MNB 1601 Exam with Complete
Solutions
Operations function - ANSWER-That function of the business aimed at executing the
transformation process
Operations function - ANSWER-That function in the business primarily aimed at the
utilization of resources to manufacture products or render services
Operations managers - ANSWER-The personnel in the business who are directly
responsible for managing the operation function
Operations management - ANSWER-Involves operations managers' activities, decisions
and responsibilities that tie in with the execution of the operations function
Customer/client needs - ANSWER-1. Higher quality
2. Lower costs
3. Shorter lead time
4. Greater adaptability (flexibility)
5. Lower variability with regard to specifications (reliability)
6. High level of service
Operations - management performance objectives - ANSWER-1. Do things right the first
time
2. Do things cost effectively
3. Do things fast
4. Make changes quickly
5. Do things right every time
6. Do things better
Do things right the first time - ANSWER-The operations function should not make
mistakes. By providing error-free products/services, the business will gain a quality
advantage. Higher quality = lower cost, improved competitive position which can lead to
higher prices and a greater market share
Do things cost effectively - ANSWER-Products and services should be
produced/provided at a cost that will enable the business to place them on the market at
a price that will ensure an acceptable profit. Can provide the business with a cost
advantage.
, Do things fast - ANSWER-The period of time between the demand for a product/service
and the delivery thereof should be as short as possible. This will increase availability
and give business a speed advantage.
Make changes quickly - ANSWER-Operations management function should be able to
adapt/change activities if unforseen circumstances make it necessary. The business will
have an adaptability advantage
Do things right every time - ANSWER-Error-free products/services that satisfy set
specifications should regularly and continuously be provided. This gives business a high
reliability or low variability advantage.
Do things better - ANSWER-A business will endeavor to provide a better total
product/service package compared to competitors. This gives business a service
advantage
Inputs - ANSWER-Resources to be transformed and resources required to make
transformation possible
Resources to be transformed - ANSWER-Material
Customers/clients
Information
Resources required to make transformation possible - ANSWER-Human resources
Equipment and facilities
Technology
Transformation process - ANSWER-Converts inputs into outputs.
Outputs - ANSWER-Assume the form of products /services
Different characteristics of operations - ANSWER-1. Volume of output
2. Variety of output
3. Variation of output
4. Visibility of output
Volume of output - ANSWER-Refers to the number of items produced by the operation
over a given period of time
Variety of output - ANSWER-Refers to the range of different items produced by the
operation over a given period of time
Variation of output - ANSWER-Refers to the particular demand pattern for the output of
the operation, which may be constant or highly irregular, non-routine and unpredictable
Solutions
Operations function - ANSWER-That function of the business aimed at executing the
transformation process
Operations function - ANSWER-That function in the business primarily aimed at the
utilization of resources to manufacture products or render services
Operations managers - ANSWER-The personnel in the business who are directly
responsible for managing the operation function
Operations management - ANSWER-Involves operations managers' activities, decisions
and responsibilities that tie in with the execution of the operations function
Customer/client needs - ANSWER-1. Higher quality
2. Lower costs
3. Shorter lead time
4. Greater adaptability (flexibility)
5. Lower variability with regard to specifications (reliability)
6. High level of service
Operations - management performance objectives - ANSWER-1. Do things right the first
time
2. Do things cost effectively
3. Do things fast
4. Make changes quickly
5. Do things right every time
6. Do things better
Do things right the first time - ANSWER-The operations function should not make
mistakes. By providing error-free products/services, the business will gain a quality
advantage. Higher quality = lower cost, improved competitive position which can lead to
higher prices and a greater market share
Do things cost effectively - ANSWER-Products and services should be
produced/provided at a cost that will enable the business to place them on the market at
a price that will ensure an acceptable profit. Can provide the business with a cost
advantage.
, Do things fast - ANSWER-The period of time between the demand for a product/service
and the delivery thereof should be as short as possible. This will increase availability
and give business a speed advantage.
Make changes quickly - ANSWER-Operations management function should be able to
adapt/change activities if unforseen circumstances make it necessary. The business will
have an adaptability advantage
Do things right every time - ANSWER-Error-free products/services that satisfy set
specifications should regularly and continuously be provided. This gives business a high
reliability or low variability advantage.
Do things better - ANSWER-A business will endeavor to provide a better total
product/service package compared to competitors. This gives business a service
advantage
Inputs - ANSWER-Resources to be transformed and resources required to make
transformation possible
Resources to be transformed - ANSWER-Material
Customers/clients
Information
Resources required to make transformation possible - ANSWER-Human resources
Equipment and facilities
Technology
Transformation process - ANSWER-Converts inputs into outputs.
Outputs - ANSWER-Assume the form of products /services
Different characteristics of operations - ANSWER-1. Volume of output
2. Variety of output
3. Variation of output
4. Visibility of output
Volume of output - ANSWER-Refers to the number of items produced by the operation
over a given period of time
Variety of output - ANSWER-Refers to the range of different items produced by the
operation over a given period of time
Variation of output - ANSWER-Refers to the particular demand pattern for the output of
the operation, which may be constant or highly irregular, non-routine and unpredictable
