ISDS 3001 CH 1

Question 1

Production

Answer 1

Creation of goods and services

Question 2

Operations Management

Answer 2

Set of activities creates in the form of goods and services by transforming inputs into outputs

Question 3

The 3 functions all organizations must perform

Answer 3

1) marketing 2) production/ operations 3) Finance/ Accounting

Question 4

Marketing function:

Answer 4

Generates the demand, or at least takes the order for a product or service

Question 5

Production/ Operations Function:

Answer 5

creates, produces and delivers the product

Question 6

Finance/ Accounting Function:

Answer 6

Tracks how well the organization is doing, pays the bills and collects money

Question 7

Supply Chain

Answer 7

Global network of organizations and activities that supplies a firm with good and services

Question 8

Study Operations management for 4 reasons

Answer 8

1) How people organize themselves for productive enterprise
2) How goods and services are produced
3) understand what operations managers do
4) because its such an important part of an org

Question 9

Qualities of services are:

Answer 9

intangible, unique, have high customer interaction, inconsistent product definition, often knowledge based

Question 10

Qualities of goods are:

Answer 10

tangible, can usually be kept in inventory, similar products produced, have limited customer involvement, product standardization, standard tangible product tends to make automation possible

Question 11

productivity:

Answer 11

ratio of outputs (goods and services) divided by 1+ inputs

Question 12

Improving productivity improves what?

Answer 12

Efficiency

Question 13

Improvement of productivity can be done these 2 way:

Answer 13

1) reducing inputs while keeping output constant
2) increasing output while keeping inputs constant

Question 14

Production:

Answer 14

making of goods and services

Question 15

Increased productivity implies what?

Answer 15

More people are working and employment levels are high (low unemployment), but does NOT imply high productivity

Question 16

Single factor productivity:

Answer 16

indicates the ratio of good and services produced (outputs) to 1 resource (input)

Question 17

Multi factor productivity

Answer 17

indicates the ratio of outputs to many or all inputs (aka total factor productivity)

Question 18

Measurement problems:

Answer 18

1) quality- may change while quantity of inputs and outputs remains constant
2) external elements- may cause an increase/ decrease in productivity for which the system under study may not be directly responsible
3) precise units of measure- may be lacking

Question 19

Productivity variables:

Answer 19

1) labor
2) capital
3) management

Question 20

3 key variables for increasing labor productivity

Answer 20

1) basic education appropriate for an effective labor force
2) diet of the labor force
3) social overhead that makes labor available, such as transportation and sanitation

Question 21

Affects of capital on productivity

Answer 21

inflation and taxes increase the cost of capital, making them increase expenses; when capital invested per employee drops, can expect a drop in productivity

Question 22

Affects of management on productivity

Answer 22

Responsible for ensuring that labor and capital are effectively used to increase productivity; accounts for over half of annual increase in productivity; knowledge societies

Question 23

Knowledge societies

Answer 23

society in which much of the labor force has migrated from manual work to work based on knowledge

Question 24

Difficulties of productivity in the service sector:

Answer 24

1) typically labor intensive
2) frequently focused on unique individual attributes or desires
3) often intellectual task performed by professionals
4) often difficult to mechanize and automatic
5) often difficult to evaluate for quality

Question 25

Current challenges in operations management

Answer 25

globalization, supply chain partnering, sustainability, rapid product development, mass customization, lean operations,

Question 26

globalization:

Answer 26

rapid decrease in cost of communication/ transportation has made markets global

Question 27

supply chain partnering:

Answer 27

shorter product life cycle, demanding customers, and fast changes in tech, materials and processes require supply chain partners to be in tune with the needs of end users

Question 28

sustainability:

Answer 28

battle to improve productivity is concerned with designing products and processes that are eco sustainable

Question 29

rapid product development:

Answer 29

technology is chopping away at the life span of products; OM answers with new management structures, enhanced collaboration, digital technology and creative alliances that are responsive

Question 30

mass communication:

Answer 30

world is the marketplace; OM must rapidly respond with product designs and flexible production processes that cater to individual whims of customers