Term
Operations Management
What is operations management?
Answer
Definition
The design, oversight, and improvement of processes producing goods and services efficiently.
Eliminating Waste: Lean production focuses on eliminating waste in all processes, such as excess inventory, defects, overproduction, and waiting times. Lean techniques improve efficiency and quality simultaneously.
Technology enhances precision, speed, and coordination in modern operations:
Performance measurement in operations involves metrics such as:
| Metric | Definition | Goal |
|---|---|---|
| Throughput | Output rate | High |
| Cycle Time | Time to complete production | Low |
| Defect Rate | Product standards fail | Low |
| Downtime | Time machinery is idle | Low |
Operations managers collaborate closely with:
What is operations management?
The design, oversight, and improvement of processes producing goods and services efficiently.
Name three production methods in operations management.
Job production, batch production, mass production.
What is capacity planning?
Ensuring production capacity matches demand levels to avoid under or overcapacity.
What are key techniques in quality management?
Quality control, quality assurance, continuous improvement (TQM, Six Sigma).
What is Just-in-Time (JIT) inventory management?
Minimizing stock by receiving materials only when needed.
How does supply chain management contribute to operations?
By managing supplier, manufacturer, distributor, and retailer relationships to reduce costs and delays.
What is the focus of lean production?
Eliminating waste to improve efficiency and quality.
Name a technology that supports modern operations management.
Enterprise Resource Planning (ERP) systems.
Why are environmental and ethical considerations important in operations?
To reduce carbon footprint, recycle waste, and ensure responsible sourcing.
List common performance metrics in operations management.
Throughput, cycle time, defect rates, downtime.
How does operations management affect customer satisfaction?
Ensures timely delivery, consistent quality, and competitive pricing.
In service industries, what is a key operations focus?
Managing capacity and demand while maintaining service quality.
How does operations management collaborate with marketing?
Marketing forecasts demand to guide production planning.
What is Total Quality Management (TQM)?
A continuous improvement approach involving everyone in quality processes.
What does Economic Order Quantity (EOQ) determine?
The optimal order size to minimize inventory costs.