Production and Operations Management

Question 1

Define production and operations management

Answer 1

1) Planning and designing the processes that transform resources into finished products.
2) Managing the movement of these resources through the transformation process.
3) Ensuring they are a satisfactory quality for customers.

Question 2

Define transformation process

Answer 2

Process through which inputs are converted into outputs.

Question 3

What are the 5 differences between a manufacturer and service provider?

Answer 3

1) Uniformity of Input: Services are generally more customised.
2) Uniformity of Output: Services tend to change between each person.
3) Nature and consumption of output: Services usually need customer contact.

4) Labour required:
Services generally more labour intensive, goods more capital.

5) Measurement of productivity:
Easier to measure productivity of goods than services.

Question 4

What must operation managers do to plan + design the product that consumers want?

Answer 4

1) Usually market research.

Must plan for:

• Inputs needed
• Skills and quantity of people required.
• Processes to transform input to output.

Question 5

What are 3 Methods of Designing the Operations Process?

Answer 5

1) Standardisation: Identical products.
2) Modular Design: Building item in self-contained units, that can be combined or interchanged to create assorted products.

3) Customisation:
Making product to suit the customer’s needs or wants.

Question 6

What are the 3 planning facilities an organisation must consider?

Answer 6

1) Location: proximity to market, availability of resources, transportation, etc.
2) Layout: 3 basic types.
3) Technology.

Question 7

What are the 3 basic types of production layouts?

Answer 7

1) Fixed position: Resources brought to central location.
2) Process: Transformation process sorted into departments that group related processes.
3) Product: Production broken into many simple tasks in an assembly line.

Question 8

Define outsourcing

Answer 8

Contracting of manufacturing or other tasks to independent companies. Can improve product quality, delivery time, costs.

Question 9

Define Quality Control

Answer 9

Processes an org uses to maintain quality standards.

Question 10

Define TQM

Answer 10

Total Quality Management: Philosophy that uniform commitment to quality in all areas of the org will promote a culture that meets customers’ perception of quality.