Operations management and the organisation

Question 1

What is Operations Management?

Answer 1

is concerned with the transformation of inputs into outputs that meet the needs of the customer

Question 2

Difference between transforming and transformed inputs

Answer 2

Transforming Inputs are labour and facilities. Transformed Inputs are material / info and customers

Question 3

What are the four Vs for Operations?

Answer 3

Volume: High volume = High Capital / Low volume = Labour intensive
Variety: Handling different inputs / producing different outputs
Variation in demand: Seasonal
Visibility: visible operations to the customer

Question 4

Define: Value Chain

Answer 4

Sequence of business activities by which in the perspective of the end user, value is added to the products or services produced by the entity

Question 5

Draw Porters Value chain

Answer 5

Support Activities:
Firm Infrastructure
HR Management
Technology Development
Procurement
Primary Activities:
Inbound Logistics
Operations
Outbound Logistics=
Marketing and sales
After Sales Services

Question 6

Downstream vs Upstream

Answer 6

If a firm is closer than another to the customers its downstream. Upstream is further away from the customer

Question 7

What are the four four phases of Reck and Longs purchase model? PISI

Answer 7

Passive - Direct and easy purchase
Independent - Usually through a purchasing manager and negotiations
Supportive - Preferred suppliers
Integrative - Major activity for the business

Question 8

Draw - Cousin’s Strategic Supply Wheel

Answer 8

Middle: Corporate and supply strategy
Around:Organisation Structure
Portfolio of relationships
Cost and benefit analysis
Skill and competences
Performance measurement

Question 9

Opportunistic vs Collaborative

Answer 9

Opportunistic is low level co-operation with the supplier. Collaborative is high level co-operation with the supplier

Question 10

What is the difference between a supply chain and a demand network

Answer 10

Supply chain = ‘push’ the product onto the market

Demand Network = ‘pulled’ into existence in response to demand

Question 11

What are the four stages of evolution for a demand network? RACO

Answer 11

Reacting - Optimising operations to meet demand
Anticipating - Companies develop internally to meet long/short term demand
Collaborating - gathering info on downstream demand
Orchestrating Planning product life cycles to influence demand

Question 12

What are the four methods to source materials?

Answer 12

Single Sourcing
Multiple Sourcing
Delegated
Parrellel

Question 13

What are the two types of flow charts?

Answer 13

Basic - Bird eye view

Deployment - Where and whom actions are performed

Question 14

What are Brown’s sic items to consider when deciding an organisations operation strategy?

Answer 14

Capability required - (what do we do)
Range of location and operations - (How big do we want to be)
Investment in technology - (how will the processes be performed)
Strategic buyer-supplier relationship - ( who will be the partners)
New product/services - (What is the life cycle)
Structure of operations - (How will staff be managed)