Contact session 1

Question 1

What is Operations Management?

Answer 1

The business function responsible for planning, coordinating, and controlling the resources needed to produce products and services.

Question 2

What activities are included in the Operations Function?

Answer 2

All activities directly related to producing goods or providing services.

Question 3

What is the transformation model?

Answer 3

Inputs converted into outputs, involving primary inputs, resources, transformation process, and outputs.

Question 4

What are the primary inputs in the transformation model?

Answer 4

Materials, information, customers.

Question 5

What challenges arise when demand does not equal supply?

Answer 5

If demand > supply, lost opportunity and dissatisfied customers; if demand < supply, waste occurs.

Question 6

What are the different types of operations?

Answer 6

• Materials processing
• Information processing
• Customer processing

Question 7

What distinguishes goods from services?

Answer 7

• Goods are tangible
• Services involve more customer contact
• Goods are easier to standardize

Question 8

What is the goods/services continuum?

Answer 8

Most outputs from operations are a combination of goods and services, with few being pure goods or pure services.

Question 9

What is the front office in operations management?

Answer 9

Where customer contact occurs (customer processing operations).

Question 10

What is the back office in operations management?

Answer 10

Where there is no contact with customers (information and/or materials processing operations).

Question 11

What is the significance of supply network management?

Answer 11

It is vital for operations management, as performance depends on the performance of other organizations in the supply network.

Question 12

What is mass customization in services?

Answer 12

The use of a single process to produce a wide variety of products or services, enabling cost reductions through economies of scope.

Question 13

What is servitization?

Answer 13

When manufacturers provide an accompanying service for their product that adds value for customers.

Question 14

What are the challenges of operating internationally?

Answer 14

• Managing globally and locally
• Harmonizing operations with standardized systems
• Customizing for local conditions

Question 15

What are the benefits of operating internationally?

Answer 15

• Better learning from direct involvement in other countries
• Understanding customer demands
• Learning from practices of organizations in other countries

Question 16

What are the five operations performance objectives according to Slack et al. (2013)?

Answer 16

• Cost
• Quality
• Speed
• Dependability
• Flexibility

Question 17

What does the term ‘economy’ refer to in operations performance measures?

Answer 17

Acquiring inputs at the lowest possible cost.

Question 18

What are the five rights of purchasing?

Answer 18

• Right quality
• Right quantity
• Right time
• Right supplier
• Right price

Question 19

What is productivity?

Answer 19

A measure of the effective use of resources, usually expressed as the ratio of output to input.

Question 20

What is single factor productivity?

Answer 20

Based on a single input factor, such as labor, material, capital, or energy.

Question 21

What is total factor productivity?

Answer 21

Output value divided by the total value of all resources used.

Question 22

What is the formula for productivity growth?

Answer 22

((Current productivity - Previous productivity) / Previous productivity) x 100

Question 23

What is the difference between efficiency and effectiveness?

Answer 23

• Efficiency: Actual output to expected output
• Effectiveness: Level of customer satisfaction

Question 24

What is a performance standard?

Answer 24

A comparator for actual performance, based on internal or external benchmarks.

Question 25

What is corporate social responsibility (CSR)?

Answer 25

Using resources in ways that do not harm ecological systems and recognizing responsibility towards social and environmental impacts.

Question 26

What is the triple bottom line (TBL)?

Answer 26

Measures organizational performance in terms of social, environmental, and financial performance.

Question 27

What are examples of ethical issues in operations management?

Answer 27

* Financial statements * Worker safety * Product safety * Quality * Environment

Question 28

What are the three Ps in operations management?

Answer 28

Profit, People, and Planet ## Footnote The three Ps highlight the balance between financial success, social responsibility, and environmental sustainability.

Question 29

What are the three Es in operations management?

Answer 29

Economic, Ethical, and Environmental performance ## Footnote These categories assess the performance of operations in terms of financial viability, ethical considerations, and environmental impact.

Question 30

Name three ethical issues that arise in operations management.

Answer 30

* Financial statements * Worker safety * Product safety ## Footnote Other ethical issues may include quality, environmental concerns, community impact, and hiring practices.

Question 31

How can location impact operations performance?

Answer 31

* Labor costs * Quality * Dependability * Speed * Flexibility ## Footnote Changes in transport costs and longer supply chains can also affect performance and risk.

Question 32

What is the primary concern of strategy in an organization?

Answer 32

The actions an organization takes to survive and prosper in its environment in the long term.

Question 33

What are the three levels of strategy in an organization?

Answer 33

* Organizational-level strategy * Business-level strategy * Functional-level strategy ## Footnote Each level addresses different aspects of strategic planning within the organization.

Question 34

What does organizational-level strategy express?

Answer 34

The long-term direction and scope for the whole organization, often stated as a mission or vision.

Question 35

What are the two assessment criteria for the effectiveness of an operations strategy?

Answer 35

* Consistency with the organization's business strategy * Contribution to the organization's competitive advantage ## Footnote This includes enabling operations to set priorities and highlighting opportunities for complementing the business strategy.

Question 36

What is operations strategy?

Answer 36

The totality of the actions and decisions taken within the operations function of an organization.

Question 37

What are the four perspectives of operations strategy?

Answer 37

* Top-down * Bottom-up * Market-led * Operations-led ## Footnote Each perspective offers a different approach to formulating operations strategy based on various influences.

Question 38

Give an example of an operations strategy focused on low cost.

Answer 38

Coca-Cola ## Footnote This company exemplifies a low-cost operations strategy by optimizing production and distribution.

Question 39

What is included in the content of operations strategy?

Answer 39

* Structure * Infrastructure ## Footnote Structure refers to physical attributes, while infrastructure involves management processes.

Question 40

What are the challenges of international operations strategy?

Answer 40

* Different business objectives in various countries * Varying customer expectations * Resource availability differences ## Footnote These challenges must be addressed to effectively implement an international operations strategy.

Question 41

What is a market access strategy in international operations?

Answer 41

An international operations strategy focused on entering new markets.

Question 42

What are the modes of entry into foreign markets?

Answer 42

* Direct export * Joint venture * Establish a sales subsidiary * Establish a production facility ## Footnote Each mode has distinct implications for operations management.

Question 43

What are the sources of competitive advantage from operating internationally?

Answer 43

* Global sourcing * Location advantages * Network effects * Competition ## Footnote These sources can enhance an organization's performance and strategic positioning in global markets.

Question 44

True or False: Global sourcing can create competitive advantage through low cost and quality.

Answer 44

True

Question 45

Fill in the blank: An international operations strategy must meet the challenges of, and realize the benefits available from, __________.

Answer 45

[internationalization]