1. What is operation management?

Managing the repetitive process in order to

transform inputs to desired outputs. (iso
9001:2015)

2. What Is the Operations Research?

Operational research, also known as operations
research, is an interdisciplinary mathematical
science that focuses on the effective use of
technology and resources by organizations. Also
it called as optimization. Which gives the
meaning of selecting the best.

3. What are the steps in the operation research process?

Identify the problem or opportunity
Understand the system
Formulate the mathematical model
Verify the model
Select the best alternative
Present the result of analysis
Implement and evaluate the solution

4. Define the term problem?

The state of difficulty that need to be
resolved.
How do we get a problem? Any problem
comes from human needs
What are the human needs? All the
problems are human needs.

5. What is the creative problem solving process?

1. Define the problem

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 Identify the human need
Identify the desire status
Identify the current status
Set the objective (mental solution for the
problem)
See the current status pertaining to the
current status.
Identify the obstacles (problems) to move
from reality to objective.
2. Identify the constrains
3. Remove the constrains and see the free status
(freedom)
4. Impose the constrains and find alternative
solution.
5. Evaluate alternate solution based on current
status and find the most appropriate solution.
6. Then decide the implementation process of the
solution (solution implementing the process)
7. Evaluate the physical solution against the mental
solution. (objective)
8. If there is a gap, take the decided, the short term
actions as well as long term actions.
9. Take the appropriate action and physically bridge
the gap.
10. Standardize above process for solving similar
problem.

6. What is linear programming?

A mathematical tool for maximizing or minimizing
a quantity (usually profit or cost of production),
subject to certain constraints.

7. What are the three basic elements of linear

programming model?

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 A set of decision variables.
An objective function.
A set of constraints

8. Why the linear programming is important?

Many real static problems lend themselves to
linear programming formulations.

Many real problems can be approximated by linear

models.

The output generated by linear programs provides

useful whats best and what-if information.

9. What is simulation?
Simulation is a process of designing a model of real
system and conducting experiments with this
model for the purpose of either understanding the
behavior of the system and/or evaluating
variations strategies for the operation system.

10. What are the advantages of simulation?

Can be used to study existing systems without
disrupting the ongoing operations.
Proposed systems can be tested before
committing resources.
Allows us to control time.
Allows us to identify bottlenecks.
Allows us to gain insight into which variables are
most important to system performance

11. What are the disadvantages of simulation?

Model building is an art as well as a science. The
quality of the analysis depends on the quality of

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 the model and the skill of the modeler (Remember:
GIGO)
Simulation results are sometimes hard to interpret.
Simulation analysis can be time consuming and
expensive. Should not be used when an analytical
method would provide for quicker results.

12. What is Optimized Production Technology (OPT)?

Optimized Production Technology is a planning &
production system focused on throughput
maximization by alleviating bottlenecks.

13. Why is OPT important?

An organization can only speed up the length of
the entire process if the bottleneck is alleviated

14. What are the OPT operational measures?

Throughput = the rate at which the system
generates money through sales
Inventory = all the money that the system has
invested in purchasing things which it intends to
sell
Operational Expense = all the money the
system spends to turn inventory into
throughput

15. What is the goal of OPT?

Increase throughput while simultaneously reducing
both inventory and operational expense.

16. What are the 10 rules of OPT?

1. Utilization and activation of a resource are not
the same
2. The level of utilization of a non-bottleneck is
determined not by its own potential but by
some other constraint in the system

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3. An hour lost at a bottleneck is an hour lost for
the total system
4. An hour saved at a non-bottleneck is just a
mirage
5. Bottlenecks govern both the throughput and
inventory in the system
6. The transfer batch may not and often should
not be equal to the process batch
7. The process batch should be variable, not fixed
8. Capacity and priority should be considered
simultaneously, not sequentially
9. Balance flow, not capacity
10. The sum of local optima is not equal to the
global optimum

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