CIPS L5M9 Operations Management LO1 Review Questions and Correct Answers

Operations Management The processes of managing the resources and processes involved in the acquisition and transformation of inputs and the distribution of outputs. Five Key Performance Dimensions / Performance Objectives - Slack and Brandon-Jones 1. Quality 2. Speed 3. Dependability 4. Flexibility 5. Cost Quality Producing products and services that satisfy customer needs. Speed Ensuring a short lapse of time between when orders are made and fulfilled. Dependability Producing products that are reliable and consistent. Flexibility Adapting to changes in demand or marketplace changes. Cost Producing products and services at minimum cost. Operation Smallest divisible piece of work or activity within an organisation. CREATING FLOW Production Methods 1. Make to Order - craft production. Does not commence until an order has been received. 2. Mass Production - make to stock - low variety / high volume 3. Mass Customisation / Late Customisation - mix between made to order and mass production. Products standardised to a certain point e.g. Dell I T O Input - Transformation - Output The market is the point in which an output transforms into an input Input * Materials * Information * Customers Transformation * Facilities * Staff * Infrastructure e.g. road, rail, air * IT * Marketing Four V's 1. Volume - quantity of products / services produced 2. Variety - of products / services produced 3. Visibility - of the process to customers 4. Variation - changes in demand for products / services Order Qualification Competitive standards that make an organisations products viewed as fit for purpose by customers Order Winning Standards that separate the products from on organisation to another Hayes & Wheelwrights 4 Stages of Operations Readiness 1. Internal Neutrality 2. External Neutrality 3. Internally Supportive 4. Externally Supportive