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A 1.1

Operations Management is dealing with processes in an organization effectively and efficiently. Operations managers control production systems in manufacturing of goods and services. All organizations have an operations function. Operations managers can also work in managing manufacturing processes or managing the delivery of a service to a customer.

A 1.2

1. Service as itself cannot be measured somehow. Goods have physical measurements.

2. For a service to be complete, a participation of a customer is needed. At the same time, for a good to be complete, there must not be a customer.

3. Service has a certain period of time, during which it has the highest value. Goods can be stored for a longer time and be used even in the future.

4. For someone to offer services, there has to be some level of expertise involved, while for the goods, it is just a matter of supplying them.

5. Services need to follow the chain from a supplier to a consumer, whereas goods may not follow the chain and still get to the consumers.

A 1.3

Value added refers to the additional value of a commodity over the cost of commodities used to produce it from the previous stage of production.

A 2.1

Strategy means global plan to reach a long-term goal. Tactics, on the other hand, means a short-term plan or behavior. One uses tactics (little tricks) in a strategy (long-term plan).


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Many factors can help us to explain why automobile manufacturers in Japan employ fewer workers than the United States of America. The key reason is advancement in technology in Japan compared to the US. The management system and the workplace set up in Japan also enhance productivity as compared to the weaker American systems.

A 10.1

A chart is a graphic which shows companys financial results. As for an example, an accountant may display in a chart how the percentage of corporate profits over a five-year period grows or decreases.

A 10.2

A. X- bar is used to give more effective supervision of the central tendency.

B. Range is used to measure the spread of the process.

C. P-charts are used to control the items that are faulty in the process.

D. C-charts control the total number of non-conformities per unit.

A 11.1

The independent demand refers to the call for an item on its own, without any kind of relationship to other items. This specification contrasts with dependent demand, which requests for one product are controversially dependent on another product.

A 12.2

Kanban is a card attached to the carrier or container and used for scheduling the production process. Just in time (JIT) system is basically a pull system, which means that what needs to be produced in a particular station depends on what the next station needs. Kanbans contain information about the lots and quantities involved. This card is used to facilitate the execution of this pull system.

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