Chapter 1: Key definitions

Question 1

5 Fundamental theories

Answer 1

Psychology-personality system 
Political science 
Economics
Cultural system 
Social system

Question 2

Supply and demand (fundamentals)

Answer 2

• connecting designs with the needs of customers in the market place
• ability of transportation, fulfilling the customer experience promised

Question 3

‘Operations management’

Answer 3

• managing resources which produce goods and services
• creation and control of transformation system taking resource inputs and outputting goods and services
• fulfilment of customer requests

Question 4

3 Core Functions of an Organisation

Answer 4

Market function- communication of p & s to the required market
P/S development function-new modified services to serve future customers
Operations function-fulfil customer requests for service throughout production and delivery of p & s

Question 5

O.M Decision Areas

Answer 5

Capacity: flow of products produced when inputs are transferred into outputs
Scheduling: planning the execution time of particular tasks
Inventory: organisations existing assets ie. raw materials, work in progress and finish d goods
Control: processes insuring that a plan is achieved despite obsticals, variations, and uncertainties in organisation & environment

Question 6

Why so vital?

Answer 6

-80% of what employees do
-Adds value to what is sold
-Influences revenue stream & cost bases for organisations
-connects technological innovation with economy and overall well being
-businesses efficiency/ competitiveness directly effected by the way in which resources are organised and transformed
Engineers skill increases and efficiency of processes

Question 7

Product based vs service based

Answer 7

Product- company that has created a general software package as a product eg. Adobe
Service- a company that has developed custom software for a particular task

Question 8

Globalisation of Capital and labour markets

Answer 8

Labour market-supply and demand of labour services
Capital markets-market concerned with raising capital with shares,bonds and long term investments
Globalisation is concerned with connecting these markets internationally

Question 9

Consumer or production economy

Answer 9

Consumer economy- focussing resources on consumption and distribution
Production economy- more emphasis on physical, human and knowledge

Question 10

Changing economy

Answer 10

Concerns for social &environmental impact of p&s

Emphasis on customer satisfaction