Strategies of Operations Management

Question 1

Performance Objectives

Answer 1

Goals that relate to a particular aspect of the transformation process

Question 2

Quality

Answer 2

The specific reference to how well-designed, made and functional goods are, and the degree of competence with which services are organised and delivered

Question 3

Quality of Design

Answer 3

How well a good is made or service is delivered

Question 4

Quality of Conformance

Answer 4

How well the good/service meets the prescribed design

Question 5

Quality of Service

Answer 5

How reliable, suitable and timely the service delivery is

Question 6

Speed

Answer 6

The time it takes for the production and the operations to respond to changes in market demand

Question 7

What are some performance goals for speed?

Answer 7

Reducing wait times
Shorter lead times
Faster processing times

Question 8

Dependability

Answer 8

Referes to how consistent and reliable a business’s products are

Question 9

Flexibility

Answer 9

How quickly operations processes can adjust to changes in the market

Question 10

What are some changes in the market?

Answer 10

Increased demand for a product
Creating a new product
Extending an existing product line

Question 11

Customisation

Answer 11

Is the creation of individualised products to meet the specific needs of customers

Question 12

Mass Customisation

Answer 12

A process that allows a standard, mass-produced item to be personally modified to specific customer requirements

Question 13

Cost

Answer 13

Minimisation of expenses so that operations processes are conducted as cheaply as possible

Question 14

Customer Preference

Answer 14

Identified during market research, to determine which products are designed and developed

Question 15

Changes to Innovations in Technology

Answer 15

New appealing products to be designed and developed using the latest technology

Question 16

Supply Chain Management

Answer 16

Involves integrating and managing the flow of supplies throughout inputs, transformation processes and outputs in order to best meet the needs of customers

Question 17

Sourcing

Answer 17

Purchase of inputs for the transformation process

Question 18

Global Sourcing

Answer 18

Businesses obtain inputs from suppliers from all around the world, rather than from local supplies

Question 19

E-Commerce

Answer 19

Buying and selling of goods over the Internet

Question 20

E-Procurement (B2B)

Answer 20

When a business & supplier through online systems

Question 21

B2C

Answer 21

Selling products directly to customers through online systems

Question 22

Distribution

Answer 22

Method of getting the product to the consumer

Question 23

Transportation

Answer 23

The physical movement of inventories

Question 24

Storage

Answer 24

Holding stock until required

Question 25

Warehousing

Answer 25

Type of storage that involves the use of a facility to hold inventory

Question 26

Distribution Centre

Answer 26

Short-term storage solutions that are designed to hold products for an interim period, before being supplied to retailers

Question 27

Outsourcing

Answer 27

Use external specialists to undertake business activities at a lower cost and greater efficiency

Question 28

Captive (in-house)

Answer 28

When a business establishes and extends its own operation elsewhere

Question 29

Non-captive (external provider)

Answer 29

When a business engages another provider or business to carry out the operation for them

Question 30

Leading-edge Technology

Answer 30

Most advanced technologies used to increase efficiency and speed or to bring new innovations to operations.

Question 31

Established Technology

Answer 31

Has been developed and widely used and increase to be used

Question 32

Inventory/Stock

Answer 32

Refer to the amount of raw materials partially or finished products that a business has on hand

Question 33

Last in First out (LIFO)

Answer 33

Assumes that the last goods purchased are also sold first, and therefore the cost of each unit is the last cost provided

Question 34

First in First out (FIFO)

Answer 34

Assumes that first goods purchased are first sold, and therefore the cost of each unit sold is the first cost recorded

Question 35

Just in Time (JIT)

Answer 35

Stock management approach which ensured that the exact amount of material inputs will arrive only needed in the process

Question 36

Quality

Answer 36

describes the degree of excellence of a product or service, and its fitness for a stated purpose

Question 37

Quality Management

Answer 37

Refers to the processes that a business undertakes to ensure consistency, reliability, safety and fitness of purpose

Question 38

Quality Control

Answer 38

The use of inspections at various points in the production process to check for problems & defects

Question 39

Quality Assurance

Answer 39

A proactive approach that emphasises setting a standard of quality in the design of a product that is to be upheld throughout the production

Question 40

Quality Improvement

Answer 40

Involves continuous improvement that emphasises that over time, production processes will be more efficient and effective

Question 41

Redundancy

Answer 41

Loss of work arising from job skills that are no longer relevant to business due to change

Question 42

Inertia

Answer 42

Psychological resistance to change

Question 43

Global Sourcing

Answer 43

Both obtaining materials and inputs overseas as well as outsourcing any aspect of business operations

Question 44

Economies of Scale

Answer 44

Cost advantage gained by producing on a bigger scale, where the business can lower their cost per unit

Question 45

Research & Development (R&D)

Answer 45

The activity of researching and creating innovative products and technologies