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Focuses on the strategic planning, implementation, and control of hospitality operations to provide high-quality guest experiences, maximize revenue.
An important concern for operations managers is inventory.
There are two key reasons why quality has become strategic.
Having the ability to create some aspects of technology in-house – through R&D, internal engineering groups, etc
Organizational congruence is the extent to which all managerial levels within the firm share a common vision and work together towards a common purpose.
Control charts use SPC information to start the analytical process off, asking why these errors occur at this time.
In the _____ 1990s, GSK (in its former name of SmithKline Beecham – SB) put in place a worldwide IT system that allowed any budget holder in the corporation, anywhere in the world, to find the best buy for any item, and to understand the corporate policy associated with the purchase they are about to make.
In some industries (for example, automobiles and market sectors within high-tech), two-way collaboration involving operations managers between two or more organizations is now commonplace. This is seen as a means to develop best practice and is often a central feature of innovation.
Capacity management is based on understanding the specific characteristics of volume, variety, variation, variability, predictability and perishability.
Defect is failing to deliver what the customer wants.
The practice of buying and selling is one of the oldest ‘professions’ in the world.
Unit conformity is the range of tasks and responsibilities at area management level.
This is used when a process can (or must) run all day for each day of the year, on a continuous basis.
Japan’s largest consumer electronics company will spend $330 million on a Chinese R&D center, boosting the number of engineers from 110 to 1500 by 2005.
Process capability is what the customer sees and feels.
Searching the environment for technical and economic clues to trigger the process of change.
Franchise operators model themselves on company run units, thereby encouraging the adoption of system-wide standards.
Layout where a plant or service location has specific activities or machinery grouped together.
Taylor’s model became the blueprint not only for the mass production factories of the 1920s and 1930s, but also for many other types of business.
Organizational structures are not influenced by the nature of tasks to be performed within the organization.
It is the globalization impacts on operations management in a number of ways, EXCEPT:
ISO 9000 is an internationally recognized standard of west.
One of the most important areas is the design and execution of the processes through which the service is delivered to the customer.
Assessing the organization's internal strengths and weaknesses, and comparing them with external opportunities and threats(a SWOT analysis).
Exploring and selecting the most suitable response to the environmental triggers that fit the strategy and the internal resource base/external technology network.
Critical to quality is the attributes most important to the customer.
Putting those new routines in place-in structure, processes, underlying behaviors, etc.
Specification that describes the benefits offered by the service.
Managing human resources as part of strategic operations management is difficult for many firms.
Many Western firms have tended to view inventory management as a ‘tac-tical’ activity – this same ‘tactical’ attitude has also applied to operations management in general.
It is commonplace to hear managers and chairmen of companies say that ‘people are our biggest asset’.
The management and organization of the workforce within the organization.
Home country operations with global sourcing, marketing and distribution. Product or process plant strategy.
Entrepreneurial area managers are responsible for a single concept, also tightly branded, but are expected to develop the potential of each unit as a business.
Operations are regionally divided but with product or process plant strategies for each site. Each site can thus serve the rest of the world.
Team working, Cross-boundary working, Participation and involvement, mechanisms, Stakeholder focus and involvement
The adaptation or renewal of the organization’s processes or outputs to ensure they adapt to changes in the external environment
The archetype in the multi-brand context has more than one concept to manage but does so by applying almost identical ‘rules of the game’ to them all – namely, tight cost controls, standards conformance and revenue growth.
Operates five Chinese labs, some of which have moved beyond semiconductor research. One is investigating better human/machine interfaces.
In manufacturing, job processes are used for ‘one-off’ or very small order requirements, similar to project manufacture.
An ABC analysis is a surprisingly accurate, although simplistic, approach to managing inventory.
Examining changes in the environment, the industry and searching for links with other firms, including supplies.
It is not common to hear supply strategists speak of ‘tier-half’, referring to suppliers to whom so much responsibility (e.g. for design and production) has been given that they must be seen as not entirely separate from the customer.
Database management has been very concerned with managing costs, but this important element of responsibility has changed recently to the management of value.
What does EOQ stands for in Strategic Operations Management?
In project manufacturing environments, the nature of the products is often large-scale and complex.
Job scope is the extent to which units within an area are identical or not.
The selection of the right approach to producing goods or delivering service.
Geographic density is the number of units in an area relative to the size of the area.
Appropriate organization design, Job and work organization design, Devolved decision making, Supportive communications
Nearly one-third of the survey participants (31.2 per cent) said that, in their companies, the manager is ‘most responsible’ for value-chain-improvement initiatives. Another 33.6 percent indicated that responsibility rested at the mayor level.
Drucker is not being critical of his ancestors, nor is he accusing them of not being innovative, nor is he stating that such an approach was ‘wrong’.
There are problems with inventory ‘stock-outs’: EXCEPT.
As can be seen from the Toys’R’Us case, having stock-outs or zero-inventory for customers is acceptable.
Successful organizations do not happen by accident, they have a clear and thought-out sense of direction, and can mobilize support for their strategic goals.
All operations have to hold levels of inventories. The typical reasons for this are (Waters, 2003, p.7): EXCEPT.
Product market, product and process plant strategies employed, providing global products as well as global brands.
One lesson which emerges consistently when looking at high-performance organizations is their commitment to training and development.
It is already possible for Internet users to exchange goods using ‘e-credits’, which perform the same function as money but have no value except on the Internet.
Managing development projects for new products or processes from initial idea through to final launch.
As volume begins to increase, either in terms of individual products (i.e. total volume) or in the manufacture of similar ‘types’ or ‘families’ of products (i.e. greater number of products in any one group or family), the process will develop into batch manufacture.
In a business sense, holistic means ‘seeing the whole’ in terms of where the business is positioned.
Employment security, Choosing the right people, Valuing and rewarding them, Wage compression, Symbolic egalitarianism
The less programmed and more uncertain the tasks, the greater the need for flexibility around the structuring of relationships (Preece, 1995).
In 1950, Walter Shewhart wrote a book based on his experience in the Bell Telephone Laboratories entitled The Economic Control of Manufactured Products
The latest process technology can be bought and accumulated, but human skills are more complex.
The second challenge for the future lies in the area of ________.
The copper traders in Ur may have paid the merchants from Dilmun (Bahrain) for minerals from Makan (Oman), and considered they were doing business over great distances.
The ‘business manager’ is responsible for more than one brand and applies creative solutions to each of their units within the context of over-arching policy guidelines and marketing strategies.
It describes the particular types of clients for whom the service management system is targeted.
Aspects that can be experienced through the sensory system (explicit intangibles).
The planned and effective introduction of new systems.
Corporate value-adding chains are located to exploit optimal resources and strategic capability. Global logistics, global sourcing and global brands.
the way in which meetings are organized and decisions taken.
Davis and Meyer (1999) predicted the emergence of powerful consumer groups, made up of very large numbers of like-minded people.
Although there is scope for individual activity, one of the main advantages in working in organizations is to benefit from the team effect.
Transferring technology from various outside sources and connecting it to the relevant internal points in the organization.
Supply management does not have a significant role to play in focusing operations.
Pareto analysis is used to represent this information in visual form.
It is one of the big challenges in contemporary organizations, and it is likely to become even more so in an environment where organizations need to re-invent themselves on a continuous basis.
ISO 9000 is an internationally recognized standard of quality.
The way in which the service concept and service package are actually delivered to the consumer.
The mass production era or the third major era is known as mass production, although once again its principles were by no means restricted to manufacturing.
The strategic management of supply is a critical part of managing the operations of an organization, and may represent the most critical part.
The term ‘supply management’ is now about 25 years old, having being coined in the early 1980s by consultants (Houlihan, 1992) in various parts of North America and Europe to crystallize the concept of managing an organization in the light of the activities, resources and strategies of other organizations on which it relies.
Corporate staff services developed to support operations are exposed to market conditions when franchisees can opt out of utilizing these services.
ISO 9000 can offer a framework for showing company.
A process layout is used where a product may be heavy, bulky or fragile and in this approach operators come to the product itself.
Just started work on a large, basic research center in Shanghai. The facility will also assist in GE’s procurement of Chinese-made plastics and other materials.
What does JIT stands for in Strategic Operations Management?
Any ‘learning organization’ will not require the continual discovery and sharing of new knowledge.
Observers of Japanese industrial structure coined the term ‘first tier’ to describe the powerful, large suppliers that supported the household name manufacturers of cars, consumer durable and capital equipment that were such a part of Japan’s revival in the post-war period.
Quality is not an option in most walks of life.
The franchisee’s closeness to their market enables the firm to learn quickly about local market conditions.
Stratification used to identifying different levels of problems and symptoms using statistical techniques applied to each layer.
In the 1950s there was great enthusiasm for the ‘lights out’ factory.
In 1931, Walter Shewhart wrote a book based on his experience in the Bell Telephone Laboratories entitled The Economic Control of Manufactured Products
The external management of relationships with suppliers to ensure the effective and efficient supply of inputs.
Allocating resources and setting objectives so that the strategy can be monitored, and success and failures fed back on an ongoing bases.
_____________ of operations and markets leads to further challenges for positioning supply management.
As firms move internationally, therefore, the strategic checklist changes. In order to succeed with such investments it is necessary to do one of the following:
Capacity has clear strategic consequences, but it is also linked to day-to-day scheduling.
Inventory is not about ‘buying things’; rather, its management goes right to the core of world-class practice in both manufacturing and services, and it is used as a key parameter in assessing capabilities.
Wealth and fashion are the powers that drive the forces of supply for goods and services, while invention enables or constrains demand.
In a fixed layout, a plant or service location has specific activities or machinery grouped together.
Our case had a small employment base but their input was critical.
Adjusting demand to better match supply is called demand management.
Two developments have fundamentally affected the way in which purchasing is positioned as part of the supply process: __________________ and _________________ of business organizations.
One of the fundamental flaws in the Ford/Taylor model was the assumption that it represented the ‘one best way’.
There are four key reasons why quality has become strategic.
Hybrid firms have a more diverse source of new ideas and alternative range of screening processes than those available to firms operating within one business format.
High volume was an issue here, and managing capacity is common to both manufacturing and service elements in ensuring the total provision to end customers.
It is among a new breed of high-tech companies that’s defying conventional wisdom about how corporations ought to operate.
The ‘traditional’ line process, which mass-produced one product in high volume, clearly fails to meet the requirement of variety.
The third era (the current and, for the foreseeable future at least, the likely scenario) is more difficult to name and has been called various things.
Training and development has two contributions to make. First, of course, it equips people with the necessary skills and capabilities for understanding and operating equipment or processes.
Commitment to training and, development, Embedding a learning cycle, Measurement, Continuous improvement culture
During the 1990s, supply strategists began to realize that they had, in general, too many suppliers.
The ______ and ______ model enables the supply strategist to define the role of the purchasing process and the function (i.e. the department).
It is concerned with those activities that enable an organization to transform a range of ten strategic operations management basic inputs into outputs for the end customer.
It is an element of mass customization.
In Japan, the tiers are not marked (and not documented). Elsewhere, they do not exist, simply because the historical development of firms has been more autonomous.
The need for the operations to be framed in a strategy is brought to the fore.
The __________ and _________ process is one of responding to demand for products and services from within the organization by providing the necessary resources to specification.
The juxtaposition of company-owned and franchised units encourages benchmarking across the two, thereby creating a climate of friendly competition, with each trying to outperform the other.
The final area in which there are significant future challenges for the strategic operations manager in managing the innovation process lies in the concept of ____________________.
It is not a specific type of process type; it depends fundamentally upon the transformation process.
A strategic decision can profoundly alter, and have major consequences for, the firm.
Ensuring a good fit between the overall business strategy and the proposed change – not innovating because it’s fashionable or as a knee-jerk response to a competitor.
A line process becomes more appropriate as the volume of a particular product increases, leading to greater standardization than in low batch volumes.
Local learning is the juxtaposition of company-owned and franchised units encourages benchmarking across the two, thereby creating a climate of friendly competition, with each trying to outperform the other.
In this layout, machines are dedicated to a particular product or a very similar small range of products and each stage of manufacture is distinct from the next.
Becomes more appropriate as the volume of a particular product increases, leading to greater standardization than in low batch volumes.
It is used where a product may be heavy, bulky or fragile and in this approach operators come to the product itself.
In a product layout, machines are dedicated to a particular product or a very similar small range of products and each stage of manufacture is distinct from the next.
Focus is concerned with what the organization chooses not to do itself – and must therefore obtain from its supply network.
Focus is essentially about deciding which businesses and markets the firm wants to be in and then ensuring that strategic resonance occurs between this intention and operations capabilities.
Expanding mobile phone research while helping Chinese government researchers devise an advanced 3G wireless standard for use worldwide is Matsushita.
Strategic leadership, Shared planning processes, Policy deployment, Information sharing, Employee ownership
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