Study "Operation management", a flashcard deck on FORKSAI.
Why is it important to study Operations Management (OM)?
Studying OM is crucial because it is one of the three major functions of any organization, helping us understand how people organize for productive enterprise. It also provides insight into how goods and services are produced, what operations managers do, and why OM is a significant cost factor within an organization.
What are the basic management functions that operations managers perform?
Operations managers perform the basic management functions of Planning, Organizing, Staffing, Leading, and Controlling to ensure efficient and effective operations within an organization.
How does the 'Design of goods and services' strategic decision impact operations?
The 'Design of goods and services' strategic decision defines what is required of operations. Product design specifically determines aspects such as quality, sustainability, and the necessary human resources for production.
What does 'Managing quality' involve as a strategic decision in operations?
'Managing quality' involves determining the customer's quality expectations and then establishing the appropriate policies and procedures to identify and achieve that desired level of quality in goods and services.
Explain the significance of 'Process and capacity design' in operations management.
'Process and capacity design' determines how a good or service is produced. This strategic decision commits management to specific technology, quality standards, resource allocation, and investment, shaping the operational capabilities of the organization.
What factors are considered in a 'Location strategy' for an organization?
A 'Location strategy' considers factors such as nearness to customers, suppliers, and talent. It also takes into account costs, available infrastructure, logistical considerations, and government regulations.
How does 'Layout strategy' contribute to efficient operations?
'Layout strategy' integrates capacity needs, personnel levels, technology, and inventory to determine the efficient flow of materials, people, and information within a facility, optimizing operational efficiency.
What is the role of 'Human resources and job design' in the total system design?
'Human resources and job design' involves recruiting, motivating, and retaining personnel with the required talent and skills. It is an integral and often expensive part of the total system design, crucial for operational success.
How does 'Supply chain management' integrate into a firm's strategy?
'Supply chain management' integrates into a firm's strategy by determining what is to be purchased, from whom, and under what conditions. This ensures a cohesive approach to sourcing and managing the flow of goods and services.
What are the key considerations in 'Inventory management'?
'Inventory management' involves making decisions about inventory ordering and holding. The goal is to optimize these decisions by considering customer satisfaction, supplier capability, and production schedules.