Operations Management Overview

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Questions and Answers

What is the primary responsibility of operations management (OM)?

Establishing quality control policies

Creating value by transforming inputs into outputs (correct)

Planning marketing strategies

Generating demand for goods and services

Which of the following best describes the role of production in operations management?

It involves staffing and controlling resources.

It is responsible for creating the product. (correct)

It generates demand for products.

It determines customer quality expectations.

What is a supply chain?

A series of activities and organizations producing and delivering goods or services (correct)

A department within an organization that measures performance

A network of organizations that only defines the market segment for products

An isolated sequence of activities focused solely on production

Which function is NOT typically associated with operations managers?

Marketing Signup and view all the answers

What does managing quality involve within operations management?

Establishing policies to meet customer quality expectations Signup and view all the answers

What is a primary consideration when developing a location strategy?

Nearness to customers, suppliers, and talent Signup and view all the answers

Which of the following best describes the purpose of a mission statement?

To provide a rationale for an organization's existence Signup and view all the answers

What aspect is essential for effective inventory management?

Optimizing ordering and holding decisions based on various factors Signup and view all the answers

How can businesses improve operations when going global?

By understanding and incorporating local business practices Signup and view all the answers

Which of the following strategies helps in attracting and retaining global talent?

Providing better growth opportunities and conditions Signup and view all the answers

What is a key benefit of globalizing supply chain management?

Reducing currency exchange risks and costs Signup and view all the answers

Which factor is NOT considered in layout strategy?

Market demand trends Signup and view all the answers

What role does cultural and ethical awareness play in global business?

It helps navigate social and legal complexities Signup and view all the answers

What should personnel management focus on within the context of job design?

Motivating and retaining personnel with the necessary talent Signup and view all the answers

What is a primary objective of scheduling in operations management?

Meeting customer demands efficiently and effectively Signup and view all the answers

Study Notes

Operations Management

Operations is part of a business responsible for producing goods or services.
Production is the creation of goods and services.
Operations management (OM) transforms inputs into outputs, creating value in the form of goods and services.

Essential Functions of OM

Marketing generates demand.
Production/operations creates the product.
Goods are physical items, including raw materials, parts, subassemblies, and final products.
Services are activities providing time, location, form, or psychological value.

The Supply Chain

A sequence of activities and organizations involved in producing and delivering a good or service.
A global network of organizations and activities supplying a firm with goods and services.
Supply chain members collaborate for high customer satisfaction, efficiency, and competitive advantage.

Importance of Operations Management

One of three major functions of any organization.
Studies how people organize themselves for productive enterprise.
Shows how goods and services are produced.
Explains what operations managers do.
A costly part of an organization.

Operations Management Duties

Basic Management Functions:
- Planning
- Organizing
- Staffing
- Leading
- Controlling
Strategic Decisions:
- Design of goods and services
- Managing quality
- Process and capacity design
- Location strategy
- Layout strategy
- Human resources, job design, and work management
- Supply chain management
- Inventory management
- Scheduling
- Maintenance

Reasons for Globalization

Improve the supply chain.
Reduce costs and exchange rate risks.
Improve operations.
Understand markets.
Improve products.
Attract and retain global talent.

Improving Supply Chain through Globalization

Locating facilities closer to unique resources.

Reducing Costs through Globalization

Risks associated with currency exchange rates.
Reduced direct and indirect costs.
Trade agreements lowering tariffs:
- Maquiladoras
- World Trade Organization (WTO)
- North American Free Trade Agreement (NAFTA) and USMCA
- APEC, SEATO, MERCOSUR, CAFTA
- European Union (EU)

Improving Operations through Globalization

Understand differences in business practices across countries.
International operations can improve response time and customer service.
Example: Japanese inventory management, German robots, Scandinavian ergonomics.

Understanding Markets through Globalization

Interacting with foreign customers, suppliers, and competition leads to new opportunities.

Improving Products through Globalization

Openness to the free flow of ideas.
Joint research and development between companies like Toyota & BMW.
Lower costs, state-of-the-art design, reduced risk.
Samsung and Bosch jointly produce batteries.

Attracting and Retaining Global Talent

Offers better employment opportunities.
Better growth opportunities and insulation against unemployment.
Relocates unneeded personnel to more prosperous locations.

Cultural and Ethical Issues in Globalization

Differences in social and cultural behavior.
International laws, agreements, and codes of conduct for ethical behaviors.
Despite differences, significant mobility of capital, information, goods, and people is observed.

Mission and Strategies

Mission Statement:
- Purpose or rationale for an organization's existence.
- Organization's purpose for being.
- Answers "What do we contribute to society?".
- Provides boundaries and focus.
Strategies:
- Develop action plan to achieve the mission.
- Ensure functional areas have supporting strategies.
- Exploit opportunities and strengths, neutralize threats, and avoid weaknesses.

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Description

This quiz covers the fundamentals of Operations Management, including its essential functions, the supply chain, and its significance in business. Dive into how operations transform inputs into outputs and the collaborative efforts of supply chain members. Test your understanding of these vital concepts in creating customer satisfaction and efficiency.