Study "operations managment", a flashcard deck on FORKSAI.
Why is it important to study Operations Management (OM) within an organization?
Studying OM is crucial because it is one of the three major functions of any organization, helping us understand how goods and services are produced. It also provides insight into the roles of operations managers and addresses the fact that OM constitutes a significant cost for an organization.
What are the five basic management functions that operations managers perform?
The five basic management functions performed by operations managers are Planning, Organizing, Staffing, Leading, and Controlling.
Define 'Design of goods and services' as a strategic decision in Operations Management.
The 'Design of goods and services' strategic decision defines what is required of operations. Product design specifically determines aspects such as quality, sustainability, and the necessary human resources for production.
What factors are considered in the 'Location strategy' strategic decision?
The 'Location strategy' considers factors such as proximity to customers, suppliers, and talent. It also takes into account costs, available infrastructure, logistics, and government regulations.
How does 'Layout strategy' contribute to the overall system design?
'Layout strategy' integrates capacity needs, personnel levels, technology, and inventory considerations. Its primary goal is to determine the efficient flow of materials, people, and information within the operational system.
What is the role of 'Human resources and job design' as a strategic decision?
'Human resources and job design' focuses on recruiting, motivating, and retaining personnel who possess the required talent and skills. This area is an integral and often expensive part of the total system design.
MCQ-STYLE: Which of the following strategic decisions involves optimizing inventory based on customer satisfaction, supplier capability, and production schedules?
C
Define productivity and explain its significance.
Productivity represents output relative to input. Its significance lies in the fact that only through increases in productivity can the standard of living improve.
Calculate the labor productivity if 1,000 units are produced using 250 labor-hours.
Labor Productivity = Units produced / Labor-hours used = 1,000 units / 250 labor-hours = 4 units/labor-hour.
What is multi-factor productivity and how does it differ from single-factor productivity?
Multi-factor productivity, also known as total factor productivity, measures output relative to multiple resource inputs such as labor, material, energy, capital, and miscellaneous costs, often expressed in dollars. Single-factor productivity, like labor productivity, considers only one resource input.