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business
operations management
Questions and Answers of
Operations Management
14. Has the effect of variability been recognised in the design of the process?
13. Are the sources of process variability recognised?
12. Are the relationships between throughput, cycle time and work-in-process understood (Little’s Law)?
11. Is the process balanced? If not, can the bottleneck stages be redesigned to achieve better balance?
10. Have the advantages and disadvantages of series and parallel configurations been explored?
9. Are the details of task precedence known for each process?
8. Is it necessary for process descriptions to include the degree of visibility at each stage of the process?
7. If not, should the process descriptions be changed or should existing process descriptions be enforced?
6. Are formal process descriptions followed in practice?
5. Are the emotional responses of any customers / people who are being ‘processed’understood?
4. Are processes documented using process mapping techniques?
3. Is the following information known for all key processes in the operation?– The throughput or flow rate of the process?– The throughput time of the process?– The number of units in the pr
2. Do the process design objectives clearly relate to the business’s strategic objectives?
1. Have a clear set of performance objectives for each process been set?
5. Are process tasks and capacity configured appropriately?
4. Is process variability recognised?
3. How are processes currently designed?
2. Is the importance of detailed process design understood?
1. Are process performance objectives clear?
5 Revisit the example at the beginning of this of the chapter that examines some of the principles behind supermarket layout. Then visit a supermarket and observe people’s behaviour. You may wish
4 A direct marketing company sells kitchen equipment through a network of local representatives working from home. Typically, individual orders usually contain 20 to 50 individual items. Much of the
3 The international Frozen Pizza Company (IFPC) operates in three markets globally. Market 1 is its largest market, where it sells 25,000 tons of pizza per year. In this market it trades under the
1 Visit a branch of a retail bank and consider the following questions:(a) What categories of service does the bank seem to offer?(b) To what extent does the bank design separate processes for each
4 Use the above information to draw a ‘product’–process matrix. What does it indicate?
3 How would you describe each team’s process in terms of its layout, the technology (if any) it uses, and the jobs of its staff?
2 Where would you place each service in a scale that goes from relatively low volume, relatively high variety, to relatively high volume, relatively low variety?
1 What are the individual ‘services’ offered by each of the three teams?
14. Are job commitment mechanisms in each process appropriate for its volume–variety characteristics?
13. Is the extent of job definition in each process appropriate for its volume–variety characteristics?
12. Is the extent of division of labour in each process appropriate for its volume–variety characteristics?
11. Does job design ensure the imperative to design jobs that are safe, ethical, and promote an adequate work/life balance?
10. Are job designs appropriate?
9. Is the effect of the three dimensions of process technology (the degree of automation, the scale/scalability, and the coupling/connectivity of the technology)understood?
8. Is process technology appropriate?
7. Have ‘soft’ servicescape factors been considered?
6. Which of the four basic layout types that correspond to different positions on the volume–variety spectrum is appropriate for each process?
5. Are the process layouts appropriate?
5. Are the implications of choosing an appropriate layout, especially the balance between process flexibility and low processing costs, understood?
4. Are the consequences of moving away from the ‘diagonal’ of the product–process matrix understood?
3. Can processes be positioned on the ‘diagonal’ of the product–process matrix?
2. Are ‘process types’ understood and do they match volume–variety requirements?
6. Does the operation understand the importance of how it positions its process resources?
5. Has the detailed design of the process been analysed to give appropriate flow characteristics? (Chapter 6)
4. Are job designs appropriate?
3. Are process technologies appropriate?
2. Are process layouts appropriate?
1. Do processes match volume–variety requirements?
3 A company that produces concrete paving slabs is introducing a new range of ‘textured’ non-slip products.To do this, it must invest in a new machine. Demand is forecast to be around 10,000
2 A data centre is ‘a facility composed of networked computers and storage that businesses or other organisations use to organise, process, store and disseminate large amounts of data. A business
1 Consider the music business as a supply network. How did music downloads and streaming affect to artists’sales? What implications did electronic music transmission have for record shops?
3 What were the advantages and disadvantages of each location option open to Phanchem, and why do you think they erventually chose to co-locate with AE?
2 What were the risks involved in adopting a process design that was ‘totally dedicated’ to the one customer’s needs?
1 What were the key structure and scope decisions taken by Aarens Electronic?
17. Do location evaluation criteria include capital, market, cost, flexibility, and risk factors?
16. Are sufficient location options being considered?
15. If considering relocation, are alternative locations always evaluated against each other and against a ‘do nothing’ option?
14. Have factors such as changes in demand or supply that may prompt relocation been considered?
13. Is the relocation decision ever considered?
12. Are the fixed-cost breaks of capacity increase understood, and are they taken into account when increasing or decreasing capacity?
11. Are the various strategies for timing changes in capacity always evaluated in terms of their advantages and disadvantages?
10. Is the optimum economy of scale for the different types of operation with the business periodically assessed?
9. Is there a rational set of criteria used for deciding whether (or not) to outsource?
8. Is outsourcing (or bringing back in-house) evaluated in terms of all the operation’s performance objectives?
7. Is the vertical integration/outsourcing issue always under review for possible benefits?
6. Does the operation have an approach to how its treats others in the supply network who might be both complementors and competitors?
5. Are any parts of the supply network likely to become disintermediated, and have the implications of this been considered?
4. Have the benefits of reducing the number of individual suppliers been explored?
3. Does the operation have a view on how it would like to see its supply network develop over time, both in terms of scope and structure?
2. Are the capabilities of suppliers and requirements of customers understood in terms of all aspects of operations performance?
1. Is the operation fully aware of all its first and second-tier suppliers’ and customers’capabilities and requirements?
7. Does the operation have an idea of future demand?
6. Does the operation understand its place in its supply network?
5. What configuration should a supply network have?
4. Where should operations be located?
3. How much capacity should operations plan to have?
2. How do operations decide what to do in-house and what to outsource?
1. How vertically integrated should the operation’s network be?
Megan, age 28, is insured under an individual major medical policy. The planhas a calendar-year deductible of $1,500, a 25 percent coinsurance provision,and an annual out-of-pocket limit of $4,000.
Who are the operational personnel of:■ a university■ a police force?
Identify the stakeholders of a not-for-profit organization that you are familiar with. How do the stakeholders differ and how are they similar in terms of their expectations of the operation?
What might the objectives of operations mean in the following contexts:■ a car factory■ a supermarket■ a police force?
Having read the job adverts, list what you think are the important qualities for an operations manager.
What are the implications for the McDonald’s operation if its customers move towards low volume, high variation, high variety and high customer contact features?
What does value mean in the education process?
Insert the missing words in this definition of operations management:‘Operations is concerned with managing ______ through transformation _________ to deliver _______.’
Operations covers a narrow range of organizations. True or false?
Which of the following are operations management roles?(a) Hospital Manager(b) Technical Director(c) Store Manager(d) All of the above?
Customers must be external to the organization. True or false?
There are five overall objectives for operations. List at least three of them.
Planning by itself is not sufficient to manage processes. What other major element is needed?
Operations managers have to undertake all of the following except:(a) operational strategic planning(b) meeting today’s operational objectives(c) liaising with the design function(d) marketing the
Being effective means:(a) delivering the very best product or service(b) successfully delivering the required product or service(c) keeping costs as low as possible.
Operations Management was developed in the 1950s. True or False?
Operations management refers to:(a) manufacturing(b) service(c) distribution(d) all of the above.
Manufacturing is the dominant contributor to gross domestic product. True or false?
The implementation of technology generally:(a) requires little preparation(b) requires careful planning and control(c) is of no importance to operations managers(d) is important to operations
Identify three reasons why improving service sector productivity is important.
Which of the following is not a tangible output?(a) food(b) chairs(c) comfort(d) documents(e) cars.
Insert the missing words in the following statement:‘Economic development seems to follow a pattern of initially being based upon ___________, developing into reliance upon _____________ and
The term ‘volume’ refers to:(a) the peaks and troughs of demand(b) the number of times a product or service has to be produced(c) the number of different types of product or service offered.
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