Term
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Definition
| The part of a business organization that is responsible for producing goods or services |
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Term
| Operations Management Definition |
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Definition
| The management of systems or processes that create goods/services |
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Term
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Definition
| a sequence of activities and organizations involved in producing and delivering a good/service |
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Term
| Feedback (transformation process) |
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Definition
| measurements taken at various points in the transformation process |
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Term
| Control (transformation process) |
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Definition
| the comparison of feedback against previously established standards to determine if corrective action is needed |
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Term
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Definition
| one or more actions that transform inputs into outputs |
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Term
| The 3 Catagories of Business Processes |
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Definition
1. upper-management process
2. Operational process
3. Supporting process |
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Term
| The 4 Sources of Process Variation |
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Definition
1. Variety of goods/services being offered
2. Structural variation in demand
3. Random variation
4. Assignable variation |
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Term
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Definition
| Consists of all activities DIRECTLY related to producing goods/services |
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Term
| Primary Functions of the Operations Manager |
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Definition
To guide the system by making:
1. System design decisions
2. System operation decisions |
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Term
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Definition
| A set of interrelated parts that must work together |
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Term
| What is the Systems Approach |
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Definition
Emphasizes interrelationships among subsystems
"The whole is greater than the sum of its parts"
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Term
| Competitiveness Definition |
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Definition
| How effectively an organization meets the needs and wants of customers relative to others that offer similiar goods/services |
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Term
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Definition
| A plan for achieving an organizational goal |
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Term
| Organizational Strategies vs. Functional Level Strategies |
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Definition
Organizational: Strategies that relate to the entire organization
Functional Level: Strategies that relate to each of the functional areas and support achievement of the organizational strategy |
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Term
| Core Competencies Definition |
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Definition
| The special attributes or abilities that give an organization a competitive edge |
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Term
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Definition
| Characteristics that customers perceive as minimum standards of acceptability to be considered as a potential purchase |
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Term
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Definition
| Characteristics of an organization's goods or services that cause it to be perceived as better than the competition |
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Term
| Operations Strategy Definition |
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Definition
| The approach, consistent with organization strategy, that is used to guide the operations function |
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Term
| Quality-based Strategy vs. Time-based Strategy |
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Definition
Quality based: focuses on quality in all phases of an organization
Time based: focuses on reduction of time needed to accomplish tasks |
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Term
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Definition
| A measure of the effective use of resources, usually expressed as the ratio of output to input |
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Term
| Productivity Growth Formula |
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Definition
Current Productivity - Previous Productivity
________________________________________ X 100%
Previous Productivity |
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Term
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Definition
| A strategy of producing basically standardized goods/services, but incorporating some degree of customization in the final good/service |
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Term
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Definition
| A form of standardization in which component parts are grouped into modules that are easily replaced or interchanged |
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Term
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Definition
| The ability of a product, part, or system to perform its intended function under a prescribed set of conditions |
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Term
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Definition
| A design that can function over a broad range of conditions |
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Term
| Design for Manufacturing (DFM) |
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Definition
| The designing of products that are compatible with an organization's abilities |
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Term
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Definition
| Design that focuses on reducing the number of parts in a product and on assembly methods and sequence |
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Term
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Definition
Three step process: Draw flow, Label steps, Solve
Identifies all interactions with the customer, possible fail points, as well as techniques to avoid failures, and recover if failure occurs
Has 3 sections |
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Term
| The Four Types of Processing |
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Definition
1. Job shop - customized goods/services (Emergency room)
2. Batch - semi-standardized goods/services (Bakery)
3. Repetitive/Assembly - standardized goods/services (A Carwash)
4. Continuous - Highly standardized goods/services (Petrolium Refinery) |
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Term
The Four Basic Layout Types
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Definition
1. Product Layouts
2. Process Layouts (Functional Layouts)
3. Fixed-position Layouts
4. Combination Layouts |
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Term
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Definition
Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow
Used for repetitive/continuous processing |
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Term
| Process Layout (Functional Layout) |
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Definition
A layout that can handle varied processing requirements (Like a hospital)
Used for intermittent processing - Job Shop or Batch |
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Term
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Definition
A layout in which the product or project remains stationary while workers, materials, and equipment are moved as needed
(Like shipbuilding) |
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Term
| Flow Time Analysis: Cycle Time |
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Definition
The maximum time allowed at each workstation to complete its set of tasks on a unit
Also establishes the output rate of a line |
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Term
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Definition
Operating time per day
___________________________
Cycle time |
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Term
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Definition
Operating time per day
__________________________
Desired output rate |
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Term
Required Number of Workstations is a Function of:
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Definition
Desired output rate
The ability to combine tasks into a workstation |
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Term
Theoretical Minimum Number of Stations Formula
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Definition
Look in PowerPoint or on Study guide
May be given on formula sheet for exam |
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Term
Precedence Diagram Definition
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Definition
A diagram that shows elemental tasks and their precedence requirements
(Like A and B must be completed before C can start) |
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Term
Balance Delay Definition + Formula
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Definition
Percentage of idle time of a line
Idle time per cycle
__________________________________
Actual number of stations X Cycle time |
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Term
Efficiency Definition + Formula
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Definition
Percentage of busy time of a line
Efficiency = 100% - Balance delay |
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Term
| Projects Definition and Description |
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Definition
Unique, one-time operations designed to accomplish a specific set of objectives in a limited time-frame
Project life cycle
1. Definition
2. Planning
3. Execution
4. Delivery |
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Term
| Work Breakdown Structure (WBS) |
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Definition
A hierarchical listing of what must be done during a project's life cycle
(Like a Gantt chart) |
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Term
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Definition
Critical Path Method
(To find longest time it takes to make good)
Program Evaluation and Review Technique
(Network Diagram) |
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Term
| Network Diagrams (AOA and AON) |
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Definition
Activity on Arrow (AOA) - network diagram where arrows designate activities
Activity on Node (AON) - network diagram where nodes designate activities |
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Term
| Flow-time Efficiency Formula |
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Definition
Theoretical Flow Time
________________________
Average Flow Time |
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Term
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Definition
| The time between ordering a good/service and recieving it |
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Term
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Definition
| When a few factors account for a high percentage of the occurence of some events |
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Term
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Definition
| A process for reducing costs, improving quality, and increasing customer satisfaction |
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Term
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Definition
| The difference between the cost of inputs and the value or price of the outputs |
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Term
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Definition
| Analysis of Strengths, Weaknesses, Opportunities, and Threats |
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Term
| Process Strcture: 5 Elements |
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Definition
1. Inputs
2. Labor and capital resources
3. Information structure
4. Process Management
5. Outputs |
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Term
| Operational Effectiveness |
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Definition
| How well processes provide product attributes |
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Term
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Definition
| A unit flowing through a process |
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Term
| Three Key Questions Regarding Process Flows |
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Definition
1. On average how much time is a flow unit in a process?
2. On average how many flow untis/time pass through the process?
3. On average, how many flow units are within the process?
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Term
| Operational Measures: Little's Law |
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Definition
T = flow time - total time a flow unit is in process
R = throughput = Flow rate - the number of flow untis that flow through a specific point of the process per unit of time
Little's Law: I (inventory) = R x T |
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Term
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Definition
| Average time needed to convert inputs into outputs - T |
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Term
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Definition
| Number of flow units present within process boundaries at time T - I(t) |
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Term
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Definition
Ratio of throughput to average inventory
R/I = 1/T by Little's Law
Express R in terms of COGS |
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