12BU - Role of Operations Management

Role of Operations Management

Introduction

Operations refers to the business process of transforming inputs into outputs.

Multiple Select

Transformation is ...

• the conversion of inputs into outputs

• the production of goods and services

• the creation of extra (or added) value

Multiple Select

Inputs can include ... ?

• Tangible things such as materials, capital and human resources

• Intangible things such as ideas, skills and information

Multiple Choice

Outputs are ... ?

• goods

• services

• can be either or both

Multiple Choice

This diagram illustrates the operations process for .... ?

• a producer of goods

• a producer of services

Multiple Choice

This diagram illustrates the operations process for ... ?

• a producer of goods

• a producer of services

Strategic Role of Operations Management

Operations management is a key business function that overlaps with the other key business functions of finance, marketing and human resources.

Cost centres are those aspects of a business that do not directly derive income but do incur cost.

Cost Centres

Profit centres are those aspects of a business that directly derive income.

Profit Centres

Profit Maximisation

Multiple Choice

Which of the following would be a Profit Centre for Myer?

• Employee wages

• Insurance

• Menswear

• Warranty Claims

Multiple Choice

Which of the following would be a Cost Centre for Myer?

• Homewares

• Womenswear

• Warehousing

• Footwear

Drag and Drop

Cost Leadership​

Placeholder

​

Placeholder

Drag these tiles and drop them in the correct blank above

having the lowest cost

being the most price competitive

having the highest cost

having the highest price

Multiple Choice

Economies of scale refers to cost advantages that can be created as a result of an increase in the size of a business' operations.

• true

• false

Multiple Select

A business can gain a competitive adavtage by which of the following?

• Cost leadership

• Product differentiation