Questions and Answers
The greater the degree of customer involvement, the more challenging the design and management of operations.
True
Measurement of productivity in service is more straightforward than in manufacturing since it is not necessary to take into account the cost of materials.
False
Managers should most often rely on quantitative techniques for important decisions since quantitative approaches result in more accurate decisions.
False
Many operations management decisions can be described as trade-offs.
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Operations and sales are the two functional areas that exist to support activities in other functions such as accounting, finance, IT, and human resources.
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Business organizations consist of three major functional areas which ideally support one another.
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Reducing the disruptions for which inventory provides a buffer can be facilitated by solving quality problems.
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In demand and/or lead time can be compensated for by safety stock.
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Job enrichment involves giving workers a greater share of the total task, which is why they feel enriched.
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The two basic issues in inventory are how much to order and when to order.
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A performance rating of less than 1.0 means that the observed worker was judged to be working at a faster than normal rate.
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Customer access is a critical consideration in service and retailing.
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Decoupling operations is an important use of inventories.
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Monitoring inventory turnover time can be used as a measure of performance.
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Safety stock eliminates all stockouts.
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According to learning curve theory, the time reduction per unit decreases as the number of units increases.
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Successful implementation of a proposed method change requires cooperation of workers.
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One disadvantage of specialization is worker dissatisfaction.
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A learning percentage of 95 percent indicates greater learning than a percentage of 90 percent.
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Study Notes
Customer Involvement and Operations Management
- Higher customer involvement increases operational complexity and design challenges.
- Greater variation in goods and services occurs due to increased customer involvement.
Productivity Measurement
- Measuring productivity in services is not more straightforward than in manufacturing.
- Material costs are significant and must be considered in both sectors.
- Services’ variability in inputs complicates productivity measurement.
Decision-Making Techniques
- Quantitative techniques are not always the best for decision-making due to inherent limitations.
- Qualitative information is also critical and should be integrated into the decision-making process.
Trade-offs in Operations Management
- Trade-offs are a fundamental aspect of operations management.
- Managers often need to balance competing priorities and resources in decision-making.
Functional Areas in Business
- Operations and sales are the primary line functions in an organization.
- Other functions such as accounting, finance, IT, and human resources are supportive roles.
Inventory Management
- The two essential issues in inventory management are how much to order and when to order.
- Solving quality problems can reduce the disruptive role of inventory in operations.
Safety Stock and Variability
- Safety stock can compensate for variability in demand and lead times.
- It acts as a buffer against stockouts but does not eliminate the risk entirely.
Performance Ratings
- A performance rating below 1.0 indicates slower-than-normal work pace.
- This suggests that an employee is not meeting the expected productivity benchmarks.
Customer Access in Services and Retail
- Customer access is vital for the success of service and retail locations and should be strategically analyzed.
Decoupling Operations with Inventory
- Inventory plays an important role in decoupling operations in manufacturing through work-in-progress inventories.
Inventory Turnover as Performance Measure
- Monitoring inventory turnover can be an effective measure of organizational performance.
- Higher turnover rates often indicate better performance.
Learning Curve Theory
- Time required per unit decreases as the number of units produced increases.
- Cumulative experience contributes to reducing the time needed for production.
Worker Involvement in Process Improvements
- Successful process improvement implementations depend on worker involvement and feedback.
- Consulting workers during method development fosters cooperation and acceptance of changes.
Specialization and Worker Satisfaction
- Job specialization can lead to worker dissatisfaction, despite efficiency gains.
- Balancing efficiency with employee satisfaction is crucial for long-term success.
Learning Percentage Implications
- A learning percentage of 95% indicates greater improvement and learning compared to a percentage of 90%.
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Description
Test your understanding of operations management concepts, particularly the impact of customer involvement on design and management processes. This quiz will challenge your knowledge and analytical skills in this crucial area of business.
