13 Questions
What is the primary concern of an operations manager?
Directly related to producing goods or providing services
Which of the following is NOT an example of operations?
Advertising
What is the difference between the cost of inputs and the value or price of outputs called?
Value added
Which function consists of all activities directly related to producing goods or providing services?
Operations
What does a production system do with its inputs?
Converts them into outputs
Which activity is the predominant concern of a production system?
Conversion process
What is the primary focus of Operations Management (OM)?
Designing, operating, and improving systems for creating and delivering products and services
In which phase of the historical development of operations management did craft manufacturing involve producing goods in low volume with a high degree of variety?
Craft manufacturing
What innovation made mass production possible by introducing standardised and interchangeable parts?
Standardization of parts
Which innovation in mass production involved redesigning jobs using principles similar to those used in designing machines?
Scientific management
What was a significant development by Henry Ford that revolutionized the mass production process?
Moving assembly line
What approach aims to combine the high volume and low cost associated with mass production with the craft production?
Flexible specialization
In the transformation model, which category consists of some inputs that are used up in the process of creating goods or services?
Inputs
Study Notes
Operations Management
- The primary concern of an Operations Manager is the production system.
Operations
- NOT an example of operations: activities such as marketing, finance, and accounting.
- Operations involve all activities directly related to producing goods or providing services.
Cost and Value
- The difference between the cost of inputs and the value or price of outputs is called added value.
Production System
- A production system takes inputs and transforms them into outputs.
- The primary concern of a production system is the transformation process.
Operations Management Focus
- The primary focus of Operations Management (OM) is on the production system.
Historical Development of Operations Management
- Craft manufacturing phase: producing goods in low volume with a high degree of variety.
- Mass production phase: made possible by introducing standardized and interchangeable parts.
- Job design innovation: redesigning jobs using principles similar to those used in designing machines.
- Henry Ford's innovation: revolutionized the mass production process by introducing the assembly line.
Production Approaches
- Mass customization approach: combines high volume and low cost associated with mass production with the flexibility of craft production.
Transformation Model
- Transforming inputs category: consists of inputs used up in the process of creating goods or services.
Test your knowledge of operations marketing management and product design and development with this quiz based on Chapter 4 by Tariq Alwashah. Explore topics such as operations function, production, finance, marketing, and business operations.
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