Ohio State University
BUSMGT 3230 Midterm Cheat Sheet
Operations Management – The systematic design, direction, and control of processes that transform inputs into services and products for internal, as well as external, customers.
The Role of Operations in Organizations – 1. A group of resources performing all or part of one/more process. 2. One key functions within an
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Operations Management – The systematic design, direction, and control of processes that transform inputs into services and products for internal, as well as external, customers.
The Role of Operations in Organizations – 1. A group of resources performing all or part of one/more process. 2. One key functions within an organization. 3. Transforms
materials and service inputs into product and service output.
External Customers – end user or an intermediary user (manufactures, financial
institutions, or retailers) buying the firm’s finished service or products
Internal Customers – employees or processes that rely on inputs from other employees
or processes to perform their work
External Suppliers – the business or individuals who provide the resources, services,
products, and materials for the firm’s short-term and long-term needs.
Internal Suppliers – the employees or processes that supply important information or
materials to a firm’s processes
Nested Processes – the concept of a process within a process
Service Processes – intangible, perishable output, output cannot be inventoried, high
customer contact, short response time, labor intensive, quality not easily measured
Manufacturing Processes – physical, durable output, output can be inventoried, low
customer contact, long response time, capital intensive, quality easily measured
Services vs manufacturing process – difference: 1) the nature of their output 2) the
degree of customer contact (manufacturing: low customer contact/ physical output/
longer response time/ more capital intensive/ quality measured easier)
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