MODULE 1:

1. Operations management is the set of activities that creates value in the

form of goods and services by transforming inputs into outputs
2. The three basic functions:
a. Finance
b. Marketing
c. Operations
3. The creation of goods and services involves transforming inputs into
outputs. To ensure the desired outputs are obtained, an organization takes
measurements at various points in the transformation process(feedback)
and then compares them with previously established standards to
determine whether corrective action is needed (control).
4. The term used to describe the difference between the costs of input and
the value or price of outputs.
5. Categories of Service Jobs:
 Managers.
 Professional.
 Technicians and associate professionals.
 Clerical support workers.
 Service and sales workers.
 Skilled agricultural, forestry and fishery workers.
 Craft and related trades workers.
 Plant and machine operators, and assemblers.
 Elementary occupations
 Armed forces occupations
6. Manufacturing is goods centered while service is service centered.
Tangible items vs Action oriented. Ex: Customer contact, labor content of
jobs, uniformity of output, quality assurance, evaluation of work
7. What: What resources are needed and in what amounts?
When: When will each resource be needed? When should work be
scheduled? When should supplies be ordered?
Where: Where will the work be done?
How: How will the product or service be designed? How will the work be
done? How will resources be allocated?
Who: Who will do the work?
8. A model is an abstraction of reality.

Models are beneficial for the following reasons:

 Easy to use, less expensive

 Require users to organize & quantify information

  Systematic approach to problem solving

 Increase understanding of the problem

 Enable “what if” questions

 Specific objectives

 Consistent tool

 Power of mathematics

 Standardized format for analyzing a problem

9. Trade-off decision - By deciding to purchase one thing like inventory or

inventory space, you must account for what you could've purchased
instead
10. Systems Approach identifies the inter-dependencies and inter-relations
between the various parts of the organisation and helps to get a holistic
view while dealing with business issues. It is useful because of the
following reasons:
 It increases organisation’s adaptability to environmental changes. The
organisation is studied as a whole and not through its parts. This
enables it to adapt to the needs of the environment. Decisions are
made keeping in mind the macro as well as micro environment.
 The focus is on achieving the individual as well as overall goals of the
organisation.
 Uniformity in decision making such that no specific domain gets
preferential treatment
 Adaptive and Dynamic
 Focuses on multiple dimensions of management.
11. Areas include financial statements, worker safety, product safety, quality,
the environment, the community, hiring and firing workers, closing
facilities, and worker's rights.
12. It is important for the various functional areas to collaborate because
collaboration will lead to improved communication among the
departments (functions) that in turn will improve the performance of the
firm. Collaboration will reduce the chance of sub-optimization by a
functional area due to the possibility that a particular functional area does
not have enough information about the other areas and their constraints
or decisions.
13. A. Craft Production – It is the process of manufacturing by hand with or
without the aid of tools. It is a manufacturing technique applied in the
 hobbies of handicraft but was also the common method of manufacture in
the pre-industrialized world, such as in the production of pottery.
B. Mass Production - It refers to the production of a large number of
similar products efficiently. It is typically characterized by some type of
mechanization, such as an assembly line, to achieve high volume,
detailed organization of materials flow, careful control of quality
standards and division of labor.
C. Division of Labor – It is the assignment of different parts of a
manufacturing process or task to different people in order to improve
efficiency.
D. Interchangeable parts – These are parts (components) that are, for
practical purposes, identical. They are made to specifications that
ensure that they are so nearly identical that they will fit into any
assembly of the same type. One such part can freely replace another,
without any custom fitting, such as filing. This interchangeability allows
easy assembly of new devices, and easier repair of existing devices,
while minimizing both the time and skill required of the person doing
the assembly or repair.
14. A. The Internet, e-commerce, e-business
B. Management technology
C. Globalization
D. Management of supply chains
E. Agility
15. A supply chain is the system you use to get your product to end
consumers, from obtaining raw materials to delivering the final product.
Supply chain management (SCM) is important and integral part of most
businesses and is essential to company success and customer
satisfaction. SCM boost customer service, reduce operating costs and
improve financial position of the company.
16. Seven Continuing trends in Business
A. Ethical behavior
B. Operations strategy
C. Working with fewer resources
D. Cost control and productivity
E. Quality and process improvement
F. Increased regulation and product liability
G. Lean production
17. Lean production is a systematic method for waste minimization within a
manufacturing system without sacrificing productivity. It is important to
know this tool to better assist the company in the identification and steady
elimination of waste. As waste is eliminated quality improves while
production time and cost are reduced leading to less expense and more
income.
MODULE 2: