MGTA02H3 Chapter Notes - Chapter 6: University Of Toronto Scarborough, Supply Chain, Lead Time
University Of Toronto Scarborough (UTSC) Date: February 12, 2018
Course: MGTA02 (Winter)
Professor: Chris Bovaird
Shahriyar Safavi
Week 6 – Operations: Making The Things That People Want
Terminology
1. Operations: The function of the business that transforms factors of production into the
goods or services that customers want.
2. Production operations: Activities that turn inputs into tangible goods.
3. Service operations: Activities that turn inputs into tangible services.
4. Operations management: Management of the creation of goods and services, and their
satisfactory provision to the buyer.
5. Immediacy: The quality that makes something important or relevant because it is
happening now.
6. High contact services: Service operations that necessarily involve interaction with the
customer.
7. Low contact services: Service operations that don’t necessarily involve interaction with
the customer.
8. Intangibility: The characteristic of services that makes the unable to be seen or touched.
9. Customization: The characteristic of services that means that no two customers need
the identical service, delivered in the same way.
10. Forecast: An estimate of the future demand for a business’ goods and services.
11. Capacity: The quantity of product that a business plans to produce under normal
working conditions.
12. Location Planning: The decision as to where best to locate the business’ facilities and
operations.
13. Layout planning: Designing the business’ factories, shops, and offices to provide
maximum efficiency and effectiveness.
14. Scheduling: Determining when an activity should take place so as to accomplish a goal
by its target completion date.
15. Lead time: The gap between the time when a customer wants a product, and when the
producer needs to begin the process of creating it.
16. Gnatt chart: A visual representation of all of the activities required to complete an
activity and the time needed to accomplish each activity.
17. Supply chain: The flow of materials and services between all the businesses that provide
inputs into a finished product.
18. Supply chain management: Managing the flow of information and materials between all
the suppliers and customers in a chain.
19. Bank run: occurs when a large number of customers of a bank or another financial
institution withdraw their deposits simultaneously due to concerns about the bank's
solvency.
Operational Manager Tasks
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