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Operations Management is important in large-scale organisations - VCE - SSCE Business Management - Question 8 - 2002 - Paper 1
Question 8
Operations Management is important in large-scale organisations. 1. Describe what Operations Management involves. Operations Management involves overseeing, design... show full transcript
Worked Solution & Example Answer: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 involves overseeing, designing, and controlling production processes and the redesign of business operations to produce goods and services efficiently. It includes managing resources to meet customer demands, optimizing throughput, and ensuring that services or products meet quality standards. It also encompasses the analysis of various operational aspects, including inventory management and process improvements.
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 a manufacturing context, operations management focuses on producing tangible products such as cars, with a strong emphasis on production efficiency and quality control. Conversely, a service company like a bank focuses on delivering intangible products like financial advice and transactions, where the service is generated during customer interaction. Additionally, manufacturing processes usually involve limited customer interaction, while service provision often requires direct customer involvement to tailor the service.
Step 3
Use the examples given above or other examples from your studies or research.
Answer
Using the bank and car manufacturer examples, the bank must ensure smooth transactions and high customer service levels, utilizing technology to streamline processes and enhance customer access, such as online banking systems. In contrast, a car manufacturer focuses on assembly line efficiency, inventory management, and quality checks to optimize production and meet demand forecasts.