Podcast
Questions and Answers
What is the primary focus of operations management?
What is the primary focus of operations management?
- Increasing sales through advertising
- Managing customer relationships
- Transforming inputs into outputs efficiently (correct)
- Creating marketing strategies
How does cost leadership benefit a business?
How does cost leadership benefit a business?
- It allows a business to offer the highest quality products.
- It ensures exclusive designs and features for all products.
- It facilitates selling goods at the lowest price while maintaining quality. (correct)
- It encourages high marketing expenses to attract more customers.
Which of the following best exemplifies goods differentiation?
Which of the following best exemplifies goods differentiation?
- Mass-producing identical items
- Offering lower prices than competitors
- Innovative product designs and unique features (correct)
- Providing standard features across all products
Which factor is primarily influenced by globalization in operations management?
Which factor is primarily influenced by globalization in operations management?
What role do marketing and operations play in a business?
What role do marketing and operations play in a business?
How do expectations for quality influence operational decisions?
How do expectations for quality influence operational decisions?
What is a common characteristic of services compared to goods?
What is a common characteristic of services compared to goods?
What is an example of cost-based competition?
What is an example of cost-based competition?
What is the primary purpose of environmental sustainability in business operations?
What is the primary purpose of environmental sustainability in business operations?
Which of the following describes a transformation process?
Which of the following describes a transformation process?
What does FIFO stand for in inventory management?
What does FIFO stand for in inventory management?
Which performance objective focuses on the reliability of products or services?
Which performance objective focuses on the reliability of products or services?
What is the role of Gantt charts in operations management?
What is the role of Gantt charts in operations management?
What advantage does global sourcing provide to businesses?
What advantage does global sourcing provide to businesses?
What is the main focus of quality assurance in operations management?
What is the main focus of quality assurance in operations management?
What is a potential issue of holding excess inventory?
What is a potential issue of holding excess inventory?
Which strategy is likely to help overcome resistance to change in an organization?
Which strategy is likely to help overcome resistance to change in an organization?
What is the purpose of monitoring in operations management?
What is the purpose of monitoring in operations management?
Flashcards
Operations Management Goal
Operations Management Goal
Transforming inputs into outputs efficiently to meet business objectives.
Cost Leadership
Cost Leadership
Producing goods/services at the lowest price with acceptable quality.
Differentiated Goods/Services
Differentiated Goods/Services
Products with unique features that stand out from competitors (design or customer service).
Influence of Globalization
Influence of Globalization
Signup and view all the flashcards
Operations vs Marketing
Operations vs Marketing
Signup and view all the flashcards
Quality Expectations
Quality Expectations
Signup and view all the flashcards
Technology in Operations
Technology in Operations
Signup and view all the flashcards
Operations and Finance
Operations and Finance
Signup and view all the flashcards
Operations Processes
Operations Processes
Signup and view all the flashcards
Transforming Resources
Transforming Resources
Signup and view all the flashcards
Gantt Charts
Gantt Charts
Signup and view all the flashcards
Critical Path Analysis (CPA)
Critical Path Analysis (CPA)
Signup and view all the flashcards
Quality
Quality
Signup and view all the flashcards
Speed in Operations
Speed in Operations
Signup and view all the flashcards
Inventory Management
Inventory Management
Signup and view all the flashcards
LIFO (Last-In, First-Out)
LIFO (Last-In, First-Out)
Signup and view all the flashcards
JIT (Just-In-Time)
JIT (Just-In-Time)
Signup and view all the flashcards
Supply Chain Management
Supply Chain Management
Signup and view all the flashcards
Study Notes
Operations Management: Key Concepts
- Core Function: Operations management transforms inputs into outputs efficiently to meet business goals.
- Strategic Role: Crucial for achieving competitive advantages.
- Cost Leadership: Minimizing costs while maintaining quality. Methods include mass production, economies of scale, and outsourcing.
- Differentiation: Creating unique features in products/services to stand out. Goods examples: design, quality, features, packaging. Service examples: customization, speed, customer service.
- Goods vs. Services: Goods are tangible and storable; services are intangible and often customized.
- Interdependence: Operations depends on marketing (demand), finance (funding), and HR (skilled workforce).
Influences on Operations
- Globalization: Access to international markets, supply chains, cheaper inputs.
- Technology: Automation, robotics, digital tools, enhancing efficiency.
- Quality Expectations: Customers demand high quality, durability, and reliability. Consistency is key.
- Cost-based Competition: Reducing costs without compromising quality.
- Government Policies: Operations must comply with rules on safety, taxation, trade, environment.
- Legal Regulations: Rules mandate standards for workplace safety, product safety, and more. Non-compliance has penalties.
- Environmental Sustainability: Pressure to minimize impact, fostering eco-friendly practices.
Operations Processes
- Inputs: Transformed (materials, information, customers) and transforming (human resources, facilities).
- Transformation Processes: Volume, variety, variation in demand, visibility, determine the conversion process.
- Key Components: Sequencing and scheduling (Gantt Charts, Critical Path Analysis), technology, task design, process layout, monitoring, control, improvement.
- Outputs: Customer satisfaction, warranties for accountability of products/services.
Operations Strategies
- Performance Objectives: Quality, speed, dependability, flexibility, customization, cost.
- New Product Development: Continuous innovation to stay competitive.
- Supply Chain Management: Logistics, e-commerce, global sourcing.
- Outsourcing: Utilizing external providers for non-core functions.
- Technology: Adoption of innovations (robotics, AI) for operational efficiency.
- Inventory Management: Holding stock (meeting demand, avoiding shortages), but with storage costs, obsolescence risk. Strategies: LIFO, FIFO, JIT.
- Quality Management: Quality control (inspections), quality assurance (consistent standards), quality improvement.
Overcoming Resistance to Change
- Reasons for Resistance: Costs, fear of unknown, inertia, retraining.
- Strategies to Overcome: Effective communication, retraining, gradual implementation.
Global Factors in Operations
- Global Sourcing: Purchasing from international suppliers.
- Economies of Scale: Lowering costs by increasing production volume.
- Scanning and Learning: Adapting to global trends and innovations.
- R&D: Developing new products/processes.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Explore the fundamental principles of operations management, including cost leadership, differentiation, and the differences between goods and services. Understand how globalization, technology, and quality expectations influence operational efficiency in businesses.
