Operations Management Basics

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Questions and Answers

What is the primary objective of customer service in operations management?

To maximize profit

To reduce costs

To provide the right thing at the right price at the right time (correct)

To minimize resource utilization

What is the main goal of strategic planning in operations management?

To reduce costs

To minimize resource waste

To maximize profit

To create a vision for the future (correct)

What is resource utilization in operations management?

The process of reducing costs

The process of creating a vision for the future

The process of obtaining maximum effect from resources (correct)

The process of minimizing resource waste

What is the primary concern of Operations Management?

Conversion of inputs into outputs using physical resources Signup and view all the answers

What is the secondary goal of operations management?

Economy and efficiency of conversion operations Signup and view all the answers

What is the term that describes the organizational culture and the extent to which it motivates and satisfies employees?

Quality of Work Life Signup and view all the answers

What is the role of operations management in achieving organizational goals?

To support the primary goals of the organization Signup and view all the answers

What is the objective of process control in operations management?

To add value to products or services Signup and view all the answers

What is the long-term capacity decision that involves a long-term commitment about the geographically static factors that affect a business organization?

Location of Facilities Signup and view all the answers

What is the relationship between operations management and market opportunities?

Operations management supports market opportunities Signup and view all the answers

What is the configuration of departments, work centres and equipment in the conversion process?

Plant Layout and Material Handling Signup and view all the answers

What deals with the conversion of ideas into reality?

Product Design Signup and view all the answers

What is the focus of operations management?

Resources flow within a defined system Signup and view all the answers

What are the managerial skills of a manager that benefit an organization?

Managerial Factors Signup and view all the answers

What is the overall objective of the plant layout?

To design a physical arrangement that meets the required output quality and quantity most economically Signup and view all the answers

What are some of the functions of Operations Management?

Location of facilities, Plant layouts and Material Handling, Product Design, Process Design, Production and Planning Control, Quality Control, Materials Management, and Maintenance Management Signup and view all the answers

What is the primary objective of Production Planning and Control?

To plan and control production activities in advance Signup and view all the answers

What is the main function of Product Development?

To translate customer needs into technical specifications Signup and view all the answers

What is the primary focus of Process Design?

To select the overall process route for converting raw material into finished goods Signup and view all the answers

What is the main goal of Planning in Production Planning and Control?

To decide in advance what to do, how to do it, when to do it, and who is to do it Signup and view all the answers

What is the primary function of Routing in Production Planning and Control?

To select the path for each part of the product Signup and view all the answers

What is the primary objective of Scheduling in Production Planning and Control?

To determine the production schedule Signup and view all the answers

What is the main benefit of Production Planning and Control?

To make it possible for things to occur which would not otherwise happen Signup and view all the answers

What is the primary focus of Organizational Design in Production Planning and Control?

To design the overall organizational structure Signup and view all the answers

Study Notes

Managerial Factors

Managerial factors refer to the unique planning and managerial skills of an organization's manager.

Quality of Work Life

Quality of work life is a term that describes an organization's culture and its ability to motivate and satisfy employees.

Scope of Operations Management

Operations management is concerned with the conversion of inputs into outputs using physical resources.
It aims to provide desired utilities to customers while meeting other organizational objectives of effectiveness, efficiency, and adaptability.

Operations Management Functions

Location of facilities
Plant layouts and material handling
Product design
Process design
Production and planning control
Quality control
Materials management
Maintenance management

Location of Facilities

Location of facilities is a long-term capacity decision involving a long-term commitment to geographically static factors.
It is an important strategic level decision-making process for an organization.

Plant Layout and Material Handling

Plant layout refers to the physical arrangement of facilities in the conversion process.
The overall objective of plant layout is to design a physical arrangement that meets the required output quality and quantity most economically.

Product Design

Product design deals with the conversion of ideas into reality.
It involves enhancements made by a company/individual to a product or service before offering it for sale to the end customer.

Operations Management Objectives

Operations management objectives can be categorized into customer service and resource utilization.

Customer Service

The primary objective of operating systems is to utilize resources for the satisfaction of customer wants.
Customer service involves providing the right thing at the right price at the right time.

Resource Utilization

Resource utilization involves obtaining maximum effect from resources or minimizing their loss, underutilization, or waste.
The extent of resource utilization can be expressed in terms of the proportion of available time used, space utilization, and levels of activity.

The Strategic Role of Operations

The primary goals of organizations are related to market opportunities.
Economy and efficiency of conversion operations are secondary goals.

Strategic Planning

Strategic planning is the process of thinking through the current mission of the organization and the current environmental conditions.
It involves setting forth a guide for tomorrow's decisions and results.

Process Design

Process design involves macroscopic decision-making of an overall process route for converting raw materials into finished goods.
It includes the selection of a process, choice of technology, process flow analysis, and layout of facilities.

Production Planning and Control

Production planning and control involves planning the production in advance, setting the exact route of each item, and fixing the starting and finishing dates.
Its main functions include planning, routing, scheduling, dispatching, and follow-up.

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Description

Learn about the key concepts in operations management, including managerial factors, quality of work life, and the scope of operations management. Understand how these factors impact an organization's success.