Chapter 1: Intro. to Operations Management Flashcards
Q: What is the primary responsibility of the finance function?
A: Managing cash flow, current assets, and capital investments.
Q: What is marketing responsible for?
A: Sales, generating customer demand, and understanding customer wants and needs.
Q: What is operations management (OM)?
A: The business function that plans, organizes, coordinates, and controls the resources needed to produce a company’s goods and services.
Q: What resources does operations management involve managing?
A: People, equipment, technology, information, and other resources.
Q: What does operations management transform?
A: Organizational inputs into outputs.
Q: What are examples of inputs in operations management?
A: Human resources, facilities and processes, materials, technology, and information.
Q: What is the role of operations management in producing goods and services?
A: Transforming inputs into finished products.
Q: What is operations management responsible for organizing?
A: Resources, schedules, equipment, facilities, controlling quality, and job/work design to complete a final product.
Q: What is value added in operations management?
A: The net increase between the final value of a product and the value of all the inputs.
Q: What are activities that do not add value considered?
A: Waste.
Q: What are key characteristics of services?
A: Intangible product, cannot be inventoried, high customer contact, labor-intensive, short response time.
Q: What are key characteristics of manufacturing?
A: Tangible product, can be inventoried, low customer contact, capital-intensive, longer response time.
Q: What does forecasting ask?
A: “What will the demand be?”
Q: How does forecasting help in operations management?
A: It helps determine how many people to hire to meet demand for goods.
Q: What do strategic decisions focus on in operations management?
A: What will separate the company from the rest of the market.
