Chapter 1 Flashcards
Define operations management
activities that relate to the creation of goods and services through the transformation of inputs to outputs
define supply chain
a global network of organizations and activities that supplies a firm with goods and services
What are the 10 Strategic OM Decisions?
Design of goods and services Managing quality Process Strategy Location strategies Layout strategies Human Resources Supply-chain management inventory management scheduling maintenance
Define services
Economic activities that typically produce an intangible product (such as education, entertainment, lodging, government, financial, and health services).
Define service sector
the segment of the economy that includes trade, financial, lodging, education, legal, medical, and other professional occupations.
Define productivity
The ratio of outputs (goods and services) divided by one or more inputs (such as labor, capital, or management)
Define single-factor productivity
Indicates the ratio of one resource (input) to the goods and services produced (outputs).
Define multifactor productivity
Indicates the ratio of many or all resources (inputs) to the goods and services products (outputs)
Define productivity variables
the three factors critical to productivity improvement - labor, capital, and the art and science of management
define knowledge society
a society in which much of the labor force has migrated from manual work to work based on knowledge
define stakeholders
those with a vested interest in an organization, including customers, distributors, suppliers, owners, lenders, employees, and community members.
F.W. Taylor believed that:
scientific laws governed how much work a person could do each day
Higher productivity derived from efficient operations leads to:
Lower cost goods and services
Which of the following is NOT an OM strategic issue?
Should we have finished goods inventory?
Operations managers hep to provide workers with improved working conditions by:
Improving the ergonomic design of jobs functions
Which of the following individuals made contributions to the field of OM by shedding new light on worker motivation?
Elton Mayo
Which of the following individuals made contributions to the OM field by developing time & motion study?
Frank Gilbreth
Who developed the use of motion study in improving operations?
Frank Gilbreth
Which of the following is NOT an OM operations planning and control issue?
How much capacity do we need?
Who developed the use of standardization in large scale mass production using a moving assembly line?
Henry Ford
Frederick W. Taylor was responsible for the development of:
principles of scientific management
Higher quality products are commonly associated with:
six-sigma quality standards
Which of the following is NOT an OM tactical issue?
Where do we locate the facility or facilities?
The operations management transformation process in a manufacturing firm is primarily which of the following?
physical
Frederick Taylor believed that:
the scientific method applied to work as well as science
Operations management is the business function that plans, coordinates, and controls the resources needed to produce a company’s:
products and services
Which of the following is consistent with contemporary operations management?
replanting of forest land to reduce erosion
In a retail store, the transformation process is a change of personnel, products and money into satisfied purchasers.
Exchange
Define production
The creation of goods and services
Who was instrumental in shedding new light on psychological needs of workers and their motivations?
Elton Mayo
Largely due to the globalization of economies and the growth of e-commerce, the balance of power has shifted from
Producers to consumers
Contemporary operations managers would NOT define quality in terms of
Profits
Who was greatly responsible for the scientific management movement since the turn of the century?
Frederick Winslow Taylor
Who was heavily involved in industrial psychology?
Lillian Gilbreth
Which of the following is not associated with the work of Taylor?
The hierarchical needs of labor
Which of the following is NOT an example of the shift of power from producers to consumers?
Less emphasis in reducing labor and material costs
All organizations perform three functions to create goods and services:
Marketing, Production/operations, and Finance/accounting
We study OM for four reasons:
- To learn how people organize themselves for productive enterprise.
- To learn how goods and services are produced.
- To understand what operations managers do.
- Because OM is a costly part of an organization.
Productivity increases when:
inputs decrease while outputs remain the same
Services often:
are knowledge based.
Productivity:
is dependent upon labor, management, and capital.
Single-factor productivity:
usually uses labor as a factor.
Multifactor productivity
usually uses substitutes as common variables for the factors of production
Productivity increases each year in the U.S. are a result of three factors:
Labor
capital
management
