Operations Management Chapter 1

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38 Questions

What is the process of creating a tangible product referred to as?

Production

What is the purpose of the Control Subsystem in an Operations System?

To monitor and adjust the production process

What are the three basic components of an Operations System?

Input, Transformation, and Output

What is an example of an indirect output?

Waste

What is a pure service?

An intangible product that cannot be stored

What is the purpose of the Conversion Subsystem in an Operations System?

To convert inputs into outputs

What is an example of an external resource in an Operations System?

Market

What is the term for the process of creating a service?

Production

What is a key aspect of product design in operations management?

Product and service design

Which of the following is NOT a planning/scheduling issue?

Total Quality Management (TQM)

What is the primary goal of inventory control and management?

To minimize inventory costs

What is Just-In-Time (JIT) primarily used for?

To minimize inventory costs

What is the primary focus of Total Quality Management (TQM)?

To optimize quality assurance and control

What is the title of a person responsible for managing the transformation process?

V.P. of Operations

What is the primary basis for producing goods in a continuous production system?

Demand forecast

What is a characteristic of the production process in a continuous production system?

Inputs and outputs are homogeneous

What type of machines are used in a continuous production system?

Special-purpose automatic machines

What is a benefit of a continuous production system?

Uniform quality of output

What is a limitation of a continuous production system?

Rigidity of the system

Which of the following industries is an example of a continuous production system?

Food industry

What is a characteristic of mass production?

Production of a single product on a large scale

What is the purpose of material handling equipment in a continuous production system?

To minimize material handling costs

What is the primary focus of Operations Management activities?

Designing and improving production systems

Why is it important to study Operations Management?

To understand how to produce goods and services efficiently

What is the main difference between manufacturing and service operations?

Manufacturing involves producing tangible goods, while service operations involve intangible products

What is the role of Operations Management in an organization?

To design and improve production systems

What is the primary goal of Operations Management?

To reduce costs and improve efficiency

What are the basic components of Production/Operations systems?

Acquisition of raw materials, conversion into finished goods, and delivery to customers

What are some of the major issues in Operations Management?

Reducing costs and improving efficiency

What is the relationship between Operations Management and an organization?

Operations Management is a costly part of an organization

What is the primary characteristic of a production flow that produces a single product?

The production system is designed to produce a specific type of item.

What is the primary advantage of a highly automated system for handling materials?

It reduces work-in-progress due to continuous material flow.

Which type of production process involves breaking down raw material into different products?

Analytical Process of Production

What is the primary characteristic of the synthetic process of production?

It involves mixing of two or more materials to manufacture a product.

What is the primary characteristic of the assembling process of production?

It involves combining two or more components to manufacture a finished product.

What is the primary characteristic of batch production flows?

The production schedule is decided according to specific orders.

Which type of production process is characterized by a continuous material flow with very little work-in-progress?

Production flow producing a single product

What is a benefit of production planning and scheduling in a production flow that produces a single product?

It can be decided well in advance.

Study Notes

Introduction to Operations Management

  • Operations Management (OM) is concerned with the acquisition, conversion, and delivery of products and services.
  • OM is a crucial part of an organization as it involves managing resources, designing and operating systems, and improving processes.

Why Study Operations Management?

  • To understand how goods and services are produced and delivered.
  • OM is a costly part of an organization, and understanding it can help reduce costs.

Basic Components of OM Systems

  • Inputs: physical and non-physical resources coming into the system (e.g., materials, personnel, capital).
  • Transformation/Conversion subsystem: converts inputs into goods or services.
  • Outputs: classified as goods or services (e.g., tangible products, intangible products).
  • Control subsystem: regulates the operations system.

Organizational Functions of OM

  • OM is a diverse organizational function that manages the transformation process.
  • OM has many faces and names, such as VP of Operations, Director of Supply Chains, and Manufacturing Manager.

Major Issues in Operations Management

  • Design: product and service design, process and capacity design, facility location and layout.
  • Planning/Scheduling: forecasting, planning, and scheduling.
  • Materials management: inventory control, supply chain management, and material requirement planning.
  • Quality: quality assurance, statistical quality control, and total quality management.
  • Productivity: productivity measurement, work measurement, and analysis.
  • Maintenance: maintenance of equipment and systems.

Production Systems

  • Continuous Production System: goods are produced constantly as per demand forecast, with a large volume of output.
  • Mass Production: produces different types of products on a large scale and stocks them in warehouses.
  • Process Production Flows: produces a single product and stocks it in warehouses until it is demanded in the market.
  • Analytical Process of Production: raw material is broken into different products.
  • Synthetic Process of Production: mixing of two or more materials to manufacture a product.
  • Assembling Process of Production: combining two or more components to manufacture a finished product.
  • Batch Production: production schedule is decided according to specific orders or demand forecasts.

This quiz covers the introduction to operations management, including its definition, role, and career opportunities. It also explores the basic components of OM systems and major issues in operation management.

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