Management Notes

Reference Notes for Management

Which of the following does not relate to system design?

Which of the following does not relate to system design?


  • A)altering the system capacity
  • B)location of facilities
  • C)inventory management
  • D)selection and acquisition of equipment
  • E)physical arrangement of departments

The Correct Answer Is:

C)inventory management

Let’s break this down! System design involves creating structures or frameworks that enable a system to operate efficiently. The correct answer, C) inventory management, doesn’t typically fall under the direct purview of system design.

Correct Answer Explanation: C)inventory management

Inventory management is more about overseeing the levels of stocked goods within a specific system, ensuring there’s neither too much nor too little inventory. While it’s an integral part of a system’s functioning, it’s more focused on optimizing stock levels, tracking goods, and managing supply chains rather than structuring the system itself.

Inventory management, while crucial for the operational efficiency of a system, is not inherently a component of system design. It primarily deals with the oversight of goods, stock levels, and supply chain logistics within an already established system.

Its focus lies more in maintaining an optimal balance between supply and demand, ensuring that the right amount of inventory is available at the right time.

While system design may consider factors like storage space allocation or integration of inventory tracking systems, the day-to-day management and control of inventory levels are ongoing operational functions rather than foundational elements of designing the system’s structure or framework.

Now, let’s delve into why the other options are actually related to system design:

A) Altering the system capacity:

System design involves assessing the current and future needs of a system. This includes understanding the capacity required to handle operations efficiently.

Whether it’s computing power for a software system or production capacity for a manufacturing setup, determining and altering the system’s capacity is a crucial part of designing a system. This process ensures that the system can handle expected loads without compromising its functionality.

B) Location of facilities:

Determining where different facilities are positioned within a system is a critical aspect of system design. The placement of facilities impacts workflow, accessibility, and efficiency.

For instance, in a manufacturing system, placing production units in close proximity to each other might streamline the production process, reducing the time and effort needed to transport goods between units.

Similarly, in a service-oriented system like a hospital, the strategic placement of departments can optimize patient care by minimizing travel distances for medical staff and resources.

D) Selection and acquisition of equipment:

Choosing the right equipment is pivotal in designing an effective system. This involves evaluating various options based on factors like functionality, compatibility, efficiency, and long-term sustainability within the system.

For example, in an IT system, selecting servers, networking hardware, and software applications that work seamlessly together is essential. In a manufacturing system, the selection of machinery and tools directly impacts production efficiency and quality.

E) Physical arrangement of departments:

The arrangement of departments or units within a system plays a significant role in how effectively the system operates. Designing the layout involves considering communication channels, collaboration needs, and workflow efficiency.

A well-designed physical arrangement can streamline processes, enhance teamwork, and improve overall productivity. For instance, in an office setting, placing related departments closer together can foster better communication and cooperation among team members, facilitating quicker decision-making and problem-solving.

Each of these aspects intertwines with system design, contributing to the overall efficiency, functionality, and effectiveness of a system by structuring its components in a way that optimizes operations. These considerations are fundamental in crafting systems that can adapt, scale, and perform optimally based on their intended purposes.

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