Chapters 1 and 2

Question 1

Definition ofOperations Management

Answer 1

Operations is responsible for supplying the product or service of the organization. Operations managers plan and control the production system and its interfaces
within the organization and with the external environment.

Question 2

Transformation:

Manufacturing

Answer 2

Type:

Physical

Question 3

Transformation:

Transportation

Answer 3

Type:

Locational

Question 4

Transformation:

Healthcare

Answer 4

Type:

Physiological

Question 5

Transformation:

Entertainment

Answer 5

Type:

Psychological

Question 6

Transformation:

Communications

Answer 6

Type:

Informational

Question 7

Major Decision Areas in OM

Answer 7

Process
Quality
Capacity
Inventory

Question 8

Classic Decision-Making Process

Answer 8

1. Define the problem
2. Generate alternatives
3. Evaluate the alternatives
4. Select the “best” alternative
5. Implement the choice
6. Use feedback to continuously improve

Question 9

Reasons for Having an Operations Strategy

Answer 9

Enhance Operation’s role
Take the long-run view
Take a proactive approach
Guide decision-making in a changing environment to make better use of resources
Communicate with other entities - internally and externally
Overall Objective: Help the business compete

Question 10

Operations Mission

Answer 10

Defines the purpose of the operations function in relation to the business and corporate strategies

Should state the priority of the operations objectives

Question 11

Distinctive Competence

Answer 11

What the operation excels at relative to the competition

Process/task oriented

Operations objectives can be a good starting point

Question 12

Operations Strategic Objectives

Answer 12

Quality
Cost
Delivery
Flexibility

Question 13

Operations Policies

Answer 13

Developed for each of the major decision categories

Designed to achieve the operations objectives

Used to implement the operations strategy

Question 14

Formulation of Operations Strategy

Answer 14

Identify and focus on distinctive competence

Top management level decision

Top down development process with input and feedback from all levels

Maintain consistency with and provide input to the corporate/business strategy

Question 15

Focused Factory

Answer 15

Auto-pilot instruments and fuel gauges
Plant-within-a-plant
Product focused

Satellite plants
Customer focused

Others types of focus (process, technology, etc.)

Question 16

New(er) Strategies in Operations

Answer 16

Time-based competition (TBC)

Agile manufacturing/Mass customization

Cost reduction strategies based on quality improvement

Question 17

What are the parts of the operations strategy?

Answer 17

Mission

Distinctive competence

Objectives

Policies