Operations Management

Question 1

What are and explain the four characteristics of operations using an industrial example for each

Answer 1

1. Visibility - Dentist: visible, customer service considered during operation, Mechanic: invisible, no customer service skills required
2. Volume - How much of something you require, Fast Food: repetitive and reproducible, specialisation, systemisation, low unit costs, Small Cafe: Made occasionally, Non-specialised, unit cost higher
3. Variety - Standard bike: no options, cheap, pro bike shop: more choice, specialised, expensive, small standardisation
4. Variation - Ambulance: almost constant use, runs at capacity, efficient, Air/sea rescue: Sporadic use, runs at ‘just in case’ , large periods of slack, inefficient

Question 1

Whats a buffer?

Answer 1

Stores so the transformation process can still progress if there’s a change in the rate of input or output

Often between stages where output is placed prior to being used in the downstream stage