Operations management

Question 1

Operations management -

Answer 1

• managing the process of converting inputs into outputs; ransform resources into goods and services

Question 2

Operations chain

Answer 2

Input -> transformation process -> outputs

Question 3

Operations are affected (3)

Answer 3

1. Environmental issues
2. Quality issues
3. Change in technology

Question 4

Operations involves taking decisions (5)

Answer 4

1. Level of output the business needs to be produced (what is involved in doing so)
2. The range of products that business wants to offer; the level of customer service; how flexible in relation to customer demand
3. Labour or capital intensive?
4. How best to provide good/service to the customer
5. How much to provide and how much to use suppliers for

Question 5

Operations chain starting raw materials

Answer 5

Raw materials -> manufacturing-> transport-> retails-> disposal/recycling

Question 6

Operations involve (5)

Answer 6

1. Gathering/analysing/distributing information
2. Storing and transporting products
3. Transforming people
4. Producing goods
5. Bringing products and customers together

Question 7

Decision making process (5)

Answer 7

1. Identifying the operations objectives
2. Analysing the existing position in terms of operations
3. Choosing what actions need to be taken to achieve objectives
4. Implementing these decisions
5. Reviewing to see if they are on target and taking actions or not

Question 8

Iterative -

Answer 8

• going backwards and forwards between stages

Question 9

Ethical issues in operations (4)

Answer 9

1. How to reward and treat employees
2. Where to locate the business
3. Safety features
4. The environment

Question 10

To stay competitive businesses need to improve their operations ->

Answer 10

Operations objectives must support the overall competitive strategy of the business.

Question 11

Operational objectives might include (8)

Answer 11

1. Quality
2. Speed of response
3. Dependability - deliver reliably on time
4. Costs
5. Flexibility - meeting customer needs more precisely
6. Environmental objectives
7. Defect rates
8. Safety targets

Question 12

Importance of different operational objectives (4)

Answer 12

1. Product
2. Target market
3. Competitive strategy
4. Competition

Question 13

Internal influences on operational objectives and decisions (3)

Answer 13

1. Marketing activities may determine what actually has to be produced, how it is produced
2. Human Resources may determine what is possible (number/skills)
3. Finance

Question 14

Environment that could affect operations (5)

Answer 14

1. Political and legal factors
2. Economic factors
3. Social factors
4. Technological factors
5. Competition

Question 15

Changing operational objectives

Answer 15

Depend on what the managers believe is important and what they think is the best positioning of the business and the best way of competing against rivals; will be influenced by what rivals and doing and the resources of the business (capacity and skills).

Question 16

Costs -

Answer 16

• the amount of money that a company spends on the creation or production of goods or services

Question 17

Efficiency -

Answer 17

• how effectively a company generates products and services related to the amount of time and money needed to produce them

Question 18

Quality -

Answer 18

• meeting the needs and expectations of customers

Question 19

Flexibility -

Answer 19

• if a business can meet customer needs more precisely than others

Question 20

Speed of response -

Answer 20

• competing on providing the service or good as fast as they can

Question 21

Environmental concerns -

Answer 21

• include resource depletion, pollution of air, water, and soil, habitat destruction, greenhouse gas emissions, waste generation, and the loss of biodiversity

Question 22

Added value -

Answer 22

• additional features that a company adds to a product to increase it’s economic value