Operations Management Fundamentals

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Questions and Answers

What is typically emphasized more by manufacturing organizations?

  • Reliability and customer service
  • Cost and consistent quality (correct)
  • Diversity and sustainability
  • Flexibility and innovation

Service organizations focus more on cost and delivery than reliability.

False (B)

What does job design aim to improve in an organization?

Productivity and reduce fatigue

The selection of equipment and processes must consider the firm's capability to invest in _______.

<p>capital assets</p> Signup and view all the answers

Which of the following best describes facility layout decisions?

<p>They relate to the allocation of resources and workspace organization. (B)</p> Signup and view all the answers

Match the short-run decisions with their corresponding focus area:

<p>Inventory Control = Allocation of capacity based on demand Production Control = Managing overall production processes Job Design = Organizing work to improve productivity</p> Signup and view all the answers

Location decisions for a production system have a single best option.

<p>False (B)</p> Signup and view all the answers

The emphasis on ________ in service organizations aligns with cost objectives.

<p>reliability and service</p> Signup and view all the answers

What is one of the primary benefits of overhead material handling equipment?

<p>Saves valuable floor space (A)</p> Signup and view all the answers

Safe working environments have no impact on employee morale.

<p>False (B)</p> Signup and view all the answers

Name one factor influencing plant layout.

<p>Material factor</p> Signup and view all the answers

The ________ factor includes inter-intra departmental movement for transport and inspection.

<p>movement</p> Signup and view all the answers

Match the following factors with their descriptions:

<p>Machinery factor = Includes tools and their utilization Waiting factor = Involves storage of goods awaiting processing Service factor = Covers maintenance and scheduling Change factor = Focuses on flexibility and expansion</p> Signup and view all the answers

Which type of product environment requires layout flexibility?

<p>Automotive industry (C)</p> Signup and view all the answers

The service factor only concerns direct workers in a production system.

<p>False (B)</p> Signup and view all the answers

What is a key objective of layout in inventory management?

<p>To improve operational efficiency</p> Signup and view all the answers

Which of the following is NOT an objective of facility planning?

<p>Enhance product marketing strategy (A)</p> Signup and view all the answers

The stages in new product development include idea generation, marketing strategy development, and commercialization.

<p>True (A)</p> Signup and view all the answers

What is the first stage in the new product development process?

<p>Idea Generation</p> Signup and view all the answers

The _____ stage involves evaluating ideas and sorting them into promising, marginal, and reject categories.

<p>Idea Screening</p> Signup and view all the answers

Match the following stages of new product development with their descriptions:

<p>Idea Generation = Search for new product ideas Concept Development &amp; Testing = Refining ideas into marketable concepts Business Analysis = Evaluating the business viability of a product Market Testing = Introducing the product to selected market segments</p> Signup and view all the answers

What is the purpose of market research in new product development?

<p>Identify product improvement needs (C)</p> Signup and view all the answers

R&D and employees are often considered sources of new product ideas.

<p>True (A)</p> Signup and view all the answers

What type of idea is an 'elaborated version of the idea expressed in meaningful consumer terms' known as?

<p>Product Concept</p> Signup and view all the answers

Flashcards

Long-Run Decisions in Production

Decisions regarding the design of a production system, impacting the type of product, equipment, processes, and layout.

Product Selection and Design

Choosing and designing products considering their manufacturability.

Equipment and Process Selection

Choosing the most cost-effective equipment and processes.

Production Design of Parts

Designing how parts are produced economically, considering equipment, processes, and tools.

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Job Design

Organizing work and matching workers with jobs to improve productivity and reduce fatigue.

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System Location

Choosing a location for the production system, weighing the trade-offs among various factors.

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Facility Layout

Designing the layout of the facility, regarding capacity, production methods, and minimizing material handling costs.

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Inventory and Production Control

Short-term decisions concerned with allocating resources to match demand and inventory levels.

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Facility Planning

Facility planning, also known as layout planning, plant layout, facilities design or facilities planning, is a process for structuring a facility to support an organization's goals.

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New Product Development Process

A structured process to minimize the risk of new product failures that includes stages like idea generation, screening, concept development, marketing strategy development, business analysis, product development, market testing, and commercialization.

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Idea Generation (New Product)

The initial stage of new product development where various sources are explored to identify potential product ideas. Sources include customers, R&D, employees, competition, and marketing channels.

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Idea Screening (New Product)

The stage where generated ideas are evaluated to determine which ones are promising, marginal, or rejects.Promising ideas go to further development.

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Concept Development & Testing

Refining attractive ideas in new product development into product concepts and testing them to see how well consumers respond to them

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Marketing Strategy Development

Creating a preliminary marketing plan for launching the new product that has already passed through concept testing.

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Business Analysis (New Product)

Evaluating the financial attractiveness of a new product proposal before full product development.

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Product Concept

A detailed description of a product idea that includes aspects of the product expressed in a customer-friendly manner

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Plant Layout Objectives

Plant layout objectives are influenced by factors like material, machinery, people, movement, waiting time, service, building features, and flexibility.

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Material Factor

Design, variety, quantity, and production sequence of materials (raw, WIP, finished goods) impact the arrangement of the factory.

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Machinery Factor

The equipment, tools, and their usage influence the factory layout.

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Man Factor

The human resources in production (supervision, workers) are a key element in the plant layout decisions.

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Movement Factor

Movement of people and materials within the factory, including transport, handling, and inspection, impact the layout.

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Waiting Factor

The time taken to store materials (finished goods, semi-finished goods, raw materials) is a significant factor influencing plant layout.

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Service Factor

Maintenance, inspection, waste management, scheduling, and dispatching all affect the plant layout.

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Flexible Plant Layout

Layouts in industries with changing product models should allow for easy adjustments to accommodate modifications in the production process.

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Study Notes

Index

  • Unit I: Overview of Production and Operations Management, page 1
  • Unit II: Facility Location and Layout Planning, page 24
  • Unit III: Work and Job Design, page 39
  • Unit IV: Materials Management, page 65
  • Unit V: Quality Management, page 103
  • Unit VI: Safety Management, page 122

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