5.1 The role of operations management

Question 1

Operations Management

Answer 1

Concerned with providing the right goods and services in the right quantities and at the right level in a cost-effective and timely manner

Question 2

Operations relation with marketing

Answer 2

• the goods that are produced are based on market research (to meet the wants and needs of customers)
• the products need to be distributed using appropriate distribution channels, and a suitable price

Question 3

Operations relation with HR

Answer 3

production workers and quality control managers need to be hired and trained to work productively

Question 4

Operations relation with finance

Answer 4

Capital-intensive machinery/ equipment requires more funding/ external sources of finance

Question 5

Operations management in producing goods/ services

Answer 5

The factors of production (land, labour, capital, entrepreneurship) are combined in a way to ensure that there is value added during the production stage

Question 5

Ecological sustainability

Answer 5

The sustainable use of the planet’s natural resources so that the current level of consumption does not jeopardize the resources available for future generations

Question 6

Economic sustainability

Answer 6

the development that meets the economic needs of the current generation, using existing available resources, without compromising the ability of future generations to meet their economic needs (ie. using resources efficiently to focus on long term strategies rather than trying to maximize profits in the short-term)

Question 7

Social sustainability

Answer 7

The extent to which an organization can meet the needs of the current generation without jeopardizing the needs of future generations (requires allocating resources in a way that maximizes the quality of life for people)