Introduction To OM

Question 1

What are the characteristics of production operations?

Answer 1

Production operations are identified by their output. The outputs are tangible, can be moved and production happens before consumption.

Question 2

What are the 5 main types of production operations?

Answer 2

These include:

1) Project processes
2) Job shops
3) Batch process
4) Mass production
5) Continuous production

Question 3

Project processes are typified by what?

Answer 3

Project processes are typified by a single outcome or deliverable.

Question 4

What is the core emphasis in project processes?

Answer 4

The core emphasis is on deploying highly adaptable and configurable skills to produce and create a product.

Question 5

What are the 3 performance criteria for managing project processes?

Answer 5

Time, Quality and Cost

Question 6

What are the 3 drawbacks of project processes?

Answer 6

1. Require expensive and specific skills sets.
2. No economies of scale
3. Tend to run over long periods
4. Each step in the process has to be defined and tend to be complex and difficult to coordinate

Question 7

What is the difference b/w project processes and job shops?

Answer 7

Small economy of understanding and scheduling the different process steps can occur.

Question 8

What industry is batch processes common in?

Answer 8

Retail

Question 9

Define batch processes

Answer 9

It is the creation of a standardised product over a short run producing a single type of product but a higher volume of output.

Question 10

What’s a good example of a batch process production?

Answer 10

Easter eggs. Eggs are expected to conform to a certain shape and involve certain ingredients (chocolate) but the design, shape and size will differ b/w egg producers and batches.

Question 11

What are the advantages of batch operations?

Answer 11

Can produce higher volumes the job shops. Process steps are well defined, skills in production tend to be low.

Question 12

What are the disadvantages of batch processes?

Answer 12

Set up time b/w batches can be high. More technology and plant tend to be required.

Question 13

What are the 5 steps of emphasis within mass production?

Answer 13

The emphasis is on

1) increasing the production volume
2) standardising the steps for the process.
3) increased use of automation and technology
4) increased efficiency in production
5) Keeping production costs low

Question 14

What are the disadvantages of mass production?

Answer 14

Mass production lines are fixed and exist for long periods of time. Changes to the process are limited and infrequent. The ability to configure or tailor the outputs to a specific customer is low within the process.

Question 15

Define the key characteristics of continuous process production

Answer 15

• Highly standardised
• Single production outcome
• No configuration possible
• Capital intensive and automated
• Process steps are fixed
• Skills required are to maintain plant/equipment rather than the production steps.
• Production never stops

Question 16

What is on the vertical axis of the continuous process model?

Answer 16

Variety with high on the top and low on the bottom

Question 17

What is on the horizontal axis of the continuous process model?

Answer 17

Volume with high on the right and low on the left of the axis

Question 18

What are the 5 production processes (from left to right) in the continuous process model diagram

Answer 18

These include project processes, job shops, batch processes, mass production and continuous processes

Question 19

What are the main characteristics of service operations?

Answer 19

Characterised by speed and proximity of the value exchange with the consumer. Production and consumption are simultaneous

Question 20

What are the characteristics of service operations?

Answer 20

Speed, proximity, intangible, non-storable

Question 21

What are the three types of service operations?

Answer 21

Professional Services, Service Shops and Mass Services

Question 22

What are the 5 characteristics of professional services?

Answer 22

1) Bespoke
2) Require high/developed skill set
3) Costly
4) Have high margins of sale
5) Configurable at low volumes of output
6) High level of customer contact

Question 23

Give three examples of professional services

Answer 23

Doctor Surgeries, Management Consultancies and Law firms

Question 24

What are the key features of service shops?

Answer 24

Some configuration is possible whilst providing increased production volume. Increased staff discretion is permitted in the delivery of the service.

Question 25

Are staff in service shops as skilled as those in professional services?

Answer 25

No. They also tend to be cheaper.

Question 26

Give other characteristics of service shops

Answer 26

Process steps tend to be well defined with routes of option throughout the operation. For example school teachers who have some discretion on how they can teach the curriculum. High levels of customer contact.

Question 27

What are the main characteristics of mass services?

Answer 27

1) High volume
2) Low levels of customisation
3) Service is delivered in larger groups
4) More automated processes
5) Low skilled staff with a narrow knowledge set
6) Processes are inflexible
7) Little discretion in tasks
8) Cost efficient

Question 28

What are the 4 Vs of an operation?

Answer 28

These include:

1) Volume of production
2) Variety of production capability
3) Visibility of the production process by the customer
4) Variation of demand

Question 29

What is volume in the 4 Vs?

Answer 29

Volume is a description of quantity produced. Has significant implications on the repeatability and systemisation within an operation.

Question 30

Define variety in the 4Vs.

Answer 30

Refers to the operations characteristic of production variation. How much change or configuration can the operation deliver? Configuration in the inputs, process or the outputs.

Question 31

Define variation of demand in the 4Vs

Answer 31

This is a description of a pattern or movement of demand over time. Is the demand stable or does it have large peaks and troughs? High variation in demand operations are likely to be less cost effective and more complex to manage.

Question 32

Define visibility in the 4 Vs.

Answer 32

Degree of transparency in the transformation process from the perspective of the customer. This is important as customers might take extra value from the way the process is performed and increased visibility will make this possible.

Question 33

What the three levels of analysis in operations management?

Answer 33

Supply network, operation and process.

Question 34

Define supply network

Answer 34

Collection of operations that operate supply and consumption activities b/w each other to produce/supply services to the end consumer. May be contained within one organisation or could be a collection of organisations.

Question 35

What is an operation?

Answer 35

Specific entity within a supply network. Will deliver a specific output having used its resources in making transformation of the input resources. An operation is the co-ordination of a number of different processes. Can be B2B or B2C.

Question 36

describe the scenario where a moderately high volume and high variety operation can occur

Answer 36

This can happen where an operation evolves from a strategy of producing a few limited lines of output. But in seeking greater utilisation of assets they also find new opportunities for output. They introduce a new product or service using spare capacity. This in turn increases the variety in the operation

Question 37

Highly stable demand patterns offer a conducive environment for high …….. and high …….. operations. Name the blanks.

Answer 37

Volume and utilisation.

Question 38

Stable demand, high volume and high utilisations deliver what impact on costs?

Answer 38

Low unit costs of production.

Question 39

What must an operation be able to do to stay viable in a high variation of demand scenario?

Answer 39

• Be responsive
• Be able to store their outputs (production environments)
• Queue their customers (service environments)
• Adjust capacity

Question 40

What is inverted in the 4Vs example grid?

Answer 40

The high/low label on the volume axis

Question 41

Name the 4Vs in order in the example grid

Answer 41

Volume, Variety, Variation, Visibility

Question 42

Name the four corner axis in order in the 4V example grid

Answer 42

Cost performance/production orientated

Flexibility performance/service orientated