Podcast
Questions and Answers
Which of the following best describes the primary focus of operations management?
Which of the following best describes the primary focus of operations management?
- Optimizing marketing campaigns to increase sales.
- Overseeing the transformation of inputs into outputs efficiently and effectively. (correct)
- Developing human resource strategies to improve employee satisfaction.
- Managing financial risks and investments.
A company implementing a Just-In-Time (JIT) inventory system aims to:
A company implementing a Just-In-Time (JIT) inventory system aims to:
- Maximize the use of LIFO (Last-In, First-Out) accounting methods.
- Increase inventory levels to buffer against supply chain disruptions.
- Utilize economic order quantity models without considering holding costs.
- Minimize inventory holding costs by receiving goods only when needed. (correct)
In financial management, solvency refers to:
In financial management, solvency refers to:
- The business's ability to meet its short-term obligations.
- The efficiency with which a business converts sales revenue into profit.
- The business's ability to meet its long-term financial obligations. (correct)
- The rate at which a business is expanding its asset base.
What is the primary role of the Australian Securities and Investments Commission (ASIC)?
What is the primary role of the Australian Securities and Investments Commission (ASIC)?
Which financial objective focuses on a business's ability to generate earnings compared to its expenses?
Which financial objective focuses on a business's ability to generate earnings compared to its expenses?
What is the key benefit of using Critical Path Analysis in operations processes?
What is the key benefit of using Critical Path Analysis in operations processes?
What is a key DISADVANTAGE of outsourcing?
What is a key DISADVANTAGE of outsourcing?
Which of the following is an example of 'transformed resources' in an operations process?
Which of the following is an example of 'transformed resources' in an operations process?
What is the PRIMARY difference between debt and equity financing?
What is the PRIMARY difference between debt and equity financing?
A company adopts a 'leading edge' technology strategy. What does this most likely involve?
A company adopts a 'leading edge' technology strategy. What does this most likely involve?
Flashcards
Transformed Resources
Transformed Resources
Resources that are converted or altered during the operations process, categorized into materials, information, and customers.
Transforming Resources
Transforming Resources
Resources used to act upon transformed resources.
Gantt Chart
Gantt Chart
A visual tool used for project scheduling, showing activities, durations, and timelines.
Customization
Customization
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Quality
Quality
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Speed
Speed
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Dependability
Dependability
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Flexibility
Flexibility
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Supply Chain Management
Supply Chain Management
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Outsourcing
Outsourcing
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Study Notes
- Operations processes involve transforming inputs into outputs through various processes.
- Inputs include transformed resources like materials, information, and customers, as well as transforming resources like human resources and facilities.
Transformation Processes
- The influence of volume, variety, variation in demand, and visibility (customer contact) affects transformation processes.
- Sequencing and scheduling are important aspects of transformation processes.
- Gantt charts and critical path analysis are tools used in sequencing and scheduling.
- Technology, task design, and process layout also play a role in transformation processes.
- Monitoring, control, and improvement are essential for optimizing operations.
Outputs
- Outputs include customer service and warranties
Operations Strategies
- Performance objectives include quality, speed, dependability, flexibility, customization, and cost.
- New product or service design and development are key strategic activities.
Supply Chain Management
- Supply chain management encompasses logistics, e-commerce, and global sourcing.
Outsourcing
- Outsourcing has both advantages and disadvantages.
Technology
- Technology can be either leading edge or established.
Inventory Management
- Inventory management involves considering the advantages and disadvantages of holding stock.
- LIFO (last-in-first-out), FIFO (first-in first-out), and JIT (just-in-time) are different inventory management methods.
Role of Financial Management
- Financial management plays a strategic role in organizations.
Objectives of Financial Management
- Objectives of financial management include profitability, growth, efficiency, liquidity, and solvency.
- Financial objectives can be short-term or long-term.
- Financial management is interdependent with other key business functions.
Influences on Financial Management
- Internal sources of finance include retained profits.
External Sources of Finance
- External sources of finance include debt and equity.
Debt
- Short-term borrowing options include overdrafts, commercial bills, and factoring.
- Long-term borrowing options include mortgages, debentures, unsecured notes, and leasing.
Equity
- Equity can be raised through ordinary shares (new issues, rights issues, placements, share purchase plans) and private equity.
Financial Institutions
- Financial institutions include banks, investment banks, finance companies, superannuation funds, life insurance companies, unit trusts, and the Australian Securities Exchange.
Influence of Government
- The Australian Securities and Investments Commission (ASIC) and company taxation influence financial management.
Global Market Influences
- Global market influences on financial management include the economic outlook, availability of funds, and interest rates.
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