Operations and Supply Chain Management Quiz

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Questions and Answers

What is a significant disadvantage of a functional layout?

High work-in-progress (correct)

High flexibility

Efficient flow

Low unit costs

Which layout type is characterized by a flexible and robust response to disruptions?

Fixed-position layout

Functional layout (correct)

Cell layout

Product layout

What advantage does a product layout primarily offer?

High flexibility

Low unit costs (correct)

Cost-effective rearrangements

Balanced cost and flexibility

Which performance objective focuses on minimizing throughput time?

Speed Signup and view all the answers

What is a primary disadvantage of a cell layout?

Lower equipment utilization Signup and view all the answers

Which performance objective is concerned with the consistency of output timing and volume?

Dependability Signup and view all the answers

Which layout type is typically costly to rearrange?

Cell layout Signup and view all the answers

Which key objective of process design aims to eliminate waste such as delays and errors?

Cost Signup and view all the answers

What is the primary goal of aligning operations capabilities with market requirements?

To achieve strategic needs for competition Signup and view all the answers

During which stage of product and service design are ideas evaluated for feasibility and acceptability?

Concept Screening Signup and view all the answers

What is the role of Quality Function Deployment (QFD) in the design process?

To support evaluation and improvement of designs Signup and view all the answers

Why is early resolution of design issues critical in the product development process?

It prevents costly disruptions later on. Signup and view all the answers

Which of the following statements best describes the relationship between product/service design and process design?

They are interconnected and should evolve together. Signup and view all the answers

What is the significance of utilizing simultaneous processes in design?

They allow for faster time-to-market and greater innovation. Signup and view all the answers

Which of the following is NOT one of the five key performance areas that a process must optimize?

Creativity Signup and view all the answers

What is the primary purpose of transforming ideas into tangible systems in product design?

To deliver products that meet customer requirements while considering resources Signup and view all the answers

What is one of the long-term solutions that SUBWAY considered to address its supply chain issues?

Vertical integration Signup and view all the answers

Which method involves maintaining a constant capacity to manage demand fluctuations?

Level Capacity Signup and view all the answers

What does OEE stand for in the context of capacity management?

Operating Equipment Effectiveness Signup and view all the answers

What are typical causes of seasonality in demand fluctuations?

Behavioral and climatic factors Signup and view all the answers

Which of the following best describes the objective of capacity planning?

Align capacity with demand while minimizing costs and risks Signup and view all the answers

What is a common disadvantage of holding inventory?

Potential obsolescence Signup and view all the answers

Which approach involves changing the nature or timing of demand to manage capacity?

Demand Management Signup and view all the answers

What is the formula for calculating Operating Equipment Effectiveness (OEE)?

OEE = Availability × Performance × Quality Signup and view all the answers

What does flexibility in process management primarily allow for?

Rapid adaptation to changes in product range or volume. Signup and view all the answers

Which metric represents the number of units passing through a process per time unit?

Throughput Rate Signup and view all the answers

What is the purpose of process mapping?

To visualize process flows and identify inefficiencies. Signup and view all the answers

According to Little's Law, how is throughput time calculated?

Throughput Time equals Work-In-Progress times Cycle Time. Signup and view all the answers

Which of the following describes Work-In-Progress (WIP)?

The average number of items currently within the process. Signup and view all the answers

What type of process has greater control over flow and lower capital requirements?

Long-Thin Processes Signup and view all the answers

What does throughput efficiency measure?

The effectiveness of work content relative to throughput time. Signup and view all the answers

Which symbol is typically used in process mapping to represent a decision?

Diamond Signup and view all the answers

What is the primary focus of strategy in an organization?

Broad objectives and long-term goals Signup and view all the answers

Which perspective in operations strategy is driven by the needs of the market?

Market Requirements Signup and view all the answers

What distinguishes operations management from operations strategy?

Management deals with detailed tasks, while strategy involves overarching paths Signup and view all the answers

Which of the following correctly describes 'Order-Winning Factors'?

Differentiators that win customers' preference Signup and view all the answers

Which stage in the Four-Stage Model of Operations Contribution focuses on linking strategy to operations?

Internally Supportive Signup and view all the answers

What is the role of corporate strategy within the strategy hierarchy?

Sets the overall business scope and resource allocation Signup and view all the answers

What is the primary focus of operations strategy?

Aligning operational activities with the business strategy Signup and view all the answers

Which of the following best describes a bottleneck in a process?

The most overloaded stage limiting overall capacity Signup and view all the answers

Which of the following is NOT considered a key competitive factor?

Brand loyalty Signup and view all the answers

What does a precedence diagram help with in operations?

Optimizing flow and allocating workloads efficiently Signup and view all the answers

In which perspective does operational experience primarily influence the strategy?

Bottom-Up Signup and view all the answers

Which of the following is NOT a key metric in operations performance?

Market share Signup and view all the answers

What is essential for effective capacity management?

Ensuring appropriate resources are available to meet demand Signup and view all the answers

How can queuing theory be applied in capacity management?

To plan for customer wait times and resource allocation Signup and view all the answers

What does 'P&S Innovation' focus on in the design process?

Product and service innovations integration into design Signup and view all the answers

Which chapter focuses on quality management practices within operations?

Develop Signup and view all the answers

Study Notes

Operations and Supply Chain Management at Prêt a Manger

Prêt a Manger is a high-end sandwich and snack retailer which emphasizes wholesome ingredients.
Each shop prepares fresh sandwiches daily, receiving ingredients early each morning.
A focus on work-life balance, a casual atmosphere, and approachability characterizes their staff culture.

Core Functions at Prêt a Manger

Product/Service Development: Designing and developing the nutritional, mechanical, and aesthetic aspects of food and snacks.
Marketing: Promotional activities, market research, and customer engagement strategies.
Operations: Store design, process management, and logistics for maintaining high-quality service.

Operations Management

Defined as the efficient management of resources for producing and delivering products or services.
Key components are inputs, processes, and outputs.
- Inputs: Ingredients, packaging, equipment, and staff.
- Processes: Transformation into fresh products (maintaining quality and speed).
- Outputs: Satisfied customers.

Performance Objectives of Operations

Quality: Consistency in product excellence.
Speed: Fast service for customer satisfaction.
Dependability: Timely delivery of promises.

Key Traits of Great Operations Managers

Focused on action and results.
Strong customer understanding.
Effective communication and motivation skills.
Lifelong learning and innovation-driven.
Analytical, resilient, and capable under pressure.

Strategy

Broad Objectives: Guiding the enterprise toward overall goals.
General Path Planning: Focusing on overarching paths to achieve objectives.
Long-Term Focus: Emphasizing enduring goals over short-term gains.
Holistic Perspective: Addressing the organization as a whole.
Detached Approach: Remaining above daily operational distractions.

Operations vs. Operational

Operations: Resources creating products/services.
Operational: Detailed, short-term, and daily aspects.

Operations Strategy vs. Operations Management

Timeframe: Management (1–12 months), Strategy (1–10 years).
Scope: Management focuses on micro-processes; Strategy on the macro view of total operations.

Four-Stage Model of Operations Contribution

Internally Neutral: Correcting worst problems.
Externally Neutral: Adopting best practices.
Internally Supportive: Linking strategy to operations.
Externally Supportive: Redefining industry expectations.

Four Perspectives on Operations Strategy

Top-Down: Driven by business goals.
Bottom-Up: Emerges from operational experience.
Market Requirements: Based on competitive needs.
Operations Resources: Leveraging internal capabilities.

Strategy Hierarchy

Corporate Strategy: Determines overall business scope and resource allocation.
Business Strategy: Defines mission, strategic objectives, and approach.
Functional Strategy: Aligns assets and skills for achieving objectives.

Competitive Factors and Performance Objectives

Key competitive factors: Low price, high quality, fast delivery, innovation, and flexibility.

Matching Performance Objectives

Cost, quality, speed, dependability, and flexibility.

Strategic Reconciliation

Aligning operations capabilities with market requirements to achieve strategic needs.

Effective Operations Strategy

Appropriate, comprehensive, coherent, and consistent over time.

Key Questions Addressed

Product and service design/innovation
Importance of product/service and process design interaction
Stages of product/service design/innovation.
How product/service and process design interact

Design and Innovation Process

Concept Generation: Sources include customers, competitors, staff, and R&D.
Concept Screening: Evaluating feasibility, acceptability, and vulnerabilities.
Preliminary Design: Defining initial structure and functionality.
Evaluation and Improvement: Final adjustments and specifications.

Process Design - Resources

Transforming ideas into tangible systems for product/service delivery.
Meeting customer requirements while considering available resources and environmental factors.

Objectives of Process Design

Quality: Error-free processing and meeting product/service specifications.
Speed: Minimizing throughput time to match demand.
Dependability: Reliable and consistent output timing and volume.
Flexibility: Adapting processes to changing product, service, or volume needs.
Cost: Eliminating process waste through efficiency.

Process Flow Performance Metrics

Throughput Rate: Units processed per time unit.
Cycle Time: Time between consecutive items emerging from the process.
Throughput Time: Total time for inputs to become outputs.
Work-in-Progress (WIP): Average number of items in the process.
Utilization: Percentage of available time resources actively performing useful work.

Process Mapping

Visual representation of process flows using standardized symbols to show activities and interrelationships.
Helps identify bottlenecks, inefficiencies, and opportunities for improvement.

Little's Law

Formula: Throughput Time = Work-in-Progress × Cycle Time.
Applications include calculating efficiency, resource needs, and optimizing throughput.

Long-Thin vs. Short-Fat Processes

Long-Thin: Greater control over flow, simplified handling, lower capital requirements.
Short-Fat: Greater flexibility, higher efficiency, and space utilization.

Bottlenecks and Precedence

Bottleneck: The most overloaded stage, limiting overall capacity.
Precedence Diagram: Arranging tasks to optimize flow and allocate workloads efficiently.

Inventory Management

Definition: Stock maintained to bridge the supply-demand gap.
Reasons for Holding Inventory: Buffer against random demand, allow bulk buying, secure production, and manage unexpected fluctuations.
Disadvantages: Storage costs, potential obsolescence, overstocking risks.
Inventory Management and Control: Strategies for managing stock levels, order fulfillment, and inventory systems.
Determining How Much Inventory to Hold: Classification as Class A (high-value), Class B (medium-value), and Class C (low-value), using the quantity needed per each.
Replenishment Timing: Methods include continuous and periodic review, factors such as reorder levels, safety stock, and lead times and their impacts.

Inventory Management Costs

Ordering Cost: Administrative, invoicing, ordering costs.
Holding Cost: Storage, handling, obsolescence, and financial costs.
Economic Order Quantity (EOQ): Minimizing total costs by balancing ordering and holding costs.

Replenishment Approaches

Continuous Review: Monitor stock levels continuously, ordering when reaching the reorder level.
Periodic Review: Reviewing inventory at fixed intervals and adjusting order quantity to a desired maximum.

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Description

Test your knowledge on the operations and supply chain management practices at Prêt a Manger. This quiz covers aspects of product development, marketing strategies, and efficient resource management. Dive into the core functions that drive the success of this high-end sandwich retailer.