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Flashcards in Operations management Intro Deck (10)
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1
Q

Definition of OM

A

is the set of activities that
creates value in the form of goods and services by transforming
inputs into outputs

2
Q

What are the essential functions of organizing to produce goods and services?

A
  • Marketing (generates demand)
  • Production/operations (creates the product)
  • Finance/ accounting (collect money, pay bills, etc)
3
Q

In what areas does OM take critical decisions ?

A
  1. Service and product design
  2. Quality management
  3. Process and capacity design
  4. Location
  5. Layout design
  6. Human resources and job design
  7. Supply chain management
  8. Inventory, material requirements planning, and JIT
  9. Intermediate and short–term scheduling
  10. Maintenance
4
Q

Characteristics of products

A
• Tangible product
• Consistent product
definition
• Production usually
separate from
consumption
• Can be inventoried
• Low customer
interaction
5
Q

Characteristics of Services

A
• Intangible product
• Produced and consumed
at same time
• Often unique
• High customer interaction
• Inconsistent product
definition
• Often knowledge-based
• Frequently dispersed
6
Q

What is the trend for the future of OM?

A
  • Rapid product development
  • Mass customization with emphasis in quality
  • Empowered empoyees
  • Enviromentaly sensitive production.
7
Q

Definition of productivity

A

Productivity is the ratio of outputs (goods and services)

divided by the inputs (resources such as labor and capital)

8
Q

Formula to calculate Productivity

A

Productivity = Units produced / Input used

9
Q

Formula to calculate Multi-factor productivity

A

Productivity = Output / ( labor + material + energy+ etc)

10
Q

What are possible problems when calculating productivity =

A
  • Quality may change while the cuantity of input and output remains constant
  • External elements may cause an increase or decrease in productivity
  • precise units of measure may be lacking