ESIC | PRODUCTION MANAGEMENT UNIT 1

🔵 UNIT 1 – Answers (based only on Unit 1 presentation)📌 Source:1. Why should you study Operations Management?Because Operations Management: • Creates value by transforming inputs into goods and services. • Improves productivity. • Reduces costs. • Increases customer satisfaction. • Builds competitive advantage. • Coordinates people, layout, scheduling, supply chain, and quality.2. What are the three basic functions of a company? 1. Marketing – generates demand 2. Production / Operations – creates goods and services 3. Finance / Accounting – tracks performance and manages money(Support functions: HR, IT, etc.)3. What are the 10 strategic decisions of OM? Define them. 1. Design of goods & services – defines customer requirements and operational needs. 2. Managing quality – defines quality expectations and policies. 3. Process & capacity design – how goods/services are produced. 4. Location strategy – where to locate facilities. 5. Layout strategy – how space and flow are organized. 6. Human resources & job design – hiring, motivating, organizing people. 7. Supply chain management – integrating suppliers into strategy. 8. Inventory management – optimizing stock levels. 9. Scheduling – planning short- and medium-term activities. 10. Maintenance – ensuring reliability of facilities and processes.4. Name four areas significant for improving work productivityFrom Taco Bell case: • Design of goods & services • Layout strategy • Process design • Human resources & job design5. What is the profile of an Operations Director?According to slides: • Strategic thinker • Strong in technology and methods • Manages facilities and space • Improves productivity • Reduces costs • Focuses on quality and customer service • Develops teams • Works on scheduling and inventory reduction6. Difference between Products and ServicesProducts: • Tangible (hmotný) • Can be stored • Produced before consumptionServices: • Intangible (nehmotný) • Cannot be stored • Produced and consumed simultaneously7. Difference between Production of Products and ServicesProduct production: • Standardized • Can use inventory • More mechanizedService production: • Simultaneous production & consumption • Labor intensive • More customized8. Five reasons productivity is difficult in services 1. Intangibility 2. High human dependence 3. Customization 4. Simultaneity 5. Difficulty in automation9. How is service productivity measured? • Labor productivity (output per employee/hour) • Revenue-based productivity • Customer satisfaction metrics • Process efficiency • Utilization rates10. Measurement problems in services • Intangibility • Variability • Simultaneity • Difficulty in standardization • Quality changes without visible output change11. Challenges affecting OM • Globalization • Mass customization • Rapid product development • Lean operations • Ethics & sustainability • Changing customer behavior • Technology (AI, automation)12. Relationship between Mass Customization & Rapid Product DevelopmentMass customization requires: • Flexible production • Simple and modular design • Quick adaptationRapid product development enables companies to respond quickly to changing demand.Example: ZARA (fast fashion + flexibility).