Operations Management: Planning and Feasibility

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Questions and Answers

What is the primary goal of quality management in operations?

To ensure the quantity needed for production

To reduce costs at all costs

To increase profit margins quickly

To ensure high-quality products that meet customer expectations (correct)

What is the value chain in the context of production?

The process of making a product from start to finish

The process of distributing products to retailers

The process of selling a product to customers

The process of tracing value addition and transformation from resources to customers (correct)

Why is human capital essential in production?

To know customer needs and deliver what they want (correct)

To reduce labor costs

To manage inventory more efficiently

To increase productivity quickly

What is the main benefit of embodying quality in a product or service?

Reducing possible losses and increasing customer loyalty Signup and view all the answers

What is a production method?

A process of producing a product or service Signup and view all the answers

What is the primary objective of operations in terms of quantity?

To produce the quantity needed Signup and view all the answers

What is the primary focus of operations in a business?

Production, procurement, and distribution of goods and services Signup and view all the answers

What is the main purpose of procurement in a business?

To identify and choose the sources of supplies and materials needed for production Signup and view all the answers

What is the classification of suppliers based on?

Size, location, variety of products, terms of purchase, and delivery method Signup and view all the answers

What is production in a business?

The process of manufacturing a product or producing a service to be offered to the target market Signup and view all the answers

What is the importance of manpower in operations?

It is necessary for production, procurement, and distribution of goods and services Signup and view all the answers

What is the main purpose of distribution in a business?

To physically transport and flow materials and communications to reach the target customers Signup and view all the answers

What is the primary factor that determines the number and composition of human resources in an organization?

Load of operations and market demand Signup and view all the answers

What is the term used to describe the process of guessing and estimating human resources requirements?

Guestimation Signup and view all the answers

What is the role of the general manager in an organization?

Leading functional managers Signup and view all the answers

What is the primary reason for selecting and empowering human resources?

To make or break an organization Signup and view all the answers

What is the purpose of correcting mistakes and recognizing successes in an organization?

To keep employees in the organization Signup and view all the answers

What is the typical composition of an organization's levels?

General manager, functional managers, and workers Signup and view all the answers

What is the primary concern of operations management?

Meeting customer needs Signup and view all the answers

What is the key to successful operations management?

Understanding customer needs Signup and view all the answers

What is the goal of product/service design in operations management?

To meet customer expectations Signup and view all the answers

Why is it essential for entrepreneurs to identify a target market?

To forecast market demand Signup and view all the answers

What is the primary function of operations management?

Transforming resources into products and services Signup and view all the answers

What is the critical linkage between operations and marketing?

Customer needs Signup and view all the answers

Study Notes

Human Capital and Human Resources

Human capital is vital for enterprise success; effective planning and role assignment impact organizational strategy.
Human resource planning relies on operational load and market demand; entrepreneurs must estimate workforce needs.
Selecting capable human resources is crucial; development and empowerment promote retention.
Aligning tasks with employee interests, reasonable workloads, equitable compensation, and recognizing achievements fosters loyalty.

Organizational Structure

Organizations have hierarchical levels, typically led by a general manager, supported by functional managers for marketing, operations, human resources, and finance.

Production Methods

Involves systematic procedures for creating products or services; efficiency is essential.

Value Chain

The value chain connects resources to customers, detailing how value is added at each step, involving entrepreneurs and partners.

Quality Management

Quality and capacity are essential for meeting operational requirements and customer expectations.
Quality impacts both internal operations and customer perceptions; different products have unique quality criteria.
Investing in quality management is justified as its long-term benefits, such as customer retention, outweigh the costs associated with quality issues.

Operations Overview

Operations encompass production, procurement, and distribution of goods/services; human capital is essential for meeting customer needs.
Production refers to manufacturing or service provision; procurement involves sourcing necessary materials.

Procurement Methods

Effective procurement requires selecting suppliers based on size, location, product variety, purchase terms, and delivery methods.

Distribution

Involves the physical transport of products and communication processes to reach target customers.