Production and Operations Management Quiz

Production and operations management (P/OM) is the process of managing resources to produce goods and services efficiently and effectively.
A production manager aims to create the end product in the correct quantity, quality, at the correct time, and economically.
Production involves transforming inputs into goods or services, which may or may not use machinery.
Manufacturing is the process of transforming raw materials into finished goods.
Operations broadly describe the set of activities associated with the production of goods and services. This includes transportation, supply, and service activities.

A production system is a dynamic arrangement of elements designed to interact harmoniously.
Two subsystems are the physical system, responsible for the transformation of inputs to outputs, and the information system, which coordinates and controls the physical system.
Production systems are characterized by material transformation, repetitiveness, an information system superimposed on the physical system, and material process flows.

Management is described as planning, organizing, directing, and controlling.
Planning involves establishing goals and objectives while outlining guidelines and actions.
Organizing includes bringing together necessary resources.
Directing motivates people to achieve goals and assigning responsibilities.
Controlling monitors progress against plans and corrects any issues.

P/OM isn't limited to manufacturing.
Services such as banks, hotels, restaurants, and transport companies also involve P/OM.
P/OM deals with the supply side of organizations, while marketing deals with the demand side.
Financial management is concerned with supplying sufficient capital to cover labor, materials, and facilities.

Product planning is a top management process involving all the firm's sectors—finance, marketing, production, and technical departments.
Steps in product planning include understanding the product's purpose, identifying target customers, developing customer-centric plans, learning from customer feedback, and focusing on the output/result.

Process planning is the determination of required machines, tools, personnel, and methods for the production process.
This follows product design.
Steps in process planning include identifying inputs and outputs, mapping workflows, creating documentation for operators and training employees.

Physical facilities management involves the heavy investment in manufacturing facilities.
The arrangement of facilities affects the efficiency of material handling and, therefore, the final cost of the product.
Important aspects include plant location, engineering economics, plant layout, plant engineering, and materials handling.

Production planning involves forecasting demand, and determining the production needs based on the forecast.
Sometimes referred to as loading or routing.
Production control includes scheduling required work, providing instructions to relevant manufacturing sectors, and checking on progress.

Quality control ensures products meet quality standards and are consistent with the minimum resources used.
This includes setting standards, implementing measures, and monitoring for improvement.

Methods improvement is a systematic approach to identify and eliminate waste/inefficiencies in processes.
In tourism and hospitality, this means constantly seeking better ways to deliver services to guests.
Examples include streamlining check-in/check-out processes, optimizing housekeeping procedures, implementing technology solutions, improving staff training, and revamping menu offerings.

Production managers have various activities requiring assembled resources (personnel, machines, or processes).
They are responsible for transforming materials/labor into products/services and directing inputs to produce outputs.
Successful companies have reporting systems providing current feedback to ensure they meet customer demand.
Redesigning products/services and changing internal operations are likely to necessitate changes in resource use.

P/OM deals with the supply side of organizations.
Asset concentration (70% of assets in manufacturing/processing organizations are in inventory) is controlled by P/OM.
Careers in P/OM and purchasing are excellent for creative individuals.
Understanding P/OM and strategic business decisions are crucial for product/service strategies.
Production planning, capacity, product technology, workforce design, and the consideration of suppliers directly affect production processes.
Social responsibility is important; managers try to serve employers, meet obligations, maintain fair wages, and create quality products.
Productivity is a crucial aspect of P/OM; productivity is the ratio of outputs to inputs influencing the effectiveness of resources use.
Various factors such as government policy, resource endowment, product safety and environmental considerations also affect the outcome of P/OM.