ADM 3301 Study Guide - Summer 2018, Comprehensive Midterm Notes - Time, Standard Deviation, Carrying Cost
12 Oct 2018
School
Department
Course
Professor
ADM 3301
MIDTERM EXAM
STUDY GUIDE
Fall 2018
Chapter 1: Introduction
Pre-Ind. Rev:
Craft production = system in which highly skilled workers use simple, flexible tools to produce
small quantities of customized goods.
Ind. Rev: (assembly line and mass production)
Scientific management: (Frederick Winslow Taylor)
-> believed in a “science of management” based on observation, measurement, analysis and
improvement of work methods, and economic incentives
Influence of Japanese manufacturers:
-> Refined and developed management practices that increased productivity, Credited with
fuelling the “quality revolution”, Just-in-Time production!
Operations Management:
Goods = physical items that include raw materials, parts, subassemblies, and final products.!
Services = activities that provide some combination of time, location, form or psychological
value.
VALUE PROPOSITION = QUALITY/COST
What would customers expect from operations of a fast food restaurant ?
-> Time to serve the food - Variety in the menu- Quality of the food- Price of the food
Four key operations objectives:
a. Cost
- What companies do you think of as low-cost competitors? (e.g, Walmart)
- Measured by cost per unit, labor productivity, utilization!
- How do you measure cost of treating a cancer patient?
b. Quality
-Meeting specifications:Conformance (e.g, Toyota)
-Performance (e.g, BMW)
-Features (e.g, power laces!)
-Durability
-Serviceability
c. Flexibility
- Ability to bring many new products to market!
- Ability to maintain a large product mix!
- Measured by number of possible combinations, number of options
Examples: Starbucks, BMW
d. Delivery (time)
find more resources at oneclass.com
find more resources at oneclass.com
- Responsiveness to demand!
- Fast (e.g, fast food)!
- Reliable (e.g, FexEx)!
- Measured by speed, customer lead time, flow time
Strategy and strategy execution:
Strategy = a well coordinated set of objectives, policies, plans, for securing long term
competitive advantage, a plan for achieving organization goals.!
-> organizational strategy is a major success/failure factor
Strategy execution:
-> Framework to plan and implement business strategies!
1) Develop a mission statement!
2) Carefully define, characterize, and rank the operation’s objectives!
3) Develop initiatives that implement those objectives (Management levers)
4) Identifying and monitoring successful metrics
Mission of operations:
->The reason for organization’s existence!
-> States a purpose for the operations and priority among objectives.
It specifies the primary task which must be achieved for operations
to succeed.!
-> derived from the business strategy, objectives, and the particular
business situation.
Operations Mission Statement : How do you do what you do?
Corporate Mission (Vision) Statement : What you do? Who are you?
Rank each objective
• Determine which is most important • Determine which is least important • Preform trade-off
between objectives
Making operational trade-offs:
-> Cannot achieve one capability without sacrificing another
-> To achieve high quality production, costs will increase
-> To achieve flexibility, costs will increase and quality will decrease!
Winners and qualifiers:
Qualifiers = Components of a product or service that every firm in the industry must have to
compete (ie. food safety )
Winner = An element of your product or service that leads the customer to choose your product
or service (e.g, low prices, speed of service…)
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Craft production = system in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods. > believed in a science of management based on observation, measurement, analysis and improvement of work methods, and economic incentives. > refined and developed management practices that increased productivity, credited with fuelling the quality revolution , just-in-time production. Goods = physical items that include raw materials, parts, subassemblies, and final products. Services = activities that provide some combination of time, location, form or psychological value. > time to serve the food - variety in the menu- quality of the food- price of the food. What companies do you think of as low-cost competitors? (e. g, walmart) Measured by cost per unit, labor productivity, utilization. How do you measure cost of treating a cancer patient: quality. Ability to bring many new products to market. Ability to maintain a large product mix. Measured by number of possible combinations, number of options.
