Test 1 (Ch 1-4)

Question 1

3 characteristics of goods and services

Answer 1

1. Tangibility
2. Ownership
3. Standardization

Question 2

How can we improve productivity?

Answer 2

1. Increase amount of capital, or tech,. available to each worker to do job.
2. Improving education, skills and experience. Investing in human capital.
3. Organize business in a smarter way. Logic, common sense, simple solutions, new tech, and innovation.

Question 3

Advantages of forecasting

Answer 3

1. Corporate long-term planning
2. Financial budgeting
3. Sales planning

Question 4

Disadvantages of forecasting?

Answer 4

1. Not 100% accurate
2. Costs a lot of money
3. Proper information is not always available

Question 5

Simple moving average

Answer 5

add previous 2-3 demands and divide by 2-3 to find forecast
EX: 8+8+10 = 26. 26/3 = 8.7 (forecast)

Question 6

What are the 2 types of forecasting?

Answer 6

1. Qualitative (Judgmental)
2. Quantitative (Numerical)

Question 7

Competing on differentiation

Answer 7

Uniqueness –> Can go beyond physical characteristics and service attributes.
EX: Starbucks’ quality coffee

Question 8

Competing on cost

Answer 8

Provide the maximum VALUE as perceived by CUSTOMER.

Does not imply low quality or low value
EX: Low cost airline

Question 9

Competing on response

Answer 9

-Flexibility
-Reliability
-Timeliness
EX: Canada Post

Question 10

3 steps of Operations Mangers and Strategy?

Answer 10

1. Develop strategy
2. Establish organizational structure
3. Recruit the right people to implement strategy

Question 11

How to calculate MAD

Answer 11

Add up all the deviations and then divide by the number of deviations

Question 12

Strategy

Answer 12

-Action plan to achieve mission
-Company has a business strategy

Question 13

Mission

Answer 13

-Where are you going?
-Organizations purpose for being
-Provides boundaries and focus

Question 14

Labour Productivity =

Answer 14

Output / Input

EX: 500 cars / 250 hrs = 2 cars per hr

Question 15

Single-factor productivity =

Answer 15

Output divided by a single factor

EX: =Output / Labour, Output / Material, Output / Energy

Question 16

Multi-factor productivity =

Answer 16

Out divided by multiple factors

EX: =Output / Labour + Material + Energy + Capital + Miscellaneous

Question 17

Value =

Answer 17

Quality / Price

Question 18

Efficiency

Answer 18

Doing the right thing (“To manage”) At the lowest cost, at the shortest time, at the highest quality, etc..

Question 19

Effectiveness

Answer 19

(“To lead”) Doing the real important thing that adds value.

“It is not enough to do your best; You MUST KNOW WHAT YOU’RE DOING EFFECTIVELY than do your job efficient.

Question 20

Production

Answer 20

Is the creation of goods and services

Question 21

Operations Management Diagram

Answer 21

INPUT –> PROCESS –> OUTPUT

Question 22

Main Strategies for Competitive Advantage

Answer 22

1. Differentiation
2. Cost Leadership
3. Quick Response

Question 23

Components of Demand

Answer 23

• Average demand for a period of time
• Trend
• Seasonal element
• Cyclical elements
• Random variation

Question 24

Weighted Moving Average (WMA)

Answer 24

Multiply previous demands (2-3 before) by the given weight. Add them up and divide by number of demands.

Question 25

Qualitative methods:

Answer 25

1. Jury of Executives
2. Historical Analogy
3. Delphi Mehtod

Question 26

Quantitative Methods:

Answer 26

1. Standard Moving Average (SMA)
2. Weighted Moving Average (WMA)
3. Exponentially Smoothing