Questions and Answers
What is operation management?
Operation management is the set of activities that creates value in the form of products by transforming inputs into outputs.
Which of the following are functions necessary for creating goods and services? (Select all that apply)
What does TQM stand for?
Total Quality Management
All goods managers perform the same basic functions of the management process.
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What is the definition of quality according to ISO 9000?
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Why is it important to study operation management?
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What is the primary focus of Total Quality Management?
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The three main functions for producing goods and services are marketing, production/operation, and ______.
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What is a supply chain?
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Study Notes
Operation Management (OM)
- Set of activities transforming inputs into outputs, creating value through products.
- Applicable in various sectors: offices, hospitals, restaurants, department stores, and factories.
- Essential for efficient production of goods and services through effective concepts, tools, and techniques.
Organizing to Produce Goods and Services
- Organizations perform three key functions:
- Marketing: Generates demand and takes orders.
- Production/Operation: Creates the product.
- Finance/Accounting: Tracks financial health, pays bills, and collects revenue.
Supply Chain
- Global network of organizations and activities supplying goods and services.
- Collaboration within the supply chain enhances customer satisfaction and creates competitive advantages.
- Relies on various suppliers for raw materials and services.
Importance of Studying OM
- Understands how organizations organize for productivity.
- Reveals how goods and services are produced.
- Clarifies the roles of operation managers.
- Highlights OM as a significant cost factor in organizations.
Operations Managers' Functions
- Core management processes:
- Planning
- Organizing
- Staffing
- Leading
- Controlling
- Focus on strategic OM design including:
- Design of goods and services
- Quality management
- Process and capacity design
- Location strategy
- Human resources management
- Supply chain management
- Scheduling
- Maintenance
Total Quality Management (TQM)
- Customer-oriented philosophy emphasizing quality for customer satisfaction.
- Involves all organization members aiming for product quality, process control, and continuous improvement.
- Focuses on achieving customer delight through systematic improvements.
Quality
- Defined as "Fitness for use" relating to the features and characteristics of a product/service that satisfy a need.
- Based on ISO 9000 standards, promoting consistent quality measures.
Chain Reaction of Quality
- Quality improvements lead to enhanced productivity by eliminating defects and non-value adding activities, freeing up resources and capacity.
Dimensions of Quality
- Product quality encompasses attributes that determine functionality and effectiveness of a product or service.
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Description
This quiz covers the fundamental concepts of operation management, including productivity, supply chain management, and the principles of Total Quality Management (TQM). It explores the reasons for studying operation management and the role of operation managers. Test your knowledge on the dimensions of quality and associated costs in production.
