Operations Planning - Ch. 10

Question 1

What is operations management?

Answer 1

OM focuses on an assigned set of directions and controls during the production of a good.

Question 2

What is goods production?

Answer 2

Goods Production is a focus on production activities that lead to tangible products

Question 3

What is service operations?

Answer 3

Service operations focus on production that leads to tangible and intangible goods/services.

Question 4

What is a good?

Answer 4

A good is something that is:

• Tangible/Storable
• Either high or no customer activity during the production process
• Heavy focus on physical goods.

Question 5

What is a service?

Answer 5

A service is something that is:

• Intangible/Non-storable
• High customer activity during production process
• Focuses on goods/services as outcomes

Question 6

What are the four drivers of goods and services?

Answer 6

Quality
Price
Flexibility
Reliability

Question 7

What is Capacity Planning?

Answer 7

Capacity Planning is determining the amount of a good that should be produced under normal operations.

Question 8

What should capacity planning account for?

Answer 8

It should account for:

• When capacity exceeds normal demand
• It should account for seasonal change
• It should address ways to use surplus

Question 9

What is Location Planning?

Answer 9

Location Planning focuses on where the facility should be located

(some considerations would include real estate cost, logistics, proximity to consumers)

Question 10

What are the three sub-branches of layout planning?

Answer 10

• Process Layout
• Product Layout
• Flexible Manufacturing Systems

Question 11

What is Process layout?

Answer 11

Process Layout focuses on organizing people and equipment by function (Hospitals, University Faculties)

Question 12

What is Product Layout?

Answer 12

Product Layout is when people/equipment are grouped to make one product (production line at a car factory)

Question 13

What are Flexible Manufacturing Systems?

Answer 13

FMS’s essentially allows a single factory to produce a variety of different products

Question 14

What are the two ways you can assess operational scheduling?

Answer 14

GANTT charts and PERT Charts

Question 15

What are GANTT Charts?

Answer 15

GANTT Charts are diagrams that display the steps and the required amount of time needed to complete a task.

It also tells you what resources you need to allocate to complete the task(s)

Question 16

What are PERT Charts?

Answer 16

PERT Charts specify a specific sequence and path of critical steps needed to complete a task.

It creates a critical path which provides the longest sequence of dependent tasks. It can also identify tasks that can reduce efficiency and cause delays.

Question 17

What are some challenges of operational control mechanisms?

Answer 17

• Goods (when are they arriving)
• Quality Control (can quality stay consistent?)
• Benchmarking (when is the highest point of sales? how are we compared to our competitors?)
• Supply Chains (are there any delays in shipment/supplier disputes?)