39 Questions
What kind of skills will students attain in Operations Management related to planning and time management?
Planning and time management in scheduling deadlines, monitoring important production milestones, and ensuring teams finish projects within specific deadlines.
What factors can students analyze using the acquired skills in Operations Management to solve problems for optimization of results from operating actions?
Relevant factors
Students will develop a fair understanding of the requirements to provide strategic leadership in an organization. (True/False)
True
Students will be able to apply various management tools and frameworks for continuous evaluation of present realities and emerging dimensions of external and internal business environment and prepare a ______ analyses report.
SWOTC
When was the Institute of Cost Accountants of India set up under an Act of Parliament?
1959
What is the vision of the Institute of Cost Accountants of India?
To be the preferred source of resources and professionals for the financial leadership of enterprises globally.
The Institute of Cost Accountants of India is the largest Cost & Management Accounting body in the world.
False
The motto of the Institute includes 'From ignorance, lead me to truth. From darkness, lead me to light. From death, lead me to ______. Peace, Peace, Peace.'
immortality
Match the following sections in Paper 9 with their respective weightage:
Section A: Operations Management = 60% Section B: Strategic Management = 40%
What does Operations Management (OM) encompass?
All of the above
Define the primary objectives of operations management.
Customer service and resource utilization
Operations managers must balance the objectives of customer service and _____________.
resource utilization
Effective resource utilization is not a major objective of operations management.
False
Match the following Production and Operations Management functions with their activities:
Location of facilities = Determining where facilities should be located Plant layouts and Material Handling = Organizing the layout of the plant for efficient material movements Product Design = Creating the design for new products Process Design = Designing the processes for manufacturing Production Planning and Control = Planning and managing the production process Quality Control = Ensuring high quality standards in products Materials Management = Managing the flow of materials and inventory Maintenance Management = Ensuring proper maintenance of machinery and equipment
What is the first question a manufacturing company like xyz Ltd needs to answer when making important decisions?
What to produce?
Which department within an organization often provides input on the quantity to be produced on a daily, weekly, monthly, quarterly, and yearly basis?
Marketing team
Which of the following are considered major decision areas in operations management? (Select all that apply)
Quality Management
What is the process of making a prediction about future happenings and/or requirements based on available information and evidence?
Forecasting
What are some examples of sources used for demand forecasting?
All of the above
Qualitative methods of forecasting involve surveying buyer's intentions and user's expectations.
True
Forecasting is done on ______, ______, and ______ basis.
short, medium, long
What is the definition of production capacity?
The maximum rate of production a facility is capable of
List some factors that contribute to determining the effective capacity of a firm.
Facilities (design, location, layout, and environment), product design, process capabilities, human factors, operational factors, external factors.
Capacity of a plant is usually expressed as the rate of output in terms of units produced per ______.
period of time
Capacity planning is not necessary when an organization decides to introduce new products into the market.
False
What is the next step after finding St2 and St?
Find MSE
What is the equation for Model 2 that is used for odd term MA?
yt = a + bt + ct2
How is the equation Log10(yt) = log10(a) + tlog10(b) represented in another form?
yt = A + Bt
What is the General form of a multiplicative model?
y1 = T × S × I
What are the key objectives of capacity management?
To match the level of operations to the level of demand
What are the types of capacity planning mentioned in the text?
Both long-term and short-term
Define capacity in the context of operations management.
Capacity is the rate of productive capability of a facility, usually expressed as volume of output per period of time.
Capacity planning is concerned with matching the level of operations to the level of __________.
demand
Short-term capacity plans cover a time horizon of more than two years.
False
What is the purpose of consolidating individual salesmen's estimates in sales forecasting?
To find out the total estimated sales for the upcoming session.
Which method involves seeking opinions from executives of different fields like marketing, finance, and production for forecasting?
Group executive judgement method
Forecasting based on experts' opinions involves collecting opinions from specialists within the organization.
False
In the causal model for demand forecasting, Dt = f(F1, F2...Fn), where Dt represents ______ for period t.
Demand
Match the following components with their descriptions in the time series analysis:
Trend = Indicator of long term movements Seasonality = Rhythmic, regular & periodic variations Cyclical = Oscillatory movement generally spanning over more than 1 year Irregular = Random, unpredictable, uncontrollable
Study Notes
About the Institute
- The Institute of Cost Accountants of India is a Statutory Body set up under an Act of Parliament in 1959.
- The Institute regulates the profession of Cost and Management Accountancy, enrolls students, provides coaching facilities, organizes professional development programs, and undertakes research programs.
Vision, Mission, and Motto
- Vision Statement: The Institute of Cost Accountants of India would be the preferred source of resources and professionals for the financial leadership of enterprises globally.
- Mission Statement: Cost and Management Accountant professionals would ethically drive enterprises globally by creating value to stakeholders in the socio-economic context through competencies drawn from the integration of strategy, management, and accounting.
- Motto: From ignorance, lead me to truth; From darkness, lead me to light; From death, lead me to immortality; Peace, Peace, Peace.
Operations Management and Strategic Management
- The syllabus comprises two sections: Operations Management and Strategic Management.
- Section A: Operations Management (60% weightage) covers topics such as Operation Management, Operations Planning, Designing of Operational System and Control, Production Planning and Control, Productivity Management and Quality Management, Project Management, and Economics of Maintenance and Spares Management.
- Section B: Strategic Management (40% weightage) covers topics such as Introduction, Strategic Analysis and Strategic Planning, Formulation and Implementation of Strategy, and Digital Strategy.
Learning Objectives
- CMA Course Learning Objectives (CMLOs) include interpreting and appreciating emerging national and global concerns, acquiring skill sets for critical thinking and analysis, developing an understanding of strategic, financial, cost, and risk-enabled performance management, and designing the optimal approach for management of legal, institutional, regulatory, and ESG frameworks.
Paper 9: Operations Management and Strategic Management
- The paper aims to provide students with a critical understanding of the scope and strategic importance of operations management, various tools and techniques for operations planning and designing, and production planning and control.
- The paper also covers different aspects of strategy formulation and implementation in an organization, contemporary issues such as digital and social marketing strategies, and their impact on an organization's competitive advantage.### Operations Management
- Operations Management (OM) encompasses all organizational activities that acquire raw materials, process or convert them into consumable products and services to meet customer needs.
- OM deals with both tangible products and intangible services.
- Examples of OM include:
- Procuring raw materials, assembling and mounting components, testing, quality checking, and storing and distributing products.
- Dealing with movie-makers to get transmission rights, making movies available in a database, and arranging for live streaming or recorded transmission.
Objectives of Operations Management
- Objectives of OM can be categorized into two:
- Customer Service
- Providing goods or services that meet customer specifications, cost, and timing.
- Customer service is a key objective of OM.
- Resource Utilization
- Utilizing resources effectively to achieve customer satisfaction.
- OM is concerned with minimizing waste, underutilization, or loss of resources.
- Customer Service
Scope of Operations Management
- OM concerns the conversion of inputs into outputs using physical resources to provide desired utilities to customers while meeting organizational objectives.
- OM distinguishes itself from other functions by its primary concern for "conversion using physical resources".
- Activities under OM include:
- Location of facilities
- Plant layouts and material handling
- Product design
- Process design
- Production planning and control
- Quality control
- Materials management
- Maintenance management
Product Design
- Product design is an important aspect of OM, involving decisions on what to produce and how to produce it.
- It involves understanding customer needs, competitive positioning, and product acceptability in the market.
- Product design is linked to the product life cycle and technology requirements.
Production Planning and Control
- Production planning and control involve deciding how much to produce, when to produce, and how to produce it.
- It involves demand forecasting, aggregate planning, inventory management, and master production scheduling.
Quality Control
- Quality control is an important aspect of OM, ensuring that products meet customer specifications and quality standards.
- It involves inspecting and testing products, and implementing corrective actions to ensure quality.
Materials Management
- Materials management involves sourcing, procuring, and managing materials and inventory.
- It involves managing inventory levels, lead times, and supply chain logistics.
Maintenance Management
- Maintenance management involves ensuring that machines and equipment are in good working condition to produce desired results.
- It involves scheduling maintenance, performing routine maintenance, and repairing or replacing equipment as needed.### Logistics Issues
- Reverse logistics is a crucial decision area in sustainable organizations, involving the taking of returns.
- The major decision areas in logistics are:
- Product selection
- Facility location selection
- Demand forecasting
- Process selection and layout decision
- Capacity planning
- Aggregate planning, master production scheduling
- Materials requirement planning (MRP), manufacturing resource planning (MRP I), distribution resource planning (DRP), enterprise resource planning (ERP)
- Inventory management
- Supplier selection and sourcing
- Process management
- Quality management
- Maintenance
- Warehousing and transportation
- Reverse logistics
Characteristics of Modern Operations Functions
- Four key features of modern production systems:
- Manufacturing as a competitive advantage
- Service orientation
- Disappearance of smokestacks
- Small has become beautiful
Recent Trends in Production and Operations Management
- Modern operations management is characterized by:
- Technological development
- Shorter product life cycle
- Changing customer needs and preferences
- Disruptions and pressure for innovation
- Globalization
- Requirement for supreme service at an affordable price
- Pressure for optimization of operational cost
- Recent trends in production and operations management:
- Global marketplace
- Production/operations strategy
- Total quality management (TQM)
- Flexibility
- Time reduction
- Technology
- Worker involvement
- Re-engineering
- Environmental issues
- Corporate downsizing (or right sizing)
- Supply-chain management
- Lean production
Operations Planning
- Operations planning involves:
- Demand forecasting
- Capacity planning
- Facility location and layout
- Resource aggregate planning
- Material requirements planning
- Manufacturing resource planning
- Economic batch quantity
Demand Forecasting
- Demand is the requirement and desire of consumers to purchase products and services, and their willingness and ability to pay for them.
- Forecasting is the process of making predictions about future happenings and/or requirements based on available information and evidence.
- Why do we need to forecast demand?
- To perform production/service planning
- To take inventory decisions
- To decide on facility selection and process design
- To select appropriate technology
- To plan for fund requirement and manpower planning
- Sources of information for forecasting:
- Market reports
- Sales force opinion
- Experts' views
- Industry reports
- Point of sales data
- Structured customer surveys
- Field reports
- Range of period:
- Short-range forecasting (1-3 months)
- Medium-range forecasting (3-6 months)
- Long-range forecasting (1-5 years)
- Steps in forecasting:
- Determine the objective of the forecast
- Select the period over which the forecast will be made
- Select the method to be used for making the forecast
- Gather information to be used in the forecast
- Make the forecast
- Forecasting methods:
- Qualitative methods
- Quantitative methods
- A. Qualitative methods:
- Survey of buyer's intentions or user's expectation method
- Collective opinion or sales force composite method
- Group executive judgment or executive judgment method
- Experts' opinions
- Market test method
This quiz is based on the Operations Management and Strategic Management paper of The Institute of Cost Accountants of India. It will test your knowledge of cost accounting and management concepts.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
