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Questions and Answers
Which characteristic is associated with the back office process?
Which characteristic is associated with the back office process?
What strategy involves delaying final activities until an order is placed?
What strategy involves delaying final activities until an order is placed?
What is a primary advantage of customer involvement in operations?
What is a primary advantage of customer involvement in operations?
How are operations typically arranged in a layout?
How are operations typically arranged in a layout?
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Which type of process choice involves a continuous flow of materials?
Which type of process choice involves a continuous flow of materials?
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What is a primary characteristic of fixed automation?
What is a primary characteristic of fixed automation?
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In the 6 Sigma process improvement model, which step involves setting the scope and boundaries?
In the 6 Sigma process improvement model, which step involves setting the scope and boundaries?
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Which of the following best describes economies of scope?
Which of the following best describes economies of scope?
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What tool visually represents functional areas responsible for different sub-processes?
What tool visually represents functional areas responsible for different sub-processes?
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Which type of automation allows for reprogramming when a product reaches the end of its life cycle?
Which type of automation allows for reprogramming when a product reaches the end of its life cycle?
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What is the primary focus of operations management?
What is the primary focus of operations management?
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Which of the following best describes a process?
Which of the following best describes a process?
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What role does supply chain management play in operations?
What role does supply chain management play in operations?
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Which characteristic is associated with service processes?
Which characteristic is associated with service processes?
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What is the purpose of the customer relationship process?
What is the purpose of the customer relationship process?
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Which of these processes is specifically designed for input received from external customer specifications?
Which of these processes is specifically designed for input received from external customer specifications?
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Which of the following is NOT a feature of manufacturing processes?
Which of the following is NOT a feature of manufacturing processes?
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What should each activity in a process ideally achieve according to the supply chain view?
What should each activity in a process ideally achieve according to the supply chain view?
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What is the primary goal of increasing productivity in a process?
What is the primary goal of increasing productivity in a process?
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Which of the following technologies is NOT considered part of the Fourth Industrial Revolution?
Which of the following technologies is NOT considered part of the Fourth Industrial Revolution?
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How is process divergence best described?
How is process divergence best described?
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Which element does NOT belong in the customer-contact mix?
Which element does NOT belong in the customer-contact mix?
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Which factor is a significant concern related to the implementation of smart technology in manufacturing?
Which factor is a significant concern related to the implementation of smart technology in manufacturing?
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What does the term 'Flow' refer to in process management?
What does the term 'Flow' refer to in process management?
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What is a key function of Manufacturing Execution Systems (MES)?
What is a key function of Manufacturing Execution Systems (MES)?
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Which of the following best defines 'Customization' in service delivery?
Which of the following best defines 'Customization' in service delivery?
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What is the primary function of logistics in a supply chain?
What is the primary function of logistics in a supply chain?
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Which of the following best describes 'Core Competencies'?
Which of the following best describes 'Core Competencies'?
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What do Order Winners allow customers to do?
What do Order Winners allow customers to do?
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What is a characteristic of Competitive Capabilities?
What is a characteristic of Competitive Capabilities?
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Which process involves the packaging and sorting of products before they are shipped?
Which process involves the packaging and sorting of products before they are shipped?
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Which strategy links operational decisions to corporate strategy?
Which strategy links operational decisions to corporate strategy?
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In market analysis, what does Needs Assessment evaluate?
In market analysis, what does Needs Assessment evaluate?
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Which of the following describes 'Order Qualifiers'?
Which of the following describes 'Order Qualifiers'?
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Study Notes
Operations Management
- Operations Management is the systematic design, direction, and control of processes that transform inputs into services and products for internal and external customers.
- A process is any activity or group of activities that takes one or more inputs, transforms them, and produces one or more outputs for its customers.
- An operation is a group of resources performing all or part of one or more processes.
- Supply Chain Management synchronizes a firm's processes with its suppliers and customers to match the flow of materials, services, and information with customer demand.
Functional Groups
- Marketing creates demand.
- Operations fills demand.
- Finance pays demand.
Service and Manufacturing Processes
-
Service Processes:
- Output is intangible and perishable.
- Output cannot be inventoried.
- High customer contact.
- Short response time.
- Labor intensive.
- Quality is not easily measured.
-
Manufacturing Processes:
- Output is physical and durable.
- Output can be inventoried.
- Low customer contact.
- Long response time.
- Capital intensive.
- Quality is easily measured.
Supply Chain View
- Each activity in a process should add value to the preceding activities, eliminating waste and unnecessary steps.
Processes
- Supplier Relationship Process: Selects suppliers of services, materials, and information, facilitating timely and efficient flow of items to the firm.
- New Service/Product Development: Designs and develops new services or products, from external customer specifications or market demand.
- Order Fulfillment Process: Includes activities to produce and deliver the service or product to the external customer.
- Customer Relationship Management: Identifies, attracts, and builds relationships with external customers, facilitating order placement.
Operation Strategy
- Operations implements the firm's corporate strategy and builds a customer-driven firm.
- Links long-term and short-term operational decisions to corporate strategy.
Corporate Strategy
- Provides a framework for carrying out all organizational functions.
- Involves environmental scanning and adjusting to changing business environments.
- Includes core competencies, resources, workforce, facilities, and financial know-how.
Market Analysis
- Understanding customer wants and needs.
- Market segmentation: Identifying customer groups.
- Needs assessment: Evaluating competitor offerings and addressing customer needs
Competitive Priorities
- Critical dimensions that a process or supply chain must possess to satisfy internal and external customer needs.
- Includes cost, quality, time, and flexibility aspects.
Order Winners
- Criteria customers use to differentiate a firm's services or products from competitors.
Order Qualifiers
- Minimum requirements for a firm to compete in a specific market segment.
Measuring Productivity
- Value of outputs produced per input resources
Productivity
- Output/Input (services, products, wages, cost of equipment)
Roles of Management
- Examining productivity from a supply chain level to assess collective process performance from individuals' contributions.
Fourth Industrial Revolution
- Automation of traditional manufacturing practices using modern smart technologies.
Manufacturing Execution Systems (MES)
- Computerized systems that track and document the transformation of raw materials into finished goods, optimizing production.
Artificial Intelligence (AI)
- Technologies like machine learning and natural language processing that allow machines to sense, comprehend, act, and learn.
Internet of Things (IoT)
- Interconnectivity of objects embedded with software, sensors, and actuators to collect and exchange data without human intervention, aiding operations management.
Process Strategy
- Patterns of decisions for managing processes to meet competitive priorities.
- Process as inputs, transformations, output and creating a sustainable process.
Customer Contact
- Extent of customer involvement in service delivery.
Customization
- Degree to which a service or product is tailored to individual customer needs.
Process Divergence
- Extent to which a process is highly customized.
Flow
- Progress of work through process steps, including customer contact mix, front office, hybrid office and back office.
Process choice
- Structuring of process by organizing resources around process or products (job, batch, line, and continuous-flow processes).
Production and Inventory Strategies
- Strategies for managing production design-to-order, make-to-order, assemble-to-order, and other options.
Layout
- Physical arrangement of operations (or departments) clustered for efficiency and resource optimization, such as postponements and mass customization.
Capital Intensity
- Relation between equipment costs and labor costs.
Automating Manufacturing Processes
- Fixed Automation: Produces one type of product in a fixed sequence, good for high-volume stable products.
- Flexible (Programmable) Automation: Produces multiple products in batches, flexible to reprogram if products life cycle ends.
6 Sigma Process Improvement Model
- Steps for process improvement (Define, Measure, Analyze, Improve, Control).
Swim Lane Flowchart
- Visual representation of functional areas responsible for different sub-processes.
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Description
This quiz explores the key concepts in Operations Management, including the systematic design and control of processes that convert inputs into outputs. It covers the roles of different functional groups, the distinction between service and manufacturing processes, and the importance of Supply Chain Management in meeting customer demand.