Ch 1 PP: Introduction to Operations Management

Question 1

What is Operations Management?

Answer 1

the management of processes or systems that create goods and/or provide services

Question 2

Companies use OM to improve what?

Answer 2

efficiency (minimize cost and time)

effectiveness (achieving intended goals)

Question 3

Three Basic Functions

Answer 3

Operations

Finance

Marketing

Question 4

Operations functions

Answer 4

create goods and services

Question 5

Finance functions

Answer 5

provide funds and the economic analysis of investment proposals

Question 6

Marketing functions

Answer 6

assess customer wants and needs and communicate them to others

Question 7

Supply Chain

Answer 7

A sequence of activities and organizations involved in producing and delivering a good or service

Question 8

value added

Answer 8

Inputs –> transformation process –> outputs

Question 9

4 main management processes

Answer 9

Planning

Organizing

Controlling

Directing

Question 10

management planning

Answer 10

Capacity

Location

Mix of products and Services

Make or buy

Projects

Question 11

management organizing

Answer 11

Degree of Centralization

Specialization

Subcontracting

Staffing

Suppliers

Question 12

management controlling

Answer 12

Inventory

Quality

Motivation

Cost

Productivity

Question 13

management directing

Answer 13

Scheduling

Incentive Plans

Work Orders

Job Assignments

Question 14

A model

Answer 14

an abstraction of reality

Question 15

three types of model

Answer 15

Physical

Schematic

Mathematical

Question 16

80/20 Rule

Answer 16

80% of problems are caused by 20% of the activities

Question 17

Pareto Phenomenon

Answer 17

A few factors account for a high percentage of the occurrence of some event(s)

80/20 Rule

Question 18

Trends in Business

Answer 18

The Internet and e-commerce

Management technology

Globalization

Management of supply chains

Outsourcing