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Operations Management Essentials
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Operations Management Essentials
Operations Management Essentials
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1
Question
What is the strategic role of operations management?
Answer
Improve productivity, efficiency, quality of outputs; guide long-term goals.
2
Question
Define cost leadership in operations.
Answer
Lowest costs or most price-competitive via standardisation and efficiencies.
3
Question
Name two ways cost leadership can lower production costs.
Answer
Economies of scale; access to cheaper inputs.
4
Question
What is differentiation in operations strategy?
Answer
Make products/services distinct through quality, delivery, customization, features.
5
Question
What is a standardised good?
Answer
Mass-produced, uniform quality, production-focused.
6
Question
What is a customised service?
Answer
Tailored to customer needs, market-focused.
7
Question
List two interdependent business functions linked to operations.
Answer
Marketing and Finance.
8
Question
How does marketing relate to operations?
Answer
Connects product features with customer desires to drive sales.
9
Question
What role does finance play in operations?
Answer
Budgets and funds for inputs, equipment, repairs.
10
Question
What is the impact of globalisation on operations?
Answer
Lower costs, access markets; risk of competitive pressure.
11
Question
How does technology affect operations?
Answer
New production methods, CAD/CAM, improved efficiency and labour use.
12
Question
What are the five dimensions of quality performance objectives?
Answer
Quality, Speed, Dependability, Flexibility, Cost.
13
Question
Define dependability in operations terms.
Answer
Consistency and reliability of products.
14
Question
What does flexibility mean in operations performance?
Answer
Ability to adapt processes to market changes.
15
Question
What is supply chain management?
Answer
Flow of inputs to outputs; integrating sourcing, production, distribution.
16
Question
What is logistics in operations management?
Answer
Transport, inventory, warehousing, and distribution coordination.
17
Question
What is e-commerce’s role in operations?
Answer
Organizes online purchasing, global access, and procurement.
18
Question
What is the risk of outsourcing in operations?
Answer
Loss of control and potential security concerns.
19
Question
How does inventory management aim to optimize stock?
Answer
Set max/min levels, trigger reorders, balance costs.
20
Question
Explain LIFO and FIFO in simple terms.
Answer
LIFO: last in, first out; FIFO: first in, first out.
21
Question
What is JIT inventory?
Answer
Receive exactly what is needed, when needed.
22
Question
What is quality control?
Answer
Check resources at stages; take corrective action if targets fail.
23
Question
What is quality assurance?
Answer
Ensure processes meet predefined quality standards.
24
Question
What is the difference between legal compliance and ethical responsibility?
Answer
Compliance is mandatory; ethics is morally guided.
25
Question
What are examples of environmental sustainability in operations?
Answer
Reduce waste, reuse/recycle, use sustainable inputs.
26
Question
What is corporate social responsibility?
Answer
Ethical operation considering customers, employees, community.
27
Question
What does the transformation process include?
Answer
Transformed resources (materials), transforming resources (people, facilities).
28
Question
What are transformed resources?
Answer
Inputs changed by operations (materials, information, customers).
29
Question
What are transforming resources?
Answer
Resources that remain to perform transformation (people, facilities).
30
Question
What is the role of inputs in operations?
Answer
Transformed resources, transforming resources, and information.