370 Study Guide

Fundamentals of Operations Management

1. Identify the connection between operational and corporate objectives

a. Purpose of a firm is to create wealth

b. Manufactures value is created through transforming raw materials into a product

How operations support corporate objectives.

Product= Affordable, Quality, Utility, and Distribution

How operations support corporate objectives.

Product= Affordable, Quality, Utility, and Distribution

2. Explain the shift from artisanship to mass production

c. Artisanship takes longer, and requires a high amount of specialization

d. Mass production is faster, requires little to no specialization and most consumers get the same amount of value out of the product

e. Fredrick Taylor (Taylorism)- Started the tailored production process helped Henry Ford

f. Efficiency= Input/Output

3. Explain the purpose of operations management

g. Manage the processes and systems that create goods and provide services

h. Process – set of interdependent steps to reach a goal

i. System – a set of interrelated parts that must work together

j. 3 R’s Produce the right product at the right time in the right quantity at the quality required at a cost which allows us to earn enough of a profit to create wealth for the firm.

k. Production system adds value through conversion of inputs into outputs

Competitiveness, Strategy and Productivity

1. Using the explanation of the “purpose of operations management”, define competitiveness.

a. How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services.

2. Given a scenario, explain how operations management influences competitiveness.

b. Operations has a major influence on competitiveness through product and service design, cost, location, quality, response time, flexibility, inventory and supply chain management, and service.

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