Operations Management

Question 1

Core functions in organisations

Answer 1

Operations: fulfilling customer requests

Marketing: responsible for communicating the organisations products to customers and understanding the marketing

Question 2

Transformation process

Answer 2

Processing primary material, information or the customer

Question 3

Performance objectives - cost

Answer 3

• minimise units of input of resource per unit of output

- cost is one dimensional

Question 4

Performance objective- quality

Answer 4

• develop a specification for the product or service

- quality is multidimensional

Question 5

Six stigma

Answer 5

• A set of techniques and tools for process improvement
• Based in statistical process control but with problem solving methods
• Based around training expert facilitators

Question 6

DMAIC- six stigma improvement method

Answer 6

Define 
Measure
Analyse
Improve
Control

Question 7

Operation managers

Answer 7

All managers are to some extent operations managers because they manage processes

Question 8

Operations in an organisation

Answer 8

Operations represent a large part of almost every organisations costs and opportunities to innovate

Question 9

Lean

Answer 9

The dominant model for operations managers to follow: aim is to make day-to-day management simple

Question 10

Products or services will be bought in if

Answer 10

• producing them internally would be inefficient
  AND
• there is a competitive market amongst possible suppliers

Question 11

Products or services bought in causes:

Purchasing/ procedurement

Answer 11

• buyers have low status
• multi- sourcing, buy items from many suppliers

Leads to

• unwillingness to share information
• fear of becoming too dependant

Question 12

Alternative partnership model

Answer 12

• long term commitment
• smaller number of vendors
• buyers and sales person roles become more strategic

Question 13

How does purchaser avoid risk of being exploited in a partnership

Answer 13

• process of vendor accreditation
• vendor rating
• term negotiations

Question 14

Vendor

Answer 14

A person or company offering something for sale

Question 15

Examples of partnership

Answer 15

• supply chain management

- business process outsourcing

Question 16

Supply chain management

Answer 16

• whole supply chain is managed across organisational boundaries
• inventory held at points where it is lost efficient
  Lean supply: remove waste, minimise variability, stabilise schedules

Question 17

Non integrated supply chain

Answer 17

In the past each level placed orders, then held stock in case orders are not delivered or that the amount needed is higher

Question 18

Supply chain integration

Answer 18

A close alignment and coordination within a supply chain,

Question 19

Growth of outsourcing

Answer 19

• allows organisations to concentrate on their core processes
• increasing doubts about existence of economies of scale and economies of scope, instead a recognition of the advantages of focusing on core processes

Question 20

Emergence of specialist outsourcing firms

Answer 20

• specialise in their own core processes but are able to fit in with the needs of customers