1. What is operations management and how is different from operations research?
Operations Management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. The operations management of any organization involves the design, operation, and improvement of the systems that create and deliver the primary products and services of the organization. From an organizational point of view, operations management might be defined as the management of the direct resources that are required to produce and deliver organizational goods and services. Operations management is an area of business that is concerned with the production of goods and services. Operations research is an interdisciplinary mathematical science that focuses on the effective use of technology by organizations.
2. What are the major factors leading to the resurgence of interest in OM today?
OM is relatively new field of research and still evolving, many businesses employ it is a way to increase productivity and reduce error. OM allows companies to be more competitive by reducing unnecessary cost involved when resources are squandered. Today the human being is constantly finding new ways to get more for less. This means an increase in productivity, or output/input. OM helps to find these ways of increasing productivity through innovations. Technological advance is another factor of resurgence of interest in OM. Increasingly, the trend amongst 21st century industries is to offer both products and services, such as specialist programs and tools alongside consultancy, in an effort for businesses to differentiate themselves and to offer more to prospective clients. Those with operations management skills will therefore be more prepared for differentiation between planning, control and delivery of either products or services. Operation management embodies all aspects of the business process and unites them to create an efficient resourceful procedure.
3. Identify a product that is 100% goods without any service component. Identify a product that is 100% service without any goods component. Explain.
100% product – food (ex. chocolate, bread, yogurt, caviar) tangible, no service component and could be stored. 100% service – counseling (accounting & logistics) – intangible, knowledge based, not stored and hard to automate.
4. Mass customization and rapid product development were identified as current trends in modern manufacturing operations. What is the relationship, if any, between these trends? Can you cite any examples?
Mass Customization is personalization of products and services for individual customers at a mass production price. Traditionally customization and low cost have been mutually exclusive. Mass production provided low cost but at the expense of uniformity. Customization was the product of designers and craftsman. Today, new interactive technologies, like the Internet, allow customers to interact with a company and specify their unique requirements which are then manufactured by automated systems and handled by your staff, a third party, or intermediary. Product development is a broad field of endeavor dealing with the design, creation, and marketing of new products. Sometimes referred to as new product development (NPD), the discipline is focused on developing systematic methods for guiding all the processes involved in getting a new product to market.
5. How does an OM strategy change during a product’s life cycle?
The life cycle concept of any product is similar to any life cycle of a living being. The major stages in the life cycle concept are 1) Development 2) Introduction or Birth 3) Growth 4) Maturity 5) Decline. Through out the cycle the whole process of operation management is applied on the production system to maintain to sustain longer. The inevitable situation due to the environmental influences like people taste, interest there is always new born of other...
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