Podcast
Questions and Answers
What does competing based on cost primarily involve?
What does competing based on cost primarily involve?
- Offering products at a low price relative to competitors (correct)
- Focusing on innovative designs regardless of cost
- Providing extensive customer service alongside low prices
- Offering high-quality products at low prices
What is the role of operations strategy in relation to competitive priorities?
What is the role of operations strategy in relation to competitive priorities?
- To develop a plan that supports chosen competitive priorities (correct)
- To focus solely on innovative product features
- To set prices without regard to market conditions
- To minimize all costs regardless of competition
How can a low-cost strategy affect profit margins?
How can a low-cost strategy affect profit margins?
- It can lead to higher profit margins even at competitive prices (correct)
- It is only effective in niche markets
- It consistently results in lower profit margins
- It requires significantly higher operational costs
Which competitive priority requires operations managers to understand the market situation?
Which competitive priority requires operations managers to understand the market situation?
What characteristic might NOT be associated with a company competing on cost?
What characteristic might NOT be associated with a company competing on cost?
What does product design primarily involve?
What does product design primarily involve?
Which of the following is NOT a key aspect of product design?
Which of the following is NOT a key aspect of product design?
How does product design relate to consumer response?
How does product design relate to consumer response?
What is a distinguishing factor between service design and goods design?
What is a distinguishing factor between service design and goods design?
Which professionals are involved in the product design process?
Which professionals are involved in the product design process?
In addition to physical products, what else is included in product design?
In addition to physical products, what else is included in product design?
Why is product design considered exciting and creative?
Why is product design considered exciting and creative?
Which of the following statements about product design is true?
Which of the following statements about product design is true?
What is a distinguishing feature of service design compared to product design?
What is a distinguishing feature of service design compared to product design?
Which of the following steps is NOT part of the product design process?
Which of the following steps is NOT part of the product design process?
What role does marketing play in product design?
What role does marketing play in product design?
How often do companies need to innovate and release new products?
How often do companies need to innovate and release new products?
Which of the following represents a potential source of product ideas?
Which of the following represents a potential source of product ideas?
In which aspect does the service design of Canyon Ranch differ from that of Gold's Gym?
In which aspect does the service design of Canyon Ranch differ from that of Gold's Gym?
The design process is described as circular because:
The design process is described as circular because:
What is a critical factor for companies in product development in some industries, such as the auto industry?
What is a critical factor for companies in product development in some industries, such as the auto industry?
What primarily influences the volume produced in intermittent operations?
What primarily influences the volume produced in intermittent operations?
Which of the following is an example of a standardized product?
Which of the following is an example of a standardized product?
What is a characteristic of project processes?
What is a characteristic of project processes?
Which of the following distinctions is used to categorize processes?
Which of the following distinctions is used to categorize processes?
What is typical for repetitive operations compared to intermittent operations?
What is typical for repetitive operations compared to intermittent operations?
Which type of operation would likely be applied in making a unique wedding cake for a customer?
Which type of operation would likely be applied in making a unique wedding cake for a customer?
Which aspect is NOT typically associated with intermittent operations?
Which aspect is NOT typically associated with intermittent operations?
Which process type is characterized by producing large quantities of similar products?
Which process type is characterized by producing large quantities of similar products?
What technique is used for evaluating a process in terms of its steps from inputs to outputs?
What technique is used for evaluating a process in terms of its steps from inputs to outputs?
Which symbol is commonly used in flowcharts to represent decision points?
Which symbol is commonly used in flowcharts to represent decision points?
Why are storage areas or 'buffers' used in a multistage process?
Why are storage areas or 'buffers' used in a multistage process?
What is the primary purpose of a process flowchart in process design?
What is the primary purpose of a process flowchart in process design?
In a multistage process, if the first stage produces a product in 40 seconds and the second in 60 seconds, what must the first stage do?
In a multistage process, if the first stage produces a product in 40 seconds and the second in 60 seconds, what must the first stage do?
What does a simple flowchart typically indicate about a process?
What does a simple flowchart typically indicate about a process?
How can a company that employs both batch and project processing be best described?
How can a company that employs both batch and project processing be best described?
What might happen if stages in a multistage process do not have proper buffers?
What might happen if stages in a multistage process do not have proper buffers?
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Study Notes
Competitive Priorities
- Operations managers need to understand the company's market to identify & prioritize competitive strategies.
- Four primary competitive priorities are: cost, quality, delivery, and flexibility.
- A cost competitive strategy focuses on producing goods at a low cost relative to competitors.
- This strategy can lead to higher profit margins even with competitive pricing.
- Low cost does not necessarily mean low quality.
Product Design
- Product design is the process of defining all features & characteristics of a product.
- This includes appearance, materials, dimensions, performance standards, and even service elements.
- Product design is crucial for success or failure of a company.
- Service design focuses on meeting customer needs, aesthetics, and psychological benefits.
Design of Services
- The design elements are crucial for both tangible goods and intangible services.
- Service design is unique as it designs both the service and the entire service concept.
- Customer needs are the foundation for service design.
- Service design includes aesthetic and psychological benefits, such as friendliness and ambiance.
Product Design Process Steps
- Idea generation, product screening, preliminary design & testing, and final design are common steps.
- Customer insights, competitor analysis, and supplier feedback are important sources of design ideas.
- Customer demand and market trends influence the timing of new product releases.
Intermittent and Repetitive Operations
- Intermittent Operations produce a variety of products, often to order, in smaller volumes.
- Repetitive Operations focus on standardized products, often produced in large volumes.
- The amount of product volume and degree of product standardization are key differentiators between the two operations.
The Continuum of Process Types
- Further sub-categorization of operations includes project processes, batch processes, line processes, and continuous processes.
- Project processes are used for one-of-a-kind products based on customer specifications.
- Batch processes involve producing batches of similar products.
- Line processes are used for mass production of standardized products.
- Continuous processes run continuously with little interruption, used for high volume production.
- A company might utilize multiple processes to cater to different needs and market demands.
Process Flow Analysis
- Process flow analysis is a technique for evaluating a process, from inputs to outputs, to improve design.
- Process flowcharts map out the steps involved in a process, identifying potential problem areas.
- The flowchart details the sequence of steps, flow of materials or information, and storage points.
- Flowcharts can be simple or detailed, using symbols to represent different elements.
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