OPERATION MANAGEMENT EXPLAIN BRIEFLY1. Briefly describe the terms operations management and supply chain.

2. Identify the three major functional areas of business organizations and briefly describe how they

interrelate.

3. Describe the operations function and the nature of the operations manager's job.

4. List five important differences between goods production and service operations; then list five

important similarities

5. Briefly discuss each of these terms related to the historical evolution of operations management:

a. Industrial Revolution

b. Scientific management

c. Interchangeable parts

d. Division of labor

6. Why are services important? Why is manufacturing important? What are nonmanufactured

goods?

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7. What are models and why are they important?

8. Why is the degree of customization an important consideration in process planning?

9. List the trade-offs you would consider for each of these decisions:

a. Driving your own car versus public transportation.

b. Buying a computer now versus waiting for an improved model.

c. Buying a new car versus buying a used car.

d. Speaking up in class versus waiting to get called on by the instructor.

e. A small business owner having a website versus newspaper advertising.

10. Describe each of these systems: craft production, mass production, and lean production.

11. Why might some workers prefer not to work in a lean production environment?

12. Discuss the importance of each of the following:

a. Matching supply and demand

b. Managing a supply chain

13. List and briefly explain the four basic sources of variation, and explain why it is important

managers to be able to effectively deal with variation.

14. Why do people do things that are unethical?

15. Explain the term value-added.

16. Discuss the various impacts of outsourcing.

17. Discuss the term sustainability and its relevance for business organizations.

CASE

Hazel had worked for the same Fortune 500 company for almost

15 years. Although the company had gone through some tough

times, things were starting to turn around. Customer orders were

up, and quality and productivity had improved dramatically from

what they had been only a few years earlier due to a company-

wide quality improvement program. So it came as a real shock

to Hazel and about 400 of her coworkers when they were sud-

denly terminated following the new CEO's decision to downsize

the company.

After recovering from the initial shock, Hazel tried to find

employment elsewhere. Despite her efforts, after eight months

of searching she was no closer to finding a job than the day she

started. Her funds were being depleted and she was getting more

discouraged. There was one bright spot, though: She was able to

bring in a little money by mowing lawns for her neighbors. She got

involved quite by chance when she heard one neighbor remark

that now that his children were on their own, nobody was around

to cut the grass. Almost jokingly, Hazel asked him how much he'd

be willing to pay. Soon Hazel was mowing the lawns of five neigh-

bors. Other neighbors wanted her to work on their lawns, but she

didn't feel that she could spare any more time from her job search.

However, as the rejection letters began to pile up, Hazel knew

she had to make a decision. On a sunny Tuesday morning, she

decided, like many others in a similar situation, to go into business

for herself-taking care of neighborhood lawns. She was relieved

to give up the stress of job hunting, and she was excited about the

prospect of being her own boss. But she was also fearful of being

completely on her own. Nevertheless, Hazel was determined to

make a go of it.

At first, business was a little slow, but once people realized

Hazel was available, many asked her to take care of their lawns.

Some people were simply glad to turn the work over to her, others

switched from professional lawn care services. By the end of her

first year in business, Hazel knew she could earn a living this way.

She also performed other services such as fertilizing lawns, weed-

ing gardens, and trimming shrubbery. Business became so good

that Hazel hired two part-time workers to assist her and, even

then, she believed she could expand further if she wanted to.

Questions

1. Hazel is the operations manager of her business. Among

her responsibilities are forecasting, inventory management,

scheduling, quality assurance, and maintenance.

a. What kinds of things would likely require forecasts?

b. What inventory items does Hazel probably have? Náme one

inventory decision she has to make periodically

c. What scheduling must she do? What things might occur to

disrupt schedules and cause Hazel to reschedule?

d. How important is quality assurance to Hazel's business? Explain

e. What kinds of maintenance must be performed?

2. In what ways are Hazel's customers most likely to judge the

quality of her lawn care services?

3. What are some of the trade-offs that Hazel probably consid-

ered relative to:

a. Working for a company instead of for herself?

b. Expanding the business?

c. Launching a website?

4. The town is considering an ordinance that would prohibit

putting grass clippings at the curb for pickup because local

landfills cannot handle the volume. What options might Hazel

consider if the ordinance is passed? Name two advantages

and two drawbacks of each option.

5. Hazel decided to offer the students who worked for her a

bonus of $25 for ideas on how to improve the business, and

they provided several good ideas. One idea that she initially

rejected now appears to hold great promise. The student who

proposed the idea has left, and is currently working for a com-

petitor. Should Hazel send that student a check for the idea?

What are the possible trade-offs?

6. All managers have to cope with variation.

a. What are the major sources of variation that Hazel has to

contend with?

b. How might these sources of variation impact Hazel's ability

to match supply and demand?

C. What are some ways she can cope with variation?

7. Hazel is thinking of making some of her operations sustain-

able. What are some ideas she might consider?