Organisations and Operations Management - Glossary of important terms

All of these are useful terms to the subject of OMO:-

Closing the Loop –  The process of changing the variables in the conversion process (i.e. manufacture) to increase the output/yield.  This is frequently followed with measuring the hard and soft objectives to identify progress.

[Closing the loop refers to not just collecting data, but using it to inform decision-making] [ We can collect all kinds of data but using it to change the process can be the most challenging part of the process.]

http://authenticassessment.wordpress.com/2008/05/07/course-embedded-assessment-part-two-closing-the-loop/

Yield – Is typically used in a manufacturing context to identify the success to failure rate, so an 80% yield in a ceramics factory indicates that a failure of two out of ten ceramics was recorded.  Close the loop can be applied to increase the yield without increasing actual production (by using better kilns/manufacturing processes).

Value – Value is the increase of function over cost, i.e an additional two airbags but costing the factory £30 extra per car, there is increase to cost but at the same time an increase in function, in turn giving extra value to the product (providing the cost to function ratio is not too high).

 

Silent Majority – In a distribution curve, the indifferent large number of persons that generally should be targeted and listened to (despite showing no interest).

Hard Objectives – Those objectives that are easier to identify and put a figure to, and namely measure performance against.  I.e. attainment in an education setting is clearly a hard or tangible objective.

Soft Objectives – These are objectives that are difficult to put a physical value or measure, although these are often important than the easier to measure hard objectives, and it is generally regarded that the good management and meeting of soft objectives result in the achievement of hard objectives.

Horizontal Ambition – Aspiring to do a job very well (i.e. police officer, teacher etc)

Vertical Ambition – Seeking promotion 

Ripple Effect – The knock on effect an action has on an organisation

Contingency – It depends on or is contingent

Defer – Delay until later

Role – Position (i.e. checkout operator)

Productivity = Efficient / (Input/Output)

TQM – Total quality management

Quality – Fitness for purpose (not necessarily unnecessary extras or bells ‘n’ whistles)

Jargon – Limit boundary creating jargon that non-technical SME users cannot understand, if necessary explain fully.