Friday, July 13, 2012


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What is operations management?

Operations management is the design, operation, and control of the transformation process that converts resources such as labor and raw materials into finished goods and services.

How is operations management used in manufacturing organizations? In service organizations?

In manufacturing organizations, the operations management process involves turning raw materials into recognizable physical products. Service organizations also transform inputs into outputs although the transformation process isnt as easily recognizable as that of manufacturing organizations since they are dealing with nonphysical outputs.

Explain why managing productivity is important in operations management?

Increased productivity means a more competitive cost structure and the ability to offer more competitive prices.

What is value, and what role does it play in value chain management?

Value is the performance characteristics, features and attributes, and any other aspect of goods and services for which customers are willing to give up resources (usually money). Value is what is added at each step on the value chain beginning with the processing of raw materials and ending with finished product in the hands of end users.

Who has the power in the value chain? Explain.

Ultimately, the customer has the power in the value chain.

Describe the goal of value chain management.

The goal of value chain management is to create a value chain strategy that meets and exceeds customers needs and desires and allows for full and seamless integration among all members of the chain.

Why is the concept of a business model important in value chain management?

A business model is a strategic design for how a company intends to profit from its broad array of strategies, processes, and activities.

What role do coordination and collaboration, technology investment, and organizational processes play in value chain management?

Coordination and collaboration among value chain partners, an investment in information technology, and appropriate organizational processes are important requirements for the successful implementation of value chain management.

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