Introduction to operations and supply chain mngmt

Question 1

What is Operations Management (OM)?

Answer 1

Operations Management is the management of systems or processes that create goods and/or provide services.
It involves planning, organizing, and supervising production and manufacturing or the provision of services.

Question 2

What is the difference between goods and services in OM?

Answer 2

• Goods: Tangible, storable, less customer interaction, production precedes consumption.
• Services: Intangible, perishable, high customer interaction, simultaneous production and consumption.

Question 3

What are the key decisions in Operations Management?

Answer 3

• Strategic Decisions: Long-term, high-level decisions (e.g., capacity, location, layout).
• Tactical Decisions: Medium-term (e.g., scheduling, inventory, quality control).
• Operational Decisions: Short-term, day-to-day decisions (e.g., daily scheduling, resource allocation).

Question 4

What is the Supply Chain and how is it different from OM?

Answer 4

• Supply Chain: The network of all entities involved in producing and delivering a finished product or service to the customer.
• OM: Focuses on the internal processes of transforming inputs into outputs within one organization.

Question 5

What are the three basic functions in every organization?

Answer 5

• Operations: Creates goods/services.
• Marketing: Promotes and sells.
• Finance: Manages money.

Question 6

What are the major OM decisions under the ‘10 OM Decisions’ framework?

Answer 6

1. Design of Goods and Services
2. Managing Quality
3. Process and Capacity Design
4. Location Strategy
5. Layout Strategy
6. Human Resources and Job Design
7. Supply Chain Management
8. Inventory Management
9. Scheduling
10. Maintenance

Question 7

How does OM add value to the customer?

Answer 7

By enhancing efficiency, reducing costs, improving quality and service, and ensuring timely delivery.

Question 8

What is productivity, and how is it calculated?

Answer 8

Productivity = Output / Input

Measures how efficiently resources are used

Question 9

What are the challenges in Operations Management today?

Answer 9

• Globalisation- Managing international suppliers, logistics, customs, and quality standards while staying cost-effective and responsive.
• Sustainability- Reducing waste, emissions, and energy use without sacrificing efficiency or profitability.
• Ethical issues- Ensuring transparency, fair labor practices, and ethical sourcing throughout the supply chain.
• Rapid technological changes- Adopting and integrating new technologies like AI, automation, and big data while managing costs and change resistance.
• Customer expectations- Meeting high expectations while maintaining low costs and high efficiency—especially in service-heavy sectors.

Question 10

What are the differences between manufacturing and service operations?

Answer 10

|Characteristic|Manufacturing|Service|
|Tangibility|Tangible|Intangible|
| Customer Contact| Low| High|
| Production Timing| Before consumption | Simultaneous |
|Inventory| Possible| Not possible|