Marketing-generate demand Production/operation-create the product Finance/accounting-pay bills and collect money 2. Value added to operation management A key objective for an Operations Management is the ability to increase the value- added during the transformation process. Value-added is the difference between the cost of inputs and the value or price of outputs. This is an indicator of the effectiveness of the operation. On the other hand, if an activity does not add value, it will most likely get eliminated or re-examined for improvement. In this case it falls into its main function of more planning and decision making. 3. Difference between manufacturing and service organization Service- provide intangible products, product cannot be inventoried, high customer interaction, inconsistent product definition Manufacturing- tangible products, product can be inventoried, low customer interaction, consistent product definition 4. Different between strategy and tactical decision Strategic intelligence is future-oriented, allowing a company to make educated decisions regarding future conditions in its marketplace or industry. Tactical intelligence deals with the here and now. It provides decision makers with the necessary information to watch for changes in the company's current operating environment and helps them discover new opportunities. strategic planning focuses on the long term and tactical planning on the short term strategic is doing the right things -- tactical is doing things right. 5. Productivity definition A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs. Productivity is computed by dividing average output per period by the total costs incurred or resources (capital, energy, material, personnel) consumed in that period. Productivity is a critical determinant of cost efficiency. 6. Definition of operation strategy A plan specifying how an organization will allocate resources in order to support infrastructure and production. An operations strategy is typically driven by the overall business strategy of the organization and is designed to maximize the effectiveness of production and support elements while minimizing costs. 7. Category of competitive priority Quality, time, cost and flexibility 8. Three productivity variables 1) Basic education appropriate for an effective labour force. 2) Diet of the labour force. 3) Social overhead that makes labour available, such as transportation and sanitation. 9. Four stage of product design process 1. Introduction: During the first stage, the product is introduced into the market. Proper research and forecasting should be done to ensure the product/service is adequate for a specific market and for a specific time. It is crucial to have a proper amount of supply that can meet the expected demand for the product/service. 2. Growth: The second stage involves the increase in demand for the product/service. Reputation for the product grows and an accurate forecast of demand is needed to determine the length of time the product/service will remain in the market. Enhancements and improvements are common in this stage. 3. Maturity: This third stage deals with the product reaching a steady demand. Few or no improvements or product changes are needed at this stage. Forecasting should provide an estimate of how long it will be before the market dies down, causing the product to die out. 4. Decline: The last stage involves choosing to discontinue the product/service, replacing the product with a new product, or finding new uses for the product. 10. Difference between intermittent and repetitive operation
11. Element of service package purchases by a customer
12. Main component of supply chain Plan Every company needs a strategy on how to manage the resources in order to achieve their customers demand for their products and services. The supply chain management is developing a set of metrics to monitor the supply chain so that it can deliver high qualities and values to customers. Source To create their products, companies need to be very careful when choosing suppliers to deliver their goods and services needed. The managers need to develop a set pricing and delivery system in the supply chain. They can also put processes for managing their goods and goods inventory, for example; receiving shipments. Make In manufacturing the supply chain manager should always schedule the activities that are needed for the production, packaging, testing and preparation for delivery.The most metric-intensive portion of the supply chain, production output and measure levels. Deliver This part is mainly referred to as logistics by the supply chain management. In this case companies coordinate receipts of orders, pick carriers to get products to customers and develop a network of warehouses. Return In many companies this is usually where the problem is – in the supply chain.The planners should create a flexible and responsible network for receiving a flaw and excess products sent back to them (from customers). 13. Cause of bullwhip effect The bullwhip effect exists in all supply chains — it’s the root of the boom and bust cycles that occur in many operations — and it can be devastating if not properly managed. Fortunately, you have ways to manage the bullwhip and minimize its impact. The bullwhip effect is triggered by several different causes. Here are four of the most prevalent causes. 14. Roles of purchasing
15. Advantages of cross docking
Reduces material handling.
Reduces need to store products in warehouse. No need for large warehouse areas Reduced labour costs (no packaging and storing). Reduced time to reach customer. Transportation has fuller loads for each trip therefore a saving in transportation costs while also being more environmentally friendly.
Products are moved more quickly through a cross dock.
Easier to screen product quality. Elimination of processes such as ‘pick-location’ and ‘order picking’ Cross docking terminals are less expensive to construct than your average warehouse. High turnover of products with everything moving quickly through the cross docking terminal. Products usually spend less than 24 hours here. Products destined for a similar end point can be transported as a full load, reducing overall distribution cost.