1.

Major function in business organization

∙Marketing-generate demand
∙Production/operation-create the product
∙Finance/accounting-pay bills and collect money

2. Value added to operation management

A key objective for an Operations Management is the ability to increase the value-added
during the transformation process. Value-added is the difference between the cost of inputs
and the value or price of outputs. This is an indicator of the effectiveness of the operation. On
the other hand, if an activity does not add value, it will most likely get eliminated or re-
examined for improvement. In this case it falls into its main function of more planning and
decision making.

3. Difference between manufacturing and service organization

∙Manufacturing- tangible products, product can be inventoried, low customer interaction,
consistent product definition
∙Service- provide intangible products, product cannot be inventoried, high customer
interaction, inconsistent product definition

4. Different between strategy and tactical decision

Strategic intelligence is future-oriented, allowing a company to make educated decisions
regarding future conditions in its marketplace or industry.
Tactical intelligence deals with the here and now. It provides decision makers with the
necessary information to watch for changes in the company's current operating environment
and helps them discover new opportunities.
strategic planning focuses on the long term and tactical planning on the short term
strategic is doing the right things -- tactical is doing things right.

5. Productivity definition
A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs
into useful outputs. Productivity is computed by dividing average output per period by the
total costs incurred or resources (capital, energy, material, personnel) consumed in that
period. Productivity is a critical determinant of cost efficiency.
6. Definition of operation strategy
A plan specifying how an organization will allocate resources in order to support
infrastructure and production. An operations strategy is typically driven by the overall
business strategy of the organization and is designed to maximize the effectiveness of
production and support elements while minimizing costs

7. Category of competitive priority

Quality, time, cost and flexibility

8. Three productivity variables

1) Basic education appropriate for an effective labour force
2) Diet of the labour force
3) Social overhead that makes labour available, such as transportation and sanitation.

9. Four stage of product design process

1. Introduction: During the first stage, the product is introduced into the market. Proper
research and forecasting should be done to ensure the product/service is adequate for a
specific market and for a specific time. It is crucial to have a proper amount of supply that
can meet the expected demand for the product/service.
2. Growth: The second stage involves the increase in demand for the product/service.
Reputation for the product grows and an accurate forecast of demand is needed to determine
the length of time the product/service will remain in the market. Enhancements and
improvements are common in this stage.
3. Maturity: This third stage deals with the product reaching a steady demand. Few or no
improvements or product changes are needed at this stage. Forecasting should provide an
estimate of how long it will be before the market dies down, causing the product to die out.
4. Decline: The last stage involves choosing to discontinue the product/service, replacing the
product with a new product, or finding new uses for the product.

10. Difference between intermittent(i) and repetitive(ii) operation

-nature of product:
i: goods are produced based on customer orders and not for stocking.
ii. based on demand forecast and for stocking.
-Flexibility of process.:
i. production process is flexible. The product design goes on changing.
ii. not flexible. It is standardized. The same product is manufactured continuously.
-scale of production :
i. goods are produced on a small scale, so there is no economies of scale.
ii. produced on a large scale, so there are economies of large-scale production.
-Per unit cost:
i. cost per unit may be higher because production is done on a small-scale
ii. cost per unit may be lower because production is done on large-scale.
-Range of products
i. wide ranges of products are manufactured.
ii. normally one particular type of product is manufactured.
-Instructions :
i. many detailed instructions must be provided depending upon the customer's specification
ii. single set of instructions is sufficient for operation. Here, there is no need to repeat the
instructions
-Staff:
i. requires staff with high technical skills and abilities.
ii. requires more managerial skills and less technical skills.
-Storage of final products :
i. no need to store and stock the final products, because items are produced as per customer's
orders.
ii. need to store and stock the final products until they are demanded in the market.
-Location change:
i. change in location is easy.
ii. change in location is difficult
-Capital invested :
i. capital invested is small
ii. capital invested is very huge

11. Element of service package purchases by a customer

-supporting facility
-facilitating goods
-information
-explicit services
-implicit services

12. Main component of supply chain

Plan- Every company needs a strategy on how to manage the resources in order to achieve
their customers demand for their products and services. The supply chain management is
developing a set of metrics to monitor the supply chain so that it can deliver high qualities
and values to customers.
Source- To create their products, companies need to be very careful when choosing suppliers
to deliver their goods and services needed. The managers need to develop a set pricing and
delivery system in the supply chain. They can also put processes for managing their goods
and goods inventory, for example; receiving shipments.
Make- In manufacturing the supply chain manager should always schedule the activities that
are needed for the production, packaging, testing and preparation for delivery.The most
metric-intensive portion of the supply chain, production output and measure levels.
Deliver- This part is mainly referred to as logistics by the supply chain management. In this
case companies coordinate receipts of orders, pick carriers to get products to customers and
develop a network of warehouses.
Return- In many companies this is usually where the problem is – in the supply chain.The
planners should create a flexible and responsible network for receiving a flaw and excess
products sent back to them (from customers).

13. Cause of bullwhip effect

The bullwhip effect exists in all supply chains — it’s the root of the boom and bust cycles
that occur in many operations — and it can be devastating if not properly managed.
Fortunately, you have ways to manage the bullwhip and minimize its impact. The bullwhip
effect is triggered by several different causes. Here are four of the most prevalent causes.

14. Roles of purchasing

i. Supply Sourcing
-source supplies and parts, and then purchase them
-work alongside product development teams to source materials and determine cost of the
finished product
-use trade publications to source suppliers, or go straight to the manufacturer
-assist suppliers in manufacturing the item needed
ii. Bidding
-For items needed in bulk, or specialist items, purchasing departments often use competitive
bidding to choose a supplier. The department will then be responsible for all aspects of the
bidding process.
iii. Supplier Management
-responsible for monitoring the supplier's performance
-evaluate the supplier's performance and quality control. ie: monitoring delivery times,
quality, cost and performance
-For suppliers in other countries, this can also mean monitoring working conditions and
workers rights
iv. Cost control
-responsible for maintaining strict cost control.
-need to ensure suppliers themselves get a lower cost from distributors and manufacturers.
This can be done by increasing delivery size, paying on time, ordering online and making
sure suppliers use the best practice.

15. Advantages of cross docking

•Reduces material handling.
•Reduces need to store products in warehouse.
•No need for large warehouse areas
•Reduced labour costs (no packaging and storing).
•Reduced time to reach customer.
•Transportation has fuller loads for each trip therefore a saving in transportation costs while
also being more environmentally friendly.
•Products are moved more quickly through a cross dock.
•Easier to screen product quality.
•Elimination of processes such as ‘pick-location’ and ‘order picking’
•Cross docking terminals are less expensive to construct than your average warehouse.
•High turnover of products with everything moving quickly through the cross docking
terminal. Products usually spend less than 24 hours here.
•Products destined for a similar end point can be transported as a full load, reducing overall
distribution cost.