10 OM strategies (chapter 2) 1. What is the role of shopping centers, or densely populated when orders are received.

when orders are received. This reduces storage managements systems, employee training. and Difficult to Hire and Train: Recruiting and
product and service design in operations neighborhoods. This helps McDonald's access more costs and speeds up computer assembly while technology can be costly. • Hard to Maintain: continuously training skilled employees can be
management? Provide an example. Answer: customers, reduce material transportation costs, ensuring the company can respond quickly to Ensuring quality is consistently maintained over challenging and costly.• High Costs: Designing jobs
Product and service design is a key factor in and ensure fast service, ultimately improving customer demand without overstocking time can be challenging, especially with changes in that provide autonomy and creativity requires
operations management as it determines the operational efficiency and increasing revenue 5. components. 9. Explain the importance of processes or supply chains. 3. Process and Capacity investment in employee training programs,
quality, cost, and manufacturability of the product How does layout strategy influence operational scheduling in operations. Answer: Scheduling Design Strategy Advantages: • Increases Production management systems, and support tools, 7. Supply
or service. The design process impacts all other OM efficiency? Answer: Layout strategy determines the involves allocating resources efficiently to meet Efficiency: Process and capacity design optimize Chain Management Strategy Advantages: •
decisions such as cost, productivity, and required arrangement of equipment, workstations, and customer demand within specific timeframes. workflows, reduce waste, and lower production Reduces Costs and Optimizes Resources: Efficient
resources. If the product is poorly designed, it will materials in a facility, impacting workflow, resource Effective scheduling ensures that products are costs.• Ensures Market Demand is Met: Proper supply chain management helps reduce
create difficulties in the pre Juction process, use, and time efficiency. A well-planned layout produced and delivered on time, optimizes machine capacity design ensures the company can meet transportation, storage, and operational costs, •
increasing costs and production time. Example: minimizes movement, reduces waste, and enhances and labor use, and reduces waiting times and demand without under- or over-utilizing resources Improves Responsiveness: A well-managed supply
Apple's iPhone is a prime example of product productivity. Store or factory layouts should also disruptions in service delivery. Example: FedEx uses Example: Amazon designs its fulfillment center chain ensures that products are available when
design. Although its production cost is high, the align with business objectives to maximize scheduling software to optimize the rout of trucks processes with automation and robotics to ensure needed. meeting customer demands promptly.
minimalist and user-friendly design helps reduce production efficiency. Example: IKEA designs its and planes, ensuring that packages are delivered on fast processing times, meeting high e-commerce Example: Walmart uses an advanced supply chain
manufacturing costs decrease production time, and stores with a set path for customers, leading them time while reducing fuel costs and increasing demand effectively. Difficulties: • High Investment system to track iventory and optimize the ordering
improve quality, while attracting consumers with through different product sections in a systematic delivery efficiency. This helps FedEx maintain its Costs: Designing efficient processes and capacity process, allowing it to keep costs low and ensure
advanced features. Apple aiso ensures that the way. This not only makes it easier for customers to reputation for on-time delivery. 10. How does requires large investments in technology, products are always available, Difficulties: •
product is easy to mass-produce, which helps save browse and purchase products but also helps IKEA maintenance management affect operations equipment, and personnel • Difficult to Adjust: Complex and Expensive: Managing a global supply
costs for each unit. 2. Explain why managing optimize inventory management and reduce efficiency? Answer: Maintenance management Rapid changes in market demand may require chain can be complex and costly, requiring signiicant
quality is crucial for achieving competitive operational costs, increasing sales and customer ensures that equipment and facilities remain significant adjustments to processes and capacity, Investment in technology and processes. • Risk of
advantage. Answer: Managing quality is essential satisfaction. 6. What are the key aspects of human operational, minimizing breakdowns and which can be time-consuming and costly. 4. Disruptions: Events such as natural disasters,
because it helps differentiate the product or service resources and job design in OM decisions? Answer: disruptions in production or service delivery. Location Strategy Advantages: • Reduces political changes, or shifts in supplier reliability can
in the eyes of customers, building customer loyalty Human resources and job design focus on Proactive maintenance reduces repair costs and Transportation Costs: Choosing the right location disrupt the supply chain and increase costs. 8.
and sustainable growth. High quality creates value recruiting, training, motivating, and retaining extends the life of equipment. Example: UPS uses a helps lower transportation costs for materials and Inventory Management Strategy Advantages: •
for customers and reduces costs by minimizing employees with the necessary skills to meet proactive maintenance system for its delivery trucks delivery to customers • Easier Customer Access: Reduces Storage Costs: Effective inventory
product defects, returns, or maintenance. Example: organizational needs. Well-designed jobs lead to to ensure all vehicles are regularly checked and Strategic locations improve market reach and management helps maintain optimal stock levels,
Toyota uses Total Quality Management (TQM) to higher productivity, employee satisfaction, and repaired before breakdowns occur. This prevents customer service efficiency. Example: McDonald's reducing storage costs and avoiding excess
ensure every car produced meets high standards of lower turnover. Efficient job design ensures costly delays and ensures reliable service, helping strategically places its outle,y near high-tra . areas inventory,• Ensures Product Availability: Helps
safety and durability. This not only helps Toyota employees can work with minimal frustration and maintain operational efficiency. such as highways or shopping malls. increasing ensûfe that products are available to meet
maintain its competitive position in the automotive maximize their contribution to the organization. customer access and reducing material customer demand without overstocking .Example:
industry but also helps the company reduce Example: Google creates a flexible work Advantage and difficulties khi apply 10 OM transportation costs Difficulties: • High Location Dell uses a Just-In-Time (JIT) inventory system to
warranty costs and increase customer loyalty, a key environment where employees are encouraged to strategies (chapter 2) 1. Product and Service Costs: Prime locations may come with high rent or order parts only when an order is placed, reducing
factor in sustaining its market dominance. 3. be creative and contribute new ideas. Jobs at Design Strategy Advantages:• Creates Competitive operating costs.• Legal and Environmental Issues: storage costs and speeding up the computer
Describe the impact of process and capacity design Google are designed to allow employees significant Differentiation: A good product or service design Factors such as taxes, regulations, and assembly process Difficulties: • Risk of Stockouts:
on operations. Answer: Process and capacity design autonomy, which improves productivity and fosters can differentiate a business from its competitors, environmental concerns can make location Tight inventory management can lead to stockouts
influences how goods or services are produced, innovation within the company, contributing to its helping attract customers and increase market decisions more complicated. 5. Layout Strategy if demand unexpectedly increases • Additional
which directly impacts efficiency, quality, and costs. operational success. 7. How does supply chain share. • Optimizes Production Processes: A well- Advantages: • Increases Productivity: An effective Costs: Maintaining an efficient inventory system
A well-designed process will help optimize management contribute to operational success? designed product Ips reduce manufacturing costs layout optimizes workflows, reduces wait times, and requires investing in technology, processes, and
workflow, minimize downtime, and reduce waste, Answer: Supply chain management integrates the and production time. Example: Apple designs its minimizes waste • Improves Customer Experience: regular monitoring. 9. Scheduling Strategy
while ensuring that resources are used effectively. procurement of materials, suppliers, and delivery iPhone not only with aesthetics but also with A well-designed store or factory layout enhances Advantages: • Optimizes Resource Allocation:
Capacity design determines how much output can mechanisms to ensure that products are available manufacturability in mind, which reduces the customer experience leading to higher Scheduling ensures that resources (labor,
be produced, ensuring the company can meet to customers in a timely and cost-effective manner. production costs, saves time, and improves quality satisfaction and sales Example: IKEA designs its machinery) are used effectively, reducing downtime
market demand without over or under-utilizing A well-organized supply chain minimizes while attracting consumers with advanced features store layout to guide customers through specific and maximizing productivity. • Ensures Timely
resources. Example: Amazon designs its fulfillment disruptions, increases flexibility, and reduces risks in Difficulties:• High Design Costs: Developing new product sections systematically, increasing sales and Delivery: Proper scheduling helps ensure that
centers' processes to quickly and efficiently handle production and distribution. Example: Walmart uses products and services requires high research, optimizing inventory management. Difficulties: • products are delivered on time, improving customer
goods. Automated systems and robots reduce the an advanced supply chain management system with design, and testing costs • Difficulty in Keeping Up High Investment: Designing or redesigning layouts satisfaction. Example: FedEx uses scheduling
time from receiving an order to shipping the forecasting software and automation to monitor with Changes Changes or updates in design may can incur significant costs for construction, software to optimize delivery routes, reducing fuel
product. Amazon's capacity design is optimized to inventory and optimize the ordering process is helps take time and affect a company's competitive remodeling, or equipment. • Hard to Modify: Once costs and ensuring timely deliveries, which
meet the fluctuating demand, adjusti labor levels Walmart keep costs low while ensuring that position. 2. Quality Management Strategy a layout is established, making changes can be enhances its reputation for on-time service.
and increasing warehouse space as needed based products are readily available for customers, Advantages: • Increases Customer Satisfaction: difficult and time-consuming 6. Human Resources Difficulties: • Difficult to Predict Demand:
on actual demand. 4. Why is location strategy enhancing both efficiency and customer Quality management ensures that products or and Job Design Strategy Advantages: • Increases Unexpected factors like weather or emergencies can
significant in operations management? Answer: satisfaction. 8. Why is effective inventory services meet consistent standards, boosting Productivity and Motivation: Well-designed jobs disrupt schedules and affect service. • Requires
Location strategy greatly affects operating costs, management vital for a company's operations? customer loyalty. - Reduces Costs: Quality lead to higher employee satisfaction and Constant Adjustment: Changes in demand or
delivery times, and the ability to serve customers. Answer: Effective inventory management ensures improvements reduce defects and the costs motivation, which boosts productivity. • Reduces disruptions in service require continuous
Choosing the right location helps reduce that the right amount of stock is available at the associated with returns, repairs, or warranty claims. Turnover: Thoughtful job design reduces employee adjustments to schedules, which can be time-
transportation costs, optimize the supply chain, and right time, reducing storage costs and avoiding Example: Toyota uses Total Quality Management dissatisfaction, leading to lower turnover rates consuming. 10. Maintenance Management
allow easy customer access. Location also impacts stockouts. It helps forecast demand and ensures (TQM) to ensure that every car meets high safety Example: Google creates a flexible and innovative Strategy Advantages: • Reduces Breakdowns and
labor availability, taxes, and regulatory factors. products are available without overstocking, which and durability standards, which increases customer work environment where employees are Disruptions: Regular maintenance ensures
Example: McDonald's strategically selects locations can tie up capital. Example: Dell uses a Just-In-Time satisfaction and reduces warranty costs. Difficulties: encouraged to contribute ideas, increasing equipment runs smoothly, preventing unexpected
near high-traffic areas, such as major roads, (JIT) inventory system, ordering components only • Initial Investment is High Investing quality productivity and fostering innovation. Difficulties: • failures and production halts. • Extends Equipment
Life: Proper maintenance extends the life of limit market growth, especially when the product or drastically. The product becomes less profitable and 7 tools of quality management chapter 6 1. What represents a process step-by-step. It helps visualize
machinery, reducing replacement costs Example: service becomes commoditized. Example: may be phased out of the market. 2. How do are the Seven Tools of TQM and how are they used the flow of activities, tasks, or decisions in a
UPS uses a proactive maintenance syster for its Southwest Airlines competes on cost by focusing on operations strategies differ across the different in quality management? The Seven Tools of TQM process. • How it is used: Used to map out
delivery trucks, ensuring that all vehicles are high aircraft utilization, using a single plane type stages of the product life cycle? Answer: (Total Quality Management) are fundamental tools processes and identify bottlenecks or inefficiencies.
regularly checked and repaired before breakdowns (Boeing 737), and minimizing overhead costs. This Operations strategies need to be tailored to the used in quality management to help organizations It helps in process improvement by providing a clear
occur, preventing costly delays and maintaining allows them to keep ticket prices low while product's stage in the PLC: 1. Introduction Stage: analyze and solve quality-related issues. These tools view of how a process works. • Example: In a
reliability. Difficulties: • High Maintenance Costs: maintaining profitability. This strategy minimizes Focus on flexibility, product design, and capacity are widely used in various industries to improve customer service process, a flowchart can illustrate
Effective maintenance management requires costs related to aircraft maintenance, flight crew building to meet demand. Operations are often processes, reduce defects, and ensure high-quality the sequence of steps taken from receiving a
investment in training, tools, and maintenance training, and gate fees. However, their focus on low- experimental. 2. Growth Stage: Focus shifts to output. Here are the Seven Tools: 1. Check Sheet • complaint to resolving the 1Ssue, helping to identify
schedules • Difficult to Track: Ensuring that all cost operations also limits luxury services and scaling production, improving efficiency, and Description: A check sheet is a simple, structured areas where the process can be streamlined 6.
equipment is properly maintained on schedule can amenities that other airlines may offer Result: By reducing costs while maintaining product quality. 3. form used to collect and organize data in real-time. Histogram • Description: A histogram is a type of
be challenging. especially for companies with a implementing these cost-saving measures, Maturity Stage: Emphasis on cost reduction, process It is often used to record the frequency of specific bar chart that displays the distribution of data,
large fleet of vehicles or machines. 3 competitive Southwest Airli nes is able to offer lower ticket optimization, and maintaining differentiation 4. problems or defects, making it easier to spot trends showing the frequency of data points within specific
advantage strategies (Chapter 2) 1.What are the prices compared to its competitors while still Decline Stage: Focus on minimizing costs, possibly or patterns○ How it is used: Used for data collection ranges, How it is used: Used to analyze distribution
three main strategies for achieving competitive maintaining profitability. The airline's efficient use reducing capacity, and managing inventory to clear during inspections or monitoring processes. It patterns of variables and measure the variation in a
advantage in operations management? 1. of resources and streamlined operations allow it to out products. 3. Why is understanding the product allows operators to record occurrences of defects or process. • Example: A quality control team might
Differentintion: This strategy involves offering keep costs low without sacrificing service quality life cycle important in operations management? issues systematically. • Example: In: a factory, a use a histogram to visualize the distribution of
unique products or services that are perceived by how a company can compete based on response Answer: Understanding the Product Life Cycle (PLC) check sheet can be used to count defects on a product weights and check if they fall within the
sustomers as being different and of higher value strategy. Answer: Competing-on response involves is essential in operations management because it production line. Each defect type is listed, and the acceptable limits. It helps identify any unusual
than competitors' offerings. 2. Cost Leadership: This focusing on the company's ability to be flexible, helps businesses align their operations with the operator marks the number of occurrences during a variations or trends. 7. Statistical Process Control
strategy focuses on becoming the lowest-cost quick, and reliable in its operations. A company can product's stage. Each PLC stage requires different shift.2. Scatter Diagram• Description: A scatter (SPC) • Description: SPC is a method of monitoring
producer in the industry while maintaining achieve this by offering fast service, flexible delivery strategies for resource allocation, production and diagram (or scatter plot) is a graphical and controlling a process using statistical tools. It
acceptable quality to achieve a competitive schedules, and dependable product availability. cost management. Recognizing the product's stage representation of the relationship between two involves the use of control charts to track process
advantage, 3. Response: This strategy centers on Example: Hewlett-I -Packard (HP) is an example of a e ures optimal use of resources, reduces variables. It Helps to visually identify patterns or performance over time. • How it is used: Used to
the company's ability to respond quickly and flexibly company that competes on response by inefficiencies, and helps companies stay comprtitive correlations between factors. ○ How it is used: Used monitor process stability and detect any significant
to market demands, including factors like speed, maintaining flexibility in its production and by adapting their strategies. Chapter 5 ⁃ Service to analyze relationships between variables. It helps variations in the process that may require corrective
flexibility, and reliability in meeting customer distribution processes. HP adjusts to rapid changes Design 1. Explain the concept of customer identify whether one factor is influencing another. • action.• Example: In a production line, control
needs Example: Apple (Differentiation) creates in technology and customer demand, ensuring that interaction in service design and why it is crucial Example: A company might use a scatter diagram to charts can be used to track the dimensions of a
unique, innovative products tuat are highly valued it can deliver new products quickly and at for the success of service-based businesses. analyze the relationship between temperature and product, ensuring that they remain- within specified
by customers Walmart (Cost Leadership) achieves a competitive prices FedEx also excels in response by Answer: Customer interaction in service design product defects. If the points on the diagram show limits. If the measurements move outside the
competitive advantage through its low-cost offering guaranteed on-time delivery, ensuring refers to the way customers engage with a service a clear trend (e..., higher temperatures lead to more control limits, it signals a potential issue that needs
operations and efficient supply chain. FedEx customer satisfaction through reliability and spread. during the service delivery process. This interaction defects). it indicates a correlation that needs to be addressed Chapter 7: Process Design 1. How does
(Response) excels by offering fast and reliable Product life cycle (chapter 5) 1. What is the is crucial as it directly impacts customer satisfaction, attention 3. Cause-and-Effect Diagram (Fishbone process design impact the ability to deliver services and
shipping, guaranteeing on-time deliveries How does Product Life Cycle (PLC) and what are its main Diagram) • Description: The cause-and-effect products efficiently? ○ Answer: Process design defines how
loyalty, and the perceived quality of the service.
tasks are structured and carried out in an organization,
a company compete through differentiation? stages? The Product Life Cycle (PLC) concept is used High-quality customer interactions can lead to diagram, also known as the Fishbone diagram or
directly impacting efficiency, quality, and cost. A well-
Answer: A`company competes through to describe the stages a product goes through from positive experiences, while poor interactions may Ishikawa diagram, helps identify the root causes of a designed process minimizes waste, reduces time, and
differentiation by offering unique products or introduction to its decline. It is divided into four lead to dissatisfaction and lost customers. Example: problem. It visually breaks down the potential ensures smooth flow of operations. For example, a fast-food
services that provide higher perceived value to stages: I. Introduction: This is the phrse where a In the hospitality industry, the interaction between causes into categories like people, processes, restaurant like McDonald's uses process design to streamline
customers. This uniqueness can stem from product product is launched. Sales are slow, and costs are hotel staff and guests is critical. A hotel that machines, materials, environment, and kitchen operations, allowing it to serve customers quickly
features, customer service, brand image, or high due to product development and marketing measurements. • How it is used: Used for problem- and efficiently, ensuring high volume without compromising
provides a personalized, welcoming experience (eg.,
on quality. 2. Compare process design strategies in
technological innovations EXample 2: Hard Rock efforts. Firms focus on awareness and establishing remembering a returning guest's preferences) is solving and root cause analysis. It helps teams
manufacturing and services ○ Answer: In manufacturing,
Cafe differentiates itself by offering a unique dining the product in the market. During this stage, there likely to create loyal customers who return, whereas systematically explore all possible causes of a process design focuses on optimizing production efficiency
experience that combines music and memorabilia is often negative cash flow as the produc! . a hotel that has indifferent service may struggle to quality issue • Example: If there is defect in a and ensuring product quality, often through automation and
with food and beverages. This experience is development costs outweigh its initial sales. 2. retain guests. 2. Describe the role of service product, a team can use a Fishbone diagram to standardization. For example, Ford uses an assembly line
marketed as part of the brand, and customers come Growth: In this phase, the product's market blueprinting in managing customer interaction in explore different categories (e.g.> machine failure, approach to produce cars efficiently. In contrast, service
not just for food but for the atmosphere and the acceptance grows rapidly. Sales increase, and the human error, material quality) to identify the root process design focuses more on interaction, flexibility, and
service processes. Answer: Service blueprinting 1S a
consistency. For example, a call center designs its processes
experience of being part of the rock-and-roll company begins to make a profit. As demand rises , process used to map out and analyze the entire cause. 4. Pareto Chart • Description: A Pareto chart
to handle customer inquiries quickly while maintaining high
culture. Result: By blending entertainment with production processes become more refined, and service process, from customer interactions to back- is a bar Cart that visually represent the 80/20 rule, service standards, allowing for personalized attention in a
dining, Hard Rock Cafe attracts a specific segment of economies of scale lower costs. Firms may also face end operations. It visualizes the customer showing that 80% of problems are typically caused scalable way. 3 How can production processes be optimized
customers, willing to pay a premium for a competition as other companies notice the experience and identifies key touchpoints, helping by 20% of the causes. It helps prioritize issues based through process design? ○ Answer: Production processes
memorable experience that other restaurants do product's success 3. Maturity: At this point, the service designers understand where and how on frequency or impact. • How it is used: Used for can be optimized by eliminating inefficiencies, reducing
not offer What are the benefits and challenges of product has reached peak sales, and market prioritizing quality issues. It helps teams focus on bottlenecks and improving workflow. Techniques like lean
customers interact with the service Example: For
manufacturing, which focuses on reducing waste and
competing on cost leadership? ○ Benefits: saturation begins. Competition intensifies, leading example, an airline might use a service blueprint to the most significant problems that will have the
enhancing productivity, and Six Sigma, which aims to reduce
Economies of Scale: Cost leaders often benefit from to price reductions or product modifications. The identify the customer's journey from booking greatest impact on quality improvement.• Example: defects, can be applied to optimize processes, For example,
economies of scale, enabling them to produce at 1. company focuses on efficiency and cost control to tickets, checking In, boarding the flight, to arriving In a manufacturing plant, a Pareto chart might show Toyota's use of lean manufacturing principles U its
lower-costs-per unit. W2. Price Advantage: Offering maintain profitability as sales slow down. 4. Decline: at their destination. This process helps them design that the majority of defects are caused by just a few production process ensures that parts are delivered just in
lower prices can attract a larger customer base. Eventually, a product faces a decline in sales due to efficient interactions and streamline any types of issues (e.g., faulty machinery, substandard time, reducing inventory and minimizing delays
Challenges: 1. Maintaining Quality: A focus on cost factors like market saturation, new technologies or bottlenecks, ensuring a smooth customer raw materials). This allows the team to focus on
can sometimes lead to compromises in quality. 2. changing consumer preferences. Companies may experience. addressing those specific issues. 5. Flowchart •
Market Saturation: Overemphasis on low prices may discontinue the product or reduce its costs Description: A flowchart is a diagram that