5.1 Intro to operations management

Question 1

operations

Answer 1

refer to the fundamental activities of the organizations; what they do and what they deliver. Basically, how they produce the goods and services that customers need and want.

Question 2

what other concepts does operations link towards

Answer 2

Operations are done by people – Human Resources
Operations need to be funded – Accounts and Finance
Operations need to promote their goods and services – marketing and sales
Operations are influenced by economic, social and environmental factors.
The study of operations provides the opportunity to investigate how products are made (i.e. books, clothes, furniture – they are all manufactured!)

The manufactured product goes through a process of transformation and that could be explained with a simple “input-output model”

Question 3

what is the role of the Operational Manager

Answer 3

is making sure the final product complies with the standards required.
If it is defective, for example he/she needs to take the decision of eliminating it from the production.

Question 4

When the production process begins, factor inputs such as ___, ___, and ___ are utilized in order to obtain output

Answer 4

Land, Labour or capital

Question 5

the area where the production takes place is

Answer 5

operations and management

Question 6

the role of the Operations Manager goes beyond making sure the final product is up to standards, he/she also has to take the following factors into account:

Answer 6

1. Economic factors or Economic Sustainability – the need to use available resources ensuring profitability and financial performance (i.e. budgets, efficiency)
2. Social Factors or Social Sustainability – the need to take human factors into account internally (workers) and externally (local community) when making business decisions (i.e. in cases of expansion or reallocation).
3. Environmental factors or Ecological sustainability – the need to take ecological factors into account when making business decisions (i.e. pollution from carbon monoxide )

Question 7

the three factors are also called

Answer 7

the “3 pillars of sustainable development” and their combination is called Triple Bottom Line.

Question 8

triple bottom line

Answer 8

The Triple Bottom Line is the need to take economic, social and environmental factors into account when making a business decisions.

Question 9

circular business model

Answer 9

is an approach to business that prioritizes sustainability, resource efficiency, and the reduction of environmental impact.
In a circular economy, the goal is to keep resources in use for as long as possible, extract the maximum value from them during their use, and then recover and regenerate products and materials at the end of their lifecycle.

Question 10

how does a circular business model contrast with the traditional linear economy model

Answer 10

traditional linear economy model which follows a “take, make, dispose” pattern

Question 11

what does implementing a circular business model require

Answer 11

a shift in mindset, changes in product design, collaboration with stakeholders, and the adoption of innovative technologies.

Question 12

what kind of approach is circular business model

Answer 12

a holistic approach that aims to create a regenerative and restorative system, benefiting both businesses and the planet.

Question 13

five main types of circular business models

Answer 13

1. Circular supply models
2. Resource recovery models
3. Product life extension models
4. Sharing models
5. Product service system models

Question 14

description of circular supply models

Answer 14

Focus on optimizing the supply chain to reduce resource use and minimize waste. These models aim to create a closed-loop system where materials are sourced, used, and recycled within the supply chain.

Question 15

features of circular business models

Answer 15

Emphasis on sourcing sustainable raw materials, reducing transportation (and hence emissions), and minimizing waste generation within the supply chain.

Question 16

description of resource recovery models

Answer 16

Supply chain optimization - Focus on the efficient extraction and reuse of resources from waste and by-products. These models aim to reduce waste and extract maximum value from discarded materials

Question 17

features of resource recovery models

Answer 17

Emphasis recycling, upcycling, and reusing materials or components from waste streams, i.e., focus on waste reduction and resource efficiency.

Question 18

description of product life extension models

Answer 18

Product longevity - Waste reduction and reuse - Focus on prolonging the useful life of products through maintenance, repair, refurbishment, and upgrades. These models aim to reduce the rate of product obsolescence and disposal.

Question 19

features of product life extension models

Answer 19

Emphasis on offering repair services, spare parts, and refurbishment options to extend the lifespan of products, thereby promoting product durability and longevity.

Question 20

description of sharing models

Answer 20

Collaborative consumption - Focus on promoting collaborative consumption and shared ownership of goods and services. These models aim to allow people to share access to products rather than owning them individually.

Question 21

features of sharing models

Answer 21

Emphasis on sharing, renting, or leasing of products to maximize their usage and to minimize the need for ownership, thereby reducing resource consumption and waste.

Question 22

description of product service system model

Answer 22

Service-orientation - Focus on providing access to the functionality of a product rather than selling the product itself. These models aim to reduce waste by charging customers for the service or outcome delivered by the product.

Question 23

features of product service system model

Answer 23

Emphasis on shifting the business model from selling products to offering services, thereby enhancing resource efficiency by reducing the number of goods in circulation