| A | B |
|---|
| Operations (Production) | activities involved in making products — goods and services — for customers |
| Service Operations | activities producing intangible and tangible products, such as entertainment, transportation, and education |
| Goods Operations | activities producing tangible products, such as radios, newspapers, buses, and textbooks |
| Operations Management | systematic direction and control of the activities that transform resources into finished products that create value for and provide benefits to customers |
| Objects of Production (What?) | Materials needed – raw materials, work in process, finished goods |
| Agents of Production (Who?) | The people required (at all levels), The machines or technology required |
| Methods of Production (How?) | Means by which production is performed, Processes, procedures, manuals, instructions |
| Space (Where?) | Where actions are performed, All the places where objects are transported or where services are performed |
| Time (When?) | The timing of work or how long actions take |
| 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 |
| Low-Contact System | level of customer contact in which the customer need not be part of the system to receive the service |
| High-Contact System | level of customer contact in which the customer is part of the system during service delivery |
| Operations Capability (Production Capability) | special ability that production does especially well to outperform the competition |
| Quality | Highly trained personnel – experts in materials, methods, product |
| Low Cost/Price | Avoids any extra overhead and excess/costly inventory |
| Flexibility/Innovation | Hire people who thrive on change/innovation |
| Dependability | Some excess capacity to avoid bottlenecks |
| Capacity Planning | determining the amount of a product that a company can produce under normal conditions |
| Location Planning | determining where production will happen based on costs and flexibility |
| Layout Planning | planning for the layout of machinery, equipment, and supplies |
| Custom-Products Layout | physical arrangement of production activities that groups equipment and people according to function |
| Same-Steps Layout | physical arrangement of production steps designed to make one type of product in a fixed sequence of activities according to its production requirements |
| Methods planning | can reduce waste and inefficiency by examining procedures on a step-by-step basis, managers must identify each production step and the specific methods for performing it |
| Quality planning | deciding what constitutes a high-quality product and determining how to measure these quality characteristics |
| Quality | 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 quality from unit to unit |
| Kaizen | activties that continually improve all functions and involve all employees from the ceo to the assembly line workers (philosophy) |
| Just in time | a strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are neede in the production process |
| RFID | radio-frequency identification, uses electromagnetic fields to automatically identify and track tags attached to objects |
