Lesson 1- Introduction to OM Flashcards
The three primary functions that exist in most business organizations are?
operations, marketing and finance
Which of the following is not a type of service operation?
Fabrication of metals
Value added refers to?
the difference between cost of inputs and the value or price of outputs
Planning decisions are usually:
tactical and medium term
The marketing functions main focus is with:
Assessing the customer wants and needs
Which is NOT a significant difference between manufacturing and service operations?
cost per unit
Operating at minimum cost and time is referred to as:
efficiency
Which of the following functions is mostly service based, as identified in the “goods service” continuum:
teaching
A balanced achieved between two incompatible features is referred to as
Trade-off
Operating managers are responsible for managing activities and resources that produce good and/or provide services? T or F?
True
Effectiveness refers to achieving intended goals whereas efficiency refers to minimizing cost and time?
True
The operations function exists only in firms that are goods-oriented:
False
Value-added refers to the cost of the inputs required to produce goods and services
False
Operations management involves both system design and planning/control?
True
Design decisions are usually strategic and long term, while planning decisions are tactical and medium term?
True
A basic difference between manufacturing and service organizations is that services are action-oriented and manufacturing is goods-oriented?
True
Managing inventory levels is considered a planning/control operations decision area
True
Service often requires a higher labour content whereas the production of goods is more capital intensive
True
Many operations management decisions can be describes as trade offs?
True
A characteristic that was once an order winner may become an order qualifier and vise versa?
True
Order qualifiers are those characteristics of an organizations goods or services that cause them to be perceived as better than competitors?
False
It is important that an organization has a clear and simple mission/value/values statement?
True
The purchasing criteria of quality and timelines s of delivery are order winners for all companies
False
A mission statement should provide a guide for the formulation of strategies for the organization
True
Strategic planning includes both determining long-term plans and implementing them through allocation of resources and action plans
True
Organization strategy must be determined without considering the realities of function area strengths and weaknesses
False
Formulating an operations strategy requires focusing solely on the operations function, leaving the concerns of other functions and the status of external markets to broader organizational strategic planning.
False
Productivity is defined as the ratio of output to input?
True
Time -based strategies focus on reducing time required to accomplish certain activities such as new product development or deliver to the customer?
True
Productivity is related to competitiveness
True
Even though labour costs as a proportion of total cost has been decreasing in manufacturing companies, labour productivity is still the main measure being used to gauge the performance of individuals and plants?
True
Variability of the output of services makes it more difficult to measure service productivity
True
Characteristics that customers perceive as minimum standards of acceptability are called
order qualifiers
product variety is an example of:
A key purchasing area
Which of the following is NOT a key purchasing criterion?
Vendor relations
Which of the following is not a step for formulating an OS?
Define the vision and mission of company
Productivity is calculated as:
output/input
Which of the following is a set of well coordinated policies, objectives, action plans, directly affecting the operations function which is aimed at securing a long-term sustainable advantage over competition?
operations strategy
In an assembly operation at a furniture factory, 6 employees assembled an average of 450 standard dining chairs per 5 day workweek. What is the labour productivity per work/day of this operation?
15 chairs/worker/day
Which of the following is not a factor that affect productivity?
analysis of competitors
What statement determines where the organizations desires to be in the future?
vision statement
