Carla is an Operations Manager at a bank. Customers are requesting more digitalisation of services, and Carla is considering a radical approach that streamlines decision-making and creates efficiency in the organisation's structural resources. What is this approach best known as?
The keyword here is 'radical', which is a key feature of business process reengineering (BPR).
Total quality management (A) is incorrect because TQM focuses on gradual quality improvements.
Lean (C) is incorrect because it focuses on waste reduction, which is not mentioned.
Six Sigma (D) is incorrect because it focuses on process improvement through data and system development, but it is not considered radical.
(LO 2.1, See p.68)
Which area of operations strategy is concerned with information management systems, automation, and productivity?
Process technology refers to information management systems, automation, and productivity tools.
Capacity (A) is related to resource planning.
Supply network design (B) deals with supplier relationships and logistics.
Development and organisational design (D) is about people, structures, and hierarchies.
(LO 2.1, See p.71)
The Improvement Gap Analysis can be utilised to manage trade-offs in operational strategy. Which of the following is measured by the IGA? Select ALL that apply.
The Improvement Gap Analysis measures customer dissatisfaction levels. It describes the current state of an organisation and what needs to be done to reach the desired state. The gap between these states represents customer dissatisfaction. The IPA matrix by Piccolo et al categorises dissatisfaction into four quadrants, helping organisations determine whether action is needed. (See p. 137)
Which of the following is a difference between a supply chain and a supply network? Select ALL that apply.
A supply chain is a simple, linear system where products move from A B C.
A supply network is multi-layered, with horizontal and vertical connections, making it more complex.
Dimension difference (B): Supply networks have larger dimensions, with multiple supply channels and flows.
Complexity (C): A supply network is more intricate than a single supply chain.
Number of players (D): Supply networks involve more entities than a simple supply chain.
Profit made (A) is incorrect, as both supply chains and supply networks can be profitable.
Location of players (E) is incorrect, as both supply chains and networks can be local or global.
(LO 1.1, See p.8)
Which of the following are benefits of optimising the supply chain? Select ALL that apply.
Optimising the supply chain brings benefits such as increased flexibility, higher profit margins, better demand forecasting, and waste reduction.
Use of AI and technology (D) is incorrect because it is a method to achieve supply chain optimisation, not a benefit itself.
(LO 1.1, See p.3)
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