Test 1

Question 1

What is operations management?

Answer 1

set of activities that create value in the form of goods and services transforming into inputs and outputs

Question 2

Main functions in an organization?

Answer 2

Marketing, Production/operations, finance/accounting

Question 3

Why should we learn about OM?

Answer 3

1. it is one of three major functions of an organization
2. We need to know how goods and services are created
3. We want to know what OM managers do
4. OM is a costly part of an organization

Question 4

Productivity equals

Answer 4

Units produced / Input used

Question 5

Multifactor productivity = :

Answer 5

Units produced / Labor + material + energy + Capital + miscellaneous

Question 6

Reasons to globalize firm

Answer 6

Reduce costs, 
improve supply chain, 
Provide better goods and services,
 Understand markets, 
Learn to improve operations, 
Aquire global talent

Question 7

What is the difference between the mission and strategy?

Answer 7

The mission tells people where the company is going. The Stratagy tells people how they will get there

Question 8

Companies mission

Answer 8

Organizations purpose for being, answers “what do we provide to society”, Provides boundaries and focus

Question 9

What are the 3 common concepts that firms have to employ a competitive advantage

Answer 9

Differation, Cost leadership, Response

Question 10

Differation

Answer 10

prides themselves on a better, or atleast different experience for customers

Question 11

Cost leadership

Answer 11

Using cheaper prices to gain a competitive advantage (Southwest airlines, Walmart)

Question 12

Response

Answer 12

Gaining competitive advantage in response time to issues or the service they are providing

Question 13

Global Stratagies

Answer 13

International, global, multi domestic and transitional

Question 14

International Stratagy

Answer 14

Import or export the existing product

Question 15

Global strategy

Answer 15

?

Question 16

Multi domestic strategy

Answer 16

Use the existing business model globally. This is done by franchising, joint ventures (McDonalds, Hard Rock Café)

Question 17

Transitional strategy

Answer 17

Move material, people and ideas to another country (Coca cola, Nestle)

Question 18

What are the phases of project planning?

Answer 18

Set the goals,
define the project,
Develop work breakdown schedule,
identify team/resources

Question 19

Optomistic, pessimistic and most likely variables

Answer 19

Optomistic time (A) 
Pessimistic time (B) 
Most likely (M)

Question 20

Short range vs medium vs long range time forecasts

Answer 20

Short range: Up to one year, usually less than 3 months. (Purchasing, job schedules)
medium: 3 months-3 years (Sales and production planning and budgeting)
long range: Over three years (New Product planning, facility location, research and development)

Question 21

Introduction and Growth in forecasting

Answer 21

They require longer forecasts than maturity and decline

Question 22

Three types of forecasts?

Answer 22

Economic forecasts, Technological forecasts, Demand forecasts

Question 23

Economic forecasts

Answer 23

Address business cycle - inflation rates, housing starts, money supply etc.

Question 24

Technological forecasts

Answer 24

predicts technological process

Question 25

Demand Forecasts

Answer 25

Predicts sales of existing products and services

Question 26

Qualitative vs Quantitative forecasts

Answer 26

Qualitative: Used when situation is vague and little data exists Quanatative: Used when situation is stable and historical data exists (involves mathematical techniques)

Question 27

4 qualitative methods

Answer 27

Jury of executive opinion, Delphi method, Sales force composite, Consumer market survey

Question 28

Jury of executive opinion

Answer 28

When a group of executives sit down and combine managerial experience with statistical models (Groupthink disadvantage)

Question 29

Delphi method

Answer 29

``` Iterative group process, continues until consensus is reached 3 types of participants: Decision makers Staff Respondents ```

Question 30

Sales force composite

Answer 30

Each salesperson projects his or her own sales. Combined at national level. Problem with this is that it can be overly optimistic

Question 31

Consumer market survey

Answer 31

This asks customers what they want. The problem is what customers say they want and what they actually want can be different..and sometimes difficult to answer

Question 32

time series components

Answer 32

Trend, Cyclical, seasonal, Random

Question 33

Trend pattern

Answer 33

Persistant, overall upward or downward trend pattern

Question 34

Seasonal

Answer 34

Regular up and down pattern. Changes due to weather, customs, etc

Question 35

Cyclical

Answer 35

Repeating up and down movements. Multiple years cycle. Affected by political and economical factors

Question 36

Naïve approach

Answer 36

Just use the same demand as last period and that's what the forecast is. Can be a good starting point

Question 37

What are potential problems with moving average?

Answer 37

Does not forecast trends well. Require extensive historical data

Question 38

Impacts of different alphas

Answer 38

Choose high values of alpha when underlying average is likely to change. Choose low values of alpha when underlying average is stable

Question 39

3 major aspects of managing a project?

Answer 39

Planning, Scheduling, Controlling

Question 40

steps of Scheduling the project

Answer 40

Sequence activities, assign people, schedule deliverables, schedule resources

Question 41

Steps of controlling the project

Answer 41

monitor resources, costs and quality Revise and change plans Shift resources