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Questions and Answers
What activities does operations (production) involve?
What activities does operations (production) involve?
Which of the following is NOT one of the three kinds of utility that operations processes provide for adding customer value?
Which of the following is NOT one of the three kinds of utility that operations processes provide for adding customer value?
How are companies with different business strategies best served by having different operations capabilities?
How are companies with different business strategies best served by having different operations capabilities?
What are the major factors considered in operations planning?
What are the major factors considered in operations planning?
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Which of the following is NOT an operation schedule discussed in the chapter?
Which of the following is NOT an operation schedule discussed in the chapter?
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What are the two key activities required for operations control?
What are the two key activities required for operations control?
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What is the systematic direction and control of the activities that transform resources into finished products called?
What is the systematic direction and control of the activities that transform resources into finished products called?
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Which type of system involves a low level of customer contact in service delivery?
Which type of system involves a low level of customer contact in service delivery?
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What determines where production will happen based on costs and flexibility?
What determines where production will happen based on costs and flexibility?
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Which type of operations involve activities for one-of-a-kind or custom-made production?
Which type of operations involve activities for one-of-a-kind or custom-made production?
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What represents the product’s ability to satisfy a human want or need?
What represents the product’s ability to satisfy a human want or need?
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Which managers are responsible for ensuring that operations activities create value and provide benefits to customers?
Which managers are responsible for ensuring that operations activities create value and provide benefits to customers?
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Which business strategy determines operations capabilities?
Which business strategy determines operations capabilities?
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What is the set of methods and technologies used to produce a good or a service called?
What is the set of methods and technologies used to produce a good or a service called?
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What involves determining the amount of a product that a company can produce under normal conditions?
What involves determining the amount of a product that a company can produce under normal conditions?
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What are activities for producing standardized products for mass consumption called?
What are activities for producing standardized products for mass consumption called?
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Study Notes
Operations Activities
- Involves managing the process of creating goods and services
- Includes activities related to production planning, quality control, inventory management, and supply chain management
Types of Utility
- Operations processes provide three kinds of utility: form utility, possession utility, and time utility
- Place utility is NOT one of the three kinds of utility
Operations Capabilities and Business Strategies
- Companies with different business strategies require different operations capabilities
- For example, a company with a low-cost strategy needs efficient operations, while a company with a differentiator strategy needs flexible operations
Operations Planning Factors
- Major factors considered in operations planning include forecasting, capacity planning, and supply chain management
- These factors help determine the production schedule, inventory levels, and supply chain logistics
Operations Schedule
- The following are types of operations schedules: master schedule, production schedule, and material requirements planning schedule
- The "purchase schedule" is NOT a type of operations schedule
Operations Control
- Two key activities required for operations control are monitoring and correcting
- Monitoring involves tracking performance metrics, while correcting involves taking action to correct deviations from the plan
Operations Management
- The systematic direction and control of activities that transform resources into finished products is called operations management
- Operations managers oversee the production process to ensure quality, efficiency, and customer satisfaction
Service Systems
- A low-contact system involves a low level of customer contact in service delivery
- Examples of low-contact systems include online banking and self-service kiosks
Production Location
- The location of production is determined by factors such as costs and flexibility
- Companies often locate production facilities in areas with low labor costs or proximity to suppliers
Production Systems
- Job production involves activities for one-of-a-kind or custom-made production
- Mass production involves producing standardized products for mass consumption
- Batch production involves producing small batches of products
Product Value
- The ability of a product to satisfy a human want or need is called product value
- Operations managers strive to create products that meet customer needs and provide value to customers
Operations Managers
- Operations managers are responsible for ensuring that operations activities create value and provide benefits to customers
- They oversee the production process to ensure quality, efficiency, and customer satisfaction
Business Strategy and Operations
- A company's business strategy determines its operations capabilities
- For example, a company with a low-cost strategy will require efficient operations, while a company with a differentiator strategy will require flexible operations
Production Methods
- The set of methods and technologies used to produce a good or a service is called a production method
- Examples of production methods include lean manufacturing and just-in-time production
Production Capacity
- Capacity planning involves determining the amount of a product that a company can produce under normal conditions
- This helps companies determine their production capacity and make informed decisions about resource allocation
Mass Production
- Mass production involves producing standardized products for mass consumption
- Examples of mass production include assembly-line production and continuous production
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Description
Test your understanding of chapter seven on operations management and quality from the book Business Essentials 9e by Ebert/Griffin. The quiz covers key concepts such as the meaning of production or operations, types of utility provided by operations processes, operations capabilities for different business strategies, and factors considered in operations planning.
