Podcast
Questions and Answers
Which strategic decision involves defining what is required of operations and how product design impacts cost, quality, sustainability, and human resources?
Which strategic decision involves defining what is required of operations and how product design impacts cost, quality, sustainability, and human resources?
- Managing quality
- Design of goods and services (correct)
- Location strategy
- Process and capacity design
What does managing quality strategic decision involve?
What does managing quality strategic decision involve?
- Addressing layout strategy needs
- Establishing policies for inventory management
- Determining customer quality expectations (correct)
- Defining process and capacity design
Which strategic decision involves committing management to specific technology, quality, human resources, and investments?
Which strategic decision involves committing management to specific technology, quality, human resources, and investments?
- Location strategy
- Layout strategy
- Inventory management
- Process and capacity design (correct)
What does the location strategy decision take into consideration?
What does the location strategy decision take into consideration?
Which strategic decision focuses on integrating capacity needs, personnel levels, technology, and inventory for efficient material, people, and information flow?
Which strategic decision focuses on integrating capacity needs, personnel levels, technology, and inventory for efficient material, people, and information flow?
What is the main purpose of finance/accounting within an organization?
What is the main purpose of finance/accounting within an organization?
Why is it important to study Operations Management (OM)?
Why is it important to study Operations Management (OM)?
What are the basic management functions that Operations Managers perform?
What are the basic management functions that Operations Managers perform?
What does the supply chain refer to?
What does the supply chain refer to?
Which strategic decision is related to designing goods and services according to the text?
Which strategic decision is related to designing goods and services according to the text?
What is the main focus of operations management?
What is the main focus of operations management?
Which of the following is NOT listed as one of the essential functions in organizing to produce goods and services?
Which of the following is NOT listed as one of the essential functions in organizing to produce goods and services?
What is the primary goal of production according to the text?
What is the primary goal of production according to the text?
What does single-factor productivity measure?
What does single-factor productivity measure?
Which function is responsible for creating the product in organizing to produce goods and services?
Which function is responsible for creating the product in organizing to produce goods and services?
What is the main goal of productivity?
What is the main goal of productivity?
What key technique did Henry Ford introduce in 1913?
What key technique did Henry Ford introduce in 1913?
In the context of W. Edwards Deming, what did his methods involve?
In the context of W. Edwards Deming, what did his methods involve?
What is the difference between productivity and production?
What is the difference between productivity and production?
What issue may arise even when the quantity of inputs and outputs remains constant?
What issue may arise even when the quantity of inputs and outputs remains constant?
Which individual demonstrated that machine tools could make standardized parts to exact specifications?
Which individual demonstrated that machine tools could make standardized parts to exact specifications?
Who is known as the 'father of scientific management'?
Who is known as the 'father of scientific management'?
What did Frederick W. Taylor study while serving as the chief engineer for Midvale Steel?
What did Frederick W. Taylor study while serving as the chief engineer for Midvale Steel?
Which principle emphasized by Taylor suggests that management should match employees to the right job?
Which principle emphasized by Taylor suggests that management should match employees to the right job?
Which engineering team applied efficiency methods not only in their work but also in managing a large family?
Which engineering team applied efficiency methods not only in their work but also in managing a large family?
Study Notes
What is Operations Management?
- Operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs.
- OM is essential for any organization, as it involves planning, organizing, staffing, leading, and controlling the production of goods and services.
Organizing to Produce Goods and Services
- Three essential functions of an organization:
- Marketing – generates demand
- Production/operations – creates the product
- Finance/accounting – tracks how well the organization is doing, pays bills, and collects money
The Supply Chain
- A global network of organizations and activities that supplies a firm with goods and services.
- Members of the supply chain collaborate to achieve high levels of customer satisfaction, efficiency, and competitive advantage.
Why Study OM?
- OM is one of three major functions of any organization.
- Understanding how goods and services are produced is crucial.
- Operations managers play a vital role in organizations.
- OM is a costly part of an organization.
Ten Strategic Decisions of Operations Management
- Design of goods and services
- Managing quality
- Process and capacity strategy
- Location strategy
- Layout strategy
- Human resources and job design
- Supply-chain management
- Inventory management
- Scheduling
- Maintenance
The Strategic Decisions
- Design of goods and services: defines what is required of operations and determines cost, quality, sustainability, and human resources.
- Managing quality: determines customer quality expectations and establishes policies to achieve that quality.
- Process and capacity design: determines how goods or services are produced and commits management to specific technology, quality, human resources, and investments.
- Location strategy: considers nearness to customers, suppliers, and talent, as well as costs, infrastructure, logistics, and government.
- Layout strategy: integrates capacity needs, personnel levels, technology, and inventory to determine the efficient flow of materials, people, and information.
Significant Events in OM
- Eli Whitney: developed interchangeable parts for muskets in 1798.
- Frederick W. Taylor: known as the "father of scientific management," introduced efficiency principles and time studies.
- Frank and Lillian Gilbreth: developed work measurement methods and applied efficiency methods to their home and family.
- Henry Ford: introduced the moving assembly line in 1913 to produce the Model T.
- W. Edwards Deming: taught Japan quality control methods and used statistics to analyze process.
Operations for Goods and Services
- Services: economic activities that produce an intangible product (e.g., education, entertainment, lodging, government, financial, and health services).
Productivity Challenge
- Productivity: the ratio of outputs (goods and services) divided by the inputs (resources such as labor and capital).
- The objective is to improve productivity.
- Note: production is a measure of output only and not a measure of efficiency.
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Description
Test your knowledge on strategic decisions in operations management including design of goods and services, process and capacity strategy, location strategy, layout strategy, human resources and job design, supply-chain management, inventory management, scheduling, and maintenance. Copyright © 2020 Pearson Education Ltd.
