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Managing Business Operation > Operations Strategy and Operation Performance > Flashcards

Operations Strategy and Operation Performance Flashcards

1
Q

Triple Bottom line is a
evaluation methodology
which includes three
segments of a business
organization’s performance:
Social, environmental and
financial.
These segments are also
referred as 3 Ps: people,
planet and profits

A
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2
Q

Triple Bottom line :
People – The social
account, measured by
the impact of the
operation on the quality
of people’s lives.
Planet – The environmental account,
measured by environmental impact of
the operation.
Profit – The economic
account, measured by
profitability, return on
assets, etc. of the
operation.

A

People
* Customer safety from products and services
* Employment impact of an operation’s location
* Employment implications of outsourcing
* Repetitive or alienating work
* Staff safety and workplace stress
* Non-exploitation of developing country suppliers
Profit
* Cost of producing products and services
* Revenue from the effects of quality, speed,
dependability and flexibility
* Effectiveness of investment in operations resources
* Risk and resilience of supply
* Building capabilities for the future

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3
Q

Planet
* Recyclability of materials, energy consumption and waste material
generation
* Reducing transport-related energy
* Noise pollution, fume and emission pollution
* Obsolescence and wastage
* Environmental impact of process failures
* Recovery to minimize impact of failures

A

Planet – The environmental account, measured by environmental impact of the operation.

Recyclability of materials, energy consumption and waste material generation

  • Reducing transport-related energy
  • Noise pollution, fume and emission pollution
  • Obsolescence and wastage
  • Environmental impact of process failures
  • Recovery to minimize impact of failures
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4
Q

Which of the following capacity measure is not to the case of seasonality?

A

Sales of toothpaste

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5
Q

What type of forecasting is based on judgment, experience, and even best guesses to forecast demand?

A

Qualitative

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6
Q

Which business function is responsible for sales, generating customer demand, and understanding customer wants and needs?

A

marketing

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7
Q

Which one of the following would not generally be considered to be a transformation?

A

Waiting to ride a bus

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8
Q

When calculating EOQ using the EOQ formula, one would use.

A

Cost of placing an order

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9
Q

When designing a product or service, what is the way in which the component products and services will be created and delivered known as?

A

A process

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10
Q

Which layout type would an operations manager use of all the transforming resources are located together?

A

Cell layout

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11
Q

Which of the following process-mapping symbol indicates ‘operation’?

A

circle

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12
Q

Operation management use knowledge to effectively diagnose conditions in order to treat real and perceived patient concerns, would be seen in which industry?

A

Physician (general practitioner)

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13
Q

A forecasting technique using a group process that allows experts to make forecasts is known as what?

A

Delphi method

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14
Q

Continuous manufacturing process type has

A

Low level of variety

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15
Q

Which of the fallowing is Not true for business process reengineering?

A

It is used to create sub-par quality products/services.

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16
Q

Which of the fallowing below is not a type of The Four Basic Layout

A

Cluster layout

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17
Q

Which rule is the Pareto Principle sometimes known as?

A

80/20

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18
Q

How is the capacity of an operation measured?

A

The capacity of an operation is the maximum level value added over a period that the process can achieve under normal operating condition.

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19
Q

In EOQ model, the replenishment of products is made instantaneously and the whole batch is delivered at once.

A

true

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20
Q

Companies that have low customer contact and are capital intensive, yet provide a service, are called service factories.

A

true

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21
Q

Implementing capacity management may entail working overtime, outstanding business operations, purchasing additional equipment, and le..

A

true

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22
Q

Efficiency means being able to perform most activities.

A

false

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23
Q

Finance is the central core function of every company.

A

false

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24
Q

LIFO is the best practice of inventory management adopted by many organisations.

A

false

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25
Q

In functional layout, all similar transforming resources are grouped together in the operation.

A

true

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26
Q

At a factory, the transformation process is the physical change of raw materials and components into products.

A

true

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27
Q

ABC system in inventory management ranks stock parts by their usage value

A

true

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28
Q

Capacity management also means calculating the proportion of special capacity that is being used over a certain…

A

true

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29
Q

Which of the fallowing below is true about location and layout?

A

Functional layout is more effective than fix-ed position layout is all cases

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30
Q

During the 4 stages of the product/service life cycle, which are the dominant operations performance objectives during the ‘growth’ stage?

A

flexibility, Speed dependability and quality

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31
Q

In which stage of the product/service life cycle that there will usually be bulk of customer?

A

Maturity

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32
Q

Which is the transforming resource for waiting to board a plane?

A

Airline staff, airport facilities, cabin crews - — none of the given chose here

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33
Q

Which of the following statement is NOT true about operation strategy?

A

Winning operation strategies focus more on business objectives rather than market requirements.

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34
Q

in order to efficiently manage inventory, one should not.

A

Use the EOQ framework for its flawless mathematical algorithms.

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35
Q

Which of the fallowing is true about 5 performance objectives except…

A

‘speed’ for any business always means the fastest products and services to the market.

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36
Q

Which of the following statement about job design is not true?

A

Broadly, low-variety and high-volume processes require broad, relatively undefined jobs within decision-making discretion.

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37
Q

In term of the relationship between creatively, innovation and design, which of the following is the correct order from start to finish?

A

Creatively - innovation – design – products / services

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38
Q

Which of the fallowing may not necessarily be the best reason to hold inventory for most business?

A

Holding large inventories allows working capital to be tied up.

39
Q

Which of the fallowing is least true about location and layout?

A

Line layout gives high unit costs for low volume production but immune to any disruption.

40
Q

Which of the fallowing is most likely less true about location and layout?

A

Ikea adopts Line and Cell layouts.

41
Q

Which of the following statement is not true about jobs?

A

Highly divided job will cause injury because there is only one person working on the job

41
Q

Business process reengineering is…

A

A transformational process

42
Q

‘Capacity leading’ ensures sufficient capacity to meet forecast demand all the time, while ‘capacity lagging’ allows demand to be greater or equal to capacity. Based on this…

A

There are always over-capacity problems in the capacity-lagging scenario.

43
Q

‘Flexibility’ gives business the opportunities to fend off any PESTLE threats.

A

true

44
Q

Suppliers who themselves do not deliver on time are seen as having ‘dependability’ problems.

A

true

45
Q

Converting data to information is transformational process.

A

true

46
Q

Capacity management and inventory management are inter-related.

A

true

47
Q

The location of each operation in a supply network is a key element in defining its performance.

A

true

48
Q

Every type of inventory management will involve physical storage space.

A

false

49
Q

Every well-thought-out operation strategy will always work.

A

false

50
Q

All newly launched restaurants must adopt fixed position layout.

A

false

51
Q

Customers may be an input to many operations, and also serves as the reason that operations exist.

A

true

52
Q

Finance and information technology are two support functions of business operations that do not overlap.

A

false

53
Q

Which one of the layouts enables the transformed resources follow a predeterminate route through the process?

A

Line layout

54
Q

The end process of the business operations is to produce and deliver products and services to shareholders.

A

True because operation management is about managing the resources that create and deliver services and products

55
Q

Which product process type most likely describes ’specially-made, high –variety, low repetition’ and ‘skilled jobber, or team, complete whole product’?

A

Jobbing

56
Q

Which of the following attempts to adjust capacity to reflect the fluctuations in demand?

A

Chase demand

57
Q

Inventory decisions considers the below factors except

A

Competitor’s production rate

58
Q

Operational aspect of organisational decision is the same as…

A

Day- to day

59
Q

The ‘appropriateness’ of capacity planning in any part of the operation can be judged by its effect on

A

Costs

60
Q

For Pret a Manger, packaging design of the sandwiches and snacks is part of

A

Product service/development

61
Q

Which of the following is one of the 4D s of operation management, except…

A

Dictate

62
Q

In the ABC system of the inventory management, which class of the item contributes to the least usage value?

A

Class C

63
Q

Which of the following is the correct order in increasing strategic impact?

A

Correct the worst problems, Adopt best practice, Link strategy with operations, give an operation advantage

64
Q

Which of the following might be considered as spatially variable costs?

A

Labour costs, energy costs, transportation costs, —- al the given choices here

65
Q

Service process types include all the following except…

A

Divided service

66
Q

Which of the following is not an inventory?

A

Suppliers

67
Q

The two general approaches to forecasting are.

A

Qualitative and quantitative

68
Q

‘Schedule space and activities’ is a disadvantage for Fixed layout.

A

True

69
Q

There is no known approach to determining the amount of inventory to order.

A

False

70
Q

Efficiency means being able to perform most activities.

A

False

71
Q

An example of an operation that does not add value is repairing a burst pipe.

A

False

72
Q

Design is the activity which shapes the physical form and purpose of both products and services and the processes that produce them.

A

True

73
Q

The concept of process types summarizes how variation and variety affect overall process design.

A

False

74
Q

The ‘layout’ of an operation or process of how its transforming resources are positioned relative to each other and how its various tasks are allocated to these transforming resources.

A

True

75
Q

Real costs are not as assumed in the EOQ model.

A

True

76
Q

In level capacity, demand is changed, either by influencing the market through measures such as advertising and promotion.

A

False

77
Q

Representing demand and output in the form of cumulative representations allows the feasibility of alternative capacity plans to be assessed.

A

True

78
Q

Quality Being RIGHT

A

Hospital

Patients receive the most appropriate treatment.

Treatment is carried out in the correct manner.

Patients are consulted and kept informed. Staff are courteous, friendly and helpful.

automobile

All assembly is to specification. Product is reliable. All parts are made to specification. The product is attractive and blemish-free.

bus company

The buses are clean and tidy. The buses are quiet and fume-free. The timetable is accurate and user-friendly. Staff are courteous, friendly and helpful.

supermarket

The store is clean and tidy. Décor is appropriate and attractive. Goods are in good condition. Staff are courteous, friendly and helpful.

79
Q

Volume

The size of the throughput, e.g. how many burgers are you shifting? As it goes up costs tend to go down.

A
80
Q

Variety

This is a measure of how the activities vary, if you make one product that is uncustomed then you have very low variety, if everything is bespoke then it is high variety. Even with products/services that look otherwise identical (e.g. driving licences) there could be high variety if there are complex decisions to be made in some cases (e.g. people with medical conditions or driving offences in the case of driving licences).

The lower the variety the lower costs.

A
81
Q

Variation

This is about how demand changes over time. If demand was always the same, e.g. one order a day of the same size, then variation would be low. If you were selling ice cream in a holiday resort, then you might have very high variation across the day and year.

Lower variation reduces costs.

A
81
Q

Visibility

This is about how much the customer sees of the operation. So high visibility is associated with retail premises, e.g., the bespoke sandwich shop where the customer watches you make the sandwich is an example of very high visibility. An online transaction is a very low visibility one, the customer places an order and then it arrives. Also associated with visibility are expectations of speed of response and variety. In a retail environment a customer can ask for anything and expects you to have it instantly.

Costs go up as visibility increases, partly because highly visible operations need to have more staff and those staff need customer service skills.

A
82
Q

1.Volume

A significant example of this is McDonald’s. They are a well-known example of fast-food production and high-volume low-cost burger. The volumes of their operation are fundamental to how their business is organized. Essential to their operation is the repeatability of tasks carried out by their employees. The work system is marked by the standards and procedures that drive how each part of the job is carried out. This combination provides a low-cost base.

A

Volume

The size of the throughput, e.g. how many burgers are you shifting? As it goes up costs tend to go down.

83
Q

2.Variety:

A remarkable example used to explain “variety” is the comparison between a bus and a taxi service. Both offer transportation services, but a taxi service has a much higher range of variety. A taxi picks and drops as per the convenience of customers, whereas a bus offers a defined schedule and route. Therefore, variety and flexibility are high for a taxi company and low for the bus.

A

Variety

This is a measure of how the activities vary, if you make one product that is uncustomed then you have very low variety, if everything is bespoke then it is high variety. Even with products/services that look otherwise identical (e.g. driving licences) there could be high variety if there are complex decisions to be made in some cases (e.g. people with medical conditions or driving offences in the case of driving licences).

The lower the variety the lower costs.

84
Q

3. Variation:

Let’s take the example of two home building companies. One build prefabricated home and another build customised homes. The first company lets a customer choose from a catalogue/online while the second display homes that they have already built. It is seen that Company two will have an increased level of cost and lower volume than Company 1. Also, it can control costs relatively easily.

A

Variation

This is about how demand changes over time. If demand was always the same, e.g. one order a day of the same size, then variation would be low. If you were selling ice cream in a holiday resort, then you might have very high variation across the day and year.

Lower variation reduces costs.

85
Q

4. Visibility:

This aspect refers to the ability of a customer to see, track their experience, or order through the operation process. A high visibility dimension involves courier companies or a retail store. A low visibility dimension could be a web design company. However, the service skill of the employees dramatically affects the experience of a customer. The role of operations is to transform the original resources into goods and services that create value.

A

Visibility

This is about how much the customer sees of the operation. So high visibility is associated with retail premises, e.g., the bespoke sandwich shop where the customer watches you make the sandwich is an example of very high visibility. An online transaction is a very low visibility one, the customer places an order and then it arrives. Also associated with visibility are expectations of speed of response and variety. In a retail environment a customer can ask for anything and expects you to have it instantly.

Costs go up as visibility increases, partly because highly visible operations need to have more staff and those staff need customer service skills.

86
Q

Profit – The economic account, measured by profitability, return on assets, etc. of the operation.

  • Cost of producing products and services
  • Revenue from the effects of quality, speed, dependability and flexibility
  • Effectiveness of investment in operations resources
  • Risk and resilience of supply
  • Building capabilities for the future

Planet – The environmental account, measured by environmental impact of the operation.

Recyclability of materials, energy consumption and waste material generation

  • Reducing transport-related energy
  • Noise pollution, fume and emission pollution
  • Obsolescence and wastage
  • Environmental impact of process failures
  • Recovery to minimize impact of failures
A
87
Q

Profit – The economic account, measured by profitability, return on assets, etc. of the operation.

  • Cost of producing products and services
  • Revenue from the effects of quality, speed, dependability and flexibility
  • Effectiveness of investment in operations resources
  • Risk and resilience of supply
  • Building capabilities for the future
A
88
Q

Quality is the visual sign of how well an operation does what it does. It’s a consistent indicator which customers and staff base their expectations around.

Does the product work as it should? Or has it been made with low-value parts that undermine its integrity? Quality is a fundamental aspect of performance and, because of this, has a huge influence on whether a customer is satisfied or not.

For example, giving each individual warehouse packer the responsibility to pack their own boxes improves quality as mis-packs are made less likely to occur.

In terms of the operation principles, quality can create the potential for better services and products which reduce costs in the long run thanks to having more satisfied customers.

A

1: Quality

Quality can create the potential for better services and products that reduce costs in the long term thanks to customer satisfaction. Quality can also be measured by customer feedback, product reviews, and other metrics.

89
Q

Speed is the turnaround time between customers ordering a product or service and the point at which they receive it. When an organization delivers the goods or services on time, the more likely a customer is to be satisfied with their experience.

If you can provide a service or product faster than other companies without compromising on quality, then you are already off to a winning start.

In terms of operation principles, high speed can allow for faster delivery of services, therefore saving costs.

A

2: Speed

High speed can enable faster service delivery and thus save costs.

Speed can be measured by the time it takes to complete a task or deliver a product or service.

90
Q

Dependability means that customers can rely on your organization to receive their goods and/or services as and when promised. While this may not affect the chances of a customer selecting the service - as they have already ‘consumed’ the product - it influences whether the customer returns to make a future purchase or recommends your business.

No matter how cheap or fast a pizza is made by a takeaway company, if the customer can’t depend on it to be delivered on time or to the correct address, then they will go elsewhere.

In terms of operation principles, dependability is important in providing the reliable delivery of service and products.

A

3: Dependability

Reliability/dependability is important to provide reliable delivery of services and products. Reliability can be measured by customer feedback, product reviews, and other metrics.

91
Q

Flexibility is the means of changing an operation to match a customer’s requirements. This may involve changing what the operation does or how it works so that the service is bespoke.

Customers are likely to require change for four reasons:

Product/service flexibility occurs to introduce a new or modified product.

Mix flexibility is the ability to have the variety of products available grow.

Volume flexibility involves the output of a process and being able to produce different quantities/volumes.

Delivery flexibility is being able to change the timings of delivery in a product/service.

Being flexible gives the potential for a business to hold a competitive edge due to their wider variety, different volumes and varying delivery dates.

Flexibility involves new or modified products, variety of product line, different quantities/ volumes, timings of delivery.

A

4: Flexibility

 Flexibility is important to ensure that the organization can adapt to changing customer needs and market conditions. Flexibility can be measured by the ability to quickly adjust processes or services to meet customer needs.

92
Q

Cost is an important factor for companies which compete directly on rates. The lower a company can keep its production costs, the lower they can have their customer-facing prices.

Even companies who do not compete on price want to keep their costs as low as possible while still maintaining the levels of quality, speed, dependability and flexibility that their customers demand.

The minimalization of costs is as important so that resources can be spared to grow other areas of the business.

A

5: Cost

Cost is important to ensure that the organization can remain competitive in the market. Cost can be measured by the cost of materials, labour, and other resources used in the production process. These five performance objectives are essential for any organization to remain competitive in the market. By understanding how each of these objectives are measured and their importance for organizational competitiveness, organizations can optimize their operations management processes and achieve their goals.

Managing Business Operation (1 decks)

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