MIS 373 Ch. 1

Question 1

3 basic functions of an organization

Answer 1

marketing, operations, finance

Question 2

Operations

Answer 2

the part of a business organization that is responsible for producing goods or services

Question 3

Operations Mgmt.

Answer 3

The management of systems or processes that create goods and/or provide services

Question 4

Operations Management affects:

Answer 4

Companies’ ability to compete

Question 5

Value Added

Answer 5

Value / (price of output-cost of input)

Question 6

Inputs

Answer 6

land, labor, capital, materials, information

Question 7

Outputs

Answer 7

Goods, Services

Question 8

Feedback

Answer 8

measurements taken at various points in the transformation process

Question 9

Control

Answer 9

the comparison of feedback against previously established standards to determine corrective action is needed.

Question 10

Supply > Demand

Answer 10

Wasteful, Costly

Question 11

Supply < Demand

Answer 11

Opportunity Loss, Customer dissatisfaction

Question 12

Supply = Demand

Answer 12

Ideal

Question 13

4 Sources of Variation

Answer 13

1. Variety of goods or services being offered
2. Structural Variation
3. Random Variation
4. Assignable Variation

Question 14

Variety of goods or services being offered

Answer 14

the greater the variety of goods and services offered, the greater the variation in production or service requirements

Question 15

Structural variation in demand

Answer 15

these are generally predictable: seasonal variation

they are important for capacity planning

Question 16

Random Variation

Answer 16

natural variation that is present in all processes. (random demand)
generally, it cannot be influenced by managers

Question 17

Assignable Variation

Answer 17

variation that has identifiable sources. (defective inputs, incorrect work methods, equipment, etc.)
This type of variation can be reduced, or eliminated, by analysis and corrective action.

Question 18

Manufacturing vs. Service

Answer 18

Goods vs. Act-Oriented

Question 19

Products package =

Answer 19

combination of goods and services

Question 20

Operations function includes activities such as…

Answer 20

forecasting
capacity planning
facilities and layout
managing inventories
scheduling
assuring quality
motivating employees
deciding where to locate facilities

Question 21

System Design

Answer 21

• Capacity
• Facility Location
• Facility Layout
• Product and service planning
• Acquisition and placement of equipment

Question 22

System Operation

Answer 22

Generally tactical decisions.

• management of personnel
• inventory management and control
• scheduling
• product management
• quality assurance

Question 23

Model

Answer 23

an abstraction of reality; a simplification

Question 24

Common features of models

Answer 24

• Simplifications of real-life phenomena
• They omit unimportant details of the systems they mimic so that attention can be focused on the most important aspects of the real-life system.

Question 25

Types of Models

Answer 25

Physical
Schematic
Mathematical

Question 26

Physical Model

Answer 26

look like their real-life counterparts

Question 27

Schematic

Answer 27

look less like their real-life counterparts than physical models (graphs, charts, blueprints, drawings)

Question 28

Mathematical Models

Answer 28

Look nothing like real-life counterparts

Question 29

Benefits of Models

Answer 29

1. generally easier to use and less expensive than dealing with the real system
2. require users to organize and sometimes quantify info.
3. increase understanding of the problem
4. enable managers to analyze “what if” questions.
5. Serve as a consistent tool for evaluation and provide a standardized format for analyzing a problem

Question 30

Limitations of Models

Answer 30

1. Important variables may be missed
2. Quantitive info may be emphasized over qualitative.
3. models may be incorrectly applied and results misinterpreted.
4. Non-qualified users may not use the model correctly

Use of models doesn’t guarantee good decisions.