilized in order to achieve optimum profit from the activities of the firm. There should be consistency in the use of various resources and the mix should be such that it brings down the cost for ensuring profit. Therefore, it is the duty of the management to exercise control over the resources and to see that the resources are effectively utilized. Similarly, organizations in general are involved in manufacturing a variety of products to cater the needs of the society and to maximize the profit. While doing so, they need to be familiar with different combinations of product mix which will maximize the profit. Or alternatively minimize the cost. The techniques such as ratio analysis, correlation and regression analyses, variance analysis...

Words: 2742 - Pages: 11

Fitness Management Study Guide

...Midterm Review: Management Functions: • Promotion • Programming • Management • 1) Commercial: focus on management • 2) Corporate: focus on programming • 3) Hospital: focus on promotion and programming • 4) Community: focus on promotion, programming, and management equally Space Allocations • Largest Administrative area: Commercial • Largest Exercise area: Corporate and Hospital-based • Smallest Locker Rooms: Hospital-based • Largest Circulation space: Community • Largest Warm-up area: Hospital-based • Nursery and Snack Bar: Commercial and Community only • Largest Multipurpose space: Hospital-based Program Objectives • 1) Commercial o primary: profit o secondary: increase membership/retention/satisfaction/program offerings • 2) Corporate o primary: reduce health costs/absenteeism, improve morale/loyalty/recruitment and retention/productivity • 3) Hospital-based o primary: improve compliance w/ treatment, earn profit/hospital loyalty, reduce employee health costs o secondary: increase # of hospital patients, improve health of community • 4) Community o primary: health promotion, community service Commercial settings • New business o Sole proprietorship o Partnership o Corporation o S-corporation (similar to LLC) • Existing business • Franchise Management Theories • Scientific o Incentives and performance • Human Relations o Satisfaction and productivity o Human/Behavior element in workplace o Maslow’s Hierarchy of Needs: • Basic......

Words: 396 - Pages: 2

Operations Management

...Managing Operations Introduction The report will start with definition of operations management concept. This will be followed by identifying some of the global factors affecting operations management in organisations and the impact such factors have on operations management in organisations and to assess how operations management can contribute to sustainable business activities . The second part of the report will describe how project management techniques contribute to the development of operations management and how project management techniques can be used to improvements the management of business operation in a multinational organisation. The effectiveness of business operations to organisational goal of Shell Petroleum will be discussed As operation management entails risk, the risk management techniques that can be applied to the management of a business operations (Shell Petroleum) and how to evaluate the risk to business operations in global markets will be discussed. How risk to Shell Petroleum operations be minimised for a business functioning in a global market will be discussed The technological infrastructure that supports operations management of Shell Petroleum will be identified and the contribution of information technology to it operations management will be analysed. The benefits to operational management of implementing technical solutions will also be analysed . The contribution of information technology to operations management......

Words: 2887 - Pages: 12

Operation Managements

...Part One Introduction 1. The Operations Function 3. Product Design The introductory part of this book provides an overview of the operations management field and some of the prerequisites for decision making in operations: operations strategy and product design. After reading this part, the student should have an appreciation for the importance of operations to the firm, the major decisions made in operations, the linkages of operations decisions to other functions, and the need for strategy to guide all operations decision making. New-product design is treated as a cross-functional decision responsibility that precedes production of goods or services. 2. Operations and Supply Chain Strategy Chapter One The Operations Function Chapter outline 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Why study operations management? Definition of operations management Decisions at Pizza U.S.A. Operations decisions—a framework Cross-functional decision making Operations as a process Contemporary operations themes Key points Student Internet exercises Discussion questions Selected bibliography “What Is OM?” Vol. XI 2 Operations management, as a field, deals with the production of goods and services. Every day we come in contact with an abundant array of goods or services, all of which are produced under the supervision of operations managers. Without effective management of operations, a modern industrialized society cannot exist. Operations is the engine that creates profit for the enterprise...

Words: 8019 - Pages: 33

Operation Management - Case Study of London

...specification and the assembly is made to specifications. Speed objectives: Speed within the operation could mean minimising the time it takes costumers from boarding to disembarking. Speed could also mean minimising the time it takes from designing and planning the London eye to the completion of construction to the London eye. Speed could also mean providing a high throughput rate during the year to cope with passengers demand. Example – The London eye take approximately six million people each year the London eye would have to provide a high throughput rate for the year to manage the demand. “Speed could mean the immediate stoppage of the London eye if an error is found with the wheel, a good example in March 2008 engineers found a problem, the London eye was immediately stopped and emergency repairs take place”. (Ronca 2002 pg 3) Dependability objectives: “Dependability means doing things in time for costumers to receive their goods or services”. (Slack, Chambers & Johnston 2010 pg 44) Dependability for the London eye include on time opening hours and closing hours, on time boarding and disembarking , keeping to reasonable queuing times to prevent long queues and increasing the flow of passengers boarding and disembarking and Keeping to TABS time. Flexibility objectives: “Changing the operation in some way either by changing what the operation does, how the operation is done or when it is being done”. (Slack, Chambers & Johnston 2010 pg......

Words: 1349 - Pages: 6

Operations Management

...Table of content 1. Introduction 1 1.1. Google Inc. 1 1.2. Google Glass 1 2. Operations management & strategic planning 2 2.1. Operations management 2 2.2. Strategic planning 3 2.3. Link between operations management and strategic planning 3 3. Systems Diagram 4 3.1. Systems theory 4 4. Cost Minimization and quality maximization 5 4.1. Cost minimization 5 4.2. Quality maximization 6 4.3. Cost minimization and quality maximization at Google 6 5. The five performance objectives of operations management 7 5.1. The five performance objectives 7 5.2. Significance of the five performance objectives 8 6. Network planning and critical path analysis 9 6.1. Network planning 9 6.2. Critical path analysis 10 6.3. Evaluation of network planning and critical path analysis for Glass 10 7. Operational planning and control 11 7.1. Nature of operational planning and control 11 7.2. Need for Operational Planning and Control 13 8. Operational outcomes 14 9. Quality 15 9.1. Quality Defined 15 9.2. Quality Maintained 15 9.3. Quality for Google Inc. 17 Bibliography 19 1. Introduction 1.1. Google Inc. “Organise the world’s information and make it universally accessible and useful.” is Google’s mission statement (http://www.google.com). Google Inc. is a United States based international technology corporation which specialises in Internet oriented services and products. Google Inc. was founded in......

Words: 6482 - Pages: 26

Operations Management Case Study - Mandexor Memory Essay

...Running head: ANALYSIS OF MANDEXOR MEMORY CASE STUDY 1 Analysis of Mandexor Memory Case Study-Capacity Planning and Control Alfred Asuah Adongo (13025813) Ghana Institute of Management and Public Administration Professor: Dr. Chris Tabi Amponsah EMBA 665 - Operations and Project Management 6th April 2014 Analysis of Mandexor Memory Case Study-Capacity Planning and Control   2   Abstract This paper explains capacity planning and control in the case of Mandexor Memory. Mandexor Memory with its parent company in the US is currently experiencing a poor record of meeting production targets at its European Disk Drives Division and has therefore appointed a new Operations Manager in Mat Frankel to turn things around and to see to the reorganization of the sales and marketing functions into one division. The core objectives of this paper will thus be to analyze the current capacity and output levels vis-à-vis the demand as per the forecasts and then determine how Mandexor can balance optimal output with demand using the right capacity planning and control strategies to achieve its production targets in the European Disk Drive Division. The methods to be employed in this paper include review of the current production data (Actual Vs. Forecast) in relation to the capacity of the plant, calculation of necessary variances between output and demand in relation to capacity and a coherent analysis based on sound assumptions that will help Mandexor to adopt the......

Words: 7152 - Pages: 29

Operation Management

...June 2013 Keywords: Value chain Supply chain management Operations strategy a b s t r a c t Over the past three decades scholars have developed comprehensive insights into the operational and strategic aspect of designing and managing the supply chain. Reviewing this ample body of knowledge however one cannot help but notice a persistent disunion between the “value chain” view that considers aspects of value creation and appropriation, and the operational “supply chain” view that considers strategies and tools for designing and operating efficient inter-firm networks. Commonly these views do not interact: value creation has the aim of capturing the maximum value-added in financial terms, the supply chain view aims for designing operationally efficient supply chains. In contrast to their treatise within the academic literature, from a practical point of view these two aspects are both necessary (and thus in their own right insufficient) components to a firm's supply chain strategy. In this paper we thus turn to an exploratory case study to identify what such a combined view of the value and supply chain would entail. We refer to this purposeful creation as the “value chain architecture” and propose five fundamental decisions that define the latter: (1) the nature of value provision (driven by the core competence of the firm), (2) the operational footprint decisions for manufacturing, sourcing and distribution, (3) the approach to risk management, (4) the order fulfillment strategy......

Words: 8254 - Pages: 34

Study Guide Retail Management

...society, to challenge is to balance corporate citizenship with a fair level of profit. Consumerism: activates and business, organization to protect people practices upon their rights. Consumers have basic rights. That should be safeguard. Americans Act with Disabilities: under the act of title III states public accommodations must comply with the basic nondiscrimination. CHAPTER 3 Strategic Planning * Strategic planning in retailing is a complex process with a number of both controllable and uncontrollable * Retail Strategy ; plan or framework of action that guides a retailer * Planning and enacting a retail strategy is an interdependent. * Situational Analysis: evaluation of opportunities, future threats or existing. Two questions 1. What is the firm’s current status? 2. What direction should it be heading? Overview: Organizational mission, Ownership and management alternatives, goods/services category. * Opportunities: Marketplace opening that exist because other retailers place have not yet capitalized. * Organizational mission : commitment to a type of business in order to have a distinctive role in the market place. Based on consumer needs. * Sole proprietorship: retail firm owned by one person, benefit profit, risk and costs accrue to that individual. * Partnership: firm owned by two or more persons; with financial interest. Partners share profit, risk , and cost. * Corporation: firm that is formally......

Words: 1422 - Pages: 6

Operations Management

...Student 30991 Malak Rostom Masters of Business Administration Module 5 Operations Management Title Hotel-Dieu De France Beirut-Lebanon Word Count: 3,477 CONTENTS I- Executive summary 3-4 II- Introduction 4 III- Company Profile 4-5 IV- Problem and Processes Description 5-8 1- Problem definition 5-6 2- Patients flow model at hdf 6-8 V- patient Flow and Capacity Theories 9-12 3- Process mapping 10 4- theory of constraints 10-11 5- lean tools 11-12 VI- HDF processes evaluation from the capacity theories perspective 12-16 VII- Proposed changes and their effects on customer service 16-18 VIII- Final Recommendations and conclusion 19-21 IX- REFERENCE ...

Words: 4360 - Pages: 18

Management 310 Study Guide Test 1

...Management 310 Study Guide Chapter 2: Individual Differences: Personality and Ability Locus of Control External: outside forces responsible for fate, actions= no affect Internal: think their own behaviors and actions have an impact Self-Monitoring The extent to which people try to control the way they present themselves to others High: want behavior to be socially acceptable; good at managing the impressions others have of them Low: not overly concerned about behaving in a situational appropriate manner, more likely to say what they think is true/correct, provide open, honest feedback The Big Five Model of Personality Trait: specific component of personality- tendencies a person has to feel, think, act in certain ways- shy, outgoing, etc 1.Extraversion: positive emotions, gregariousness, warmth aka positive affectivity, more satisfied with jobs 2. Neuroticism: anxiety, self-consciousness, vulnerability aka negative affectivity, view= negative, more critical 3.Agreeableness: trust, straightforwardness, tender-mindedness *people low on this are mistrustful, 4. Conscientiousness: competence, order, self disciple *extent to which people are careful, scrupulous, and preserving 5.Openness to Experience: fantasy, Actions, Ideas *extent to which an individual is original, open to stimuli, has board interests, and willing to take risks *a person can be high, low, or anywhere between for each trait **no such thing as a good or......

Words: 4581 - Pages: 19

Study Guide

... MGT 364 - Study Guide Chapters 1, 2, 3, 4, 5, & 6 Exam 1 Chapter 1 (about 6 questions on test) 1. Where is operations management most applicable? 2. Who were some of the contributors to operations management? 3. Know how to calculate labor productivity. 4. What has been a major reason for globalization of business? 5. What is the scope of decisions that fall under operations management? 6. What has the greatest potential to increase productivity? 7. What are new trends in operations management? 8. What is the percent of jobs that are in the service industry? Chapter 2 (7 questions) 1. “A corporate strategy helps you set your competitive priority.” What does this mean? 2. In terms of a company’s overall strategy, what are the main considerations when you are creating an operations strategy? 3. What is the difference between a mission and a strategy? 4. Once you have a mission, your next steps are to do what? 5. Understand “strategic concepts” that allow or help firms to achieve their mission (i.e. differentiation, quick response, etc.). 6. What are examples of how you would compete on low-cost leadership? 7. What are examples of how you would compete if you are emphasizing quick response? 8. What type of business most likely needs to locate near their customers? 9. What are the reasons for globalizing operations? 10. What are the ways businesses compete with one another (i.e. production cost, time to perform certain activities)? 11. What......

Words: 799 - Pages: 4

Operation Management

...Welcome to OPERATIONS MANAGEMENT Operations Management is important, exciting, challenging, and everywhere your look! Important, because it’s concerned with creating all of the products and services upon which we depend. Exciting, because it’s at the centre of so many of the changes affecting the world of business. Challenging, because the solutions that we find need to work globally and responsibly within society and the environment. And everywhere, because every service and product that you use – the cereal you eat at breakfast, the chair you sit on, and the radio station you listen to while you eat – is the result of an operation or process. Our aim in writing Operations Management is to give you a comprehensive understanding of the issues and techniques of operations management, and to help you get a great final result in your course. Here’s how you might make the most of the text: ● Get ahead with the latest developments – from the up-to-the-minute Operations in practice features in every chapter to the focus on corporate social responsibility in the final chapter – these put you at the cutting edge. ● Use the Worked examples and Problems and applications to improve your use of key quantitative and qualitative techniques, and work your way to better grades in your assignments and exams. ● Follow up on the recommended readings at the end of each chapter. They’re specially selected to enhance your learning and give you an edge in your......

Words: 12297 - Pages: 50

Operations Management

...Get Instant Access to PDF Read Books Operations Management William Stevenson 12th Edition at our eBook Document Library Operations Management William Stevenson 12th Edition PDF Download Operations Management William Stevenson 12th Edition.PDF Getting the screenshots prepared is a good approach that might time savings. But having screenshots already prepared in addition to callouts, explanations, and annotations is an excellent approach which you will save much longer. More than likely, you've all that stuff prepared inside your operations management william stevenson 12th edition but it's not very polite to deal to the person: "Read that fantastic manual". User may do not know the location where the manual is on the PC as well as on what page is the looked-for solution located. On the other hand, you may also have zero time and energy to manually cut particular pages with screenshots and related instructions from your manual also to attach them to each support message. Consider virtually any kind of services or products is now purchased or enlisted online, getting repair manuals is effortless. With many suppliers, immediate accessibility to manuals is done possible since they will be stored and ready for download in Portable Document Format (PDF). And unlike traditional printed service manuals that may be easily lost or damaged over time, these operations management william stevenson 12th edition might be safely held in your pc for future repairs. This is really going to......

Words: 4472 - Pages: 18

Operation Management

...ABSTRACT This study assessment is about the operation management of the Adsign Imej Sdn. Bhd. All the information got had been referred to the Operation Manager of the Company. It is all about recognizing the problem occurred in the organization’s operation and the problem measurement through the observation. After identify the problem of the company, next step is determine different options that might improve the operation. In this case also suggest the control plan that should be implemented by the Company for the best decision or solution in order to overcome the problem occurred. Lastly, are the effects to the Company from the implementation of control plan. 1 INTRODUCTION 1.1 Background of organization Adsigns Imej Sdn Bhd was formally known as Stadthouse Adsigns Sdn Bhd. The company was incorporated in 23 June 1997. The principle activity of the company is providing the advertising services which is includes of billboard advertising, unipoles, gantry and many other forms of outdoor advertising. Outdoor advertising is far more effective than other advertising media especially in areas of high footfall as the potential audience is very high compared to indoor advertising mediums Adsigns is based in Jalan Tun Razak, Kuala Lumpur. They currently operates many sites around Klang Valley, with which they cover their clients' media display requirements from ad copy production to placement and maintenance. They offer attractive & attention grabbing......

Words: 1897 - Pages: 8