BADM 7120 Exam 1
Operations management focuses on ... - ANS-decisions for the production and delivery of the
firm's products and services
3 aspects of Operations Management - ANS-1. Decisions
2. Function
3. Process
Operations manager must decide: - ANS-process, quality, capacity, inventory, and supply chain
Major functional areas in organizations: - ANS-operations, marketing, and finance
Process: - ANS-planning and controlling the transformation process and its interfaces
(internal/external)
Definition of Supply Chain - ANS-- Network of manufacturing and service operations that supply
one another
- From raw materials through production to the end consumer
- Flows of materials, money, and information
- Links operations across organizations
Example of major decisions at Pizza USA - ANS-Process - How should we produce pizzas?
Quality- How do we meet quality standards and ensure a good customer experience?
Capacity - How much output do we need at various times?
Inventory - Which ingredients, when & how much?
Supply Chain - How to source inputs and manage logistics?
Decisions related to process, quality, capacity, inventory, and supply chain must account for: -
ANS--upstream suppliers
-downstream suppliers
-other functions
-support functions
-situations
-conditions
,-many others
Operations primary production... - ANS-function
Other primary operating functions.. - ANS-Marketing and Finance
Operations as a process.. - ANS-Inputs -> Transformation (Conversion Process) -> Outputs
Operations as a process.. (F&A) - ANS-Inputs -> Transformation Fabrication -> Transformation
Assembly -> Outputs
Fabrication (def.) - ANS-Making the parts
Assembly (def.) - ANS-putting the parts together
Operations as a Process (figure 1.2) - ANS-Energy, Materials, Labor, Capital, Information ->
Transformation (Conversion Process) -> Goods or Services
Contemporary Operations Challenges - ANS-- Service and Manufacturing (differences and
implications)
- Customer-Directed Operations ("voice of the customer")
- Integration of Decisions Internally and Externally
- Environmental Sustainability
- Globalization of Operations and the Supply Chain
Operation Strategy Process - ANS-Figure 2.1 Study powerpoint
Operations Strategic Objectives - ANS-Cost - resources used
Quality - conformance to customer expectations
Delivery - quickly and on time
Flexibility - ability to rapidly change operations
Example of Important Strategic Decisions: Process - ANS-Type: span of processes, automation,
process flow, job specialization
Choice: make or buy, hand/machine-made, project, batch, line or continuous, high or low
specialization
Examples of Important Strategic Decisions in Operations: Quality - ANS-Type: approach,
training, suppliers
, Choice: prevention or inspection, technical or managerial training, selected on quality or cost
Examples of Important Strategic Decisions in Operations: Capacity - ANS-Type: facility size,
location, investment
Choice: one large or several small facilities, near markets, low cost or foreign, permanent or
temporary
Examples of Important Strategic Decisions in Operations: Inventory - ANS-Type: Amount,
distribution, control systems
Choice: high or low levels of inventory, centralized or decentralized warehouse, control in
greater or less detail
Examples of Important Strategic Decisions in Operations: Supply Chain - ANS-Type: sourcing or
logistics
Choice: Insource or outsource products, national or global distribution
Distinctive Competence - ANS-- This operations capability is something an organization does
better than any competing organization that adds value for the customer
- Examples: Patents, proprietary technology, operations innovations
Business Strategy Alternatives - ANS-- Product Imitator: operations must focus on keeping
costs low
- Product Innovator: operations must maintain flexibility in processes, labor and suppliers
Customer Perspective - ANS-- Order qualifiers: objectives customers consider in the
product/service
- Order winners: objectives that cause customer to choose a particular product/service
Product imitator vs Product Innovator - ANS-Imitator -
Order Winner = price (low cost)
Order qualifiers = flexibility, quality, delivery
Innovator -
Order winner = flexibility (rapid introduction of new products)
Order qualifiers = cost, delivery, quality