29 Questions
What does Operations Management involve?
Designing, directing, and controlling processes to transform inputs into products and services
Which of the following is not a key skill area involved in Operations Management?
Marketing
In what way can operations be utilized as a competitive weapon?
By addressing interfunctional concerns
What are some of the strategic choices involved in Operations Management?
Quality, Capacity, Location, and Layout
Why is Operations Management considered integrally related to all other business functions?
Because it involves building relationships interorganizationally and intraorganizationally
What is the definition of a process in the context of Operations Management?
A group of activities that transforms inputs into outputs for customers
What is the primary focus of an Assemble-to-Order strategy in manufacturing?
Customization and fast delivery time
Which strategy involves manufacturers making products to customer specifications in low volumes?
Make-to-Order Strategy
What is the main objective of a Customized Services Strategy?
Provide highly individualized services in low volumes
Which of the following best describes the Assemble-to-Order strategy in services?
Packaging standardized services for specific customer needs
What distinguishes the Make-to-Order strategy from the other strategies mentioned?
Producing to customer specifications in low volumes
In the formula for multifactor productivity, what does the denominator represent?
Labor cost + Materials cost + Overhead cost
What is the main focus of Corporate Strategy?
Monitoring external environment changes
Which of the following is NOT a Competitive Priority?
Innovation
What does Flow Strategy determine?
Product variety and volume handling
What is the characteristic of Flexible Flow Strategy?
Low-volume production with high customization
'Fast delivery time' is an example of which Competitive Priority?
Time
What is the definition of labor productivity?
Ratio of output relative to labor input
In the given scenario, what is the multifactor productivity?
Ratio of output relative to a combination of inputs such as raw materials, labor and capital among others
What is the formula for labor productivity?
Total output / Total labor input
How is multifactor productivity different from labor productivity?
Multifactor productivity includes raw materials and capital in addition to labor.
What does the Great Resignation refer to?
A trend where employees are leaving their jobs in large numbers.
In the context of productivity, what does 'output relative to input' signify?
The effectiveness of converting resources into results.
What type of flow strategy involves high product or service volumes and the system must be capable of handling several customer orders at a time?
Intermediate Flow Strategy
Which organization exemplifies the Line Flow Strategy?
San Miguel Corporation Brewery
Which strategy involves firms holding items in stock for immediate delivery to minimize customer delivery times?
Make-to-Stock Strategy
What type of strategy involves providing services with little variety in high volumes?
Standardized Services Strategy
Which type of flow strategy is best suited for service facilities with standardized services, high volumes, and no face-to-face contact?
Line Flow Strategy
In which area of Landbank is there little customer contact and mainly automation used to process volumes of checks and check credit references?
The backroom
Study Notes
Operations Management Overview
- Operations Management is the systematic design, direction, and control of processes that transform inputs into products and services for internal and external customers.
- A process is any activity or group of activities that takes one or more inputs, transforms them, and provides one or more outputs for its customers.
Operations Management as a Set of Decisions
- Strategic Choices: Process, Quality, Capacity, Location, and Layout
- Operating Decisions: Addressing interfunctional concerns to be used as a competitive weapon
Operations Management as a Function
- Involves skill areas: Quantitative Methods, Organizational Behavior, General Management, Information Systems, Economics, International Business, Business Ethics, and Law
Interfunctional Imperative
- Building relationships interorganizationally and intraorganizationally
Why Study Agribusiness Operations Management?
- Operations Management is one of the major functions of organizations and is integrally related to all other business functions.
Productivity
- Ratio of output relative to input
- Labor Productivity: Ratio of output relative to labor input
- Multifactor Productivity: Ratio of output relative to a combination of inputs such as raw materials, labor, and capital
Corporate Strategy and Operations Strategies
- Corporate Strategy: Determining the organization's mission, monitoring and adjusting to changes in the external environment, and exploiting core competencies
- Operations Strategies: Plans of action presented in a more detailed manner which address the tactical strategies that in turn address the corporate strategy
Competitive Priorities
- Capabilities and strengths that the firm must possess to meet customer demand
- Cost, Quality, Time, Flexibility, Service, and Location
Flow Strategy
- Type of plan that determines how the operations system is organized to handle the volume and variety of products or services for a specific market segment
- Flexible Flow Strategy: Allows for customized, low-volume production involving high degrees of face-to-face contact
- Intermediate Flow Strategy: Lies half-way between flexible flow and line flow strategies
- Line Flow Strategy: Best utilized in service facilities involving standardized services, high volumes, and no face-to-face contact
Strategies Based on Flows
- Make-to-Stock Strategy: Firms hold items in stock for immediate delivery
- Standardized Services Strategy: Firms provide services with little variety in high volumes
- Assemble-to-Order Strategy: Producing products with many options from relatively few assemblies and components, after customer orders are received
- Make-to-Order Strategy: Manufacturers make products to customer specification in low volumes
- Customized Services Strategy: Service providers supply highly individualized services, often in low volumes
Learn how to calculate multifactor productivity using the formula: Quantity at standard cost / (Labor cost + Materials cost + Overhead cost). Explore the concepts of Corporate Strategy and Operations Strategies.
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