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a. Operations Management is important in large-scale organisations - VCE - SSCE Business Management - Question 8 - 2002 - Paper 1
Question 8
a. Operations Management is important in large-scale organisations. Describe what Operations Management involves. Compare and contrast the Operations Management ac... show full transcript
Worked Solution & Example Answer:a. Operations Management is important in large-scale organisations - VCE - SSCE Business Management - Question 8 - 2002 - Paper 1
Step 1
Describe what Operations Management involves.
Answer
Operations Management involves overseeing, designing, and controlling the production process and redesigning business operations in the production of goods or services. It includes various key functions such as:
- Planning: Determining the processes required to meet customer demands effectively.
- Organizing: Arranging resources to optimize efficiency and effectiveness.
- Managing: Controlling and supervising operational tasks to ensure goals are achieved. This includes monitoring daily operations, assessing performance, and implementing improvements.
Step 2
Compare and contrast the Operations Management activities of a service company, for example a bank, with a manufacturer, for example a car manufacturer.
Answer
In comparing operations management between a bank and a car manufacturer, several differences and similarities emerge:
Similarities:
- Both sectors aim to optimize resource utilization and enhance productivity.
- Each must implement quality control mechanisms to maintain standards, whether in service delivery or product quality.
Differences:
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Tangible vs. Intangible Products:
- A car manufacturer creates tangible products that can be stored and sold.
- A bank provides intangible services, which cannot be stored, leading to the necessity of immediate service delivery.
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Production Involvement:
- In manufacturing, customer involvement is limited; for example, customers order a car but don’t influence its production.
- In services, customers often participate in the process; for instance, banking clients may influence service design through feedback.
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Location of Production:
- A car manufacturer may have a distant production facility.
- A bank operates in locations that are easily accessible to customers, emphasizing convenience.
Step 3
Use the examples given above or other examples from your studies or research.
Answer
Examples from wider research further illustrate the differences noted:
- In manufacturing, a company like Toyota is known for its Just-In-Time (JIT) operations, which reduce waste and improve efficiency in car production.
- Contrastingly, a service firm like JPMorgan Chase utilizes technology for online banking services to enhance customer experience and streamline operations, reflecting the operational focus on customer engagement.