Chapter 1 - Intro to OM

Question 1

What are some examples of Operations failures?

Answer 1

*Automobile recalls
* Food recalls
*Toy recalls
*major oil spills
*dysfunctional government legislatures

Question 2

What are some examples of operations successes?

Answer 2

*The electronic devices we use
* Medical breakthroughs
*high-quality goods and services

Question 3

What is Operations Management

Answer 3

The management of processes that create goods and/or provide services.

Question 4

Process

Answer 4

A sequence of activities, usually performed by more than one person, which uses resources and achieves a desired result.

Question 5

Good

Answer 5

A tangible item

Question 6

Services

Answer 6

An act or work for someone (customer or client)

Question 7

What are the three processes involved in operations?

Answer 7

1) Core processes
2) Support Processes
3) Managerial Processes

Question 8

Efficience

Answer 8

measures the amount of resources (e.g. time, cost, etc.) used to produce one unit of output.

Question 9

Effectiveness

Answer 9

Measures the extent to which an operation is achieving the intended goals (quality and timeliness).

Question 10

What are the 4 reasons to study OM?

Answer 10

1) Large percentage of company’s expenses occur in the operations area.
2) Many management positions in companies are OM positions
3) All areas of an organization are all inter related with OM activities
4) Operations innovations lead to marketplace and strategic benefits.

Question 11

What are the three basic functions for a typical organization?

Answer 11

1) Operations (manufacturing/services)
2) finance
3) marketing (including sales)

Question 12

Value Added

Answer 12

the term used to describe the difference between the cost inf inputs and the value or price of outputs.

Question 13

Lead time

Answer 13

The time between the placement of an order and the shipment of the completed order to the customer.

Question 14

how far ahead is design decisions?

Answer 14

long term 1-5 years ahead

Question 15

how far ahead is planning decisions

Answer 15

tactical and medium-term (1-12 months ahead)

Question 16

how far ahead is control decisions?

Answer 16

1-12 weeks ahead short-term

Question 17

what are the 6 areas that production of goods and performance of services differ in?

Answer 17

1) Customer contact, use of inventories, and demand variability
2) Uniformity of input
3) Labor content of jobs
4) Uniformity of outputs
5) Measurement of productivity
6) Quality assurance

Question 18

what are the planning responsibilities of an operations manager?

Answer 18

Capacity
Location
Mix of products
Production processes
Layout

Question 19

What are the organizing responsibilities of an operations manager?

Answer 19

Degree of centralization
Departments
Subcontracting
Suppliers
Staffing

Question 20

What are the controlling responsibilities of an operations manager?

Answer 20

Inventory control
Quality control
Production pace
Motivation
Cost control

Question 21

What are the directing responsibilities of an operations manager?

Answer 21

Scheduling
Issuance of work orders
Job assignments
Purchasing
Logisitics

Question 22

Model

Answer 22

An abstraction of reality, a simplified representation of something.

Question 23

Quantitative Techniques

Answer 23

methods that focus on objective measurements and analysis of numbers in order to draw conclusions.

Question 24

What are some examples of quantitative techniques?

Answer 24

Optimization
Queueing techniques
Inventory techniques
Project scheduling technique PERT
Forecasting techniques
Statistical techniques

Question 25

Heuristic

Answer 25

A quick way to find a good solution

Question 26

System

Answer 26

a set of interrelated parts that must work together.

Question 27

Pareto Phenomenon

Answer 27

Says that some things (a few) will be very important for achieving an objective or solving a problem, and other things (many) will not.

Question 28

Economies of scale

Answer 28

The economic conditions that favor larger plants and machines/equipment by causing minimum average unit cost to decrease as size increases.

Question 29

Division of Labor

Answer 29

Production process is divided up into a series of small tasks and individual workers are assigned to each one of these tasks.

Question 30

Interchangeable parts

Answer 30

Standardizing parts and make them so precisely that any part in a batch of parts would fit the product without alteration.

Question 31

Scientific management

Answer 31

Applying science to observe, measure, analyze and improve work methods, including the use of economic incentives.

Question 32

what are the recent trends in OM?

Answer 32

Ecommerce
management Technology
Globalization
Supply chains
Sustainability
Industry 4.0/internet of things

Question 33

what are some factors for operation managers when making decisions?

Answer 33

1) Models
2) Ethics
3) Quantitative Techniques
4) Establishing priorities
5) Analysis of trade-offs
6) systems approach

Question 34

Approaches to decision making what are some examples of models?

Answer 34

-Physical Model
- Mathematical model
-Schematic model
-Statistical model

Question 35

Quantitative Techniques decision making

Answer 35

*Optimization
*Queueing techniques
*Inventory techniques
*Project scheduling techniques
*Forecasting techniques
*Statistical techniques

Question 36

Analysis of trade-offs decision making

Answer 36

Between
*Profits
*costs
*Productivity
*Customer satisfcation

Question 37

Establishing priorities decision making

Answer 37

Pareto phenomenon (80/20 rule)
*80% of results achieved will come from 20% of factors
*80% of success comes from 20% of your ideas
*80% of promotions are given by 20% of bosses

Question 38

The systems approach decision making

Answer 38

Emphasizes interrelationships among subsystems
*The output and goals of the organization take precedence over those of any subsystem
*Main theme is the sum is the greater than the sum of its parts

Question 39

Ethics decision making

Answer 39

*Ethical issues arise in
**Worker safety
**Product safety
**the environment
**society and commitments

Question 40

Sustainability

Answer 40

Environmental
Social
economic