Chapter 2 (OPERATIONS MANAGEMENT, & ITS IMPORTANCE FOR MANAGEMENT ACCOUNTING) Flashcards
What is Operations Management?
Operations Management ensures a business runs efficiently by focusing on planning, organizing, and improving processes to turn materials and labor into goods or services, aiming to maximize profits.
How does Operations Management contribute to Cost Control?
Operations reduces waste and improves efficiency, while accounting tracks costs to boost profits.
What role does Operations Management play in Budgeting?
Operations shares resource and schedule info, while accounting makes budgets and forecasts.
What is the significance of Performance in Operations Management?
Operations uses KPIs to track efficiency, and accounting analyzes and improves performance.
What decisions does Operations Management support?
Operations provides process insights, and accounting supports smart decisions.
How does Operations Management manage Inventory?
Operations keeps stock levels right, while accounting manages costs and cash flow.
What is the focus of Operations Management on Quality?
Operations focuses on good quality, and accounting tracks quality costs.
How does Operations Management relate to Productivity?
Operations improves processes, and accounting links productivity to profits.
Define Effective Mintzberg’s organization.
Effective Mintzberg’s organization includes specialized expertise, decentralized authority, flexible structure, client focus, high quality, and ethics and values.
What are the five parts of Mintzberg’s organizational model?
- Strategic Apex: Top leaders set goals and guide the organization.
- Middle Line: Managers connect leaders and workers.
- Operating Core: Workers perform main jobs.
- Technostructure: Experts improve work processes.
- Support Staff: Teams handle support tasks.
True or False: Only simple structure is based on centralization in Mintzberg’s model.
True
What is the link between Operations, Competitors, and Productivity?
- Skilled Workers: Trained and motivated workers improve productivity.
- Competition: Efficient operations help beat competitors.
- Innovation: Technology makes work faster.
- Quality: Good operations keep customers happy.
- Supply Chains: Smooth supply chains save time and costs.
What are the roles of Organizational technologies in Operation Management?
- Automate tasks.
- Provide data insights.
- Improve supply chains and inventory.
- Enhance customer relationships.
- Boost communication and teamwork.
Define Authority in the context of operations management.
Authority is the power or right to give orders, make decisions, and enforce obedience.
List the types of authority.
- Line Authority.
- Staff Authority.
- Functional Authority.
- Delegated Authority.
- Expert Authority.
- Referent Authority.
- Reward Authority.
What are the three core traditional functions of operational management?
- Planning: Set goals, production schedules, quality standards, and inventory levels.
- Organizing: Allocate resources, assign tasks, and set up structure.
- Controlling: Monitor and measure performance.
How does Operations Management contribute to enterprise management?
- Efficiency: Make processes faster and cheaper.
- Quality: Ensure products/services meet customer needs.
- Risk Management: Reduce risks to keep the business stable.
- Innovation: Keep improving.
- Supply Chain: Manage movement of goods.
- Team Leadership: Lead teams to reach goals.
- Customer Satisfaction: Deliver great products.
What is the function of Operation Management in making Electrical Vacuums?
- Design: Create a product plan and workflow.
- Supply Chain: Ensure raw materials arrive on time.
- Production: Schedule manufacturing and maintain quality.
- Inventory & Distribution: Manage storage and delivery.
- Customer Service: Handle after-sales support.
How does Automation impact Operations Management?
Automation reduces costs, speeds up work, and uses technology like robots and AI for efficiency.
List some tools of operations management.
- Process Flow Diagram: Shows steps to improve efficiency.
- Value Stream Mapping: Identifies waste in production.
- Layout Design: Arranges workstations.
- Capacity Planning: Ensures resources meet demand.
- JIT & Lean: Reduces waste.
- Total Quality Management: Ensures quality.
