SMG SM 131 Lecture Notes - Lecture 9: Capacity Utilization, Operations Management

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Fazeindaro

Document Summary

Operations is about realizing that value by producing goods and services that customers can purchase. Operations management is the business function concerned with designing, controlling, and improving the process of producing goods and services. Effectiveness: the extent to which the product and iits delivery satisfy the customers" wants and needs. Efficiency: the extent to which products are produced using the fewest resources as necessary. Task time: time required to complete a task. Task time = run time + setup time. Throughput time: time for a single unit (or customer) to get from the beginning of the process to the end - customer measure. Cycle time: time between completion of successive units - process measure. Capacity: how many units can be produced in a period of time ( determined through cycle time) As high as you can make it and still meet customer"s requirements- like quality, fast and/or reliable delivery, or customization.