BUS 1220E

OPERATIONS MANAGEMENT
STUDY SHEET

I. TASK ANALYSIS

Based on the customer’s needs, define and prioritize the core and non-core process outcomes.

Quality, Quantity, Price, Service, Features

What implications does this have for production?

II. PROCESS IDENTIFICATION

Continuous
Project Job Shop Batch Line Flow
Flow

Experts,
LABOUR High / Moderate Skill Low Skill
Trades people

Unique, One
General, Less automation, Low Specialized, High degree of
EQUIPMENT function, High
investment
investment automation, High investment
Is the appropriate production
process being used? Discuss
PRODUCTION
TRIGGERS
Customer Triggered Produce to Anticipated Demand any relevant implications.

PRODUCT Unique design,

Very high High Low None
VARIATIONS One of a kind

PRODUCT Very high

One or very few Low volumes Low volumes High volumes
VOLUMES volumes

III. PROCESS ANALYSIS

 Capacity is the volume of output that a process can produce.

 Calculate capacity and compare this to demand. Consider the bottleneck and any possible line
balancing that can occur. Are any changes necessary?

IV. TRADEOFF ANALYSIS

 Net Benefit = Incremental Benefits – Incremental Costs

The annual income associated with an investment

 Payback = Investment ÷ Net Benefit

The length of time required to recoup the cost of an investment

 Qualitative discussion of pros and cons of each option

V. DECISION

“As _______, I will make the following recommendations…”

Draw on important areas of analyses to support your decision. Make whatever recommendations you
deem necessary. Overcome any issues or risks.

© BUS 1220E/1299E