bus10 final

Operations management - all activities managers engage in to produce goods and services. Mass production- a process that lowers the cost required to produce a large number of identical or similar products over a long period. Analytical process is breaking raw mats. Into dif. parts. I.e. (crude oil -> gasoline, oil, and lub.) Synthetic process is to combine the raw mats. Into a finished product. Utility is the ability of a good or service to satisfy a human need. Form utility is created by people converting raw mats., finances, and info into finished products. i.e. ( converting paper and glue into Post-It Notes) When manufacturing using a conversion process, the focus or major resource, magnitude of how much resources are physically changed, and the # of production processes employed depend if a company is large or not. Service economy, is in which more effort is devoted to production of services than production. Service = consumed immediately, not traveled far, labor extensive, and intangible. Research & Development ( R&D) are potentials to a new good or service. Basic R = aimed at uncovering new knowledge and can have no potential use, Applied R = same, but is geared toward potential usage, Developing and Implementation R = using existent knowledge to produce a new good or service. Planning for Production includes R&D, design planning, finding a site, and how much goods and services are produced. Design planning, the development of a plan for converting a product idea into an actual product or service. A product line is a group of similar products that differ only in minor chars. Product design, is the process of creating a set of specs. From which a product can be produced. Capacity is the amt. of products or services that an org. can produce in a given time . Labor-intensive is ppl do major of work, while capital-intensive is when machines and equips do most of the work. Plant layout is the arrangement of machinery, equips, and personnel within a production fac. Process layout = used for creating small batches of different products or working on dif parts of a project, such as cars, Product layout = used when all products undergo the same ops. In the same seq., such as electronics , Fixed Position layout = very large prod uct like a plane is produced. A planning horizon is the period during which an operational plan will be in effect., usually 1 yr. Mrkt Demand = a product quantity that customers will purchase at the going price. Mrkt D and capacity, if MD is > cap or cap is > MD, then adjustments may be ness., More workforce is needed or decrease in output, MD = Cap, then operating at full cap. Purchasing consists of all the activities in obtaining mats. from other firms. Price, quality, reliability, credit terms, shipping costs are considered b4 purchase. Inventory Crtl is the process of managing invents. In such a way to lower invent. Costs, including holding and stock-out costs. Materials requirements planning (MRP) is a program that can order and schedule things to arrive on time and when they are needed. MRP II includes the whole org. not just production and inventory. ERP is more adv. then both MRPs. Just-In-Time inventory sys. Is a prgm that ensures that mats. arrive only when needed to reduce storage and holding costs. Scheduling is ensuring supplies are at the right place at the right time. Henry L. Gantt chart displays tasks on vert. and time on horiz. PERT (prgm eval and review tech) , major activities. Sequence on time required to perform each one. Longest start to finish is the Crit. Path. Malcom Baldrige National Quality Award. Is given to the company that meets high quality products. Quality ctrl is when things are made according to specs. Statistical process control (SPC), pinpoints what is done right and what needs to be fixed. S quality C (SQC), work in progress and finished work meets firm expectations . Six Sigma uses stats to eliminate defects. Quality Circle is a team of ppl who meet on company time to solve probs. of quality in products. International Org. for stds ., international stds. For products in national trade with 157 countries . Productivity is the avg. lvl of output per worker per hr. Robotics is the use of programmable machines to perform a variety of tasks by manipulating materials and tools. Computer-aided design (CAD), the use of comps to aid in the developments of products. CA manufacturing, use comps to plan and ctrl manufacturing procresses. C integrated M, comp sys help design and ctrl machinery needed to produce the finished product. Continuous process is when a firm produces the same product(s) over a long time. Flexible m sys (FMS), combine robotics and CIM. Intermittent process is when a firm’s machines and equips are changed to produced dif. Products. Motivation is what makes you behave in that way. Morale is an employee’s attitude towards work. Fredrick W. Taylor: Scientific management, the app. of scientific principl es to management of work and workers. 1. Management should determine the best way to perform these tasks. 2. The job output to expect when tasks are done properly. 3. Choose best person for each job and train that person to do that job properly. Piece-Rate- System is when ppl are paid for each unit of output they produce. Hawthorne: studies showed that human factors are equal to salary motivation. Employees who are =) and satisfied with their work are motivated to perform better. Abraham Marlow: human needs in order of importance. Physiologica l needs (needs for survival), safety needs (job security, health insurance ), social needs (sense of belonging), esteem needs (need for respect, sense of own accomplishment), and self-actualization needs ( need to grow & develop). Fredrick Herzberg: Motivation-hygiene theory is the idea that satisfaction and dissat are sep and distinct dimensions. Motivation factors inc motivation, but whose absence does not = dissat. Hygiene factors reduce dissat, but do not = high lvls of motivation. Douglas McGregor: Theory X, ppl dislike work and will only function in a highly controlled area. Theory Y, employees accept responsibili ty and work towards goals, doing so they will achieve rewards. William Ouchi: Theory Z, middle gorund with A and Z firms, has short an d long term employment, individual decision making and collective decision making, rapid and slow promotion, etc. Reinforcemen t Theory, behavior that is rewarded will be repeated, and bad behavior will be punished and not reoccur. WEAKNESS of X & Y: each attempts to specify what motivates ppl, but neither explains why or how motivation develops or sustains over time. Equity Theory, rewards are in accordance to individual contributio ns. Expectancy Theory, motivation depends on how much we want something and how likely we think we will get it, double edged sword. Goal-setting Theory, ppl achieve goals set by them and their managers together. Management by Objectives (MBO), ppl and managers together set goals. Job enrichment, provides more variety and responsibilit y in jobs. Job enlargement, expanding a worker’s task to include additional but similar tasks . Job redesign, reconstructed to cultivate the worker-job match. Behavior modification, encourage desirable behavior. Flex time, workers set their hrs of work. Part-time work, permanent employment but workers work less than std hrs. Job sharing, 2 ppl share 1 full time position. Telecommuting, working at home for portion of week. Empowerment, making ppl more involved with their work by inc participation in decision making. Employee ownership, being stockholders. Most common team is the problem solving team. Virtuoso team, highly skilled ppl brought together to produce sig. change. Self-managed teams, ppl who have the authority to monitor themselves. Cross-functiona l team, ppl with varying specialities brought together to achieve a common task. Virtual team, world wide team, communicates electronicly . Forming (build team), Storming ( get to know each other, Norming ( accept our roles), Performing ( do the task), Adjourning ( team is disbanded). Teamwork within company has been credited as a key to reduce turnover and costs and increase production, quality, and customer service. An uncooperative team will = less productivity. Mrkting is exchanging goods with ppl. Major mrkting func: buying, selling, transporting, storing, financing, standardizing (quality), risk taking, gathering mrkt info. Relationship mrkting, long term mutual satisfying buyer-seller relationships. Customer relationship Management (CRM), using info about customers to create mrkting strats that develop and sustain desirable customer relationships. Customer lifetime value = purchase frequency, avg value of purchases, and brand switching patterns during the entire life span with a company. Place utility, making a product available at a location where a customer wishes. Time Utility, making a product available when wish to purchase it. Possession Utility, transferring title, like a car deal. Mrkting Concept, a firm should provide g and s that satisfies customer needs through activities that achieve a firms’ objective. Evolution of Mrkting Concept: Production orientation -> 1920s sales orientation->1950s customer orientation. 1. Provide a product that satisfy ppl, 2. Price is acceptable and yield profit, 3. Promote product, 4. Ensure distribution of product so it is available. Market, a group of individuals or orgs, that need products in a given category and have the ability and willingness, authority to buy product. Consumer markets do not buy products to gain profits . B2B mrkts, industrial mrkts are markets that make other products to resell. Producer mrkts, buy certain products to use in manufacturing other products. Reseller mrkts, consists on wholesalers and retailers that buy and resell for profit . Gov. Mrkts, buy goods to maintain national def, edu, and highways. Institutional mrkts, non-profit-orgs like churches. Mrkting strat, a plan that lets org to make best use of its resources and advantages to meet objectives. Mrkting mix is the combo of product, price, distribution, and promotion developed to satisfy a specific

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