GMS W123

Question 1

three functions to create goods and services:

Answer 1

1. Marketing, which generates demand
2. Production/operations, which creates the product
3. Finance/accounting, which tracks how well the organization is doing, pays the
   bills, and collects the money

Question 2

Ten OM strategic decisions

Answer 2

1. Design of goods and services
2. Managing quality
3. Process strategies
4. Location strategies
5. Layout strategies
6. Human resources
7. Supply chain management
8. Inventory management
9. Scheduling
10. Maintenance
    *About 40% of all jobs are in OM.

Question 3

Productivity

Answer 3

ratio of outputs (goods and services) divided by one or more inputs (such as labor, capital, or management)
*High production means producing many units, while high productivity means producing units efficiently.

Question 4

Single-factor productivity

Answer 4

goods and services produced
(outputs) to one resource (input).

Question 5

Multifactor productivity

Answer 5

goods and services produced
(outputs) to many or all resources (inputs).

Question 6

Productivity variables

Answer 6

labor (10%), capital (38%), and management (52%).

Question 7

the current challenges for operations

Answer 7

• Global focus; international collaboration
• Supply chain partnering; joint ventures; alliances
• Sustainability; green products; recycle, reuse
• Rapid product development; design collaboration
• Mass customization; customized products
• Lean operations; continuous improvement and elimination of waste

Question 8

three strategic approaches to competitive advantage

Answer 8

1. Differentiation
2. Cost leadership
3. Response

Question 9

Differentiation

Answer 9

Distinguishing the offerings of an organization in a way that the
customer perceives as adding value.

Question 10

Experience differentiation

Answer 10

Engaging the customer with a product through imaginative use of the five senses, so the customer “experiences” the product.

Question 11

Low-cost leadership

Answer 11

maximum value,

Question 12

Response

Answer 12

rapid, flexible, and reliable performance.

Question 13

Porter’s five forces model

Answer 13

(1) immediate rivals, (2) potential entrants,
(3) customers, (4) suppliers, and (5) substitute products.

Question 14

Resources view

Answer 14

evaluate the resources at their disposal
and manage or alter them to achieve competitive advantage.

Question 15

Potential risks of outsourcing

Answer 15

-A drop in quality or customer service
- Political backlash that results from outsourcing to foreign countries
- Negative impact on employees
- Potential future competition
- Increased logistics and inventory costs
*most common reason given for outsourcing failure is that the decision was made
without sufficient understanding and analysis.
*factor-rating method

Question 16

j International business

Answer 16

cross-border transactions.

Question 17

Multinational corporation

Answer 17

involvement in international business, owning or controlling facilities in more than one country.

Question 18

four operations strategies for approaching global

Answer 18

• International strategy—global markets are penetrated using exports and licenses with little local responsiveness.
• Multidomestic strategy—operating decisions are decentralized to each country to enhance
• Global strategy—operating decisions are centralized and head-quarters coordinates the standardization and learning between facilities.
• Transnational strategy—combines the benefits of global-scale efficiencies with the benefits of local responsiveness. These firms transgress national
  boundaries.

Question 19

objective of maintenance and reliability

Answer 19

maintain the capability of the
system.

Question 20

Maintenance

Answer 20

maintaining capability of the system.

Question 21

Reliability

Answer 21

probability that a machine part or product will function
properly

Question 22

two main tactics for improving reliability

Answer 22

1. Improving individual components
2. Providing redundancy

Question 23

two main tactics for improving maintenance

Answer 23

1. Implementing or improving preventive maintenance
2. Increasing repair capabilities or speed

Question 24

Reliability

Answer 24

any one component fails to perform, the overall
system can fail.
As the number of components in a series increases, the reliability of the whole system declines very quickly:

Question 25

Mean time between failures

Answer 25

expected time between a repair and
the next failure of a component, machine, process, or product.

Question 26

Redundancy

Answer 26

components in parallel to raise reliability.

Question 27

Preventive maintenance

Answer 27

monitoring equipment and facilities, and per-
forming routine inspections and service to keep equipment and facilities reliable.

Question 28

Breakdown maintenance

Answer 28

occurs when preventive maintenance fails and equipment/facilities must be repaired on an emergency
or priority basis.

Question 29

Predictive maintenance

Answer 29

advanced technologies to monitor and predict
equipment failure.

Question 30

Infant mortality

Answer 30

failure rate early in the life

Question 31

Costs of a breakdown

Answer 31

1. The cost of inventory maintained to compensate for downtime
2. Downtime, have a devastating effect on safety and morale, affects delivery schedules, destroying customer relations and future sales

Question 32

Autonomous maintenance

Answer 32

partner with maintenance personnel to
observe, check, adjust, clean, and notify.

Question 33

Total productive maintenance

Answer 33

total quality management with a strategic view of maintenance from process and equipment design to
preventive maintenance.

Question 34

Total productive maintenance includes:

Answer 34

1. Designing machines that are reliable, easy to operate, and easy to maintain
2. Emphasizing total cost of ownership when purchasing machines
3. Developing preventive maintenance plans that utilize the best practices of operators, maintenance departments, and depot service
4. Training for autonomous maintenance