Question | Answer |
What are the three basic functional areas? | Financial, Marketing, Operations. |
Supply chain: | Begins with supplier of raw materials to the final customer. |
Value-added | cost of inputs and the value or price of outputs |
Process: | one or more actions that transform inputs into outputs. |
What are the three categories of the business processes? | upper management process, operational process, supporting process |
Four types of variety of variations? | variety of goods, structural variation in demand, random variation, assignable variation
What do operation managers do? |
Lead time | gives customers realistic estimates of how long it will take to fill their orders |
Model | an abstraction of reality |
Physical models | look like their real-life counterparts |
Schematic models: | are abstract and are like graphs, charts, blueprints, and drawings |
Mathematical models: | are the most abstract like numbers, formulas, and symbols |
Quantitative Approaches: | obtaining mathematical solutions to managerial problems |
Systems approach: | there is a relationship with subsystems, but the whole is greater than the sum of its individual parts |
Pareto phenomenon: | a few factors account for a high percentage of the occurrence of some events 80/20 rule |
Frank Gilbreth: | industrial engineer who is often referred to as the father of motion study. He developed principles of motion economy that could be applied to incredibly small portions of a task. |
Henry Gantt: | recognized the value of nonmonetary rewards to motivate workers, developed a chart for scheduling. Harrington Emerson: |
Henry Ford | the great industrialist employed scientific management techniques in his factories. |
Taylor: | father of scientific management |
Lean system: | uses minimal amounts of resources to produce a high volume of high quality goods with some variety. |
Tatics: | are the methods and actions taken to accomplish strategies |
What operation strategy effects both external and internal factors? | technology |
Sustainability: | focuses on environmental friendly and energy efficient operations |
Core competencies | the special attributes or abilities that give an organization a competitive edge. |
Order qualifiers: | minimum standard of acceptability |
Order winners: | characteristic perceived as better then competition |
Productivity: | a measure of the effective use of resources usually expressed as the ratio of output to input. |
Judgmental forecasts: | forecasts that use subjective inputs such as opinions from consumer surveys, sales staff, managers, executives, and experts. |
Time-series forecasts: | simple attempt to project past experience into the future |
Associative models: | use equations that consist of one or more explanatory variables to predict demand. |
Delphi method: | process in which managers and staff complete a series of questionnaires, each made from the previous one |
Irregular variations: | unusual circumstance like weather |
Naïve forecast: | a forecast for any period that equals the previous periods actual value |
What are the two important aspects of forecasting? | expected level of demand, and degree of accuracy |
Mean absolute deviation (MAD) | the average absolute forecast error |
Mean squared error: | the average of squared forecast errors |
Moving average: | uses the last 3 numbers to average the next forecast. Disposing of any other numbers before. |
Weighted moving average: | more weight is assigned to the most recent numbers |
Exponential smoothing: | uses the percentage of the forecast error to determine the next forecast |
Trend-adjusted exponential smoothing | double smoothing |