Define operations management and the transformation process.
Operations management refers to the design, operation, and control of the transformation process. The transformation process is the essence of operations management. Inputs (people, materials, etc.) are brought together and are transformed through the organization’s work activities and processes into finished goods and services.
Describe three reasons operations management is important to all managers.
Operations management is important to organizations and their managers because it encompasses both services and manufacturing; it’s important in effectively and efficiently managing productivity, and operations management plays a strategic role in an organization’s competitive success.
Differentiate between a service and a manufacturing organization.
A service organization is one that produces nonphysical outputs in the form of services. A manufacturing organization is one that produces a physical good. Other than the physical goods versus nonphysical goods elements, the operations management aspects of both organizations are similar.
Define value chain management.
Value chain management is the process of managing the entire sequence of integrated activities and information about product flows along the entire value chain.
Explain the organizational and managerial requirements for the value chain management.
Successful value chain management requires the following six elements:
- coordination and collaboration among value chain partners, including sharing information and being flexible about who does what;
- an investment in technology infrastructure to support collaboration and sharing:
- appropriate organizational processes (the ways organizational work is done), including better demand forecasting, collaborative work, and better metrics for evaluating the performance of various activities along the value chain;
- strong and committed leadership:
- appropriate employee approaches, including flexible job design, an effective hiring process, and ongoing training: and
- supportive organizational culture and attitudes.
Identify the benefits and obstacles to value chain management.
Benefits from the value chain include improved customer service, cost savings, accelerated delivery times, improved quality, inventory reduction, improved logistics management, increased sales. and increased market share. Obstacles to successful implementation of value chain management include organizational barriers, cultural attitudes, required capabilities, and people.
Discuss technology’s role in operations management.
Organizations use technology to manage operations more effectively and efficiently by monitoring such information as available capacity, status of orders, and product quality; connecting with customers and suppliers, and by controlling costs.
Explain what is meant by the term just-in-time management.
Just-in-time inventory systems change the technology with which inventories are managed. Inventory items arrive when they are needed in the production process instead of being stored in stock.
Describe what is meant by the term quality control.
Quality control refers to monitoring quality-weight, strength, consistency, color, taste, reliability, finish, or any one of myriad characteristics to ensure that it meets some pre-established standard. Quality control continues throughout the production process such that early detection of a defective part or process can save the cost of further work on the item.
Explain the concept of project management.
Project management involves getting a project’s activities done on time, within budget, and accomplished to specifications. A project is a one-time-only set of activities that has a definite beginning and ending point in time.