Production and Operations Management

Production and Operations Management
Chapter 1: Answer discussion questions 8 & 10 on page 24
Question 8: Describe the two major differences between service and manufacturing operations.
The two major differences between service and manufacturing organizations are the way in
which the operations function. Manufacturing operations primarily produce a tangible product
and typically have low customer contact. On the other hand, service organizations primarily
produce and intangible product and have high customer contact. Sometimes, manufacturing
and service organizations can operate together. The company that I work for has a small
manufacturing process even though we are an Aerospace service provider. We build the
components that we then install and maintain on the aircraft for the customer.
Chapter 2: Solve questions 2, 4, 6 & 8 on page 49
Question 2: Explain the role of operations strategy in a business.
The role of operations strategy is to provide a plan for the operations function so that it can
make the best use of its resources. The entire goal is to put the company in the best position to
utilize its resources in a manner that aligns with the business strategies of the company.
Question 4: Describe how an operations strategy is formulated from the business strategy.
The operations strategy is developed to support the business strategy. One way a company does
this is by determining the location, size, and types of facilities that the business needs in order
to fulfil the business strategy. If a business strategy is to manufacture 100 vehicle floor plans in a
single day, the operations strategy must determine the space needed, amount of manufacturing
equipment and probably a location that is close to both suppliers and customers.
Question 6: Find an example of a company that makes quality its competitive priority. Find one
with flexibility. Compare these strategies.
One example of a company that makes quality its competitive priority is Mazda. There’s a
famous story about a study that was done by Ford concerning its transmissions in the Ford
Taurus. Some were manufactured in America by Ford and some in Japan by Mazda. The study
found that the Mazda transmissions that were manufactured using the same blueprints had
tighter tolerances and better components. Since then, Taurus enthusiasts have always favored
the Japanese transmissions. A company that is flexible would be Amazon. Though some could
argue about them having quality as their priority, I believe it is flexibility since they adapt
frequently to customers wants rather than on their own.
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Question 8: Describe the three types of technologies. Explain the strategic role of technology.
The three types of technology are product technology, process technology and information
technology. The strategic role of technology is used as a competitive advantage. An example
would be how grocery stores are allowing customers to place orders on their phones and pick
up the order when it is ready.