Photo AI
a. Operations Management is important in large-scale organisations - VCE - SSCE Business Management - Question 8 - 2002 - Paper 1
Question 8
a. Operations Management is important in large-scale organisations. Describe what Operations Management involves. Compare and contrast the Operations Management ac... show full transcript
Worked Solution & Example Answer:a. Operations Management is important in large-scale organisations - VCE - SSCE Business Management - Question 8 - 2002 - Paper 1
Step 1
Describe what Operations Management involves.
Answer
Operations Management is a critical function in any large-scale organization, encompassing activities related to the production of goods and services, ensuring that operations are efficient and effective. It involves planning, organizing, and supervising processes, and making necessary improvements for higher profitability. Key components include:
- Process Management: Overseeing the flow of goods and services from conception to delivery.
- Quality Assurance: Establishing systems to ensure products and services meet specified standards.
- Supply Chain Management: Coordinating with suppliers to ensure timely and quality input for manufacturing.
- Resource Management: Efficiently utilizing resources, including labor, technology, and materials.
- Continuous Improvement: Implementing practices like Lean and Six Sigma to enhance efficiency.
Step 2
Compare and contrast the Operations Management activities of a service company, for example a bank, with a manufacturer, for example a car manufacturer.
Answer
In comparing the operations of a service company, such as a bank, with a manufacturing entity like a car manufacturer, we observe both similarities and differences:
-
Nature of Output:
- Bank: Intangible services (financial products, advice).
- Car Manufacturer: Tangible products (vehicles).
-
Production Process:
- Bank: Services are produced and consumed simultaneously without physical goods. Capacity management is crucial as customer interaction happens instantly.
- Car Manufacturer: Production occurs in stages; products are designed, manufactured, and then sold at a later time.
-
Customer Involvement in Production:
- Bank: High involvement from customers in the service process, feedback is immediate.
- Car Manufacturer: Minimal customer involvement during production, with feedback typically collected after purchase.
-
Location Considerations:
- Bank: Locations are chosen based on convenience for customers but are linked to technology for remote banking.
- Car Manufacturer: Facilities location is determined based on logistics and supply chain efficiency.
Step 3
Use the examples given above or other examples from your studies or research.
Answer
Utilizing these examples highlights the diverse approaches required for effective operations management: A bank may implement Just-In-Time (JIT) strategies to manage service delivery efficiently, ensuring that resources are available exactly as needed. Conversely, a car manufacturer might focus on lean manufacturing techniques that reduce waste and optimize the production line.