Questions & Exercises

Questions For Review

  1. 7-1. Describe, in your own words, the meaning and significance of business operations. What do we mean when we talk about operations? What does it encompass? What does it exclude?

  2. 7-2. What are the major differences between goods-production operations and service operations?

  3. 7-3. What are the major differences between high-contact and low-contact service systems? Give an example of each, comparing and contrasting them.

  4. 7-4. Identify the three kinds of utility and describe each one briefly.

Questions for Analysis

  1. 7-5. Apply the five major categories of operations planning to your college or to a local business.

  2. 7-6. What type of business strategy does Disney use to attract customers to its theme parks? What does the company do to implement its strategy? What are the key operational characteristics?

  3. 7-7. Choose three different businesses that you frequent and rate the quality of their service or product on a scale of 1–5, with 1 being poor quality and 5 being high quality. Explain the standard that you applied for each business to determine quality. Was it the same standard, or did you apply a different standard to each one? If so, why?

  4. 7-8. If you were a member of a quality improvement team at your college, what would be five specific high-impact recommendations that you would support? Of those five, which two would be the most important, and briefly explain what strategies you might employ as a college administrator to implement those two recommendations.

Application Exercises

  1. 7-9. Map out the process for enrolling in classes at your school by drawing a process flowchart that shows the stages in the activity, and then tell how you would use that flowchart as part of a methods improvement approach to operations planning.

  2. 7-10. Interview the manager of a local service business, such as a restaurant or hair salon. Identify the major decisions involved in planning that business’s service operations.

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