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Unit 1: Operations Management Basics

Services: Services are intangible products that are consumed as they are created. Direct customer Notes
contact is a key characteristic of services.
Value Model: People part with their money to buy a product when it delivers more “value” than
the value they attribute to the money exchange.

1.8 Review Questions

1. Why do you need to accept that Operations Management should be viewed as a system?

2. What are the subsystems within the operations function and what is their salience?
3. Define operations processes and explain its key components.
4. What challenges do operations managers face in managing processes?
5. What is the systems view of Operations Management?
6. Processes can result in tangible or intangible products. There are different elements
involved in these two types of processes. Distinguish between the different aspects of
these processes.
7. Well-designed manufacturing and service operations exploit a company’s distinctive
competencies – the strengths unique to that company – to meet these needs. Explain.

8. Explain the important issues with transformation.
9. Many other firms have excelled at operations to improve their competitive position. The
student is expected to show how these competencies and strengths have been brought
about in Operations Management.
10. Operations manager of a firm has to coordinate with other departments in order to organize
the production activities in an effective manner of the firm. Explain.

Answers: Self Assessment

1. micro-environment 2. time and motion
3. Lean production 4. traditional
5. modern 6. value chain
7. internal 8. Functionality

9. order winner 10. department’s
11. Structural 12. ‘software’
13. market 14. infrastructural
15. co-operation

1.9 Further Readings

Books Upendra Kachru, Production and Operations Management – Text and Cases, Excel
Books, New Delhi.
Chase, Richard B., and Eric L. Prentis, ‘Operations Management: A Field
Rediscovered’, Journal of Management, 13, no. 2 (October 1987): 351: 366.

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