OPERATIONS MANAGEMENT:
CHAPTER 1 & 2 - OPERATIONS
STRATEGY ACCURATE QUESTIONS
AND ANSWERS WITH SOLUTIONS 2024
What is Operations Management? - ANSWER the systematic design, direction, and control of processes
that transform inputs into services and products for internal, as well as external, customers
Why is operations management important? - ANSWER It is at the heart of the *creation of wealth* for
business and the improvement in the *living standard of citizens* of all countries.
Operation managers are responsible for... - ANSWER ...the production of services and products in an
*ethical* and *environmentally responsible* way while being responsive to the market.
Process - ANSWER Any network of activities and buffers that takes one or more inputs, transforms them
using labor & capital resources, and provides one or more outputs for its customers.
Examples of Inputs (7) - ANSWER workers
managers
equipment
facilities
materials
land
energy
Characteristics of Manufacturing process (6) - ANSWER 1. Physical, durable output
2. Output can be inventoried
3. Low customer contact
4. Long response time
5. Capital intensive
, 6. Quality easily measured
Characteristics of Service process (6) - ANSWER 1. Intangible, perishable output
2. Output cannot be inventoried
3. High customer contact
4. Short response time
5. Labor intensive
6. Quality not easily measured
What are the 2 categories of processes within the value chain that allow us to identify the best way to
add value for our customers? - ANSWER 1. *Core Processes*: a set of activities that delivers value to
external customer.
2. *Support Processes*: provides vital resources and inputs to the Core Processes and is essential to the
management of the business.
- supports throughout the business
What is Corporate Strategy? - ANSWER = provides an overall direction that serves as the framework for
carrying out organizations functions (such as finance, marketing and operations).
It includes the firms overall goals with its core competencies.
What is Operations strategy? (4) - ANSWER 1. It specifies *HOW* operations will implement corporate
strategy.
2. *Long-term and short-term* operations decisions are driven by the corporate strategy.
3. It creates *fit* among a company's activities. The success of a strategy depends on doing many things
well— not just a few—and integrating among them. If there is no fit among activities, there is no
distinctive strategy and little sustainability.
4. It's designed to *maximize the effectiveness* of production and support elements while *minimizing
costs*.
Corporate strategy has 4 aspects: - ANSWER 1. Environmental scanning
CHAPTER 1 & 2 - OPERATIONS
STRATEGY ACCURATE QUESTIONS
AND ANSWERS WITH SOLUTIONS 2024
What is Operations Management? - ANSWER the systematic design, direction, and control of processes
that transform inputs into services and products for internal, as well as external, customers
Why is operations management important? - ANSWER It is at the heart of the *creation of wealth* for
business and the improvement in the *living standard of citizens* of all countries.
Operation managers are responsible for... - ANSWER ...the production of services and products in an
*ethical* and *environmentally responsible* way while being responsive to the market.
Process - ANSWER Any network of activities and buffers that takes one or more inputs, transforms them
using labor & capital resources, and provides one or more outputs for its customers.
Examples of Inputs (7) - ANSWER workers
managers
equipment
facilities
materials
land
energy
Characteristics of Manufacturing process (6) - ANSWER 1. Physical, durable output
2. Output can be inventoried
3. Low customer contact
4. Long response time
5. Capital intensive
, 6. Quality easily measured
Characteristics of Service process (6) - ANSWER 1. Intangible, perishable output
2. Output cannot be inventoried
3. High customer contact
4. Short response time
5. Labor intensive
6. Quality not easily measured
What are the 2 categories of processes within the value chain that allow us to identify the best way to
add value for our customers? - ANSWER 1. *Core Processes*: a set of activities that delivers value to
external customer.
2. *Support Processes*: provides vital resources and inputs to the Core Processes and is essential to the
management of the business.
- supports throughout the business
What is Corporate Strategy? - ANSWER = provides an overall direction that serves as the framework for
carrying out organizations functions (such as finance, marketing and operations).
It includes the firms overall goals with its core competencies.
What is Operations strategy? (4) - ANSWER 1. It specifies *HOW* operations will implement corporate
strategy.
2. *Long-term and short-term* operations decisions are driven by the corporate strategy.
3. It creates *fit* among a company's activities. The success of a strategy depends on doing many things
well— not just a few—and integrating among them. If there is no fit among activities, there is no
distinctive strategy and little sustainability.
4. It's designed to *maximize the effectiveness* of production and support elements while *minimizing
costs*.
Corporate strategy has 4 aspects: - ANSWER 1. Environmental scanning
