IB Business Management: Operations Management

IB Business Management: Operations Management Questions and Answers ( Rated A) What are the operations of an organization or business? - ANS- The fundamental activities of the organization or business What does the primary sector deal with? - ANS- Raw materials (oil, coal, etc.) What does the secondary sector deal with? - ANS- Manufacturing of goods What does the tertiary sector deal with? - ANS- Services What does the quaternary sector deal with? - ANS- Knowledge, innovation What is operations management? - ANS- The art of managing the production process in order to achieve the best result What are the most likely goals of operations management? - ANS- Improved quality, increased productivity, and reduced costs What is ecological sustainability? - ANS- Ensuring that ecosystems maintain their essential functions and processes and also retain their biodiversity over the long run What is social sustainability? - ANS- The ability of a community to develop processes and structures of current and future members to maintain a healthy community What is economic sustainability? - ANS- Using the assets of a company efficiently to allow it to continue functioning profitably in the long-term What is the purpose of job (custom) production? - ANS- Used to make products for specific customers according to precise specifications What are the main advantages of job (custom) production? - ANS- High quality, motivation, uniqueness, flexibility, higher mark-ups What are the main disadvantages of job (custom) production? - ANS- Cost (for business), timeconsuming, labor intensive, risk What is the purpose of batch production? - ANS- Used to manufacture products in quantities too large for customization and too small for mass production in a large-scale factory What are the main advantages of batch production? - ANS- Economies of scale, customer choice, useful for producing trailing products, can effectively fill unexpected orders What are the main disadvantages of batch production? - ANS- Down time, large stock of "work-inprogress", availability of inputs What is mass (flow) production? - ANS- Producing large quantities of standardized products using continuous flow of materials along an automated assembly line What are the main advantages of mass (flow) production? - ANS- Little ongoing maintenance, significant economies of scale, low labor cost, fast response time, consistent quality, planning What are the main disadvantages of mass (flow) production? - ANS- High initial cost, breakdowns, dependent upon mass demand, inflexible, demotivating What is process production? - ANS- Continuous input of raw material and other resources to produce a continuous conversion into a finished product What are the main advantages of process production? - ANS- Reduced costs, mass production capability, consistency What are the main disadvantages of process production? - ANS- Large initial capital outflow, no stoppage, no room for variation What is cellular manufacturing? - ANS- A lean method of producing similar products using work stations and teams. Equipment is arranged to allow small-scale, continuous production flow. How can cellular manufacturing help an organization achieve improved quality? - ANS- There is a cooperative nature of production and team members are directly responsible for their own quality. How can cellular manufacturing help an organization achieve increased productivity? - ANS- There's higher motivation and a high specialization of tasks. How can cellular manufacturing help an organization achieve reduced costs? - ANS- There is less waste. What are some considerations for choosing the appropriate production method? - ANS- Target market, state of existing technology, availability of resources, and government regulation What is lean production? - ANS- A production method that focuses on efficiency with minimal waste while still maintaining high quality. Which business factors can be affected by lean production? - ANS- Time, transportation, products, space, inventory, energy, talent What is the lean production method of continuous improvement (kaizen)? - ANS- Placing an emphasis on constant identification of opportunities for change and improvement