Chapter 1

Question 1

What is Operations Management?

Answer 1

OM is the management of processes that create goods and/or provide services.

Question 2

Companies use OM to improve:

• *

Answer 2

Efficiency

Effectiveness

Question 3

A typical organization has .. basic functions?

Answer 3

A typical organization has 3 basic functions?

1. Operations: creates goods and services.
2. Finance: provide funds and the economic analysis of investment proposals.
3. Marketing: assess customer wants and needs and communicate them to others

Question 4

Answer 4

Question 5

Answer 5

Question 6

e

Answer 6

Question 7

Answer 7

Question 8

Answer 8

Question 9

The operations manager must coordinate the use of resources through the management activities of …, …, …, and …..

Answer 9

The operations manager must coordinate the use of resources through the management activities of planning, organizing, directing, and controlling.

Question 10

Operations Managers and Decision Making

Answer 10

Question 11

Operations Managers and Decision Making

Models:

Answer 11

A model is an abstraction of reality. Used to support the decision process

Question 12

Operations Managers and Decision Making

Quantitative Approaches:











Answer 12

Operations Managers and Decision Making

Quantitative Approaches:

 Linear programming

 Queuing techniques

 Inventory techniques

 Project techniques

 Statistical techniques

Question 13

Operations Managers and Decision Making

Analysis of Trade-Offs

ex Decision on amount of inventory to stock

• ..vs. • ..

Answer 13

Operations Managers and Decision Making

Analysis of Trade-Offs

ex Decision on amount of inventory to stock

Increased cost of holding inventory vs. • Level of customer servic

Question 14

Operations Managers and Decision Making

Establishing Priorities:

… Phenomenon:





Answer 14

Operations Managers and Decision Making

Establishing Priorities:

Pareto Phenomenon:

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

 80/20 Rule - 80% of problems are caused by 20% of the activities.

Question 15

Operations Managers and Decision Making

Ethical Issues:

Answer 15

Question 16

Trends in Business

Answer 16

Question 17

Supply Chain is …

Answer 17

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