Podcast
Questions and Answers
Which of the following best describes the relationship between marketing and operations according to the text?
Which of the following best describes the relationship between marketing and operations according to the text?
- Marketing and operations should have equal influence, with decisions made collaboratively.
- Marketing should drive the operations plan to align product creation with customer needs. (correct)
- Marketing and operations should function independently to maintain focus and specialization.
- Operations should always determine marketing strategies to ensure production efficiency.
A company is developing its operating plan. How does a flowchart assist in production activities?
A company is developing its operating plan. How does a flowchart assist in production activities?
- By visually representing the sequence of steps required to make a product. (correct)
- By outlining the marketing strategies needed to sell the finished product.
- By providing a detailed financial analysis of each step in the production process.
- By tracking the inventory levels of raw materials and finished goods.
What is the primary purpose of 'capacity planning' in an operating plan?
What is the primary purpose of 'capacity planning' in an operating plan?
- Managing day-to-day operational tasks within the company.
- Outlining the marketing strategies for a new product launch.
- Deciding the production capacity needed to meet product demand. (correct)
- Determining the initial funding required to start the business.
Which of the following examples best illustrates a 'support activity' within an operating plan?
Which of the following examples best illustrates a 'support activity' within an operating plan?
How do 'start-up costs' differ from 'running costs' in an operating plan?
How do 'start-up costs' differ from 'running costs' in an operating plan?
In the context of an operating plan, what is the most accurate definition of 'inputs'?
In the context of an operating plan, what is the most accurate definition of 'inputs'?
If a company's 'support activities' are not functioning effectively, what is the most likely consequence?
If a company's 'support activities' are not functioning effectively, what is the most likely consequence?
A manufacturing company wants to determine the 'unit cost' of its product. Which calculation provides the most accurate result?
A manufacturing company wants to determine the 'unit cost' of its product. Which calculation provides the most accurate result?
What is the primary goal of an operating plan for a business?
What is the primary goal of an operating plan for a business?
Which of the following BEST distinguishes between production activities and support activities in an operating plan?
Which of the following BEST distinguishes between production activities and support activities in an operating plan?
In the context of capacity planning, what is the MAIN objective a business aims to achieve?
In the context of capacity planning, what is the MAIN objective a business aims to achieve?
Which of the following factors would LEAST likely contribute to inefficiencies noted during capacity planning?
Which of the following factors would LEAST likely contribute to inefficiencies noted during capacity planning?
How do start-up costs PRIMARILY differ from running costs in an operating plan?
How do start-up costs PRIMARILY differ from running costs in an operating plan?
Why is it important to shop around for a customs brokerage agent when importing goods for your business?
Why is it important to shop around for a customs brokerage agent when importing goods for your business?
Mystic Masala initially shipped soaps via boat but later switched to air cargo. What was the MOST likely reason for this change?
Mystic Masala initially shipped soaps via boat but later switched to air cargo. What was the MOST likely reason for this change?
Before importing goods, what PRIMARY action should a business owner take to ensure compliance and avoid issues?
Before importing goods, what PRIMARY action should a business owner take to ensure compliance and avoid issues?
Flashcards
Operating Plan
Operating Plan
The roadmap showing how inputs are converted into products cost-effectively.
Operations
Operations
Activities that convert inputs into outputs.
Production Activities
Production Activities
Activities directly involved in creating the product or service.
Support Activities
Support Activities
Signup and view all the flashcards
Capacity Planning
Capacity Planning
Signup and view all the flashcards
Start-up Costs
Start-up Costs
Signup and view all the flashcards
Running Costs
Running Costs
Signup and view all the flashcards
Mystic Masala
Mystic Masala
Signup and view all the flashcards
Inputs
Inputs
Signup and view all the flashcards
Outputs
Outputs
Signup and view all the flashcards
Process Flow
Process Flow
Signup and view all the flashcards
Study Notes
- Chapter 7 discusses the operating plan
- The operating plan lays out the conversion of inputs to products in a cost-effective manner.
- The operating plan consists of production activities, support activities, capacity planning, and estimating costs
Chapter 7 Overview
- The product or service offered to the public via the marketing plan is only the most visible aspect
- A range of unseen activities create the product or facilitate the service
- "Operations" includes all these behind-the-scenes activities
- Marketing presents the business's face to the world, while operations involve its internal functions
Learning Objectives
- Define the subject and goal of an operating plan
- Define and differentiate production activities from support activities
- Illustrate a production process as a process flow or flowchart
- State the goal of capacity planning and the sources of inefficiency
- Distinguish between start-up and running costs
Story from Real Life: Mystic Masala
- Mystic Masala presents a small business in Canada
- It offers handmade aromatherapy soy candles and shampoo bars that incorporate spice, herb, and flower oils
- Importing is critical to Mystic Masala's operations
- Customs brokerage fees depend greatly on the agent, so shopping around is adviseable for a cost-effective and reliable option
- There are potential savings involved in completing paperwork your self
- Quality is less ensured when shipping merchandise
- Shipping via Air cargo may be necessary to retain quality of goods
The Operating Plan
- Operations are the activities that convert inputs into outputs
- Inputs include materials, labor, and machines
- Outputs refer to the goods produced or services provided.
- The marketing plan should inform the operations plan
- Marketing ensures product and activities align with customer needs
Production Activities
- Are business activities directly related to making goods or offering services
- A process flow is a visual that maps out the steps to make a product, limited to production activities
Flowchart
- Maps out the activities and sequence of a process with symbols
- Each step is shown as a symbol with a short description
- Symbols have arrows to indicate the proper sequence of activities
Support Activities
- Help production activities without producing the goods themselves
- Are intended to aid production and add value
Capacity Planning
- Determines the production capacity needed to meet product demand
- Means scheduling the investments and resources needed to produce at a desired level over time
Start-Up Costs
- Cover putting up the production capacity of a business to begin operations
- Running costs cover recurring inputs like raw materials, supplies, rent, labor, and electricity
- Unit cost is the total cost to produce one unit of a product or service
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Chapter 7 discusses the operating plan, which outlines how inputs are converted into products cost-effectively. It covers production and support activities. It also covers capacity planning and cost estimation.
