Chapter 1

Question 1

The creation of goods and services

Answer 1

production

Question 2

The set of activities that creates value in the form of goods and services by transforming inputs to outputs

Answer 2

Operations Management

Question 3

What three functions must every firm perform?

Answer 3

1. Marketing
2. Production/Operations
3. Accounting/Finance

Question 4

A global network of organizations and activities that supply a firm with goods and services

Answer 4

Supply Chain

Question 5

The management process consists of

Answer 5

planning, organizing, staffing, leading, and controlling

Question 6

Economic activities that typically produce an intangible product (such as entertainment, education, lodging, goverment, etc)

Answer 6

services

Question 7

The segment of the economy that includes trade, finance, lodging, education, legal, medical, and other professional occupations

Answer 7

Service Sector

Question 8

The ratio of outputs (goods and services) divided by one or more inputs (such as labor, capital, or management)

Answer 8

Productivity

Question 9

What are the two ways to increase productivity?

Answer 9

Decreasing inputs while maintain a constant output

Increase outputs while keeping inputs fixed

Question 10

_________ pressure is put on price when productivity increases

Answer 10

Downward

Question 11

What is the term applied for “doing the right thing”

Answer 11

effective

Question 12

What is the term applied for “doing a job well”?

Answer 12

efficient

Question 13

Indicates the ratio of one resource (input) to the goods and services produced (outputs)

Answer 13

single-factor productivity

Question 14

Indicates the ratio of many or all resources (inputs) to the goods and services produced (outputs)

Answer 14

Multifactor Productivity

Question 15

What is another name for multifactor productivity?

Answer 15

total factor productivity

Question 16

Despite multifactor productivity’s accuracy, three measurement problems remains

Answer 16

quality, external elements, lack of precise unit of measure

Question 17

Productivity measurement is particularly difficult in what area?

Answer 17

Services

Question 18

______ are the three factors critical to productivity improvement

Answer 18

Productivity Variables

Question 19

What are the three productivity variables

Answer 19

Labor, Capital, Management

Question 20

10 Strategic OM decisions

Answer 20

Design of Goods and Serivces
Managing Quality
Process Strategy
Location Strategy
Layout Strategy
Human Resources
Supply-Chain Management
Inventory Management
Scheduling 
Maintenance

Question 21

Change in unit productivity

Answer 21

Old productivity-new productivity

Question 22

Competition in the 21st century is no longer between companies; it is between

Answer 22

supply chains

Question 23

What are the characteristics of a service?

Answer 23

Intangible, produced and consumed simultaneously, unique, higher customer interaction, inconsistent product definition, knowledge based, services dispersed, quality hard to evaulate, reselling is unusual.

Question 24

About what percent a year does U.S. productivity increase?

Answer 24

2.5

Question 25

What are the four reasons to study OM?

Answer 25

1. To learn how people organize themselves for productive enterprise
2. To learn how goods and services are produced
3. To understand what operations managers do
4. Because OM is a costly part of an organization

Question 26

About what percent of Jobs are in OM?

Answer 26

40% of all jobs

Question 27

A society in which much of the labor force has migrated from manual work to work based on knowled?

Answer 27

knowledge society

Question 28

What are the ethical dilemmas facing OM?

Answer 28

1. efficiently developing and producing safe, quality products; 2 maintaining a clean environment, 3. providing a safe workplace, 4 honoring stakeholder commitments

Question 29

usually determines lower limits of cost and upper limits of quality, as well as major implications for sustainability and the human resources required

Answer 29

design of goods and services

Question 30

Determines the customer’s quality expectations and establishes policies and procedures to identify and achieve that quality

Answer 30

Managing quality

Question 31

Determines how a good or service is produced

Answer 31

process and capacity design

Question 32

Requires judgments regarding nearness to customers, suppliers, and talent, while considering costs, infrastructures, logistics, and goverment

Answer 32

location strategy

Question 33

Requires integrating capacity needs, personnel levels, technology, and inventory requirements to determine the efficient flow of materials people and information

Answer 33

LAyout strategy

Question 34

Determines how to recruit motivate and retain personnel with the required talent and skills

Answer 34

HR and Job design

Question 35

Decides how to integrate the supply chain into the firm’s strategy, including when and where to buy supplies

Answer 35

Supply-chain Management

Question 36

Considers inventory ordering and holding decisions and how to optimize them as customer satisfaction, suplier capability, and production schedules are considered

Answer 36

invt. management

Question 37

Determines and implements intermediate and shrt-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands

Answer 37

Scheduling

Question 38

Requires decisions that consider facility capacity, production demands, and personnel necessary to maintain a reliable and stable process

Answer 38

Maintenance

Question 39

How is change in productivity measured?

Answer 39

(New-Old)/(Old)

Question 40

The service sector is what percentage of the US economy?

Answer 40

between 80-90%

Question 41

What is a product focus?

Answer 41

High-volume, low variety

Question 42

The service sector has lower productivity improvements vs the production sector, Why?

Answer 42

Services are far more labor intensive