Operations Management Strategies

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Questions and Answers

What is the primary focus of supply chain management?

Integrating the supply chain into the firm's strategy (correct)

Maintaining a stable production process

Setting the staffing needs

Determining the production schedules

What is the main goal of inventory management?

To reduce production costs

To order and store inventory efficiently (correct)

To maximize profit margins

To speed up production

What is the primary focus of scheduling in operations management?

Reducing maintenance costs

Utilizing personnel and facilities efficiently (correct)

Maximizing profits

Meeting client expectations

What is the main objective of maintenance in operations management?

To ensure a stable and dependable process Signup and view all the answers

What is the term coined by Henry Ford's manufacturing approach?

Mass production Signup and view all the answers

What was a key innovation introduced by Henry Ford and Charles Sorensen?

The assembly line Signup and view all the answers

What was the primary benefit of Henry Ford's assembly line innovation?

Increased production speed Signup and view all the answers

What was the initial time needed to manufacture a car before Henry Ford's innovations?

728 hours Signup and view all the answers

What is the term used to describe the collection of tasks that converts inputs into outputs to produce value in the form of goods and services?

Operations Management Signup and view all the answers

What is the primary goal of operations management in any organisation?

To produce and deliver goods and services Signup and view all the answers

What is the term used to describe the actions that create goods in manufacturing companies?

Manufacturing Process Signup and view all the answers

Why is it important to study operations management?

To comprehend how goods and services are made Signup and view all the answers

What is the term used to describe the outcome of the production process?

Outputs Signup and view all the answers

What is the primary role of operations managers in an organisation?

To oversee the production process Signup and view all the answers

Why is operations management critical to the success of any organisation?

It is closely tied to all other business operations Signup and view all the answers

What is the main objective of quality councils?

To bring together professionals in the domain of quality for planned communication on a regular basis with the workforce and management alike Signup and view all the answers

What is the term used to describe the actions that create intangible goods or services?

Service Delivery Signup and view all the answers

What percentage of all damaged goods did Taguchi find to be responsible for poor product design?

80% Signup and view all the answers

What is the term used by Taguchi to describe external impacts on processes?

Noise Signup and view all the answers

What is the concept developed by Taguchi that describes a process or product's capacity to function even in the face of unpredictable external effects?

Robustness Signup and view all the answers

What is the technique used by Taguchi to improve product design?

Design of experiments Signup and view all the answers

What is the strategy developed by Taguchi to comprehend and improve the efficiency of processes?

Taguchi Method Signup and view all the answers

What is the function that quantifies the cost to society of process variation that causes items to not be produced precisely at the desired values?

Taguchi Loss Function Signup and view all the answers

What is the term used by Taguchi to describe the focus on creating robust designs that allow things to function under a variety of circumstances?

Engineering strategy Signup and view all the answers

What is the primary focus of the measurement in Crosby's quality management philosophy?

The price of non-conformance to requirements Signup and view all the answers

What is the purpose of the quality improvement team in Crosby's 14-step methodology?

To run the quality improvement programme Signup and view all the answers

What is the objective of the quality measurement step in Crosby's methodology?

To display current and potential non-conformance problems Signup and view all the answers

What is the primary goal of the zero defects planning step in Crosby's methodology?

To examine activities for preparing the zero defects programme Signup and view all the answers

What is the purpose of the supervisor training step in Crosby's methodology?

To define the type of training supervisors need Signup and view all the answers

What is the primary objective of the goal setting step in Crosby's methodology?

To turn pledges and commitments into action Signup and view all the answers

What is the purpose of the error cause removal step in Crosby's methodology?

To give individual employees a method of communicating to management Signup and view all the answers

What is the primary purpose of the recognition step in Crosby's methodology?

To appreciate those who participate Signup and view all the answers

What is the main idea behind Taguchi's approach?

To identify and optimize quality characteristics Signup and view all the answers

What is the significance of understanding OM activities?

It affects all companies that advertise, finance, and produce Signup and view all the answers

What is the primary goal of a robust design?

To ensure product functionality under various circumstances Signup and view all the answers

What is the definition of quality according to Deming?

The continual development of a reliable system Signup and view all the answers

What is the significance of OM in an organization?

It increases product revenue and boosts social impact Signup and view all the answers

What is the significance of Henry Ford's innovation in manufacturing?

It reduced the manufacturing time of a car Signup and view all the answers

What is the primary focus of researching OM?

To understand how commodities and services are made Signup and view all the answers

What is the significance of a statistically stable system in Deming's definition of quality?

It ensures reliability in all systems Signup and view all the answers

Study Notes

Supply Chain Management

Determines how the supply chain will be integrated into the firm's strategy, including decisions about what will be purchased, from whom, and under what circumstances.

Inventory Management

Examines how to order and store inventory while taking consumer satisfaction, supplier capacity, and production schedules into account.

Scheduling

Establishes and executes intermediate- and short-term schedules that satisfy client expectations while making effective and efficient use of personnel and facilities.

Maintenance

Requires decisions that take into account the staffing needs, production demands, and facility capacity to maintain a dependable and stable process.

Evolution of Operations Management

The discipline of Operations Management (OM) has a lengthy and fascinating history.

Factory System, Manufacturing System, and Quality Mass Customization

Figure 1.1 illustrates the evolution of Operations Management.

Henry Ford's Contribution

By 1913, Henry Ford and Charles Sorensen merged their knowledge of standardized parts with that of the meatpacking and mail-order industries' "quasi-assembly lines" and added the groundbreaking idea of the assembly line.
Henry Ford used scientific management to speed up the manufacturing of the Model T, cutting the time needed to manufacture a car from a peak of 728 hours to just 1.5 hours.

Nature, Scope, Importance, and Functions of Operations Management

Producing products and services is known as production.
Operations Management (OM) is the collection of tasks that converts inputs into outputs to produce value in the form of goods and services.
OM is critical to understand since it affects all companies that advertise (sell), finance (account), and produce (operate).
We research OM because we're interested in how commodities and services are made.
The importance of OM lies in its impact on organizational management, production, and the overall success of a business.

Contribution of Dr. Genichi Taguchi

A Japanese quality specialist who emphasized that businesses should concentrate their quality efforts on the design stage.
Taguchi calculated that poor product design was responsible for as much as 80% of all damaged goods.
He created methods to evaluate external impacts on processes (noise) and constructed the signal-to-noise ratio as a metric of a process's quality.
Taguchi is renowned for using the design of experiments to improve product design and emphasized the concept of robustness, which is a process or product's capacity to function even in the face of unpredictable external effects (noise).
His approach involves identifying the main functions, side effects, and failure modes, and using statistical techniques to optimize product design.

Taguchi's Approach

Identify the main functions, side effects, and failure modes.
Identify noise factors and the testing conditions for evaluating loss of quality.
Identify the quality characteristics to be observed and the objective functions to be optimized.
Identify the control factors and their alternate levels.
Design the matrix experiment and define the data analysis procedure.
Conduct the matrix experiment and analyze the data.
Determine optimum levels for the control factors and predict performance under these levels.
Conduct the verification experiment and plan future actions.

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Description

This quiz covers crucial aspects of operations management, including supply chain integration, inventory management, and scheduling strategies.