Operations Management Overview
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Questions and Answers

Which characteristic is associated with the back office process?

  • Flexible workflows
  • Standardized and routine work (correct)
  • Product/services change from customer to customer
  • High customer contact
  • What strategy involves delaying final activities until an order is placed?

  • Assemble-to-order strategy (correct)
  • Make-to-order strategy
  • Mass customization strategy
  • Design-to-order strategy
  • What is a primary advantage of customer involvement in operations?

  • Better quality and flexibility (correct)
  • Worse quality of the final product
  • Increased manufacturing costs
  • Increased delivery times
  • How are operations typically arranged in a layout?

    <p>Clustered in departments corresponding to processes (C)</p> Signup and view all the answers

    Which type of process choice involves a continuous flow of materials?

    <p>Continuous-flow Process (A)</p> Signup and view all the answers

    What is a primary characteristic of fixed automation?

    <p>It produces one type of product in a defined sequence. (B)</p> Signup and view all the answers

    In the 6 Sigma process improvement model, which step involves setting the scope and boundaries?

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

    Which of the following best describes economies of scope?

    <p>Creating different products more economically when produced together. (B)</p> Signup and view all the answers

    What tool visually represents functional areas responsible for different sub-processes?

    <p>Swim Lane Flowchart (D)</p> Signup and view all the answers

    Which type of automation allows for reprogramming when a product reaches the end of its life cycle?

    <p>Flexible (Programmable) Automation (B)</p> Signup and view all the answers

    What is the primary focus of operations management?

    <p>Transforming inputs into services and products (A)</p> Signup and view all the answers

    Which of the following best describes a process?

    <p>An activity that transforms inputs into outputs (C)</p> Signup and view all the answers

    What role does supply chain management play in operations?

    <p>Synchronizes processes with supplies and customers (C)</p> Signup and view all the answers

    Which characteristic is associated with service processes?

    <p>High customer contact (C)</p> Signup and view all the answers

    What is the purpose of the customer relationship process?

    <p>To build relationships and facilitate order placement (B)</p> Signup and view all the answers

    Which of these processes is specifically designed for input received from external customer specifications?

    <p>New service/product development (C)</p> Signup and view all the answers

    Which of the following is NOT a feature of manufacturing processes?

    <p>Intangible outputs (C)</p> Signup and view all the answers

    What should each activity in a process ideally achieve according to the supply chain view?

    <p>Add value to preceding activities (D)</p> Signup and view all the answers

    What is the primary goal of increasing productivity in a process?

    <p>Increasing the value of output relative to cost of inputs (A)</p> Signup and view all the answers

    Which of the following technologies is NOT considered part of the Fourth Industrial Revolution?

    <p>Traditional Assembly Line (A)</p> Signup and view all the answers

    How is process divergence best described?

    <p>The level of customization allowed within tasks (D)</p> Signup and view all the answers

    Which element does NOT belong in the customer-contact mix?

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

    Which factor is a significant concern related to the implementation of smart technology in manufacturing?

    <p>Cost of technology (D)</p> Signup and view all the answers

    What does the term 'Flow' refer to in process management?

    <p>How the work progresses through the steps in a process (C)</p> Signup and view all the answers

    What is a key function of Manufacturing Execution Systems (MES)?

    <p>Tracking and documenting the transformation of raw materials into finished goods (C)</p> Signup and view all the answers

    Which of the following best defines 'Customization' in service delivery?

    <p>The level of tailoring of services to meet customer needs (C)</p> Signup and view all the answers

    What is the primary function of logistics in a supply chain?

    <p>Transportation of goods (C)</p> Signup and view all the answers

    Which of the following best describes 'Core Competencies'?

    <p>Unique strengths that set an organization apart (C)</p> Signup and view all the answers

    What do Order Winners allow customers to do?

    <p>Differentiate between competing products (C)</p> Signup and view all the answers

    What is a characteristic of Competitive Capabilities?

    <p>They include price, quality, delivery, and flexibility (C)</p> Signup and view all the answers

    Which process involves the packaging and sorting of products before they are shipped?

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

    Which strategy links operational decisions to corporate strategy?

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

    In market analysis, what does Needs Assessment evaluate?

    <p>How competitors meet customer expectations (D)</p> Signup and view all the answers

    Which of the following describes 'Order Qualifiers'?

    <p>Basic criteria required to enter a market (A)</p> Signup and view all the answers

    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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    Related Documents

    MAN3506 Chapter 1 & 2 PDF

    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.

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