Section 5- 5.1 The Roles of operation management

Question 1

Capital intensive

Answer 1

Means that the manufacturing or provision of a product relies heavily on machinery and equipment e.g. automated production systems. Hence, capital costs account for most of a capital intensive firms overall production cost

Question 2

Ecological sustainability

Answer 2

Refers to the capacity of the natural environment to meet the needs of the current generation without jeopardizing the ability of future generations to meet their needs

Question 3

Economic sustainability

Answer 3

Refers to development that meets the economic needs of the present generation using existing available resources without compromising the ability of future generations to meet their needs

Question 4

Labor-intensive

Answer 4

Means that the manufacturing or provision of a product relies heavily on labor EG teaching and legal services. Hence, labor accounts for the most significant proportion of a labor intensive’s firms overall cost of production

Question 5

Operations management

Answer 5

Is concerned with providing the right goods and services in the right quantities and at the right quality level in a cost effective and timely manner

Question 6

Production process

Answer 6

Refers to the method of tanning factor inputs into outputs by adding value in a cost effective way

Question 7

Social sustainability

Answer 7

Examines social interactions and structures that are necessary for sustainable development i.e. it is the ability of the society to develop in such a way that meets the social well-being needs of the current and future generations

Question 8

Sustainability

Answer 8

Promotes inter-generational equity i.e. production enables consumption of goods and services for the people of today without compromising consumption for future generations

Question 9

Value added

Answer 9

Occurs during the production of a good or service because the value of the output is greater than the cost of production. businesses cannot earn a profit if value adding does not occur in the production process