Operations Management - Answers the set of activities that create value in the form of goods and
services by transforming inputs into outputs
OM Strategic Decisions - Answers 1. design of goods & services
2. managing quality & statistical process control
3. process & capacity strategies
4. location strategies
5. layout strategies
6. human resources, job design, & work measurement
7. supply chain management
8. inventory management
9. scheduling
10. maintenance
units produced / input used - Answers labor productivity (single factor)
output / (labor + material + energy + capital + misc.) - Answers multifactor productivity
Process Strategies - Answers 1. Process focus
2. Repetitive focus
3. Product focus
4. Mass customization
process focused - Answers a production facility organized around processes to facilitate low-volume,
high-variety production
Repetitive Focus - Answers Facilities often organized as assembly lines
Product Focus - Answers Facilities are organized by product
High volume but low variety of products
Long, continuous production runs enable efficient processes
Typically high fixed cost but low variable cost
Generally less skilled labor
mass customization - Answers rapid, low-cost production that caters to constantly changing unique
customer desires
crossover chart - Answers three alternative processes compared on a single chart
flowchart - Answers A schematic or drawing of the movement in time, cost, or customer value
Time-Function Mapping - Answers a modified flowchart with time added on the horizontal axis
process chart - Answers use symbols, time, and distance to provide an objective and structured way
to analyze and record the activities that make up a process
Value Stream Mapping - Answers takes an expanded look at where value is added (& not added) in
the entire production process including the supply chain
Service Blueprinting - Answers A process analysis technique that focuses on the customer and the
provider's interaction with the customer
Types of Layouts - Answers 1. office layout
2. retail layout
3. warehouse layout
4. fixed position layout
5. process oriented layout
6. work cell layout
7. product oriented layout
office layout - Answers Positions workers, their equipment, and spaces/offices to provide for
movement of information
Retail Layout - Answers allocates display space and responds to customer behavior
fixed position layout - Answers Addresses the layout requirements of large, bulky projects such as
ships and buildings
warehouse layout - Answers Addresses trade-offs between space and material handling
Process-oriented layout - Answers Deals with low-volume, high-variety production (also called job
shop or intermittent production)
work cell layout - Answers Arranges machinery and equipment to focus on production of a single
product or group of related products