Role of Operations Management

Question 1

Transformation

Answer 1

Any change to inputs that adds value and converts them into outputs

Question 2

Inputs

Answer 2

The raw materials, components and parts used to produce a good or supply a service

Question 3

Outputs

Answer 3

What is made or supplied by the operations process

Question 4

Productivity

Answer 4

A measure of how efficiently goods and services are produced. (usually measured in terms of output per labour hour)

Question 5

Competitive Advantage

Answer 5

Refers to the features implemented by a business that create an advantage over its competitors

Question 6

Strategic (strategic role of operations management)

Answer 6

Used to describe long-term planning performed by senior managers

Question 7

Efficiency

Answer 7

The achievement of maximum output with the minimum levels of input. Involves achieving an objective without wasting resources and while keeping costs as low as possible

Question 8

Economies of Scale

Answer 8

By increasing the scale of operations, a business can lower the cost of producing each individual output as a result of cost savings and greater efficiency.

Question 9

Profit margin

Answer 9

The difference between the scale price of a product and the cost to make the good or supply the service.

Question 10

Tangible

Answer 10

Able to be seen and felt

Question 11

Customise

Answer 11

To change the features of a product to suit the precise preferences of a customer.

Question 12

Specialisation

Answer 12

A high level of skill at a specific task or role

Question 13

Interdependence

Answer 13

The reliance of different parts of an organisation on each other to perform their task or role.