010 Introduction To Operations Management

Question 1

any activity that harvests value from the
assets of a business

Answer 1

Operations

Question 2

the organization and coordination of
activities of a business to achieve defined objectives

Answer 2

Management

Question 3

the management of systems
or processes that create goods and/or services

Answer 3

Operations management

Question 4

physical items produced by business
organizations

Answer 4

Goods

Question 5

activities that provide some combination of
time, location, form and psychological value

Answer 5

Services

Question 6

is the creation of goods and services

Answer 6

Production

Question 7

Three Basic Functional Areas of Business
Organizations

Answer 7

Finance, operations, marketing

Question 8

secures and allocates financial resources
to fund business operations

Answer 8

Finance

Question 9

produces goods and/or provides
services

Answer 9

Operations

Question 10

assesses consumer wants and needs,
promotes organization’s goods and services

Answer 10

Marketing

Question 11

Supply chain order and flows

Answer 11

Raw material, suppliers, producers, distributor, retailer, final customer

Money flow ⬅️
Value added ➡️

Question 12

Value added formula

Answer 12

Price of outputs – cost of inputs

Question 13

The greater the___added, the greater the
____.

Answer 13

Value, profitability

(Value-added)

Question 14

use less input and produce the
same amount of output

Answer 14

Efficient processes

Question 15

As more value-added to a good, it becomes more
expensive to store and transport within the supply
chain t/f

Answer 15

True

Question 16

As more value-added to a good, it becomes more
expensive to store and transport within the supply
chain

Answer 16

False

Question 17

Are goods tangible or intangible

Answer 17

Tangible

Question 18

Ave services tangible intangible

Answer 18

Intangible

Question 19

One of the 3 major functions of any organization

Answer 19

Operations management

Question 20

Used to understand how people organize themselves
for productive enterprise

Answer 20

Operation management

Question 21

Used to know how goods and services are
produced/provided

Answer 21

Operations management

Question 22

Operations Management is a costly part of an organization t/f

Answer 22

True

Question 23

What functions do operation managers perform?

Answer 23

Management functions

Question 24

List management functions

Answer 24

Planning, organizing, staffing, directing, controlling

Question 25

Decision making tools for operations management

Answer 25

• Models • Linear Programming • Optimization • Fishbone Diagram • Flowcharts • Decision Trees • Queuing models • Simulation • Scheduling tools • Program evaluation and review technique (PERT) • Critical path method (CPM) • Forecasting techniques • Statistical methods

Question 26

an abstraction and simplified representation of reality

Answer 26

Model

Question 27

All models are wrong, but some are useful t/f

Answer 27

True

Question 28

What are the three types models?

Answer 28

Physical, schematic, mathematical

Question 29

Simple models are preferred over complicated ones t/f

Answer 29

True

Question 30

What model includes miniature cars, scale-model buildings etc.

Answer 30

Physical model

Question 31

What model uses graphs, charts, drawings etc.

Answer 31

Schematic model

Question 32

What model uses numbers, formulas, symbols etc.

Answer 32

Mathematical models

Question 33

Define quantification

Answer 33

You cannot improve something that you do not measure

Question 34

One or more actions that transform inputs into outputs

Answer 34

Process

Question 35

Order of a process

Answer 35

Input ➡️ process (transformation)➡️ output

Question 36

What should you ask when deciding organizational strategy?

Answer 36

Responsive or efficient?

Question 37

Process management study card

Answer 37

Deciding organizational strategy - Responsive or Efficient? • Matching demand and capacity • Using in-house capacity or outsourcing • Standardization vs. Customization • Reducing costs (i.e. inventory, transportation, material, labor, maintenance costs) • Increasing productivity • Improving quality • Decreasing variability in production

Question 38

What use the four basic sources of variation?

Answer 38

The variety of goods and services offered, Structural variation in demand, random variation, assignable variation

Question 39

The variety of goods and services offered

Answer 39

Variation

Question 40

predictable, important for capacity planning

Answer 40

Structural variation in demand

Question 41

natural causes such as weather, cannot be changed

Answer 41

Random variation

Question 42

defective inputs, incorrect work methods, maintenance issues etc. can be changed

Answer 42

Assignable variation

Question 43

a set of interrelated parts that must work together

Answer 43

System

Question 44

The business organization is a system composed of what 3 subsystems

Answer 44

marketing subsystem operations subsystem finance subsystem

Question 45

Details of system approach

Answer 45

• Emphasizes interrelationships among subsystems • Main theme is that the whole is greater than the sum of its parts • The output and objectives of the organization take precedence over those of any one subsystem – think about supply chains

Question 46

The output and objectives of the organization take precedence over those of any one subsystem t/f

Answer 46

True

Question 47

Key Issues for Operations Managers Today

Answer 47

Economic conditions, innovating, quality issues (total quality management & six sigma), risk management, completing in global economy

Question 48

A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction

Answer 48

Total Quality Management (TQM)

Question 49

A process for reducing costs, improving quality, and increasing customer satisfaction

Answer 49

Six sigma

Question 50

economic ups and downs, product recalls, natural and man-made disasters

Answer 50

Risk management

Question 51

labor costs, tax and tariffs, regulations, cultural differences etc.

Answer 51

Competing in a global economy

Question 52

A sequence of activities and organizations involved in producing and delivering a good or service

Answer 52

Supply chain

Question 53

Using resources in ways that do not harm ecological systems that support human existence

Answer 53

Sustainability

Question 54

Buying goods or services instead of producing or providing them in- house

Answer 54

Outsourcing

Question 55

A standard of behavior that guides how one should act in various situations

Answer 55

Ethics