Operations Management

Question 0

Non financial performance measurements?

Answer 0

External benchmarks- variance analysis: efficiency & quantity
1. Total productivity ratios (TPR): value of all output relative to the value of all input.
2. Partial productivity ratios (PPR): some inputs
Internal benchmarks- analyze problems or measure performance
1. Control charts: determine zero defects, goal post conformance, keep deviation within acceptable range
2. Pareto diagrams: “histogram” to determine the quality-control issues that are most frequent and often demand the greatest attention.
3. Cause and effect “fishbone” diagram: identify the source of problems in the production process by resource and take corrective action

Question 1

What are the financial performance measures?

Answer 1

Profit
Return on investment
Variance analysis-spending
Balanced scorecard

Question 2

What are the characteristics of effective performance measures?

Answer 2

Promote the achievement of goals.

Question 3

What are the 5 marketing practices & methods?

Answer 3

Transaction marketing
Interaction based relationship marketing
Database marketing
E marketing
Network marketing

Question 4

What is transaction marketing?

Answer 4

Single sale/ lowest price

Question 5

What is interaction based relationship marketing?

Answer 5

Repeat business, loyalty discount, ongoing relationship

Question 6

What is database marketing?

Answer 6

Segment customers into target markets for more effective selling efforts

Question 7

What is e marketing?

Answer 7

The use of the Internet to accomplish marketing objectives

Question 8

What is network marketing?

Answer 8

Focuses in relationships and referrals to accomplish marketing functions.

Question 9

3 Types of incentive compensation?

Answer 9

1. Fixed salary
2. Bonuses : based on profit or stock performance
3. Perks: “non salary benefits”

Question 10

What are the design choices for management compensation?

Answer 10

1. Time horizon: current and future performance
2. Fixed vs variable bonuses: advantages and disadvantages
3. Stock vs accounting based performance evaluation: variable
4. Local vs company wide performance: rewards for the division performance
5. Cooperative vs competitive incentive plans: rewards may emphasize compensation