Operations Management

December 2022 Examination

1. What are various decision criteria for deciding a location for a business setup? Explain
these decision criteria with reference to a location decision for setting up a Healthcare
setup (assume a healthcare setup type of your choice). (10 Marks)

Answer 1.
Introduction

It is essential to establish a business without suitable infrastructure. Choosing the right location
to set up shop is crucial to any business's customers, as it will determine how well they can reach
their target audience and maximize the usefulness of any available infrastructure. When picking
a health insurance plan or provider, each of these factors is essential. Therefore, I will establish
the norms that will make my healthcare service a success. Positive word of mouth about a
business's products or services can attract more customers. A business's location is essential
because it must be in close proximity to both sources of supply and major services. There are a
lot of rules and laws that need to be set into account when configuring the service. Potentially
more clients can be reached by the owners, and those clients can plan appointments that are
convenient for the business.

Concepts and Applications

1. Decide with its operation facility

It was taken into account throughout the building process because the area is near to the city's
core, making it an excellent location. It is important for hotels, pharmacies, and laundromats to
be located in close proximity to one another. Provide medical care at a reasonable cost to people
who, because to their location, are unable to conveniently get it elsewhere. An adequate size of
medical treatment is essential for all sizes. Once the little center is suitable for business, you may

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evaluate the available space and the location's convenience for prospective customers. It is
straightforward to account for foot traffic and public transit when planning a large healthcare
facility. Finding the balance between frenetic and relaxed will bring the most number of people
to your area.

2. Near to the market

Before the medical facility can begin to see patients, the surrounding area must be examined. It is
probable that customers would patronize your business due to its handy location. Additionally,
committed people holding important positions may opt to join the profession. It would be a
fantastic location to establish a brand-new medical facility since there are currently so many
people living and making in this area. Putting your clientele's customers above your own will
bring you praise, repeat business, and an incomparable sense of fulfillment.

3. Look for the size

Depending on the size of the property you want to purchase, you may need to make
modifications. Before making purchases, it is important to assess the purchase area. Guests of the
spa will not have to worry about locating parking off-site due to the amount of available spaces.
These recommendations may be used by any healthcare system to enhance the health and
happiness of its patients. Due to the structure of the building, outdoor spaces are not allowed on
hospital premises. Customers may enjoy premium facilities at a reasonable price.

4. Look for the convenience

While attending to a patient's medical requirements, it is crucial to ensure that they are as
comfortable as possible. Customers, suppliers, and personnel are conceivable benefactors. Prior
to selecting a location for a medical facility, a number of factors must be taken into account. To
accommodate patients, visitors, and customers, the parking lot of the hospital must be
conveniently accessible. Despite the fact that shared parking garages have more advantages than
disadvantages, client tolerance falls in such facilities. Every single brand-medical facility in the
nation must adhere to these regulations.

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5. Competition
Since they often see people from all across the city getting examined at medical institutions,
most patients consider this as genuine. This involves the search for an appropriate facility for a
new medical center. The exposed location must be examined to make that it may be used. The
establishment of a second facility will impact the future of medical care delivery. Determine
whether the prestige of this facility surpasses that of your organisation. Despite the value of these
features, it is as important to analyze what sets the competition distinct. The aforementioned
factors are important while choosing a medical facility.

6. COST CONTROLS
The location of a property is as as important as its size in determining its value. The price in the
more convenient location will always be greater, assuming all other parameters stay constant.
For an organisation with limited resources, this may need sacrificing either the property's
location or its size.

You and the seller may reach a different price arrangement depending on whether you want to
purchase the property outright or enter into a ground lease. Even while ground leasing a property
may be financially advantageous in the short term, the organisation would be better off in the
long run if it just purchased the property. The increased monthly lease payments may exceed the
savings that may be made by owning a property instead of leasing it.

However, the cost of building a new facility and retrofitting it may be much more than the cost
of building an existing facility. Combined primary care/urgent care/retail clinics should be
located in close area to other critical services. The organisation might save money by making the
infrastructure of its previous retail location.

Conclusion

Ascertaining the demand for healthcare services like as ortho treatment, child care, and so on is
an important initial step in creating a healthcare infrastructure for a given community.

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When establishing a healthcare setup for dentistry, cardiovascular, cancer cell, or any other
purpose, it is vital to make that all required components are sure. In order to make an educated
conclusion, it is important to take the interests of many groups. These solutions will assist your
hospital in expanding, ensuring that both urban and rural patients have access to the treatment
they need. In conclusion, I suggest a healthcare system and explore some possibilities for its
implementation.

2. Explain in detail the various types of plant layout concepts that area available in
operations management. Give examples on where each of these types can be employed
respectively. Briefly explain a layout applicable for a Restaurant format, highlighting the
good points and bottlenecks, if any. (10 Marks)

Answer 2.
Introduction

Only the plant itself is more important to a company's productivity and capacity to cater to a
wide variety of customers than the layout system. Find if the facility can fit a wide variety of
enterprises, space needs, state-of-the-art equipment, important laborers, and so on. For this
reason, it's important for a restaurant to have customers who are comfortable with the space and
the menu, as well as top-notch food and entertainment that can hold their own against the best in
the nation. There is no doubt that an assembly line would be a huge asset to any restaurant that
values its patrons' opinions on the quality of the space's design and layout. Considering that
every eating establishment has its unique layout and regulations, the plant system must be
customized for each individual establishment. Examine the benefits and drawbacks of a service
to think an informed choice. Since it examines the similarities and differences between many
popular restaurant templates, this article should find to many would-be web designers.

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Concepts and Applications

The company's management team has basically three plant layout options from which to choose
in order to achieve its aims. More customers, more space for food and supplies, and more money
in the bank need a restaurant's concept-compatible layout.

Product layout

This product layout may help a restaurant's website achieve its main objective of attracting a
large number of customers. As a result, most eateries emphasize inexpensive food. Your
business's success relies on you maintaining the interior and outside facilities clean and
organized, having all the essential parts and equipment for maintenance and repairs on available,
and ensuring that customers can access and exit the machines without difficulty. By adhering to
the product's layout, you may increase production and check your standing in relation to the
competition.

You may make your business, for instance, by placing more focus on the quality of your food
service and the care with which it is provided. If this is the case, then everything is going
according to plan and everyone is enjoying the process.

Benefits of the Product Layout:

i. Product layout offers several advantages, including but not limited to reduced costs and
improved transportation efficiency.
ii. Second, you will have less obligations.
iii. Finally, as a result of improvements in mechanical and human efficiency, less space is
required to temporarily store and move products.
iv. Regarding the fourth point, unwanted jiggling is minimized.

Product Layout Impasses:

i. There are no principal, common corridors in the layout.

ii. each move raises the requirement for a pay rise.

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Process layout

We must make our significance in this area. A restaurant with both a front and back door may
seem fragmented. Establishing front-of-house infrastructure (reception, waiting room, cashier
station, etc.) is crucial for the continuation of regular business activities. The current service
infrastructure, which may include a kitchen, cooking area, storage, office, and other places, will
be upgraded. Choose the indoor area that offers the greatest amenities to prevent issues. People
must feel relaxed and at ease while eating in public restaurants. It is vital that you serve your
customers with only the greatest food and service. If the restaurant is well-kept and the food is
delicious, it will attract more people.

As a standard procedure, restaurants would purchase their supplies, prepare their meals, and offer
customers their food to go. Long-term, there is little doubt that these products will soon make the
hearts and minds of customers.

Benefits of the process layout:

i. There will be less need to purchase brand-new equipment, resulting in cheaper prices.
ii. Consequently, it is easier to manage when a big number of people with diverse
backgrounds and levels of competence are engaged.
iii. Thirdly, flexible deployment of resources (equipment and people) makes load balancing
easier.
iv. The fourth purpose is to make the use of existing resources.
v. If a machine fails, it's not a huge concern since there are always other methods to do the
task.
vi. This priority will be given to processes that need a high level of precision or are often
examined.

Limitations of Process Layout:

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 i. Despite their great distance, these resources are crucial and must be provided at a
considerable cost.
ii. It takes longer to finish the whole production process since more time is spent driving to
and waiting at various locations.
iii. Third, a bottleneck occurs when there is an overwhelming quantity of work to be
accomplished.
iv. Inferring from this, more space may be necessary on occasion.

Combinational layout

It is feasible to increase efficiency and dependability in the food service business. When there is
no danger, people are more inclined to relax and have fun. Retailers' interest will be aroused even
more if they can service customers at the ideal moment with less customers. Priorities in design
emphasize human harmony to boost productivity and population expansion. By consolidating
them into a single, superior format, the standard can only gain. Simple, low-cost designs are
likely to provide consistent income. Hiring professionals to advise you on the ideal shop layout
for optimizing efficiency and revenue is the most cost-effective method for ensuring the smooth
operation of your restaurants. Before deciding on a design, you must do one more task.

The happiness of customers should be a restaurant's first priority while producing food. This aim
can only be achieved by investing in cutting-edge design, hiring skilled waiters and customers,
building a user-friendly system, and ensuring client pleasure. Using this layout, you may make a
food with variously sized and shaped products. This will increase the quantity of customers
visiting the business.

Conclusion

A "restaurant layout" is a scale plan of your establishment that shows the position of objects such
as the kitchen, storage, tables and chairs, and restrooms. The layout of the restaurant reflects the
underlying ideals of the company. It is customary for a restaurant to create a floor layout before
welcoming customers.

The different process management architectures will be explored. The assembly line method is
the most successful in such a method, as restaurants that provide food service will find. Simply

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said, it will make moving food between the two sides of the kitchen simpler. We'll also take care
of easy cleaning and food preparation. Preparing food ahead of time and serving it to customers
on the terrace is an easy method to demonstrate your culinary skills. This line is easy to follow
due to its linear progression. Restaurants must follow to a few fundamental layout concepts in
order to give customers with a happy and successful eating experience.

3. The Education Sector is a good example wherein the operations involves the involvement
of the “core teaching function” to be coordinating and working in sync with other
departments. With reference to the education sector discuss the following aspects of
operations in an Educational setup

a. Explain the role of an Operations Managers in their interface with other functions in the
institute. Give relevant examples (5 Marks)

Answer 3a.
Introduction

The Operations Manager at the Education Institute is responsible for ensuring quality work is
completed while also being willing to take calculated financial and non-financial risks as needed.
When caring for tens of thousands or millions of students annually, a prestigious school must
have reliable systems in place. The success of every educational institution rests on its capacity
to provide interested students with the most cutting-edge methods of instruction.

Concepts and Applications

Colleges often employ operations managers in order to develop standard processes. They are
responsible for ethically sound students and classroom materials. The institution will undergo a
comprehensive analysis, and any faults identified will be resolved.

The following are the roles they will perform to improve the efficiency of the institution:

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• One of the daily tasks of administration is ensuring that classrooms have enough teaching and
learning materials.

• He is responsible for the organization's financial performance.

• The staff and students of the Education Institute should always be a major focus. As the
operations manager, it is your responsibility to avoid difficulties.

• In order to properly manage student conduct, the Education Institute's norms and standards
must be consistently and methodically enforced.

• Both students and their families' concerns must be taken seriously. These responsibilities will
first be assigned to the operations managers.

• Encourage students to anticipate cleaning their teeth.

• The operations manager is responsible for assisting the staff with tasks such as cleaning and
training.

• Teachers and other staff members must feel secure at work; thus, it is essential to regularly
review and improve the school's emergency procedures.

• To ensure the smooth functioning of the course, you must manage and grow a staff of school
assistants.

• They execute crucial responsibilities to ensure the smooth operation of utilities and allied
sectors. Teachers should work with students to cultivate environmentally responsible practices,
then monitor their progress to ensure responsibility.

• If there were a fire at school, for example, it would be the duty of the operations manager to
ensure that every kid could leave safely. The operations manager of the Education Institute

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oversees the facility's smooth operation by monitoring for problems, organizing repairs when
necessary, encouraging staff and students, and decreasing stress wherever possible.

Conclusion
The primary responsibility of the operations manager will be to ensure the Education Institute's
financial stability and operational effectiveness. They will also keep an eye out for sections of
the facilities that need improvement, as well as what is already working well and any upcoming
requests from parents, students, and teachers. These and other responsible processes must be
organized by the Education Institute manager.

b. Define Quality and list and discuss in brief the various dimensions of quality in
operations

Answer 3b.
Introduction
Definition:

Quality can also be defined as “fitness for use”. Achieving this level of quality requires
companies to have in-depth knowledge of the long-term goals of their target demographic when
it comes to the products or services in question. One list a business could accomplish this is by
prioritizing production, research and creation of new products, and communication with
customers. When applying this definition, it may be useful to place special emphasis on reducing
negative social consequences. In this sense of the definition, "quality" refers to quality over time.
Quality management must be rethought in light of this new approach to quality control, which in
turn necessitates a complete familiarity with all available choices.

List: A successful list management system works in the creation of data cards and a rise in
revenue. You will be the link between the list owner and the service provider, handling orders
and facilitating communication to obtain necessary approvals from the list owner.

Concepts and Applications

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Before making a purchase, buyers will assess the company's product and the quality of its
customers. The outcome should impact how your company runs and the goods or services it
offers. The stated level of service will be given on time and with the greatest quality feasible.
The effectiveness of your quality control system demands that it be evaluated in a timely time
from eight various viewpoints.

Below are the top eight features and accompanying metrics:

Performance: Customers have rigorous aesthetic and functional expectations. It will depend on
the item's usefulness. To reach the appropriate temperature for an industrial cooling application,
the fan must operate continuously.

Features: Customers are as impressed by a product's additional features as they are by its core
use. Your company's quality to providing superior customer service is on full show in the cozy
waiting room, where customers may take complimentary refreshments while they wait for their
bicycle. Customers' tendency to do business with you will improve if you simplify your
company's purchasing method.

Reliability: The quantity and dependability of your client base are directly proportional to the
dependability of your service. Your product will sell most effectively if it addresses issues for
your target market. In addition, they will give you with a functional prototype of the product. It is
inevitable that market profits will rise as more customers flood the market.

Conformance: In the context of satisfying quality standards, "conformable" refers to anything

that can be shown to have been created in line with the appropriate specifications.

Durability: The term "durability" is used to describe how long a product is anticipated to last
before it breaks down due to regular use and must be replaced. Stability and durability are
synonymous.

Serviceability: One of the most important characteristics of a product is its serviceability, which
is measured by how fast and cheaply it can recover from flaws.

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Aesthetics: Some customers put a high value on the appealing look of a product from an
aesthetic aspect. There may be a link between this product and buyers' "pleasant feelings" while
picking between comparable items.

Classifications of automobiles for regular use:

Safety: The term "safety" refers to a product's potential to reassure consumers that they will not
be harmed by using it.

Other perspectives: Less tangible elements, such as the product's reputation and the
effectiveness of any accompanying marketing initiatives, may also influence customers'
perceptions of a product's quality.

As a consequence, a vast array of other criteria, including reliability, durability, usability, beauty,
and an overall feeling of perfection, may be employed to assess quality. These features will
greatly improve the goods of your organization. This has a favorable impact on company, which
ultimately increases earnings.

Conclusion
Finding dependable suppliers of critical commodities is critical to a company's success. Even the
smallest new startups seek for high-quality goods and services. The quality of the opposition is
negatively connected to high-level achievement. Within the framework of process management,
training must be made accessible as quickly as possible.

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