Supplement Highlights/ Key Terms/ Discussion Questions A29

of Maxwell Clark

---after K.G.

Step 3 (b): Probablistic Time Estimates 602

Identify current trends in operations management.
OM Across the Organization 20
Operations management is the central core function of every company.
>Role of operations management: To transfer organizational inputs into ouputs
Customer feedback and performance information are used to continually adjust the inputs, the transformation process, and characteristics of the outputs.
We use the term value added to describe the net increase between the final value of a product and the value of all the inputs.

LINKS TO PRACTICE

By contrast, service organizations produce intangible products that cannot be produced ahead of time.
However, in service organizations the customers are typically present during the creation of the service.
We call these companies quasi-manufacturing organizations.
Proper management of the OM function is critical to the success of the U.S. Postal Service.

Loyalty to Your Organization/ Justice to Those with Whom You Deal/ Faith in Your Profession

TABLE 4-1: ISM Principles and Standards of Ethical Supply Management Conduct

9. Encourage support for small, disadvantaged, and minority-owned businesses.

• Have a long-term orientation
• Share information

Intimacy is a result of sharing information.
Vision is the mission or objective of the partnership. The partners must articulate and share their vision. This shared vision provides the structure for the partnership and the role each partner plays in achieving success for the supply chain.

The Naive Method: The naive method is one of the simplest forecasting models.

• Solution:

EXAMPLE 8.6: Forecasting with Exponential Smoothing

Tracking Signal: Forecast bias is a persistent tendency for a forecast to be over or under the actual value of the data. We cannot do anything about random variation, but bias can be corrected.
The behavioral feasibility of a job is the degree to which an employee derives intrinsic satisfaction from doing the job.
The challenge is to design a job so the worker feels good about doing the job and adds value by doing it.
Second, someone has to do the boring jobs. One solution is to provide an enjoyable work environment.

Machines or People?