Chapter 1: Role of Operations Management

Question 1

________ refers to the business processes that involve transformation or, more generally, ‘production’.
What’s missing?

Answer 1

Operations

Question 2

\_\_\_\_\_\_\_\_ processes are broad and include these aspects:
• production of goods and services
• quality controls on processes
• inventory controls
• supply chain management 
• logistics and distribution
• management decision making 
What's missing?

Answer 2

Operations

Question 3

_____ ______ is the creation of extra or added value as inputs are transformed into outputs
What’s missing?

Answer 3

Value adding

Question 4

__________ is the conversion of inputs (resources) into outputs (goods and services)
What’s missing?

Answer 4

Transformation

Question 5

____ ________ aims to eliminate waste at every stage of production. It involves analysing each stage of the production process, detecting where inefficiencies are and correcting them
What’s missing?

Answer 5

Lean production

Question 6

________ should engage in the following for customer focus:
• waste minimal resources
• reflect fair value for any labour used
• operate at low cost to maximise affordability
• integrate environmental awareness
• reflect changes in the needs of consumers
What’s missing?

Answer 6

Operations

Question 7

The main goal of a business is to _______ _____ by focusing on two very important aspects of profit:
• revenue or income
• costs or expenses
What’s missing?

Answer 7

Maximise profits

Question 8

\_\_\_\_\_ costs include:
• capital 
• land
• resources 
• machinery 
What's missing?

Answer 8

Input

Question 9

\_\_\_\_\_\_ costs include:
• employees
• training and development
• subcontractors 
• rostering
What's missing?

Answer 9

Labour

Question 10

\_\_\_\_\_\_\_ costs include:
• electricity
• product design 
• template and tooling
• machinery maintenance 
What's missing?

Answer 10

Processing

Question 11

\_\_\_\_\_\_\_ costs include:
• logistics and distribution 
• storage 
• insurance
• damaged and stolen goods
What's missing?

Answer 11

Inventory

Question 12

\_\_\_\_\_\_ \_\_\_\_\_\_\_\_ costs include:
• prevention of loss through planning 
• inspection
• remediation through warranty 
• machinery errors
What's missing?

Answer 12

Quality management

Question 13

____ _______ involves aiming to have the lowest costs or to be the most price-competitive in the market
What’s missing?

Answer 13

Cost leadership

Question 14

______ _________ means distinguishing products (goods or services) in some way from its competitors
What’s missing?

Answer 14

Product differentiation

Question 15

_______ ___ _____ refers to cost advantages that can be created as a result of an increase in scale of business operations
What’s missing?

Answer 15

Economies of scale

Question 16

\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_ overlaps with the other business functions that include: 
• marketing 
• finance
• operations management 
What's missing?

Answer 16

Operations management

Question 17

Sources of differentiation in \_\_\_\_\_ include:
• varying the actual product features 
• varying product quality 
• varying any augmented features
What's missing?

Answer 17

Goods

Question 18

Sources of differentiation in _______ include:
• varying the amount of time spent on a service
• varying the level of expertise brought to a service
• varying the qualifications and experience
• varying the quality of materials/technology used in service delivery
What’s missing?

Answer 18

Services

Question 19

For both goods and services, differentiation can be created from ______ _________ or strategic alliances
What’s missing?

Answer 19

Cross branding

Question 20

___________ goods are those that are mass produced, generally produced with a production focus
What’s missing?

Answer 20

Standardised

Question 21

___________ goods are those that are varied according to the needs of customers, generally produced with a market focus
What’s missing?

Answer 21

Customised

Question 22

The grocery (food) sector is dominated by \_\_\_\_\_\_\_\_\_\_ goods
What's missing?

Answer 22

Perishable

Question 23

Household and business goods are generally ____-_________ goods
What’s missing?

Answer 23

Non-perishable

Question 24

\_\_\_\_\_\_\_\_\_ goods have the following factors:
• high standards of quality
• very short lead times and distribution
• appropriate and robust packaging 
What's missing?

Answer 24

Perishable

Question 25

____-_________ goods have the following factors:
• manage all aspects of quality in the process
• implement effective inventory management strategies
What’s missing?

Answer 25

Non-perishable

Question 26

_____-________ means encouraging the customers to take the initiative to help themselves
What’s missing?

Answer 26

Self-service

Question 27

____________ goods have gone through one set of operational processes then become inputs into further processing
What’s missing?

Answer 27

Intermediate

Question 28

_____________ refers to the mutual dependence that the key functions have on one another
What’s missing?

Answer 28

Interdependence

Question 29

_________ is about meeting the needs and wants of consumers through provision of products at prices that the market is prepared to pay
What’s missing?

Answer 29

Marketing

Question 30

________ is the function that is concerned with recording and summarising financial transactions into a series of reports that can easily be interpreted
What’s missing?

Answer 30

Finance

Question 31

The function of ______ ________ is to deal with the people the business employs and the issues arising from their employment
What’s missing?

Answer 31

Human resources