Lecture 1

Question 1

Operation meaning

Answer 1

activities involved in a company producing goods or delivering services

Question 2

Input-transformation-output model

Answer 2

Inputs:
- Transformed resources (materials, information and customers)
-Transforming resource (People and facilities)

-The transformation process

Output:
-Products and services

Question 3

Operation management definition

Answer 3

Use of resources to appropriately create outputs that fulfill defined market requirements

Question 4

Three levels of process perspective

Answer 4

Supply network > Operation > process

Question 5

4Vs model

Answer 5

1. Volume
2. Variety
3. Variation in demand
4. Visibility

Question 6

Volume in 4Vs

Answer 6

The level or rate of output from a process

Low (cafeteria Ticaro):
-low repetition
-wide range of tasks
-less systemisation
-high unit costs

High (Mcdonalds):
-high repeatability
-specialization
-capital intensive
-low unit costs

Question 7

Variety in 4Vs

Answer 7

The range of different products and services produced by a process

High (taxi):
-flexible
-complex
-match customer demands
-high unit costs

Low (bus):
-well defined
-routine
-standardized
-regular
-low unit costs

Question 8

Variation in demand in 4Vs

Answer 8

The degree to which the level of customer demand varies over time

High (ski hotel):
-changing capacity
-anticipation
-flexibility
-in touch with demand
-high unit costs

Low (hotel in city):
-stable
-routine
-predictable
-high utilization of resources
-low unit costs

Question 9

Visibility in 4Vs

Answer 9

The amount of value-added activity that takes place in the (virtual) presence of the customer

High (tailoring):
-short waiting tolerance
-satisfaction governed by customer perception
-customer contact skills needed
-received variety is high
-high unit costs

Low (suit making factory):
-time lag between production and consumption
-standardization
-low contact skills needed
-high staff utilization
-centralization
-low unit costs