Discuss what do you understand by operations
Course:- Operation Management
Reference No.:- EM13875786

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Operations and Supply Chain Management


1. Discuss what do you understand by operations? Is operations management important for organisations? Why? Differentiate between manufacturing operations and service operations?

2. Describe the TQM philosophy and identify its major characteristics. Explain how TQM is different from the traditional notions of quality.

3. (a) Describe each of the four costs of quality: prevention, appraisal, internal failure, and external failure.
(b) Explain the meaning of the plan-do-act-study cycle. Why is it described as a cycle?

4. (a) Why do organisations keep inventory? What are the different types of costs associated with inventory?
(b) What is JIT? Discuss the advantages and disadvantages of JIT approach?

5. (a) Distinguish between Statistical Quality Control and Statistical Process Control?
(b) What are control charts? What are the different types of control charts?


1. Define Process? Identify different types of Processes? Discuss the factors that influence Process Selection?

2. Define competitiveness? What different operations strategies can a company adopt to become competitive? Discuss using examples of specific organisations.

3. What are the different steps to be followed during product development process? How are these guidelines different for services?

CASE STUDY - Revamping the Supply Chain: The Ashok Leyland Way

Case Questions

1. Discuss the strategies and initiatives taken by Ashok Leyland to revamp its supply chain? Elaborate how these initiatives helped the organisation.

2. (a) What are inbound and outbound supply chains?
(b) What is reverse auctioning and how did Ashok Leyland used it to their advantage?
(c) How did Ashok Leyland use JIT to reduce their inventory?
(d) Briefly discuss OSCAR I and OSCAR II initiatives taken by the company?


1) Which of the following is not a key activity of an operations manager?
a. Understanding the needs of customer
b. Continually learning
c. Managing cash flows
d. Exploiting technology to produce goods and services

2) Which of the following is generally related to service operations?
a. Tangible product
b. Need for flexible capacity
c. Separation of production from consumption
d. Large amount of inventory

3) A measure of the success of an operation in producing outputs that satisfy customers is
a. Efficiency
b. Effectiveness
c. Quality
d. Profitability

4) A measure of the success of an operation in converting inputs to outputs is
a. Efficiency
b. Effectiveness
c. Quality
d. Profitability

5) Operations design choices include all of the following except
a. Operating plans and controls
b. Type of processes and alternative designs
c. Supply chain integration and outsourcing
d. Inventory

6) ____ is the reintroduction of an intermediary in a supply chain.
a. Disintermediation
b. Re-intermediation
c. Channel assembly
d. Warehousing

7) ____ are reductions in unit costs available from increasing the number of products produced.
a. Global networks
b. Focused operations
c. Economies of scope
d. Economies of scale

8) A ____ layout is an arrangement based on the sequence of operations that are performed during the manufacturing of a good or the delivery of a service.
a. Group
b. Process
c. Product
d. Fixed position

9) Location decisions should consider all of the following except
a. Product cost
b. Access to markets
c. Access to labour skills
d. Local government tax incentives

10) A ____ is a one-time variation that is explainable.
a. Cyclical pattern
b. Random Variation
c. Irregular variation
d. Seasonal pattern

11) Which of the following is not a statistical method?
a. Delphi
b. Exponential smoothing
c. Moving average
d. Linear regression

12) Which of the following is not a capacity planning decision option?
a. Promotion and advertising
b. Subcontracting
c. Layoffs
d. Building a new plant

13) The purpose of production planning is to
a. Minimize the work force size
b. Maximize the production rate
c. Minimize the cost of meeting demand
d. Optimize the inventory level

14) Which approach is most appropriate for forecasting demand for a new product?
a. A causal model
b. A Delphi study
c. A time-series model
d. A regression model

15) A key advantage of a process layout is
a. High levels of inventory
b. High degree of automation
c. Flexible equipment and resources
d. Smooth flow of materials

16) All of the following are valid purposes for layout studies except
a. Minimize delays in materials handling and customer movement
b. Increase bottlenecks
c. Promote employee morale and customer satisfaction
d. maintain flexibility

17) A pull system
a. Requires high levels of finished goods inventory
b. Relies heavily on accurate sales forecasts
c. Waits for customer orders
d. Necessitates standardized products

18) Steps which can be taken to reduce the impact of the bullwhip effect include all of the following except
a. Avoiding creating surges in demand due to price cutting and promotional campaigns
b. Reducing manufacturing lead times
c. Reducing information distortion
d. Adding a supply hub to the chain

19) According to the value chain model of Dell, Inc., which of the following is not a pre-production activity?
a. Billing
b. Corporate partnerships
c. Purchasing
d. Software and hardware licensing

20) A ____ is a statement of how many finished items are to be produced and when they are to be produced.
a. Aggregate Plan
b. Master Production Schedule
c. Material Requirements Planning
d. Shop Floor Control

21) Which of the following is not an aggregate planning decision option?
a. Promotion and advertising
b. Subcontracting
c. Layoffs
d. Building a new plant

22) The EOQ model
a. Is very sensitive
b. Is relatively flat (shallow) around the minimum
c. Balances holding costs and stockout costs
d. Allows for variable demand

23) ISO9000 standards consist of all of the following except
a. Definition of key terms
b. Minimum requirements for a quality management system
c. Process simulation
d. A means of demonstrating compliance principles to customers and third-party certification

24) All of the following relate to Six Sigma except
a. Clear financial returns
b. Measures defects per unit
c. Output critical to customers
d. A stretch goal

25) Which of the following is most closely related to Statistical Process Control (SPC)?
a. Acceptance sampling
b. Process specifications
c. Unwanted causes of variation
d. Self-audits

26) Control charts are all of the following except
a. Can determine the source of a problem
b. Useful for process improvement
c. Based on finding values outside of control limits
d. Looks for non-random patterns

27) When examining control charts, variations of characteristic measurements that are within control limits are assumed to be the result of
a. Chance
b. Defective input materials
c. Assignable causes
d. Poor machine tolerances

28) ____ is defined as the satisfaction of ____.
a. Service quality; expectation
b. Service quality; needs
c. Service value; expectation
d. Service value; imagination

29) A technique used to identify likely causes of failure and their consequences so that preventative actions can be taken is
a. Statistical quality control
b. Total quality management
c. Failure mode and effects analysis
d. Statistical process control

30) The cost of quality is
a. An expression of an organization's performance in quality in financial terms.
b. The difference between customers' expectations of a product or service and their perceptions of their experience of it.
c. A proactive approach towards quality management by seeking to prevent defects ever being produced.
d. The inspection and testing of the outputs from a transformation process.

31) Six Sigma was first developed at ____ in the late 1970s and early 1980s.
a. Motorola
b. General Electric
c. AlliedSignal
d. None of the above

32) ____ structures are based on loose relationships between different organizational sub-units
a. Matrix
b. Functional
c. Network
d. Multi-divisional

33) Japanese style teamworking has a number of distinctive features which include all of the following except
a. Individual reward systems
b. Multi-skilled workers
c. Assignment of tasks to teams
d. Continuous development of workers' skills

34) The "D" in the acronym QFD stands for
a. Development
b. Deployment
c. Design
d. Devolution

35) Regarding the first House of Quality, the interrelationship between any pair of technical features is found in
a. The voice of the customer
b. The relationship matrix
c. The roof
d. Technical requirement priorities

36) Which of the following is a chronological representation of stages within the NPD process?
a. Idea selection, preliminary design, testing, prototype
b. Testing, final design, preliminary design, prototype
c. Idea generation, idea selection, prototype, testing
d. Idea selection, prototype, testing, preliminary design

37) Which of the following is not compatible with BPR?
a. Fundamental re-thinking
b. Incremental re-design
c. Dramatic improvements
d. Business processes

38) Smaller batch sizes are facilitated by all the following except
a. Setup time reduction
b. Changes in plant layout
c. JIT policies
d. Changeover time increases

39) ____ is synonymous with environmental concerns.
a. Mass customization
b. Recycling
c. Empowerment
d. Globalization

40) Which is true regarding a responsive supply chain?
a. Demand is stable and predictable.
b. Product life cycles are short and change often because of innovation.
c. Customers require standardization.
d. Contribution margins are low.


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Operations cover all the activities necessary to make and convey an organization’s products and services to clients or customers. Inside complex and large firms operations is generally a vast functional area, with individuals are designated to carry responsibility for dealing with all or some portion of the firms operations processes. It plays a crucial role in determination of an organization's customer satisfaction, which is an important function. On account of private-sector organizations, operations functions mission is generally communicated as far as benefits, development and aggressiveness; in voluntary and public organisations, it is value for money.

There are five primary differences between service and the manufacturing organisation: the substance of their yield; produce when there is demand or for the purpose of inventory; production of particular item for client; automated or labor-intensive operations; and the requirement for a physical production area.

Total Quality Management is both methodology and philosophy. TQM underscores the need to incorporate each representative in the association in the quality change endeavors. TQM concentrates on recognizing the reasons for quality issues and amendment of these issues. Its characteristics attributes are constant change, client center, quality at the source, worker strength, benchmark, a group approach, understanding quality of devices, and overseeing supplier quality.

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