OSM W10 - Business Operations Process

Mira works in a company that wants to improve its efficiency. What is an example of integrating operational activities through technology?

• Integration of operational activities through the internet

• Manual coordination

• Isolated departments

• Paper-based communication

Answer explanation

The correct choice, 'Integration of operational activities through the internet', exemplifies how technology can streamline processes and enhance communication, unlike manual coordination or paper-based methods.

Which of the following is NOT one of the 4 V's of operational processes?

• Volume

• Variety

• Speed

• Visibility

Answer explanation

The 4 V's of operational processes are Volume, Variety, Variation, and Visibility. Speed is not one of them, making it the correct answer to the question.

Which of the following is not an implication of high volume?

• High repeatability

• Low unit costs

• Less systematization

• Capital intensive

Answer explanation

High volume typically leads to high repeatability, low unit costs, and capital intensity due to economies of scale. However, it does not imply less systematization; in fact, high volume often requires more systematic processes.

What usually requires a large volume in operations?

• Low repetition

• Capital intensive

• Each staff member performs more of each task

• Less systematization

Answer explanation

Capital intensive operations typically require a large volume due to the significant investment in machinery and infrastructure, which necessitates high production levels to be cost-effective.

What is a characteristic of high variety in operations?

• Well defined

• Routine

• Flexible

• Standardized

Answer explanation

High variety in operations is characterized by flexibility, allowing for diverse and customized outputs. Unlike well-defined, routine, or standardized processes, flexibility enables adaptation to varying customer needs and preferences.

High variety in operations is likely to lead to what kind of unit costs?

• Low unit costs

• High unit costs

• Standardized costs

• Regular costs

Answer explanation

High variety in operations typically increases complexity and customization, leading to higher production costs. Therefore, high variety is likely to result in high unit costs.

Which of the following is NOT an implication of high variety?

• Flexible

• Complex

• Standardized

• Meets customer needs

Answer explanation

High variety implies flexibility, complexity, and the ability to meet diverse customer needs. However, it does not imply standardization, which is contrary to the essence of high variety.

What is a characteristic of low demand variation?

• High unit costs

• Flexibility

• Predictable

• Changing capacity

Answer explanation

Low demand variation is characterized by predictability, meaning that demand patterns are stable and can be anticipated. This allows for better planning and resource allocation, unlike high variability which leads to uncertainty.

What strategic question is suggested by the text in relation to the four V's?

• Is their position where they want it to be?

• How can they increase their volume?

• What is the cost of their position?

• How can they improve their visibility?

Answer explanation

The strategic question 'Is their position where they want it to be?' directly relates to assessing the current state against desired outcomes, which aligns with evaluating the four V's: volume, variety, variation, and visibility.

Mia is a business analyst and is trying to understand the importance of positioning on the four V's in her company. What is the importance of understanding the position on the four V's?

• To increase sales

• To understand strategic implications

• To reduce costs

• To improve customer service

Answer explanation

Understanding the position on the four V's helps Mia grasp the strategic implications for her company, guiding decisions that align with business goals and market demands.