Operations Management

Question 1

What is operations management?

Answer 1

Activity of managing the resources which are devoted to the creation and delivery of services and products.

Question 2

Why is operations management important in all types of organisation?

Answer 2

OM uses the organisation’s resources to create outputs that fulfil defined market requirements.

Question 3

What is the input–transformation–output process?

Answer 3

• Inputs of transforming resources (capital, raw materials)
• Transformed resources (alteration, manufacturing, storage)
• Output resources (goods, services)

Question 4

What is the process hierarchy?

Answer 4

Internal customer-supplier relationships within the operation which satisfy end customer requirements.

Question 5

How do operations processes have different characteristics?

Answer 5

Operations differ in terms of their volume of their outputs, the variety of outputs, the variation in demand for their outputs, and the degree of ‘visibility’ they have.

Question 6

What do operations managers do?

Answer 6

• Direct
• Design
• Delivery
• Develop

Question 7

What does IKEA do with its operations management?

Answer 7

• Store layout design - have to walk thru whole store
• Product design (flatpack etc.)
• Store location - near cities, accessible by car
• Staff efficiency - replacing with machines
• Coping in demand fluctuations
• Maintaining quality
• Continually examining operations practices

Question 8

How has Walmart improved its distribution efficiency through operations management?

Answer 8

Cross-docking: goods trucked to a distribution centre from suppliers are immediately transferred to trucks bound for stores—without ever being placed into storage. Lowering costs → lower prices.

Question 9

How has the application of entrepreneurialism and innovation impacted the operations management side of businesses?

Answer 9

• Reducing operating costs and improving efficiency

- Innovation resulting in new or improved products