Answer to Question #296183 in Management for Shweta

Question

Assume you are a part of the Operations team in an automobile manufacturing setup. You

are also working in coordination with other departments. Discuss the following aspects of

the operations of your organisation a. Define Quality & list and discuss in brief the various dimensions of quality in operations

b. Discuss the concept of EOQ in brief. Using the data below, find EOQ, and the reorder point.

Annual Demand: 15,000 units; Weeks Operating: 50 weeks/year; Ordering Costs: Rs.

60/order & Holding Costs: Rs. 7/unit/year; Lead-Time: 5 weeks & Safety Stock: 250 units

Answer 1

Quality, is defined as the standard f something as measured against other things of a similar kind.

There are several dimensions of quality as discussed below:

1. Performance- is the product/service doing what it was supposed to do? It has to do with expecting characteristics of a product or a service.

2. Features- these are the characteristics that decide how appealing a product is to the customer.

3. Reliability- this is more on how long a product will perform consistently according to specifications.

4. Durability- this is how long a product will last or perform and under what conditions.

EOQ an abbreviation of economic order quantity is the order quantity that minimises the total holding and ordering costs in inventory management.