Ch 1

Question 1

What is OM?

Answer 1

OM is the management of processes that create goods and/or provide services.

Question 2

Why is OM important?

Answer 2

• To meet/exceed expectations
• Operations innovations lead to marketplace and strategic benefits, i.e. Toyota Production System, Dell, Zara
• use OM to improve efficiencies/effectiveness

Question 3

Operations:

Answer 3

Converting/transforming inputs to outputs

Question 4

Operation’s Manager Job

Answer 4

The operations manager must coordinate the use of resources through the management activities of planning, organizing, directing, and controlling.

Question 5

OM and decision making

Answer 5

Examples:

• Demand? (Forecasting)
• Best arrangement for departments, machines and equipment in terms of workflow? (Layout, Longterm design)
• How can jobs or staff be scheduled? (Scheduling, Short term, planning/control)

Question 6

Historic evolution of OM

Answer 6

Craft: High variety and low quantity. E,g, Custom Tailor, Machine Shop, Landscaping
Mass Production: Low skilled labour, few standard goods/services. E,g, Paper, Soft drink bottling
Lean: Highly skilled labour; high variety; using flexible equipment, high quantity. E.g. Automobiles, Computers