OPM Drexel University LeBow College of
Business With Verified
100 Q&A with Rationales
**Q1: What is Operations Management (OPM) about?**
**A:** Operations Management is about the systematic design,
direction, and control of processes that transform inputs into
products and services for internal and external customers, creating
value for the organization .
**Rationale:** This definition captures the essence of OPM as a
transformation function—converting inputs (materials, labor,
information) into valuable outputs through well-designed and
controlled processes.
---
**Q2: What is the primary difference between manufacturing and
service processes?**
**A:** Manufacturing processes produce physical, durable output
that can be inventoried, with low customer contact, capital intensity,
easily measured quality, and long response time. Service processes
produce intangible, perishable output that cannot be inventoried,
with high customer contact, labor intensity, quality not easily
measured, and short response time .
,**Rationale:** Understanding this distinction is fundamental
because operations strategies differ significantly between
manufacturing and service organizations. Services cannot be stored,
require more customer interaction, and are harder to measure for
quality.
---
**Q3: What is a supply chain?**
**A:** A supply chain is the sequence of organizations that are
involved in producing and delivering a product or service .
**Rationale:** The supply chain extends beyond a single
organization to include suppliers, manufacturers, distributors, and
retailers who all contribute to bringing a product or service to the
end customer.
---
**Q4: What is supply chain management?**
**A:** Supply chain management is the synchronization of a firm's
processes with those of its suppliers and customers to match the
flow of materials, services, and information with customer demand .
,**Rationale:** Effective SCM requires coordination across
organizational boundaries to ensure that the right products reach the
right customers at the right time, minimizing waste and inefficiency.
---
**Q5: What is a process?**
**A:** A process transforms inputs into outputs and can be
contained within a single department or cross several departments
or firms. An organization is only as effective as its processes .
**Rationale:** Processes are the fundamental building blocks of
operations. Every activity in an organization can be viewed as part of
a process that adds value to inputs.
---
**Q6: What is the difference between corporate strategy and
operations strategy?**
**A:** Corporate strategy provides the overall direction that serves
as the framework for carrying out all the organization's functions and
fulfilling its missions. Operations strategy specifies the means by
which operations implements corporate strategy .
**Rationale:** Corporate strategy answers "what business are we
in?" while operations strategy answers "how do we execute our
business strategy through our operations?"
, ---
**Q7: What are competitive priorities?**
**A:** Competitive priorities are the critical operational dimensions
that a process or supply chain must possess to satisfy its internal or
external customers, both now and in the future .
**Rationale:** Competitive priorities represent what an organization
must excel at to win customers. They guide strategic decisions about
resource allocation and process design.
---
**Q8: What are the nine broad competitive priorities?**
**A:** Low-cost, top quality, consistent quality, delivery speed, on-
time delivery, development speed, customization, variety, and
volume flexibility .
**Rationale:** These nine dimensions encompass the key
operational capabilities that organizations can develop to compete
effectively in their markets. No organization can excel at all
simultaneously—trade-offs are necessary.
---
Business With Verified
100 Q&A with Rationales
**Q1: What is Operations Management (OPM) about?**
**A:** Operations Management is about the systematic design,
direction, and control of processes that transform inputs into
products and services for internal and external customers, creating
value for the organization .
**Rationale:** This definition captures the essence of OPM as a
transformation function—converting inputs (materials, labor,
information) into valuable outputs through well-designed and
controlled processes.
---
**Q2: What is the primary difference between manufacturing and
service processes?**
**A:** Manufacturing processes produce physical, durable output
that can be inventoried, with low customer contact, capital intensity,
easily measured quality, and long response time. Service processes
produce intangible, perishable output that cannot be inventoried,
with high customer contact, labor intensity, quality not easily
measured, and short response time .
,**Rationale:** Understanding this distinction is fundamental
because operations strategies differ significantly between
manufacturing and service organizations. Services cannot be stored,
require more customer interaction, and are harder to measure for
quality.
---
**Q3: What is a supply chain?**
**A:** A supply chain is the sequence of organizations that are
involved in producing and delivering a product or service .
**Rationale:** The supply chain extends beyond a single
organization to include suppliers, manufacturers, distributors, and
retailers who all contribute to bringing a product or service to the
end customer.
---
**Q4: What is supply chain management?**
**A:** Supply chain management is the synchronization of a firm's
processes with those of its suppliers and customers to match the
flow of materials, services, and information with customer demand .
,**Rationale:** Effective SCM requires coordination across
organizational boundaries to ensure that the right products reach the
right customers at the right time, minimizing waste and inefficiency.
---
**Q5: What is a process?**
**A:** A process transforms inputs into outputs and can be
contained within a single department or cross several departments
or firms. An organization is only as effective as its processes .
**Rationale:** Processes are the fundamental building blocks of
operations. Every activity in an organization can be viewed as part of
a process that adds value to inputs.
---
**Q6: What is the difference between corporate strategy and
operations strategy?**
**A:** Corporate strategy provides the overall direction that serves
as the framework for carrying out all the organization's functions and
fulfilling its missions. Operations strategy specifies the means by
which operations implements corporate strategy .
**Rationale:** Corporate strategy answers "what business are we
in?" while operations strategy answers "how do we execute our
business strategy through our operations?"
, ---
**Q7: What are competitive priorities?**
**A:** Competitive priorities are the critical operational dimensions
that a process or supply chain must possess to satisfy its internal or
external customers, both now and in the future .
**Rationale:** Competitive priorities represent what an organization
must excel at to win customers. They guide strategic decisions about
resource allocation and process design.
---
**Q8: What are the nine broad competitive priorities?**
**A:** Low-cost, top quality, consistent quality, delivery speed, on-
time delivery, development speed, customization, variety, and
volume flexibility .
**Rationale:** These nine dimensions encompass the key
operational capabilities that organizations can develop to compete
effectively in their markets. No organization can excel at all
simultaneously—trade-offs are necessary.
---
