Business 1: Operations Management Flashcards
What is a balanced scorecard?
A framework used for implementing strategy that converts a company’s strategic objectives into a set of performance measures
What is the key difference b/w total factor productivity ratios and partial productivity ratios?
- TFP = output / total costs
- PPRs = output / specific quantity
In regards to control charts, zero defects means what?
Deviations within an acceptable range
Managers use a cause-and-effect (fishbone) diagram to identify what?
Id the sources of problems in the production process by resource and take corrective action
Effective performance measures will promote the achievement of goals and what else?
Motivate employees
What is goal of transaction marketing?
- Offer lowest price
- Make money on higher sales volume
What is the goal of interaction-based relationship marketing?
- Offer great customer service and loyalty discounts to get repeat business
What is the goal of database marketing?
- Segment customers into target markets for a more effective selling effort
What is the goal of e-marketing?
- Use of Internet to accomplish marketing functions
What is the goal of network marketing?
- Use relationships and referrals to accomplish marketing functions
What are four financial measures of performance?
1) Profit
2) ROI (e.g. ROA, ROE)
3) Variance analysis
4) Balanced scorecard
How are pareto diagrams used as an internal benchmark?
- Used to determine the quality-control issues that are most frequent and often demand the greatest attention
How are cause-and-effect diagrams used as an internal benchmark?
- Used to id sources of problems in the production process by resource and take corrective action
What are the 8 characteristics of effective performance measures?
1) relate to the goals of the organization
2) balance LT and ST issues
3) reflect management of key activities
4) are under the control or influence of the employee
5) are understood by the employee
6) are used to both evaluate and reward the employee or otherwise constructively influence behavior
7) are objective and easily measured
8) are used consistently
True or false.
Certain products are compatible with specific marketing practices.
True
