Chapter 1

Question 1

What is operation management?

Answer 1

A set of activities used to create value in the form of tangible goods and services by transforming inputs into outputs.

Question 2

What are the duties and responsibilities of operation mangers?

Answer 2

Controlling, staffing, organizing, leading and planning.

Question 3

Difference between production and operation management?

Answer 3

Production - to create products and services.
OM- to crate value in the form of products and services by transforming inputs into outputs.

Question 4

Essential functions needed to produce goods and services?

Answer 4

1. Market - in order to generate demand.
2. Production/operations - to create products.
3. Finance/accounting - to see how well the organization is doing, to pay the bills and to collect money.

Question 5

Productivity improvement is difficult in service sectors, explain why?

Answer 5

It is labour intensive, and it is often difficult to evaluate the quality of the service provided. It frequently focuses on an individuals attributes or desires.

Question 6

What are the product variables that contribute to the annual income of an organization?

Answer 6

Labour (10%)
Capital (32%)
Management (58%)

Question 7

How do you calculate productivity?

Answer 7

Productivity = Units produced / Input used

Question 8

How do you calculate labour productivity?

Answer 8

Labour productivity = Units produced / labour-hours used

Question 9

How to calculate multi-factor productivity?

Answer 9

Multi-factor productivity =Output / materials+capital+labour+energy+miscellaneous

Question 10

What are the 10 strategic decisions?

Answer 10

1. Design of goods and services
2. Managing quality
3. Process and capacity design
4. Local strategy
5. Layout strategy
6. Human resources and job design
7. Supply Chain management
8. Inventory management
9. Scheduling
10. Maintenance

Question 11

Describe design of a good and service.

Answer 11

Product design determines the sustainability, quality and human resource.

Question 12

Describe managing quality.

Answer 12

Managing quality determines the customers quality expectations.

Question 13

Describe process and capacity design.

Answer 13

The process and quality design commits the management to specific resources, investments, quality and technology.

Question 14

Describe the local strategy.

Answer 14

The local strategy considers the cots, infrastructure, the government and the logistics.

Question 15

Describe the layout strategy.

Answer 15

The layout strategy determines the efficient flow of people, information and material.

Question 16

Describe human resources and job design.

Answer 16

Recruit and retain people with the required skills and talents.

Question 17

Describe the supply chain management.

Answer 17

Supply chain management determines what needs to be purchased, form whom and under what circumstances.

Question 18

Describe inventory management.

Answer 18

It is whereby inventory is ordered and holding decisions are made.

Question 19

Describe scheduling.

Answer 19

Determine and implement intermediate and short-term schedules.

Question 20

Describe maintenance.

Answer 20

Maintain a reliable and stable process.