Chapter 1, 2, 3, 4, 8 and 12 + Warehouse Management Flashcards
Define partial productivity and multifactor productivity. Provide an example of each and explain how they are used to assess performance
- Partial productivity measures output relative to a single input (e.g., labor productivity).
- Multifactor productivity compares output to multiple inputs (e.g., labor and capital).
- Example: Labor productivity could be measured as units produced per labor hour.
Differentiate between strategic and tactical decisions in operations management. Provide examples of each type of decision
- Strategic decisions are long-term and set the company’s direction (e.g., product differentiation).
- Tactical decisions are short-term, focused on day-to-day operations (e.g., assigning workers to shifts).
Compare manufacturing organizations and service organizations. What are the key differences in terms of customer interaction, production, and inventory management?
- Manufacturing organizations produce physical goods, have low customer interaction, and long response time.
- Service organizations produce intangible goods, have high customer interaction, and has a shorter time response.
List and explain the four major competitive priorities in operations strategy. How does a trade-off between these priorities impact a company’s strategy? Give a hypothetical example.
The four (CQTF) competitive priorities are:
- Cost: Minimizing production costs.
- Quality: Ensuring high product standards.
- Time: Speeding up delivery and production times.
- Flexibility: Adapting to market changes.
Trade-offs between these priorities can affect a firm’s market position.
For example it could be an airline that instead of focusing in everything, it focuses more in giving clients more direct flights, better prices and/or being on time.
Differentiate between order qualifiers and order winners. Provide examples of each in a competitive market.
Order qualifiers are the minimum criteria needed to compete, while order winners are the features that set a product apart.
Example: Low price could be an order qualifier, while superior customer service might be an order winner.
Explain the concept of break-even analysis. Provide an example of how a company can use it to make production decisions.
Break-even analysis determines the number of units a company must sell to cover costs.
Example: If a company has fixed costs of $10,000 and variable costs of $5 per unit, and sells the product for $15, it needs to sell 1,000 units to break even.
Formulas: Total cost= 𝐹𝐶+𝑉𝐶∗𝑄
Total revenue=𝑆𝑃∗𝑄
𝐹𝐶+𝑉𝐶∗𝑄=𝑆𝑃∗𝑄
𝑸𝑩𝑬= 𝑭𝑪/𝑺𝑷−𝑽c
What types of processes exist?
- Intermittent operations: variety of products in lower volumes
- Repetitive operations: one or a few products in high volumes (volume based on forecasts of demand)
What are the inventory management objectives?
- Provide desired customer service level
- Ensure cost-efficient operations
- Minimized inventory investments
(PREVIOUS EXAM QUESTION): In the context of Danone, explain how the company might use forecasting models to improve its operations.
Danone uses forecasting models to predict demand for its products, improving production planning and reducing waste by aligning supply with customer demand.
Define SCM (Supply Chain Management).
SCM is the coordination and management of all the
activities of the supply chain ➔ prime example of OM
Hint: Supply chain consists of the network activities to deliver a finished product to a customer. (Supplier➔Manufacturer➔Distributor (e.g. MANN-FILTER)➔Retailer (e.g. AD)➔Customer)
What is the seasonal index, and how is it used in forecasting? Provide an example and how is it calculated in a board.
The seasonal index represents how a particular season’s demand deviates from the average.
For example, a seasonal index of 1.2 means demand is 20% higher in that season compared to the average.
To calculate the seasonal index, we need to know, for example, the number of students in Fall, let’s suppose they’re 24.000 students. If we add the students of the year, let’s say they’re 80.000 in total, so 80.000/4 seasons = 20.000. Fall/Year’s average students = 24.000 / 20.000 = 1.2, this is the seasonal index and in this case, student’s demand is 20% higher in that season
Which qualitative models of forecasting are there? Pros and cons?
- Executive opinion: A group of managers meet for the sake of forecasting.
- Market research: Use of questionnaires and surveys to identify customer preferences.
- Delphi method: Looks to develop an agreement among a group of experts.
What about the quantitative models? Number the two types and explain each.
There are Time Series models and Casual models.
Regarding the time series’ models (graphs), there are horizontal pattern (regular), trend pattern (non linear), seasonal pattern and cycle pattern (irregular pattern).
Regarding the casual models, we’re seeing the linear regression (beta1 sin desarrollar) = 𝑏=(Σ𝑋𝑌−𝑛𝑋_𝑌_)/
Σ𝑋²−𝑛(𝑋_)²
Let 𝑎=𝑌_−𝑏X_
Which three formulas are there to measure forecasting accuracy?
- Mean absolute deviation (MAD)
𝑀𝐴𝐷=Σ𝑡|𝐴𝑡−𝐹𝑡| / 𝑛 - Mean squared error (MSE) measures the average of the squared errors →
large errors are strongly penalized
𝑀𝑆𝐸=Σ𝑡(𝐴𝑡−𝐹𝑡)² / n - Tracking signal (TS): Measures QUALITY OF FORECAST and should remain
within the interval [-4, 4]
𝑇𝑆 =Σ𝑡(𝐴𝑡 −𝐹𝑡) / MAD
Describe the Kraljic matrix and how it can be used to determine sourcing strategies.
The Kraljic matrix helps companies classify products into categories (e.g., strategic, leverage, bottleneck, and non-critical) to determine appropriate sourcing strategies based on supply risk (x) and profit impact (y).
