Chapter 1

Question 1

production

Answer 1

is the creation of goods and services

Question 2

Operations management ( OM)

Answer 2

• creating the highest level of efficient

- converting materials and labor into goods and services

Question 3

three functions of a company

Answer 3

1. marketing
2. production/operations
3. finance/accounting

Question 4

supply chain

Answer 4

is a global network of organizations and activities that supply a firm with goods and services.
- today there is competition between supply chains

Question 5

why study OM?

Answer 5

1. one of the 3 major functions
2. want to know how goods and services are produced
3. to understand what operations managers do
4. because it is such a costly part of an organisation

Question 6

10 OM Decisions

Answer 6

1. Design of goods and services
2. Managing quality
3. Process strategy
4. Location strategies
5. Layout strategies
6. Human resources
7. Supply-chain management
8. Inventory management
9. Scheduling
10. Maintenance

Question 7

Productivity

Answer 7

is the ratio of outputs ( goods and services) divided by the inputs ( resources, such as labor and capital)

units produced/inputs used

Question 8

single factor productivity

Answer 8

the use of just one resources input to measure productivity

Question 9

multifactor productivity

Answer 9

all inputs (capital, labor, material..), also known as total factor productivity

Question 10

productivity increases are dependent on three productivity variables:

Answer 10

1. Labor
2. Capital
3. Management

Question 11

knowledge society

Answer 11

a society in which much of the labor force has migrated from manual work to work based on knowledge