Production /Ops management/ Transformation area

5 important questions on Production /Ops management/ Transformation area

What does capital mean in the productivity equation?

Tools: Capital investment buys those tools/ machines for the production. Productivity increases through the use of machines.

Mention three aspects than can increase productivity

Labor, capital and management

What does management mean in the productivity equation?

Makes sure that labor and capital are used effectively to increase productivity -> Done through the use of knowledge and application of technology.
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What are the four characteristics which are important from an ops manager's point of view for Zara?

  1. Necessity to be on time with the new products (Different seasons) -> Designers design and produce fast
  2. High responsiveness -> High flow of information to adapt to the new trends
  3. Standardisation -> Low costs due to mass production
  4. High productivity -> Economy of scale

What are the basic conflicts in the transformation area?

Standardisation vs. Customisation

Procurement:
  • Service, internal customers vs. Costs (readiness to deliver)

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