Podcast
Questions and Answers
Operations management was known as production management before.
Operations management was known as production management before.
True
The concept of interchangeability of parts was introduced in the 18th century.
The concept of interchangeability of parts was introduced in the 18th century.
True
Henry Ford introduced the concept of 'bring work to machines.'
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.
Taylorism is one of the concepts brought to life in the 1950's and 1960's related to operations management.
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Operations management primarily focuses on the selling of products.
Operations management primarily focuses on the selling of products.
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The implementation of operations management has been a practice since ancient times.
The implementation of operations management has been a practice since ancient times.
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Operations management only focuses on manufacturing processes.
Operations management only focuses on manufacturing processes.
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Profitability tracking is not a benefit of sound operations management.
Profitability tracking is not a benefit of sound operations management.
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Experienced operations managers are not skilled in monitoring revenues and expenses.
Experienced operations managers are not skilled in monitoring revenues and expenses.
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Competitive advantage is not related to how businesses manage their operations.
Competitive advantage is not related to how businesses manage their operations.
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Forced workforce reductions, such as terminations, count towards attrition rate components.
Forced workforce reductions, such as terminations, count towards attrition rate components.
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Operations management does not encourage questioning existing processes and seeking new ideas.
Operations management does not encourage questioning existing processes and seeking new ideas.
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Interacting with clients is not a big part of the job in most places.
Interacting with clients is not a big part of the job in most places.
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Managers often do not look closely at consumer studies and polls.
Managers often do not look closely at consumer studies and polls.
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Project planning is not part of project management.
Project planning is not part of project management.
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The operations manager does not have the final say in pricing, returns, and discounts.
The operations manager does not have the final say in pricing, returns, and discounts.
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Consultants mostly work for the store or company they directly advise.
Consultants mostly work for the store or company they directly advise.
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Consultants are always required to report to upper management on a daily basis.
Consultants are always required to report to upper management on a daily basis.
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Intellectual capital includes abilities, expertise, and knowledge that a firm has gathered over time.
Intellectual capital includes abilities, expertise, and knowledge that a firm has gathered over time.
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Operations managers only consider internal factors like the state of the economy.
Operations managers only consider internal factors like the state of the economy.
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Operations management does not impact a company's competitive standing.
Operations management does not impact a company's competitive standing.
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SWOT analysis involves assessing strengths, weaknesses, opportunities, and threats.
SWOT analysis involves assessing strengths, weaknesses, opportunities, and threats.
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Manufacturing operations management does not involve changing or improving the way goods are produced.
Manufacturing operations management does not involve changing or improving the way goods are produced.
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Analyzing operating activities in detail helps corporate management avoid government fines and regulatory issues.
Analyzing operating activities in detail helps corporate management avoid government fines and regulatory issues.
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Operational managers do not need to ensure that financial accounting and reporting mechanisms are functional in a company.
Operational managers do not need to ensure that financial accounting and reporting mechanisms are functional in a company.
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A sound operational management policy is not necessary for ensuring a company has adequate computer software and hardware.
A sound operational management policy is not necessary for ensuring a company has adequate computer software and hardware.
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Operational managers are not responsible for ensuring corporate policies adhere to top leadership's stipulations.
Operational managers are not responsible for ensuring corporate policies adhere to top leadership's stipulations.
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Safety management is not a key challenge that operational managers must confront.
Safety management is not a key challenge that operational managers must confront.
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Dysfunctional mechanisms in financial accounting always cause a company to report accurate financial statements.
Dysfunctional mechanisms in financial accounting always cause a company to report accurate financial statements.
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If a firm lacks an operational management policy, it will likely operate effectively and meet profitability goals.
If a firm lacks an operational management policy, it will likely operate effectively and meet profitability goals.
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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.
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Description
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.
