The operational function includes the actions resulting in the production of goods and services supplied by the organization to the external environment. Organizations can differ significantly in the nature of the operational functions. That is what operations management studies. If you need to deal with this discipline, you should know how to find answers to operations management exam questions.
Operations Management Exam Questions and Answers
- What subsystems are included in the operating system? The operating system consists of the following three subsystems:
- The processing subsystem performs work directly related to the transformation of the input quantities into the output ones. For example, in the food industry, the processing subsystem is a system in which goods are produced, from the receipt of raw materials, including the production of products and ending with shipping to the sales network.
- The subsystem of support is not directly connected with the output production, but it performs the necessary functions to provide the processing subsystem. For example, both at the plant and in the university, the support subsystem may include a library, maintenance and other support services.
- The planning and control subsystem receives information from the internal and external environment of the organization, processes this information, and issues a decision on how to operate the processing subsystem. Solutions include capacity planning, dispatching, inventory management, quality control and much more.
- What is the essence of operations management? The duties of operational managers can be divided into three main groups:
- Development and implementation of the overall strategy and directions of the organization’s operational activities.
- The development and implementation of the operating system, including the development of the product, the production process, standards and norms, the design of the enterprise, and the decision to locate production facilities.
- Planning and monitoring the current functioning of the system.
- What is the efficiency of operations? The efficiency of operations is the market value of the outputs produced, divided by the total cost of the organization for the inputs used. The market value of outputs is determined by the quantity and quality of outputs – for example: matching the assortment of products or services provided to the existing demand for them; timeliness of output production, taking into account the nature of demand and obligations for delivery to consumers; and flexibility of the production system while meeting the individual requirements of consumers.
- What determines the costs of consumed inputs? The costs of consumed inputs are determined not only by their number, but also by a number of other factors. For example, when analyzing material costs, you should take into account the following factors: the prices of the materials that were purchased; the costs of storing materials in stock before they are used; the cost of the order and the acceptance of materials; the size of the costs incurred is as a result of a lack of materials; and what costs have emerged as a result of problems with the quality of materials. In the analysis of labor costs, for example, it is necessary to find out the following: what part of the work was performed in overtime and what the cost is of overtime work; whether personnel were used in accordance with the level of qualifications or if it had to be paid at higher tariffs than the one required for work; what the costs were associated with the turnover of staff caused by a change in the load in the system; and what costs were associated with staff errors due to inadequate training or poor leadership.
- What are classifications of operating systems? There are several classifications of operating systems. The most well-known classifications are based on the degree of recurrence and the degree of continuity of work. The simplest of them divides the system as follows:
- The design system is different in that each unit of the final product or each service order are unique for some properties, therefore the operations are non-recurring. For example, systems can be used in construction, heavy engineering, and services.
- The serial system is characterized in that the processing objects represented, for example, by the processed products or by serviced customers, pass through the system in series or in groups. If the requirements for processing objects are different, then they follow different routes only through certain sections.
- The mass system differs in that it provides large volumes of standardized outputs. Individual objects are manufactured products or serviced customers and they are processed in the same system. Production resources of the system can be ordered and form a high-performance technological line – a stream that passes through the entire system.
- A continuous process system produces significant volumes of a homogeneous output. The resources arriving at the input of the system flow through it continuously, turning into a product at the outlet. Examples include refining and radio communication.
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