Chapter Eight Questions

1. Define the term operations management

All the processes and systems involved in transforming inputs (resources) into outputs (product or service).

2. Explain operations management’s role in business

It’s a very varying field, and may involve the following roles: forecasting, capacity planning, scheduling, inventory management, quality assurance, motivating and training employees, and locating facilities.

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3. Describe the correlation between operations management and information technology

The correlation is quite strong as operations managers use IT to help make decisions. The business Decisions include:

• What?: What resources, and what amount are needed?
  
• When?: When should work be scheduled?
• Where?: Where will work be performed?
• How?: How will the work be done?
• Who?: Who will perform the work?

4. Explain supply chain management and its role in a business

Involves the flow of information, finances and materials along the supply chain in order to maximise the effectiveness and profitability of the entire chain, from the transforming of raw materials right to delivery of the finished product to the customer.

5. List and describe the five components of a typical supply chain

• Supplier
• Manufacturer
• Distributer
• Retailer
• Consumer

6. Define the relationship between information technology and the supply chain.

• Improved forecasting and operations
• Allows for greater visibility of the whole chain and inventory levels
• Tighten processes and information between functions of the organisation
• Respond faster to customer demand due to visibility of chain
• Speed usually equates to competition, therefore we are able to deliver faster speeds resulting in pleasing customers, strategic planning requirements and need to reduce inventory.