TQM, everyone in the company is responsible for quality.
Practiced by some
companies in the 1980s, Became pervasive in the 1990s. Its importance is
demonstrated by the number of companies achieving ISO 9000 certification. ISO 9000
is a set of quality standards developed for global Manufacturers by the International
Organization for Standardization (ISO) to control trade Into the then-emerging
European Economic Community (EEC). Today ISO 9000 is a global Set of standards.
Reengineering Redesigning - A company’s processes to make them more efficient.
Flexibility -an organizational strategy in which the company attempts to offer a
greater variety of product choices to its customers.
Mass customization – ability of a firm to highly customize its goods and services at
high volumes.
Time-based competition - an organizational strategy focusing on efforts to develop
new products and deliver them to customers faster than competitors. Developing new
products and services faster than the competition, reaching the market first, and
meeting customer orders most quickly.
Supply chain management- (SCM) Management of the flow of materials from
suppliers to customers in order to reduce overall cost and increase responsiveness to
customers.
Requires a team approach, with functions such as marketing, purchasing, operations,
and engineering all working together.
Global marketplace- A trend in business focusing on customers, Suppliers, and
competitors from a global perspective
Sustainability- A trend in business to consciously reduce waste, recycle, and reuse
products and parts. Sustainability or green operations.The importance of this issue
is demonstrated by a set of standards termed ISO 14000
Electronic commerce (e-commerce) - is the use of the Internet for conducting
business activi ties, such as communication, business transactions, and data
transfer.ARPANET created in 1969 by the U.S. Defense department, has become an
essential business medium since the late 1990s,
Business-to-business (B2B) -Electronic commerce Between businesses. Makes up
the highest percentage of transactions
Business-to-customers (B2C)- Electronic commerce Between businesses and their
Customers. Engaged in by online retailers such as Amazon.com
Customer-to-customer (C2C) - Electronic commerce Between customers.
Exchange, as on consumer auction sites such as eBay. E-com merce is creating virtual
marketplaces that continue to change the way business functions.
Outsourcing and Flattening of the World- Outsourcing is obtaining goods or
services from an outside provider. This can range from outsourcing of one aspect of
the operation, such as shipping, to outsourcing an entire part of the manufacturing
process. Management guru Tom Peters has been quoted as saying, “Do what you do
best and outsource the rest.” The “flattening” of the world has created a whole new
level of global competition that is more intense than ever before.
Big Data Analytics - applying mathematics and statistics to large volumes of
structured and unstructured data to gain unprecedented business insights.
Lean systems - A concept that takes a total system approach to creating efficient
operations.
Enterprise resource planning (ERP)- Large, sophisticated Software systems used
for identifying and planning the enterprise-wide resources needed to coordinate all
activities involved in producing and delivering products.
Customer relationship- Management (CRM) Software solutions that enable the firm
to collect customer-specific data.
Cross-functional decision -Making The coordinated interaction and decision making
that occur among the different. Functions of the organization.
OM is responsible for a wide range of strategic and tactical decisions. These
decisions directly impact each other and need to be carefully linked together,
following the company’s strategic direction.
Marketing is not fully capable of meeting customer needs if marketing managers do
not understand what operations can produce, what due dates it can and cannot meet,
and what types of customization operations can deliver. The marketing department
can develop an exciting marketing campaign, but if operations cannot produce the
desired product, sales will not be made.
Finance cannot realistically judge the need for capital investments, make-or-buy
decisions, plant expansions, or relocation if finance managers do not understand
operations concepts and needs.
Operations managers cannot make large financial expenditures with out
understanding financial constraints and methods of evaluating financial investments.
Information systems (IS) is a function that enables information to flow throughout
the organization and allows OM to operate effectively.
Human resource managers must understand job requirements and worker skills if
They are to hire the right people for available jobs. To manage employees effectively,
operations managers need to understand job market trends, hiring and layoff costs,
and training costs.
Accounting needs to consider inventory management, capacity information, and
labor standards in order to develop accurate cost data. In turn, operations managers
must communicate billing information and process improvements to accounting, and
they depend heavily on accounting data for cost management decisions.
