Final exam notes

Question 1

a function or system that transforms inputs into outputs of greater value

Answer 1

Operations

Question 2

a series of activities along a value chain extending from
supplier to customer activities that do not add value are superfluous and should be
eliminated

Answer 2

Transformation Process

Question 3

design, operation, and improvement of productive systems

Answer 3

Operations Management

Question 4

as in manufacturing operations

Answer 4

Physical

Question 5

as in transportation operations

Answer 5

Locational

Question 6

as in retail operations

Answer 6

Exchange

Question 7

as in health care

Answer 7

Physiological

Question 8

as in entertainment

Answer 8

Psychological

Question 9

As an auditor you must understand the fundamentals of operations
management

Answer 9

Accounting

Question 10

“IT is a tool, and there’s no better place to apply it than in
operations

Answer 10

Information technology

Question 11

We use so many things you learn in an operations class— scheduling, lean production, theory of constraints, and tons of quality tools.

Answer 11

Management

Question 12

“It’s all about processes. I live by flowcharts and Pareto analysis.

Answer 12

Economics

Question 13

How can you do a good job marketing a product if you’re unsure of its quality or delivery status?

Answer 13

Marketing

Question 14

Most of our capital budgeting requests are from operations, and most of our cost savings, too

Answer 14

Finance

Question 15

process of handcrafting products or services for individual
customers

Answer 15

Craft Production

Question 16

dividing a job into a series of small tasks each performed by a
different worker

Answer 16

Division of Labor

Question 17

standardization of parts initially as replacement parts; enabled
mass production

Answer 17

Interchangeable parts

Question 18

systematic analysis of work methods

Answer 18

Scientific Management

Question 19

high-volume production of a standardized product for a mass market

Answer 19

Mass Production

Question 20

adaptation of mass production that prizes quality and flexibility

Answer 20

Lean Production

Question 21

Steam engine, 1769, James Watt
Division of labor, 1776, Adam Smith
Interchangeable parts, 1790 ,Eli Whitney

Answer 21

Industrial Revolution

Question 22

Principles of scientific management,1911, Frederick W. Taylor
Time and motion studies, 1911, Frank and Lillian
Gilbreth
Activity scheduling chart, 1912, Henry Gantt
Moving assembly line,1913, Henry Ford

Answer 22

Scientific Management

Question 23

Hawthorne studies ,1930,Elton Mayo
Motivation theories ,1950s Frederick Herzberg

Answer 23

Human Relations

Question 24

Linear programming ,1947 George, Dantzig
Digital computer ,1951 ,Remington Rand

Answer 24

Operations Research

Question 25

JIT (just-in-time), 1970s ,Taiichi Ohno (Toyota) TQM (total quality management), W Edwards Deming, Joseph Juran ,1980s

Answer 25

Quality Revolution

Question 26

Globalization and Competitiveness

Answer 26

Favorable cost ● Access to international markets ● Response to changes in demand ● Reliable sources of supply ● 14 major trade agreements in 1990s Peak: 26% in 2000

Question 27

Risks of Globalization

Answer 27

Cultural differences ● Supply chain logistics ● Safety, security, and stability ● Quality problems ● Corporate image ● Loss of capabilities

Question 28

degree to which a nation can produce goods and services that meet the test of international markets

Answer 28

Competitiveness

Question 29

of output to input Output sales made, products produced, customers served, meals delivered, or calls answered

Answer 29

Productivity ratio

Question 30

labor hours, investment in equipment, material usage, or square footage

Answer 30

Input

Question 31

output increases with little or no increase in input

Answer 31

Become efficient

Question 32

both output and input grow with output growing more rapidly

Answer 32

Expand

Question 33

output increases while input decreases

Answer 33

Achieve breakthroughs

Question 34

- output remains the same and input is reduced

Answer 34

Downsize -

Question 35

both output and input decrease, with input decreasing at a faster rate

Answer 35

Retrench-

Question 36

ranking Global Competitiveness

Answer 36

. Finland 2. United States 3. Sweden 4. Denmark 5. Taiwan 6. Singapore 7. Switzerland 8. Iceland 9. Norway 10.Australia

Question 37

Operations–Oriented Barriers to Entry

Answer 37

Economies of Scale ● Capital Investment ● Access to Supply and Distribution Channels ● Learning Curve

Question 38

Finance:

Answer 38

KPA: Financial Management KRI: Profit Margin, Cash Flow, Debt-to-Equity Ratio, Budget Variance, Accounts Receivable

Question 39

Sales Department

Answer 39

KPA: Sales Performance KRI: Sales Revenue, Customer Acquisition Rate, Sales Conversion Rate, Average Order Value, Sales Growth by Region/Segment.

Question 40

Accounting

Answer 40

KPA: Financial Reporting and Compliance KRI: Timeliness of Financial Reports, Accuracy of Financial Statements, Audit Findings, Compliance with Tax Regulations, Receivables/Payables Aging

Question 41

HR

Answer 41

KPA: Talent Management KRI: Employee Satisfaction, Training Effectiveness, Turnover Rate, Diversity and Inclusion Metrics, HR Policy Compliance

Question 42

Logistics:

Answer 42

KPA: Supply Chain Efficiency KRI: On-time Delivery, Inventory Turnover, Transportation Cost per Unit, Order Accuracy, Warehouse Utilization.

Question 43

Operations Function

Answer 43

Operations  Marketing  Finance and accounting  Human resources  Outside suppliers

Question 44

-Industrial Revolution, Steam Engine, 1769 Division of labor, 1776, Interchangeable parts, 1790,

Answer 44

James Watt Adam Smith Eli Whitney

Question 45

-Scientific Management Principles of scientific management, 1911 Time and motion studies,1911 Activity scheduling chart ,1912 Moving assembly line, 1913

Answer 45

Frederick W. Taylor Frank and Lillian Gilbreth Henry Gantt Henry Ford

Question 46

- Human Relations Hawthorne studies ,1930 Motivation theories, 1940, 1950,1960

Answer 46

Elton Mayo Abraham Maslow, Frederick Herzberg, Douglas McGregor

Question 47

-Operations Research , Linear programming, 1947, Digital computer, 1951 , Simulation, waiting line theory, decision theory, PERT/CPM, 1950 MRP, EDI, EFT, CIM, 1960s, 1970s

Answer 47

George Dantzig Remington Rand Operations research groups Joseph Orlicky, IBM and others

Question 48

-Quality Revolution JIT (just-in-time), 1970s , TQM (total quality management) ,1980s Strategy and operations, 1990s, Business process reengineering, 1990s,

Answer 48

Taiichi Ohno (Toyota) W. Edwards Deming, Joseph Juran Wickham Skinner, Robert Hayes Michael Hammer, James Champy

Question 49

-Globalization WTO, European Union, and other trade agreements, 1990s 2000s,

Answer 49

Numerous countries and companies

Question 50

-Internet Revolution Internet, WWW, ERP, supply chain management, 1990s E-commerce 2000s

Answer 50

ARPANET, Tim, Berners-Lee SAP, i2 Technologies, ORACLE, PeopleSoft Amazon, Yahoo, eBay, and others

Question 51

set of activities that create and deliver products to customer

Answer 51

Value chain

Question 52

Benefits of E-Business

Answer 52

Access to customers worldwide  Middlemen are eliminated  Access to suppliers worldwide Online auctions and e- marketplaces  Better and faster decision making  IT synergy  Expanded supply chains

Question 53

Single Factor Productivity

Answer 53

Output/Labor, Output/Materials, Output/ Capital

Question 54

Multifactor Productivity

Answer 54

Output/Labor+Materials+Overhead, Output/Labor+Energy+Capital,

Question 55

Multifactor Productivity

Answer 55

Output/Labors+Materials+Overhead,

Question 56

Total Factor Productivity

Answer 56

Goods and Services Produced/ All inputs used to produce item

Question 57

as in communication

Answer 57

informational