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What kind of operations/production are there today?
1. Service Operations (Service Production): activities producing intangible and tangible products, such as entertainment, transportation, education
2. Goods operations (Goods Production): activities producing tangible products, such as radios, newspapers, buses, and textbooks
What does operations (production) mean?
Activities involved in making products -goods and services- for customers.
The ability of a product to satisfy a human need or want - in terms of form, time and place.
form: converting raw materials into finished goods and services
time: making products available when customers need them
place: making products available where customers need them
Operations (production) Management:
systematic direction and control of the activities that transform resources into finished products that create value for and provide benefits to customers
Operations (production) Managers:
managers responsible for ensuring that operations activities create value and provide benefits to customers.
Operation processes (2):
: set of methods and technologies used to produce a good or a service
- 1. goods production processes:
- Make-to-order Operations: activities for one-of-a-kind or custom-made production.
- Make-to-stock Operations: activities for producing standardized products for mass consumption.
- 2. Service production process:
- Low-contact Systems: level of customer contact in which the customer need NOT to be part of the system to receive the service.(post delivery)
- High-contact Systems: level of customer contact in which the customer is part of the system during service delivery. (transportation)
special ability that production does especially well to outperform (to do well compared to the others in the same field) the competition.
operations planning (5):
1. Capacity planning:
amount of a product that a company can produce under normal conditions (nr of employees and facilities it owns)
2. Location planning:
- 3. Layout planning: Custom-Products Layout: for make-to-order shops, when custom work, equipment, and people are grouped according to function.
- Same-step layout: set up to make one type of product in a fixed sequence of production steps. All units go through the same set of steps. => Assembly line: a product moves step by step through a plant(tehas) on conveyor belts or other equipment until its completed.
- 4. Quality line: combination of "characteristics of a product or service that bear on its ability to satisfy stated or implied needs"
- Performance: dimension of quality that refers to how well a product does what it is supposed to do.
- Consistency: dimension of quality that refers to sameness of product from unit to unit
Operations Scheduling (4):
identifies times when specific production activities will occur.
1. The Master Production Schedule:
schedule showing which products will be produced and when, in upcoming time periods.
2. Detailed Schedule:
showing daily work assignments with start and stop times for assigned jobs.
3. Staff Schedule:
assigned working times in upcoming days for each employee on each work shift.
- 4. Project scheduling:
- Gantt chart: production schedule that breaks down large projects into steps to be performed and specifies the time required to perform each step.
- PERT chart: production schedule specifying the sequence of activities, time requirements and critical path for performing the steps in a project.
Operations control and follow up:
Operations control: process of monitoring production performance by comparing results with plans and taking corrective action when needed.
Follow-up: operations control activity for ensuring that production decisions are being implemented.
Operation control (2):
- 1. Materials Management: process of planning, organizing and controlling the flow of materials from resources of supply through distribution of finished goods.
- Lean Production System: production system designed for smooth production flows that avoid inefficiencies, eliminate unnecessary inventories, and continuously improve production process.
- Just-in-time (Jit) Production: type of lean production system that brings together all materials at the same precise time they are required at each production stage
- Materials Management Activities:
- 1. Supplier Selection: process of finding and choosing suppliers from whom to buy.
- 2. Purchasing: acquisition of the materials and services that a firm needs to produce its products.
- 3. Transportation: activities in transporting resources to the producer and finished goods to customers.
- 4. Warehousing: storage of incoming materials for production and finished goods for distribution to customers.
- 5. Inventory Control: process of receiving, storing, handling (käsitlema), and counting of all raw materials, partly finished goods and finished goods.
2. Quality Control:
action of ensuring that operations produce products that meet specific quality standards.
Total Quality Management (TQM) + Quality Ownership:
TQM: all activities involved in getting high-quality goods and services into the marketplace.
Quality Ownership:principle of TQM that holds that quality belongs to each person who creates it while performing a job.
Tools for TQM (5):
1. Value-Added Analysis: process of evaluating all work activities, material flows, and paperwork to determine the value that they add for customers.
2. Quality Improvement Team: collaborative groups of employees from various work areas work together to improve quality by solving common shared production problems.
3. ISO 9000: program certifying that a factory laboratory or office has met the quality management standards set by the International Org. for Standardization.
4. ISO 14000: certification program attesting (tunnistama, tõendama) to the fact that factory, laboratory or office has improved its environmental performance.
5. Business Process Reengineering: rethinking and radical redesign of business process to improve performance, quality, and productivity.
Supply-Chain (Value Chain) + Supply-Chain (Value Chain)
Supply-Chain (Value Chain): flow of information, materials, and services that starts with raw-materials suppliers and continuous adding value through other stages in the network of firms until the production reaches the end customer.
Supply-Chain (Value Chain): principle of looking at the supply chain as a whole to improve the overall flow through the system.
Employee behavior + forms (3):
the pattern of actions by the members of an org. that directly or indirectly influences the org.'s effectiveness.
1. Performance behavior
: the total set of work-related behaviors that the org.expects employees to display.
2. Organizational Citizenship:
positive behaviors that do not directly contribute to the bottom line (a pos. overall contribution to an org.)
- 3. Counterproductive (takistav) behavior: behaviors that detract from organizational behavior.
- Absenteeism: when an employee does not show up for work
- Turnover: annual percentage of an org.'s workforce that leaves and must be replaced.
Individual differences among employees (2):
the relatively stable set of psychological attributes that distinguish one person from another.
Emotional Intelligence or Emotional Quotient (EQ):
- "Big Five" Personality Traits (tunnus): 1. Agreeableness
- 2. Conscientiousness (kohusetunne)
- 3. Emotionality
- 4. Extraversion (extrovert vs introvert)
- 5. openness
the extent to which people are self-aware, can manage their emotions, can motivate themselves, express empathy, and possess social skills.
- 2. Attitude: a person's beliefs and feeling about specific ideas, situations or people.
- Job satisfaction: degree of enjoyment that people derive from performing their jobs.
- Organizational Commitment: an individual's identification with the org. and its mission.
How to match people and jobs (2):
1. Psychological Contract: set of expectations held by an employee concerning what he or she will contribute to an org. (as contributions) and what the org. will in return provide the employee.
2. Person Job-Fit: the extent to which a person's contributions and the org.'s inducements (saavutamine) match one another. an employee contributes and the company can take advantage from that.
the set of forces that cause people to behave in certain ways.
Basic motivation theories (8):
1. Classical Theory of Mot.: theory holding that workers are motivated solely by money.
2. Hawthorne Effect: tendency (kalduvus) for productivity to increase when workers believe they are receiving special attention from manager.
3. Theory X: theory of motivation holding that people are naturally lazy and uncooperative. (must be either punished or rewarded to become more productive)
4. Theory Y: theory of motivation holding that people are naturally energetic, growth-oriented, self-motivated, and interested in being productive.
5. Hierarchy of Human Needs Model: theory of motivation describing five levels of human needs and arguing that basic needs must be fulfilled before people work to satisfy higher-level needs.
6. Two-factor theory: theory of motivation holding that job satisfaction depends on 2 factors: hygiene and motivation (i.e working conditions & recognition).
7. Expectancy Theory: theory of motivation holding that people are motivated to work toward rewards that they want and that they believe they have a reasonable chance of obtaining.
8. Equity Theory: theory of motivation holding that people evaluate their treatment by the org. relative to the treatment of others.
How shape employee behavior (9):
1. Positive Reinforcement: reward that follows desired behaviors.
2. Punishment: unpleasant consequence of an undesirable behavior.
3. Management by Objectives: set of procedures involving both managers and subordinates in setting goals and evaluating progress.
4. Participative Management and Empowerment: method by giving employees a voice in the management of their jobs and the company.
5. Job Enrichment: method of increasing job satisfaction by adding one or more motivating factors to job activities.
6. Job Redesign: method of increasing job satisfaction bu designing a more satisfactory fit between workers and their jobs.
7.Work Sharing: method of increasing job satisfaction by allowing two or more people to share a single full-time job
8. Flextime Programs: methods of increasing job satisfaction by allowing workers to adjust work schedules on a daily or weekly basis.
9. Telecommuting: form of flextime that allows people to perform some or all of a job away from standard office settings.