Chapter 1 - Operations Management

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1. Why should one study operations management? Operations Management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. • Operations Management is one of the three major functions of any organization, and it is generally related to all the other business functions. All organizations market (sell), finance (account), and produce (operate), and it is important to know how the Operations Management activity functions. Therefore, we study how people organize themselves for productive enterprise. • We study Operations Management because we want to know how goods and services are produced. The production function is the segment of our society that creates the products we use. • We…show more content…
Rapid product development is a source of competitive advantage. Both rely on agility within the organization. 12. What are the five reasons that productivity is difficult to improve in the service sector Labor productivity in the sector is hard to improve because: • Many services are labor intensive; • They are individually (personally) processed (the customer is paying for that service – the hair cut); • It may be an intellectual task performed by professionals; • It is often difficult to mechanize and automate; and • Often difficult to evaluate for quality. 13. Describe some of the actions taken by Taco Bell to increase productivity that have resulted in Taco Bell’s ability to serve “twice the volume with half the labor” Taco Bell designed meals that were easy to prepare; with actual cooking and food preparation done elsewhere; automation to save preparation time; reduced floor space; manager training to increase span of

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