Question

Describe three basic decisions that must be addressed in the design of operations systems. For each decision, what information do managers need to make that decision? (Fundamentals of Management by Ricky Griffin)

Answer 1

Managers designing operations systems must address three basic decisions: process design, layout design, and capacity planning. They need information about output, demand, resources, technology, flow, and capacity to make informed decisions.

Step-by-step explanation:

When designing operations systems, managers must address three basic decisions:

1. Process Design: Managers need information about the desired output, customer demand, available resources, and technological capabilities to decide on the most efficient and effective process design. They need to consider factors such as product quality, cost, flexibility, and speed to make informed decisions.
2. Layout Design: Managers need information about the flow of materials, equipment, and employees to determine the best layout design for the operations system. They need to consider factors such as space utilization, workflow efficiency, safety, and ergonomic requirements to make well-informed decisions.
3. Capacity Planning: Managers need information about expected demand, production capabilities, and growth prospects to determine the appropriate capacity for the operations system. They need to consider factors such as economies of scale, demand variability, production lead time, and future growth to make effective capacity planning decisions.