PATRICIAN COLLEGE OF ARTS AND SCIENCE
CIA- 1 -July 2019
Operation management
Answer key
PART-A
1.Define operations management?
A. Operation management refers to the process of transformation of inputs into outputs for a business.
Operations management is also know for managing the operation i.e function which are producing a
product
(Men, machine, money, material)Inputs-------------------------------outputs(goods and services)
Transportation process
2. What is plant location ?
A. The term plant location or facility location refers to the process of identifying or deciding a location
for the facility of products or production which is more profitable . Profit is the most important factor
for an new start up or an already existing plant . It’s is also determining the geographical area for
locating a plant
3. What are the 5 objectives of operations management?
A. The following are objectives of operations management
*Minimum product cost
*Maximum customer satisfaction
*Minimum delay of time in production and delivery of good and services
*Maximum goods quality and products to be used for production
*Minimum labour cost and operating functions
*Easily reusable with less scrap value
4. What is productivity?
A. Productivity is defined as the efficient use of resources, labour, capital, land, materials, energy,
information, in the production of various goods and services. Higher productivity means accomplishing
more with the same amount of resources or achieving higher output in terms of volume and quality
from the same input.
5. Five advantages having a plant location in a suburban area
A. (i). The land is relatively cheap.
(ii). Adequate area of land can be purchased and so future expansion is possible.
(iii). Better transportation and communication facilities are available.
(iv).As the city is near both skilled and unskilled type of labour is available
(v). Infrastructure like roads , water supply , drainage , banking , Wearhouse are available
6. What is product design?
A. The term product design refers to the designing of a product based on the raw materials produced
and making it available for a production at a reasonable price and easy for consumption purpose . There
should be less production cost which makes it easy to attain a profit .
7. What is production planning ?
A. The process of identifying the method of producing and how the product can be available at the
reasonable price is know as production planning . It is also know for using the right resources at the right
time during production .
PART B
1. Difference between goods and services
GOODS SERVICES
*It’s tangible in nature *it’s intangible in nature
*it’s a product produced *it’s a help given to a
for consumption purpose person
*goods are of various *services are unique in
forms nature
*goods are automated *services are not
automated
*less interaction with *more interaction with
customers customers
*it’s easy to customize a *services can not be
product according to customised
customer’s satisfaction
*goods are quantifiable *services are qualifiable
2.Explain the nature and scope of operations management
A. » The following is the nature of operations management
* Operations as an organisation
*Operations as a system
*Operations for creating utility
*Operations as a function
» The scope of operations management
*Minimum labour cost and operating functions
*Minimum scrap value
* Maximum production cost
* Maximum goods quality of products and materials for production
*Minimum delay of time in a production and delivery of goods and services
* Minimum transportation cost
* Maximum customer satisfaction
* Attaining a reasonable profit
PART C
1.Factors influencing plant location
A. The ten main factors that affect a plant location are as follows:
1. Law and order situation,
2. Availability of infrastructure facilities,
3. Good industrial relations,
4. Availability of skilled workforce,
5. Social infrastructure,
6. Investor friendly attitude,
7. Nearness to market,
8. Nearness to raw-materials' source,
9. Nearness to supportive industries and services, and
10. Must meet safety requirements.
