Chapter 1

Question 1

What are the three traditional functions

Answer 1

Marketing
Operations
Finance/accounting

Question 2

what do each of the functions do?

Answer 2

marketing-generates demand
operations-creates valuable products and services
finance/accounting-tracks how well the org is doing, bills/collects the money

Question 3

why are these functions important

Answer 3

regardless of how departments function in an org they are all linked together through processes, that’s key

Question 4

services

Answer 4

intangible, perishable output
short response time
quality not easily measured
MORE DIFFICULT TO MANAGE

Question 5

products

Answer 5

output inventoried

capital intensive

Question 6

a core process

Answer 6

a core process is a set of activities that delivers value to external customers

Question 7

examples of supply chain processes

Answer 7

outsourcing 
warehousing 
sourcing 
customer service 
logistics 
crossdocking

Question 8

operations strategy

Answer 8

operations strat provides the framework for carrying out all of an org’s functions

Question 9

corporate srategy

Answer 9

provides an overall direction that serves as the framework for carrying out all the org’s functions

Question 10

environment scanning

Answer 10

(monitor trends) core competencies, your unique resources and strengths

Question 11

mirror test

Answer 11

if a mirror was in front of you what would others say about you?
NEED TO HAVE A POV-what are you and group members good at? they need to have an identity

Question 12

how do you differentiate?

Answer 12

cost
quality
time
flexibility

Question 13

cost

Answer 13

low cost operations (southwest/costco)

Question 14

quality

Answer 14

top quality (rolex)
consistent quality (McDonalds)

Question 15

time

Answer 15

delivery speed (netflix)
on-time delivery (UPS)
development speed (zara)

Question 16

flexibility

Answer 16

customization (ritz)
variety (amazon)
volume flex (USPS)

Question 17

productivity

Answer 17

output/input

Question 18

role of management

Answer 18

it’s simple, to gain productivity you have to either decrease labor or increase units produced

Question 19

labor productivity

Answer 19

policies processes/employee hours

Question 20

three employees process 600 insurance policies in a week. they work 8 hours per day, 5 days per week

Answer 20

600/(3*40)

40–>8*5

Question 21

if someone competes because of lower prices what are your options

Answer 21

quality, social responsibility, customer relations