Chap 1: Introduction to Operations Management

Question 1

refers to the part of an organization that is responsible for producing goods and/or services.

Answer 1

Operations

Question 2

are physical items inclusive of raw
materials, parts, subassemblies such as the engine system used in a car, and final products such as computers and machineries.

Answer 2

Goods

Question 3

are activities that provide a combination of time, location form, and psychological value.

Answer 3

Services

Question 4

Basic Functions of the Business Organization

Answer 4

Marketing
Operations
Finance

Question 5

responsible for assessing consumer needs and wants, and selling and promoting the organization’s goods or services.

Answer 5

Marketing

Question 6

responsible for producing the goods or providing the services offered by the organization.

Answer 6

Operations

Question 7

responsible for securing financial resources at favorable prices and allocating those resources throughout the organization, as well as budgeting, analyzing investment proposals, and providing funds
for operations

Answer 7

Finance

Question 8

Sequence of Supply Chain

Answer 8

Supplier’s Suppliers → Direct Suppliers → Producer → Distributor → Final Customer

Question 9

sequence of organizations – their facilities, functions, and activities – that are involved in producing and delivering a product or service.

Answer 9

supply chain

Question 10

manufacturing

Answer 10

goods-oriented

Question 11

service

Answer 11

act-oriented

Question 12

Degree of customer contact

Answer 12

Service

Question 13

Uniformity of input

Answer 13

Manufacturing

Question 14

Labor content of jobs

Answer 14

Service > Manufacturing

Question 15

Uniformity of output

Answer 15

Manufacturing

Question 16

Measurement of productivity

Answer 16

Manufacturing

Question 17

Production and delivery

Answer 17

Service

Question 18

Quality assurance

Answer 18

Service > Manufacturing

Question 19

Amount of inventory

Answer 19

Manufacturing

Question 20

Evaluation of work

Answer 20

Manufacturing

Question 21

Ability to patent design

Answer 21

Manufacturing

Question 22

scope of operations
management

Answer 22

ranges across the
organization

Question 23

Operations Management
people are involved in

Answer 23

-product and service design
-process selection
-selection and management of technology
-design of work systems
-location planning
-facilities planning
-quality improvement of the organization’s products or services.

Question 24

Operation functions includes:

Answer 24

-forecasting
-capacity planning
-scheduling
-managing inventories
-assuring quality
-motivating and training
-locating facilities

Question 25

primary function of an operations manager

Answer 25

to guide the system by decision making

Question 26

involves decisions that relate to system capacity, the geographic location of facilities, arrangement of departments and placement of equipment within the physical structures, product and service planning, and acquisition of equipment. These decisions usually, but not always, require long-term commitments.

Answer 26

System design

Question 27

involves management of personnel, inventory planning and control, scheduling, project management, and quality assurance. These are generally tactical and operational decisions.

Answer 27

System operation

Question 28

Other areas that that are part of Operations Management:

Answer 28

-Purchasing -Industrial Engineering -Distribution -Maintenance

Question 29

has responsibility for procurement of materials, supplies, and equipment.

Answer 29

Purchasing

Question 30

often concerned with scheduling, performance standards, work methods, quality control, and material handling.

Answer 30

Industrial Engineering

Question 31

involves the shipping of goods to warehouses, retail outlets, or final customers.

Answer 31

Distribution

Question 32

responsible for general upkeep and repair of equipment, buildings and grounds, heating and airconditioning; removing toxic wastes; parking; and perhaps security.

Answer 32

Maintenance

Question 33

Chief role of an Operations Manager

Answer 33

planner and decision maker

Question 34

key tool used by all decision makers

Answer 34

Model

Question 35

an abstraction of reality; a simplified representation of something

Answer 35

Model

Question 36

Types of Models

Answer 36

- Physical Models - Schematic Models - Mathematical Models

Question 37

It looks like their real-life counterparts. Examples include miniature cars, trucks, airplanes, toy animals and trains, and scale-model buildings.

Answer 37

Physical Models

Question 38

More abstract than their physical counterparts; that is they have less resemblance to the physical reality. Examples include graphs and charts, blueprints, pictures and drawings.

Answer 38

Schematic Models

Question 39

The most abstract: They do not look at all like their real-life counterparts. Examples include numbers, formulas and symbols.

Answer 39

Mathematical Models

Question 40

Quantitative Approaches

Answer 40

- Linear Programming - Queuing Techniques - Inventory Models - Project Models (PERT-CPM) - Forecasting Techniques - Statistical Models

Question 41

problem solving often embody an attempt to obtain mathematically optimal solutions to managerial problems.

Answer 41

Quantitative Approaches

Question 42

related mathematical techniques are widely used for optimum allocation of scarce resources.

Answer 42

Linear Programming

Question 43

useful for analyzing situations in which waiting lines form

Answer 43

Queuing Techniques

Question 44

are widely used to control inventories

Answer 44

Inventory Models

Question 45

useful for planning, coordinating, and controlling large-scale projects

Answer 45

Project Models (PERT-CPM)

Question 46

widely used in planning and scheduling

Answer 46

Forecasting Techniques

Question 47

currently used in many areas of decision making

Answer 47

Statistical Models

Question 48

set of interrelated parts that must work together

Answer 48

system

Question 49

Why study OpMan?

Answer 49

1. Every aspect of business affects or is affected by operations; 2. Many service jobs are closely related to operations;  Financial services  Marketing services  Accounting services  Information services 3. There is a significant amount of interaction and collaboration amongst the functional areas;  Budgeting  Economic analysis of investment proposals  Provision of funds

Question 50

THE HISTORICAL EVOLUTION OF OPERATIONS MANAGEMENT

Answer 50

1. The Industrial Revolution 2. Scientific Management 3. Human Relations Management 4. Decision Models and Management

Question 51

Trends in Business:

Answer 51

- Electronic Business - Technology

Question 52

involves the use of the Internet to transact business

Answer 52

Electronic Business

Question 53

application of scientific discoveries to the development and improvement of goods and services

Answer 53

Technology

Question 54

Three Kinds of Technology in Operations Management

Answer 54

- Product and Service Technology - Process Technology - Information Technology

Question 55

refers to the discovery and development of new products and services

Answer 55

Product and Service Technology

Question 56

refers to methods, procedures, and equipment used to produce goods and provide services

Answer 56

Process Technology

Question 57

refers to the science and use of computers and other electronic equipment to store, process, and send information

Answer 57

Information Technology