Chapter 8: The Nature Of Operations Management

Question 1

Operations Management (OM)

Answer 1

The development and administration of the activities involved in transforming resources into goods and services

Question 2

Transformation Process of Operations Management

Answer 2

Inputs (land, labour, materials etc)
Transformation(procedures; facilities)
Outputs(goods, services, ideas)
*Remember that managers should compare feedback to control standards

Question 3

Differences between Manufacturer and Service Provider Products

Answer 3

• Service vs. Tangible products
• uniformity of inputs
  -labour required
  -measurement of productivity

Question 4

Steps of Planning & Designing Operations Systems

Answer 4

-planning the product (determine what customers want)
-Designing the Operations Processes-standardization, modular design or customization
-Planning Capacity
-Planning Facilities (location, layout, technology, AI)
-Sustainability and Manufacturing

Question 5

3 Layout Styles

Answer 5

FIXED-POSITION LAYOUT: brings all resources required to create the product to a centralized location (such a company is known as a project organization)
PROCESS LAYOUT: organize the transformation process into departments that group related processes (intermittent organization)
PRODUCT LAYOUT: production is broken into simple tasks (e.g. assembly line) (continuous manufacturing organization)

Question 6

Technology in Operations (CAD, CAM, CIM)

Answer 6

COMPUTER ASSISTED DESIGN: enables engineers to design components on a computer instead of paper
COMPUTER ASSISTED MANUFACTURING: employs specialized computer systems to guide and control the transformation process
COMPUTER INTEGRATED MANUFACTURING: A complete system that designs products, manages machines and materials, and controls the operations function.

Question 7

Logistics in Transportation of the Supply Chain

Answer 7

In-bound logistics
Outbound logistics
3rd Party Logistics (employing other businesses to transport because they will do it more effectively)

Question 8

Kinds of Inventory

Answer 8

Finished-goods
Work-in-process
Raw materials inventory

Question 9

Inventory Ordering Strategies (EOQ, JIT, MRP)

Answer 9

Economic Order Quantity (EOQ)- the optimum number of items to order to minimize the costs of managing (ordering, storing and using) them
Just-in-time inventory management: minimalistic approach
Material-requirements Planning: schedules the precise quantity of materials needs to make a product

Question 10

PERT and Critical Path

Answer 10

Program Evaluation and review technique
Critical Path: the path that requires the longest time from start to finish.

Question 11

ISO

Answer 11

International standardization organization
Levels of standards: e.g. ISO 9000, ISO 14000