Scope of OM: The Critical Decisions

Question 1

1-Design of goods and services

Answer 1

What good or service should we offer?

How should we design these products and services?

Question 2

2-Managing quality

Answer 2

How do we define quality?

Who is responsible for quality?

Question 3

3- Process and capacity design

Answer 3

What process and what capacity will these products require?

What equipment and technology is necessary for these processes?

Question 4

4-Location strategy

Answer 4

Where should we put the facility?

On what criteria should we base the location decision?

Question 5

5- Layout strategy

Answer 5

How should we arrange the facility?

How large must the facility be to meet our plan?

Question 6

6- Human resources and job design

Answer 6

How do we provide a reasonable work environment?

How much can we expect our employees to produce?

Question 7

7-Supply-chain management

Answer 7

Should we make or buy this component?

Who should be our suppliers and how can we integrate them into our strategy

Question 8

8-Inventory, material requirements planning, and JIT

Answer 8

How much inventory of each item should we have?

When do we re-order?

Question 9

9-Intermediate and short–term scheduling

Answer 9

Are we better off keeping people on the payroll during slowdowns?
Which jobs do we perform next?

Question 10

10- Maintenance

Answer 10

How do we build reliability into our processes?

Who is responsible for maintenance?

Question 11

All scopes

Answer 11

1. Goods and services: This includes looking for ways to implement consistency in costs, quality, and resources across all business divisions.
2. Quality Management: Be clear on the customer’s demands and then meet those expectations. Use market research to determine customer needs and batch quality assurance testing on products and services in production.
3. Process and Capacity Design: Design strategies which support all production goals including technology and resources. A value stream map can help determine what processes are necessary and how to keep them running efficiently.
4. Location: In developing a location strategy consider supply chain and how the location will receive supplies, the movement of goods and services internally and to customers, and the role of marketing and public relations in the location choice.
5. Layout Design and Strategy: Consider the placement of desks, workstations, and how materials are delivered and used.
6. Human Resources and Job Design: Implement continuous improvement programs with regular reviews, provide continuous training for employees, and institute employee satisfaction programs to achieve success in this area.
7. Supply Chain Management: Determine the best strategies to streamline, be cost effective, and to develop trusted partners.
8. Inventory: Different markets mean different challenges when it comes to inventory but all need to strategize and plan their inventory control. Weather, supply shortages, and labor all influence how an organization maintains its inventory.
9. Scheduling: Consider both production and people. Ask questions such as how much product is required to be produced for the customer in the required time? How many people and how many machines are required to do the job effectively and efficiently? This differs among industries and business departments. For example, emergency rooms need to maintain different schedules than a hospital’s corporate office.
10. Maintenance: This includes maintaining people and machines, as well as, process. What do you need to do to maintain quality and keep resources reliable and stable?