Podcast
Questions and Answers
A business strives to achieve economic balance. What condition often makes this challenging?
A business strives to achieve economic balance. What condition often makes this challenging?
- The inherent variability and complexity of market demands and resource availability. (correct)
- Consistent and predictable consumer behavior.
- Excessive government regulations hindering operational efficiency.
- Lack of technological advancements in production processes.
Which function is typically at the core of every business organization?
Which function is typically at the core of every business organization?
- Marketing, responsible for promoting and selling goods/services.
- Human Resources, responsible for managing the workforce.
- Finance, responsible for managing the company's financial resources.
- Operations, responsible for producing goods and/or services. (correct)
How do services primarily add value for customers?
How do services primarily add value for customers?
- By providing a combination of time, location, form, or psychological benefits. (correct)
- By offering tangible goods that can be owned and stored.
- By reducing the cost of raw materials used in production.
- By ensuring consistent quality across all product lines.
Which of the following best illustrates the 'form' value provided by a service?
Which of the following best illustrates the 'form' value provided by a service?
If a company fails in its operations function, what is the potential impact?
If a company fails in its operations function, what is the potential impact?
Which scenario exemplifies the 'location' value provided by the service?
Which scenario exemplifies the 'location' value provided by the service?
What is the primary difference between goods and services from an operations perspective?
What is the primary difference between goods and services from an operations perspective?
Which of the following is the best example of 'psychological value' provided by a service?
Which of the following is the best example of 'psychological value' provided by a service?
Which organization is primarily focused on individuals involved in project management?
Which organization is primarily focused on individuals involved in project management?
If someone is interested in enhancing their operations management qualifications through certification, which of the following organizations would be a relevant resource?
If someone is interested in enhancing their operations management qualifications through certification, which of the following organizations would be a relevant resource?
An individual seeking job opportunities specifically within the supply chain domain should primarily consult which organization?
An individual seeking job opportunities specifically within the supply chain domain should primarily consult which organization?
Which of the following best describes a 'process' in the context of operations management?
Which of the following best describes a 'process' in the context of operations management?
Which of the following is the MOST significant reason why matching process output with demand is challenging?
Which of the following is the MOST significant reason why matching process output with demand is challenging?
What foundational role does process management play in a business?
What foundational role does process management play in a business?
A local bakery is trying to determine how many cakes to bake each day. What is the MOST relevant type of demand variation they should consider for daily planning?
A local bakery is trying to determine how many cakes to bake each day. What is the MOST relevant type of demand variation they should consider for daily planning?
What is the primary goal of business process management (BPM) concerning capacity and demand?
What is the primary goal of business process management (BPM) concerning capacity and demand?
Which organization is most likely to provide resources related to quantitative methods and analysis in decision-making?
Which organization is most likely to provide resources related to quantitative methods and analysis in decision-making?
Which aspect of business processes is MOST directly addressed by effective capacity planning?
Which aspect of business processes is MOST directly addressed by effective capacity planning?
Which of the following represents the correct sequence within a process?
Which of the following represents the correct sequence within a process?
What is a direct consequence of a business having too little process capacity relative to demand?
What is a direct consequence of a business having too little process capacity relative to demand?
An operations manager is looking to improve the efficiency of their production line. Which of the following actions would be MOST directly related to process management?
An operations manager is looking to improve the efficiency of their production line. Which of the following actions would be MOST directly related to process management?
A company decides to offer a highly customizable product. What is the MOST likely impact on its production process?
A company decides to offer a highly customizable product. What is the MOST likely impact on its production process?
In process management, why is understanding structural variation in demand important?
In process management, why is understanding structural variation in demand important?
Which management activity is critical for handling process variation effectively?
Which management activity is critical for handling process variation effectively?
Which of the following operational decisions is LEAST likely to be directly influenced by system design choices?
Which of the following operational decisions is LEAST likely to be directly influenced by system design choices?
An operations manager is tasked with improving the efficiency of a production line. Which aspect of the operations is MOST directly related to decisions made during the system design phase?
An operations manager is tasked with improving the efficiency of a production line. Which aspect of the operations is MOST directly related to decisions made during the system design phase?
What is the primary reason operations managers have a vested interest in system design, even if they are not the direct decision-makers?
What is the primary reason operations managers have a vested interest in system design, even if they are not the direct decision-makers?
Which area is responsible for ensuring the availability of materials, supplies, and equipment needed for operations?
Which area is responsible for ensuring the availability of materials, supplies, and equipment needed for operations?
Which factor determines the necessary degree of contact between purchasing and operations functions?
Which factor determines the necessary degree of contact between purchasing and operations functions?
In the context of operations management, system design decisions are primarily considered:
In the context of operations management, system design decisions are primarily considered:
Which of the following activities falls under system operation rather system design?
Which of the following activities falls under system operation rather system design?
An operations manager notices that the current system design results in high inventory holding costs due to limited space. Which type of information can the operations manager provide to decision-makers to address this issue?
An operations manager notices that the current system design results in high inventory holding costs due to limited space. Which type of information can the operations manager provide to decision-makers to address this issue?
Which of the following activities falls under the umbrella of operations management in a goods-producing company?
Which of the following activities falls under the umbrella of operations management in a goods-producing company?
A company is struggling with high production costs. Which operations management function should be prioritized to address this issue?
A company is struggling with high production costs. Which operations management function should be prioritized to address this issue?
A new business is trying to decide where to locate its manufacturing plant. What operational function is the business engaging in?
A new business is trying to decide where to locate its manufacturing plant. What operational function is the business engaging in?
Within a business organization, which functions are considered the two 'line functions'?
Within a business organization, which functions are considered the two 'line functions'?
What is a common concern voiced by employers regarding new college graduates entering the workforce?
What is a common concern voiced by employers regarding new college graduates entering the workforce?
A stock market analyst uses operational knowledge mostly in what capacity?
A stock market analyst uses operational knowledge mostly in what capacity?
A marketing team is launching a new product. How might they utilize knowledge of operations management to improve its success?
A marketing team is launching a new product. How might they utilize knowledge of operations management to improve its success?
A budget analyst is asked to cut costs across various departments. How can knowledge of operations management assist in this task?
A budget analyst is asked to cut costs across various departments. How can knowledge of operations management assist in this task?
What is a key concern associated with the increasing trend of outsourcing manufacturing jobs to foreign countries?
What is a key concern associated with the increasing trend of outsourcing manufacturing jobs to foreign countries?
How does the decline in the number of manufacturing jobs impact the U.S. economy?
How does the decline in the number of manufacturing jobs impact the U.S. economy?
Why might it be unwise to assume that manufacturing isn't important to the U.S. economy, despite the growth in the service sector?
Why might it be unwise to assume that manufacturing isn't important to the U.S. economy, despite the growth in the service sector?
A company decides to outsource its manufacturing operations to a country with lower labor costs. Which of the following is a potential long-term strategic disadvantage for the company's home country?
A company decides to outsource its manufacturing operations to a country with lower labor costs. Which of the following is a potential long-term strategic disadvantage for the company's home country?
Which scenario best illustrates the transfer of intellectual knowledge due to manufacturing outsourcing?
Which scenario best illustrates the transfer of intellectual knowledge due to manufacturing outsourcing?
How does a decrease in the number of domestic manufacturing jobs potentially affect a country's trade balance?
How does a decrease in the number of domestic manufacturing jobs potentially affect a country's trade balance?
Consider a hypothetical scenario where a nation's manufacturing sector significantly declines, while the service sector expands. Which long-term economic consequence is most likely to arise?
Consider a hypothetical scenario where a nation's manufacturing sector significantly declines, while the service sector expands. Which long-term economic consequence is most likely to arise?
A small town heavily reliant on a single manufacturing plant faces closure due to outsourcing. What immediate economic challenge is the town likely to encounter?
A small town heavily reliant on a single manufacturing plant faces closure due to outsourcing. What immediate economic challenge is the town likely to encounter?
Flashcards
Operations
Operations
The function responsible for producing goods and/or services.
Goods
Goods
Physical items that include raw materials, parts, and final products.
Services
Services
Activities providing time, location, form, or psychological value.
National Economic Impact
National Economic Impact
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Goods vs. Services
Goods vs. Services
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Operations Management
Operations Management
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Core Function
Core Function
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Goods and Services
Goods and Services
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Service Activities
Service Activities
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Supply Chain Management
Supply Chain Management
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Location Planning
Location Planning
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Inventory Management
Inventory Management
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Quality Control
Quality Control
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Scheduling
Scheduling
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Monitoring and Controlling Costs
Monitoring and Controlling Costs
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Line Functions (Operations and Sales)
Line Functions (Operations and Sales)
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APICS
APICS
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ASQ
ASQ
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ISM
ISM
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INFORMS
INFORMS
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PMI
PMI
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CSCMP
CSCMP
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Process
Process
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Process management
Process management
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System Design
System Design
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System Operation
System Operation
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Feedback
Feedback
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Design Impact
Design Impact
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Purchasing
Purchasing
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Purchasing Coordination
Purchasing Coordination
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System Design Decisions
System Design Decisions
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System Operation Decisions
System Operation Decisions
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Business Process Management (BPM)
Business Process Management (BPM)
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Managing Processes to Meet Demand
Managing Processes to Meet Demand
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Capacity Mismatch Consequences
Capacity Mismatch Consequences
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Random Process Variation
Random Process Variation
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Variation due to Variety
Variation due to Variety
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Structural Variation in Demand
Structural Variation in Demand
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Impact of Insufficient Capacity
Impact of Insufficient Capacity
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Importance of Matching Process Output to Demand
Importance of Matching Process Output to Demand
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Outsourcing
Outsourcing
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Productivity
Productivity
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Outsourcing Impact
Outsourcing Impact
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Why Manufacturing Matters
Why Manufacturing Matters
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Manufacturing Job Trends
Manufacturing Job Trends
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Loss of Intellectual Knowledge
Loss of Intellectual Knowledge
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Economic Consequences of Manufacturing Decline
Economic Consequences of Manufacturing Decline
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Service in Goods Production
Service in Goods Production
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Study Notes
- Operations management is relevant for all majors because productivity, quality, e-business, competition, and customer satisfaction are important for business organizations.
- Operations involve producing goods and/or delivering services that impacts a nation's ability to compete and its overall economy.
- In business, operations management is the management of systems or processes creating or providing goods and/or services.
- The ideal economic state is matching supply and demand, with operations and supply chains on the supply side and sales and marketing on the demand side.
- All business organizations have three functional areas: finance, marketing, and operations.
- A supply chain's sequence starts with basic suppliers and extends to the final customers.
- Supply chains are both external and internal to the organization.
- The creation of goods or services involves transforming inputs into outputs via transformation processes like storing, transporting, and repairing.
- Measurements are taken throughout the transformation process (feedback) and compared to standards (control) to determine needed corrective action.
- The operations functions involve converting inputs into outputs.
- Goods and services often occur together giving a goods-services combination, ranging from primarily goods with little service, to primarily service, with few goods.
Production of Goods vs. Providing Services
- Deliveries of service imply an act, but production of goods results in a tangible output.
- Majority of service jobs: Professional services (financial, health care, legal), Mass services (Utilities, Internet, communications), Service shops (tailoring, appliances), and Personal care (beauty salon, spa, barbershop).
- Although manufacturing and service are different terms, they are similar in terms of how it is done.
- Services have a high degree of customer contact, and interaction between server/customer is judged by customers.
- Measurement of productivity in a service capacity is difficult due to high variation of inputs.
- Services are challenging for quality assurance because of the high variation in input, and simultaneous delivery and consumption.
Learning Operations Management
- Learning operations management (OM) offers career-related benefits, through breadth in how business organizations operate. Knowledge of operations/supply chains provides a better understanding of global dependencies, company success/failure reasons, and the importance of teamwork.
- Three major functional overlapping areas of organization performance: finance, operations, and marketing.
- Marketing assesses consumer wants/needs, and communicates those to operations (short term) and design (long term), which impacts each area's decisions.
- Budgets must be prepared/adjusted to plan financial requirements, with performance needing to be evaluated.
- Economic analysis of investment proposals requires operations and finance people for input.
- There are many career options in operations management within supply chain fields.
- Those in the operations fields should have people skills (political awareness, mentoring, collaboration, negotiation and communication), and knowledge skills (product/service, process, industry/global, and financial/accounting).
Process Management
- Process management is a key part of operations management, of transforming inputs into outputs.
- BPM: business process management activities includes process design, process execution, and process monitoring.
- The two basic aspects within operations/supply chain management: managing process to meet demand, and dealing with process variability.
- Two major aspects of process Management: managing processes to meet demand, and dealing with process variability.
- Four basic sources of variation include variety of goods/services, structural demand variation (trends/seasonal), random variation, and assignable variation.
- The scope of operations management ranges across the organization.
- It involves product/service design, process selection, technology management, work systems design, location planning, facilities planning, and quality improvement.
Operations Management & Decision Making
- System design involves decisions that relate to system capacity, geographic location of facilities, arrangement of departments, product plans, and acquisition of equipment.
- System operation involves management of personnel, inventory planning/control, scheduling, project management, and quality assurance.
Models
- All models have common features like simplification, but also have limitations, especially in being related to mathematical applications.
- Models benefit in being easily used, indicating where information is needed, increasing problem understanding, enabling "what-if" questions.
- Quantitative approaches attempt to obtain optimal solutions to managerial problems, using techniques, models, and forecasting.
- Performance metrics are used by all managers to manage and control operations.
- Analysis of trade-offs requires the considerations of gains vs losses.
- Degrees of customization is when highly customized products/services are more labor intensive with low output, higher prices, and the need for flexible equipment.
Evolution of Operations Management
- Craft Production: highly skilled workers use flexible tools to produce small quantities of customized goods.
- Shortcomings of Craft Production: slow and costly, and did not decrease as volume increased.
- Solution: development of standard gauging systems which greatly reduced the need for custom-made goods.
- Scientific Management: is based on observation, measurement, analysis and improvement of work methods, and economic incentives.
Today's Key Issues in Business Operations
- Economic Conditions: The sluggish economy slows investment and rehiring of workers.
- Quality Problems: Operations failures shows the need to improve management in areas relating to product design, testing, risk assessment, and timely response to potential problems.
- Risk Management: Identifying risks, assessing liabilities, and reducing risks.
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