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 Basic research- Has the objective of advancing the state of knowledge about a subject

without any near-term expectation of commercial applications

 Applied research- Has the objective of achieving commercial applications

 Ethics A standard of behavior that guides how one should act in various situations.

Qualitative methods consist mainly of subjective inputs, which often defy precise
numerical description.

Qualitative techniques permit inclusion of soft information (e.g., human factors,


personal opinions, hunches) in the forecasting process. Those factors are often
omitted or downplayed when quantitative techniques are used because they are
difficult or impossible to quantify.

Qualitative techniques rely on judgment, experience, and expertise to formulate forecasts;

A key aspect of operations management is process management. A process


consists of one or more actions that transform inputs into outputs. In essence, the
central role of all management is process management.

Operations Management- focuses on carefully managing the processes to produce and distribute
products and services. –Carter Mcnamara

Operations Management- Defined as the design, operation and improvement of the systems that create
and deliver the firms primary products and services. –Richard Chase

The other concept used by Ford was the Division of Labor- the breaking up of a production
process into small tasks. Unlike craft production were each workers was responsible for doing
many tasks, and thus required skill, with division of labor the tasks were so narrow that virtually
no skill was required.

Mass Production- a system of production in which large volumes of standardized goods are
produced by low-skilled or semi-skilled workers using highly specialized and often costly
equipment.

The Japanese can be credited with spawning the “quality revolution” that occurred in industrialized
countries, and with generating widespread interest in time-based management (just-in-time
production). LEAN SYSTEM

ROBUST DESIGN- A design that results in products or services that can function over a broad range of
conditions.

Taguchi’s Approach- Japanese engineer Genichi Taguchi’s approach is based on the concept of robust
design. The central feature of Taguchi’s approach is parameter design. This involves determining the
specification settings for both the product and process that will result in robust design.
MASS CUSTOMIZATION- A strategy of producing basically standardized goods or services, but
incorporating some degree of customization in the final product or service; Facilitating Techniques are:
1. Delayed differentiation- The process of producing, but not quite completing, a product or service
until customer preferences are known. It is a postponement tactic (Example: Produce a piece of
furniture, but do not stain it; the customer chooses the stain)
2. Modular design- A form of standardization in which component parts are grouped into modules
that are easily replaced or interchanged

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