New Challenges and Trends in OM

Question 1

What are the OM jobs?

Answer 1

-Technology/methods
-facilities/space utilization
-strategic issues
-response time
-people/team development
-customer service
-quality
-cost reduction
-inventory reduction
-productivity improvement

Question 2

Stage Of Customized Mass Productivity

Answer 2

-Low cost per unit of mass production processes with the flexibility of customization.

-Mass personalization is possible as a result of information systems (INTERNET), communication and logistics.
- Customers can configure products to their “liking” and manufactures can reduce costs of :
-financing production, marketing
-stock and distribution
-eliminating errors and risks associated with -incorrect forecasting of demand

Question 3

New Challenges and Trends in OM (from .. to)

Answer 3

From

local or national focus
batch shipments
low bid purchasing
Lengthy product development
standard products
Job specialization

To

Global focus
Just-in-time
Supply chain partnering
Rapid product development, alliances
Mass customization
empowered employees, teams

Question 4

Three functions of any organization

Answer 4

Marketing → Generates the demand, or at least takes the order for a product or service (nothing happens until there is a sale).

Production and operations → Creates, produces, and delivers the product.

Finance/accounting → tracks how well the organization is doing, pays the bills and collects the money.

Question 5

Define Productivity

Answer 5

-Measure of process improvement
-Represents OUTPUT relative to INPUT

Question 6

Define Multi-factor productivity

Answer 6

-Also known as total factor productivity
-Output and inputs are often expressed in monetary unity.

Question 7

Productivity measurement problems

Answer 7

Quality may change while the quality of inputs and outputs remains constant
External elements may affect productivity (increase or decrease)
Precise units of measure may be lacking.

Question 8

Productivity Variables

Answer 8

Labor- contributes about 10% of annual increase
Basic Education appropriate for the labor force
Social overhead that makes labor available
Maintaining and enhancing skills in the midst of rapidly changing technology and knowledge

Capital - contributes about 32% of the annual increase
Investments depend on the costs of capital : inflation, taxes, risks.

Management - contributes about 52% of the annual increase
Improvements made by applying technology and the use of knowledge.

Question 9

Service productivity

Answer 9

Typically labor intensive
Frequently focused on unique individual attributes or desires
Often an intellectual task performed by professionals
Often difficult to mechanize
Often difficult to evaluate for quality.

Question 10

Ethics and social responsibility (Challenges facing operations managers )

Answer 10

Developing safe quality products
maintaining a clean environment
providing a safe workplace
honoring community commitments