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QSO 600 Final Exam


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QSO 600 QSO/600 QSO600 Final Exam (SNHU) (SNHU)

QSO 600 Final Exam Essay Questions

Question 1:

Operations management is the procedurethat ties and converts numerous resources used in the production or operations secondary systems within an organization into a valuable product in a controlled environment. Operations management is also supervises the design and controlling of production and allocating business assets to be more efficient.


Operation management is very important to transform resources in superiority product, operations management are responsible for the product and its overall performance. This can also include mundane tasks, but are essential to the overall health of an organization.  Therefore operation management is essential to improve productivity which can lead to improvement of the organizing financial health. Operations management are and to also meet the customer’s needs.

Good knowledge of operation management is very important in both the service and manufacturing industry. Also an employee’s roles and responsibilities changes as business needs change.

Although the manufacturing industry have a standardized method to produce a product because most item will be mas produced. The service industry can customize the service and make any changes to their practice in a much shorter period than manufacturing industry.

In a manufacturing environment operations mangers must supervise the activities needed to produce a product. This includes creating an efficient manufacturing layout that is product focused. That includes overseeing the allocation of raw materials needed, and the space to store these raw materials and the flow during the manufacturing process and the quality of the end product.

In a service environment, they are responsible and must be able to make sure that the manufacturing is not disturbed. Therefore they are responsible to make sure that the any raw materials or supplies bills are paid to date. If the service operations is poorly ran the cost for the manufacturing sect of the business will be a good representation of the overall health of the organization.

In conclusion operations management is an essential part of any organization to  make sure internal operations are efficient and well managed.


Question 2: 

PERT/CPM techniques were created as method to control complex projects. This method is used to chart of and scope the various components of a project in the logical order. PERT focuses on duration estimates with a specific range and defines a probabilistic value to that activity duration falling in the given range


A critical path method is valuable for investigating the shortest time necessary to complete a project, and it also helps to outlining the resource required to complete the project. This method also includes the arranging for each project item, sequencing and time management of the numerous tasks that required and therefore finding the shortest time to finish a projects based on task importance. This method also helps examining the significance of numerous difficulties that could come up while employing a plan within the project.


CPM is an important instrument with a time to approximation the length to complete the project. CPM is also usually used to better understand the allocation of time and the cost associated with the project.


However there are disadvantages of PERT. This method requires the data provided to be accurate and consistent to establish resources and if the deadline is achievable. Also, not all projects can be broken down to be used in the PERT system, one issue that could come up with a very complex project is to source the proper sequence of events.


Problems could also arise if some activities are not allocated. This can put the critical path on hold and until the project is back on track. This can also extend the project completion date and the discovery of this new critical path may create a new critical path and the project will have to be reanalyzed.


Other technique that can be used is PEST analysis method. This method can be used to assess the overall market and also the entire business. This method can also be used to understand the “big picture” and forces the change by taking advantage of the current opportunities.






Question 3:


There are multiple elements to the Economic of scale in a manufacturing plan. First is the purchase of raw material at low cost. Second is to allocate funds to spend on promising systems to improve production. Lastly is to invest in employee training and development to help improve employee knowledge about the business and the product(s).


These scales will continue for a very long time do not forever. The change will occur if there is an extreme change in the cost of raw material, causing an increase of manufacturing cost. Also, if the company stops investing in system improvement or employee learning development.


Diseconomies of scale are the factors that causes firms to produce at an increase cost. Unlike economic scale, Diseconomies of scale this will cause an increase in marginal cost when output is increased.


Deciding on the optimal size of a plant, the operational management must observe the production level during different times of the year to see if there is a trend. Knowledge of the average cost to maintain the plant is also important to know, this will help determine what the average cost per unit is. The plant should adjust with the level of demand to optimal size. 

Question 4: 

There are many important issues in supply chain management. These issue include cost, customer service and risk management. Operations cost are always an important factor for any business, this includes cost of energy, employees and transportation. Another factor that s usually overlooks is the cost to implement new regulation or fix any regulatory violations.

Customer service is another very important element. The main goal of customer service is to improve the customer experience with a product or service. This employees will have regularly trained to become knowledgeable of the organizations products, this also includes the sales team, they will have to be rained to know what product to offer and when.

The last issue that could come is risk management. As many industries are under some type of a regulatory body, developing a robust and strong enterprise wide risk assessment is very important. Continuous risk assessment on the organization’s practice to assess adherence to the various regulation is very important. The lack of this assessment can cause the organization to be subjected to regulatory fines, negative public view of the company and stricter laws.



Question 5:

Inventory is a very important part of a manufacturing business. Hey are also assets that could be converted to currency, this is conversion system is essential for business continuity. Most inventories are raw materials, tools and machinery.

Maintain an inventory is very beneficial, organizations could sell their inventories for profit, which they turn into more inventory to help the company grow. Inventory can also be allocated to other areas of the business where it be more profitable for the organization.  The inventory could also be provided to the consumer just as they need it or when the product is at its heist demand. Having extra inventory can also decrease the delivery time for the customer if they require it fast.

Some companies stock high level of inventory to anticipate demand. However, here are disadvantages for holding inventory. Storing the extra inventory can diminish its quality or make it obsolete. To compensate for the old inventory, the company will purchase new raw material to build new inventory, and by the time this is complete the product may not be as in demand.  There are also storage cost associated with extra inventory can take away from the profit margin.

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