Organisational Aspects of Operations

16 important questions on Organisational Aspects of Operations

What is the operations process?

The converting process (and adding value) of inputs (raw materials, assets, information, etc.) into outputs (goods, profits, wages, etc.)

What are the differences between manufacturing and non-manufacturing industries?

1. M: Goods are tangible,
2. N: Customer is active participant (education, etc.)
3. N: Unpredictability makes operations control difficult
4. N: Quality and productivity are more subjective
5. M: Quality of service is determined primarily by output

How does operations relate to innovation?

Innovative goods/services must be feasible in terms of production
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How does operations relate to HRM?

The recruiting process is part of the inputs

How does operations relate to finance&accounting?

Budgets, targets, wages, etc. influence operations.

What are the 2 types of operation management activities?

1. System design: product design, forecasting demand, capacity planning, etc.
2. System planning and control: scheduling, planning, supply chain management, etc.

What is method study?

The technique used to minimise cost

What is work measurement?

The application of the designed techniques to determine the time for a worker to complete a task at a defined level of performance.

What factors play a role in deciding on a location?

1. Availability of cost and labour
2. Availability of raw materials
3. Local issues (taxes, planning procedures, etc.)

What is operations planning and control?

Planning is concerned with matching supply with demand, and control consists of determining operations standards.

What are the 5 methods for quality control?

1. Conformance to specification - a performance standard is established and all the work is assessed against that standard
2. Benchmarking - Comparing with other organisations, and through that improving
3. TQM (Total Quality Management) - corporate culture completely focussed on customers need by incorporating quality in every aspect (training, etc.)
4. Supply chain management - make sure that is qualitatively good
5. JIT - highest volume of output at lowest cost, based on customer's demands

How is the state involved with organisations?

1. Laws about environmental pollution, etc. may result in higher costs
2. National and international quality standards
3. Regional policies

How does technology influence operations?

can result in changes in operational strategy, increase the reaction speed to changes in demand and improve quality or reduce costs of the process.

What are the operations objectives of organisations?

1. Quality
2. Dependability (keep delivering satisfactory products)
3. Speed (first-mover advantage)
4. Flexibility (alter products to fit changing demands)
5. Cost

What is lean production?

Producing high quality products while retaining efficiency and cutting costs. Very idealistic and therefore often regarded as a theory.

What are the characteristics of lean production?

1. JIT and QMT
2. close links with customers and suppliers
3. Kaizen (continuous improvement) and solving problems at the source
4. Flexible systems and technology
5. Offer variety of products
6. Delayering of management

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