Operations management key info

Question 1

operations management

Answer 1

Methods used by businesses to create products and services that are efficient

Question 2

added value

Answer 2

increasing the gap between production cost and selling price

Question 3

added value calculation

Answer 3

selling price - production costs

Question 4

how to increase added value

Answer 4

• build a brand
• add differentiating features
• convenience
• provide outstanding customer service

Question 5

benefits of added value

Answer 5

• can charge higher prices

- unique selling point differentiation from competitors boosts sales

Question 6

drawbacks of added value

Answer 6

• costs time and money to create

- high price creates high expectations which business might not be able to back

Question 7

job production evaluation

Answer 7

+ produces a high quality product
+ meets the needs of the individual
+ greater job satisfaction for employees

• high production costs
• slower than flow and batch

Question 8

batch production evaluation

Answer 8

+ batches reduces production cost
+ specific customer needs can still be met at a faster rate

• productivity is effected during downtime

Question 9

flow production evaluation

Answer 9

+ low cost in the long run because of machinery
+ be able to buy raw materials in bulk cheaper

• large initial capital costs
• time consuming and expensive to make changes (disrupts the flow)