Questions and Answers
What is operation management?
The set of activities that creates value in the form of products by transforming inputs into outputs.
What are the three functions that organizations perform to create goods and services?
Marketing, Production/Operation, Finance/Accounting.
Which of the following refers to tangible products?
Operations management applies only to manufacturing firms.
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What does TQM stand for?
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What is the main focus of Total Quality Management?
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What is defined as 'fitness for use'?
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The supply chain is a global network of organizations and activities that supplies a firm with _____ and _____ .
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Which of the following is NOT one of the basic functions of management that operations managers perform?
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What does the dimension of product quality generally encompass?
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Study Notes
Operation Management
- Encompasses activities that create value by transforming inputs into outputs.
- Applicable across various productive enterprises, including offices, hospitals, and factories.
- Efficiency in producing goods/services relies on effective OM techniques.
Production
- Involves creation of Goods (tangible products) and Services (intangible products).
- Production activities for goods are evident, while those for services may not be visible to customers.
- Often referred to in organizations as operations management.
Organizing to Produce Goods and Services
- Three essential functions for creating goods/services:
- Marketing: Generates demand and takes orders.
- Production/Operations: Creates the products.
- Finance/Accounting: Monitors organizational performance and manages funds.
The Supply Chain
- A global network supplying firms with goods/services, relying on various suppliers.
- Value is created through collaboration between marketing, operations, and finance.
- Efficient collaboration within the supply chain leads to customer satisfaction and competitive advantage.
Importance of Studying OM
- Understanding how organizations achieve productivity.
- Learning production processes of goods and services.
- Gaining insights into the role of operation managers.
- Recognizing OM as a significant cost factor within organizations.
Functions of Operations Managers
- Core management functions include:
- Planning
- Organizing
- Staffing
- Leading
- Controlling
- Focuses on strategic design elements in OM, including quality management and supply chain management.
Total Quality Management (TQM)
- Customer-oriented philosophy emphasizing quality to achieve customer satisfaction.
- Involves all organizational members in continuous improvement efforts.
- Concerns product quality, process control, and quality assurance/enhancement.
Quality Definition
- Described as "Fitness for use," encompassing the attributes that influence a product's ability to meet specified needs.
- Governed by standards such as ISO 9000, established by the International Organization for Standardization.
Chain Reaction in Quality Improvement
- Enhancing quality leads to increased productivity by reducing defects and non-value-adding activities.
Dimensions of Quality
- Product Quality Attributes: Functionality refers to the presence of certain attributes that fulfill specified functions.
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Description
This quiz covers Chapter 1 of Operation Management, focusing on key concepts such as operation management, supply chain, and Total Quality Management (TQM). It explores the significance of production and the roles of operation managers in delivering goods and services effectively.
