30 Questions
Operations management was known as production management before.
True
The concept of interchangeability of parts was introduced in the 18th century.
True
Henry Ford introduced the concept of 'bring work to machines.'
False
Taylorism is one of the concepts brought to life in the 1950's and 1960's related to operations management.
True
Operations management primarily focuses on the selling of products.
False
The implementation of operations management has been a practice since ancient times.
False
Operations management only focuses on manufacturing processes.
False
Profitability tracking is not a benefit of sound operations management.
False
Experienced operations managers are not skilled in monitoring revenues and expenses.
False
Competitive advantage is not related to how businesses manage their operations.
False
Forced workforce reductions, such as terminations, count towards attrition rate components.
False
Operations management does not encourage questioning existing processes and seeking new ideas.
False
Interacting with clients is not a big part of the job in most places.
False
Managers often do not look closely at consumer studies and polls.
False
Project planning is not part of project management.
False
The operations manager does not have the final say in pricing, returns, and discounts.
False
Consultants mostly work for the store or company they directly advise.
True
Consultants are always required to report to upper management on a daily basis.
False
Intellectual capital includes abilities, expertise, and knowledge that a firm has gathered over time.
True
Operations managers only consider internal factors like the state of the economy.
False
Operations management does not impact a company's competitive standing.
False
SWOT analysis involves assessing strengths, weaknesses, opportunities, and threats.
True
Manufacturing operations management does not involve changing or improving the way goods are produced.
False
Analyzing operating activities in detail helps corporate management avoid government fines and regulatory issues.
True
Operational managers do not need to ensure that financial accounting and reporting mechanisms are functional in a company.
False
A sound operational management policy is not necessary for ensuring a company has adequate computer software and hardware.
False
Operational managers are not responsible for ensuring corporate policies adhere to top leadership's stipulations.
False
Safety management is not a key challenge that operational managers must confront.
False
Dysfunctional mechanisms in financial accounting always cause a company to report accurate financial statements.
False
If a firm lacks an operational management policy, it will likely operate effectively and meet profitability goals.
False
Study Notes
Challenges in Corporate Areas
- Managers face challenges in various corporate areas, including information technology, finance, and human resources.
Financial Management Controls
- Operational managers must ensure that financial accounting and reporting mechanisms are adequate and functional to prevent inaccurate financial statements.
- Inaccurate financial statements can include balance sheets, statements of profit and loss, cash flow statements, and statements of retained earnings.
Information Technology
- A sound operational management policy ensures that a company possesses adequate computer software and hardware to meet business requirements.
- Without this policy, a firm may be unable to effectively operate and meet profitability goals.
Regulatory Compliance
- Operational managers must ensure that corporate policies and operating guidelines adhere to top leadership's stipulations, human resources procedures, and professional standards.
- These policies must also conform to industry practices and government regulations.
Safety Management
- Safety management is a key challenge that operational managers must confront when performing duties.
- Managers implement safety guidelines to prevent occupational accidents and operating losses resulting from litigation and regulatory fines.
History of Operations Management
- Operations management originated in manufacturing and was previously called production management.
- The discipline began to take shape in the 1950s and 1960s, incorporating concepts such as Taylorism, production planning, and inventory control.
Benefits of Operations Management
- Operations management focuses on the tools and techniques a manufacturing firm uses to ensure a smooth, effective production process.
- The discipline offers various benefits, including better profitability tracking, manufacturing expertise, and regulatory compliance.
Profitability Management
- Sound operations management enables corporate leadership to challenge conventional wisdom or employees' sense of what's operationally correct.
- It helps companies to question existing processes and come up with new ideas to increase sales.
Competitive Advantage
- Businesses manage their operations to understand key internal and external factors, including operating policies, intellectual capital, and the average attrition rate.
- External factors include the state of the economy and rivals' strategies.
Manufacturing Edge
- Operations management allows a manufacturing firm to change or improve the way it produces goods and stores items.
- This important benefit helps the manufacturer prevent a deterioration in debt affordability.
Negotiating Client Needs
- Interacting with clients is a significant part of the job, and client needs and requests often drive the bulk of the work.
- Managers analyze consumer studies and polls to understand customer satisfaction, sales, and spending.
Conflict Resolution
- The operations manager may be called to solve problems or resolve debates that arise amongst staff or with customers.
- This person usually has the final say in questions of pricing, returns, and discounts, and may also have firing or hiring capabilities.
Learn about how operations management helps firms improve their competitive standing by understanding internal and external conditions. Explore how external factors like the economy and competitors' strategies play a crucial role in operations management.
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