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operations midterm
operations management midterm
60
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Not Applicable
10/10/2011

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Term
purchasing function
Definition
sources inputs into the transformation process
Term
logistics function
Definition
responsible for the actual movement of goods and/or services across organizations
Term
supply chain
Definition
the network of manufacturing and service operations that supply one another from raw materials through manufacturing to the ultimate customer
Term
operations function
Definition
responsible for producing and delivering goods or services of value to customers of an oganization
Term
4 major responsibilities
Definition
process, quality, capacity, inventory
Term
transformation system
Definition
converts inputs into outputs
Term
inventory decisions and control systems involve:
Definition
determining what to order, how much to order, and when to order. tracking the flow of materials. managing the finished goods inventories.
Term
three primary functions in most businesses
Definition
operations, finance, and marketing
Term
the transformation view of operations provides:
Definition
a unified approach for studying the manufacturing and service industries.
Term
at disney making people happy is an example of:
Definition
corporate strategy
Term
four elements at the heart of operations strategy
Definition
mission, distinctive competence, objectives, and policies
Term
four common objectives of operations
Definition
quality, cost, delivery, and flexibility
Term
in product imitator strategy order winner is
Definition
price
Term
in product innovator strategy the order winner is
Definition
flexibility
Term
T or F. a corporate strategy drives a business strategy, which in turn drives the operations strategy in an organization
Definition
true
Term
operations strategy:
Definition
a consistent pattern of decisions for the transformation system and associated supply chain that are linked to the business strategy and other functional strategies, leading to a competitive advantage for the firm.
Term
2 fundamental supply chain strategies
Definition
imitation and innovation
Term
corporate strategy:
Definition
defines the business that the company is pursuing
Term
business strategy:
Definition
follows from corporate strategy and defines how each particular business will compete
Term
strategic decisions:
Definition
indicate how the operations objectives will be achieved
Term
distinctive competence
Definition
something that operations does better than anyone else
Term
market pull view of product innovation
Definition
develop products that the customers want
Term
the concept that a product should not only fit the market needs but have a technical advantage as well
Definition
interfunctional view to new product introduction
Term
modular design
Definition
dividing the products into their similar components
Term
technology push
Definition
technology is the primary determinant of the products the firm should make with little regard for the market
Term
typical phases followed by firms in developing new products
Definition
concept development, product design, and pilot production/testing.
Term
quality function deployment (QFD)
Definition
a tool for linking customer requirements as defined by the customer to technical specifications
Term
design for manufacturing (DFM) is an approach that consists of two things:
Definition
1. simplification of products 2. manufacturing of multiple products using common parts, processes, and modules
Term
5 types of product flow:
Definition
continuous process, assembly line, batch, job shop, and project
Term
continuous production:
Definition
refers to so called process industries, such as sugar, paper, oil, and electricity
Term
assembly line:
Definition
linear sequence of operations. product moves from one step to the next in a sequential manner from beginning to end
Term
batch flow
Definition
characterized by production of the product in batches or lots.
Term
job shops
Definition
make products to customer order by using a process layout. thus, we consider the job shop a special case of the batch process
Term
project flow
Definition
used for unique or creative products. ie concerts, construction of buildings, production of large aircraft.
Term
3 approaches to order fulfillment
Definition
made to order, assembled to order, made to stock
Term
4 factors influencing process selection
Definition
market conditions, capital requirements, labor, technology
Term
economies of scope
Definition
high variety of products from a single process
Term
3 forms of mass customization
Definition
modular production and assemble to order, fast changeover, postponement of options
Term
how do services create value for customers?
Definition
by performing transformations that do not result in a physical entity (product)
Term
a critical characteristic of service is simultaneous....
Definition
production and consumption
Term
front office
Definition
services that require the presence of or interaction with the customer
Term
processes that do not require the presence of the customer
Definition
back office services
Term
the service-product bundle
Definition
tangible service (explicit service), intangible or psychological benefits of the service (implicit service), and the physical goods (facilitating goods)
Term
customer-routed services
Definition
those in which a customer want a unique, highly customized experience.
Term
co-routed services
Definition
offer a moderate number of choices to customers using moderately standardized processes
Term
provider-routed services
Definition
are characterized by processes that allow few options during the delivery and are matched with customers whose needs are very similar to one another
Term
process thinking
Definition
the point of view that all work can be seen as a process
Term
little's law
Definition
I = T x R
I = average number of things in system (inventory)
T = average throughput time or flow time
R = average flow rate into the process
Term
throughput time
Definition
time from when the product first starts being processed in the factory until it is finished and shipped
Term
capacity
Definition
the maximum rate of output from a transformation process or the maximum flow rate that can be sustained over a period of time
Term
first tenet of lean thinking
Definition
specify exactly what it is about a product or service that creates value from the customers perspective
Term
second tenet of lean thinking
Definition
identify, study, and improve the value stream of the process for each product or service
Term
value stream
Definition
all the processing steps and tasks undertaken to complete a product or deliver a service from beginning to end
Term
third tenet of lean thinking
Definition
ensure the flow within a process is simple, smooth, and error-free, thereby avoiding waste
Term
waste (lean thinking)
Definition
anything that does not contribute value to the product or service being produced and delivered to the customer. rather than adding value waste adds costs
Term
fourth tenet of lean thinking
Definition
produce only what is pulled by the customer
Term
fifth tenet of lean thinking
Definition
strive for perfection
Term
5 whys
Definition
asking why 5 times to get to the root cause of an observed problem
Term
single set-ups
Definition
refers to set-up time that has single digit in minutes
Term
one touch set-ups
Definition
setup less than one minute
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