Principles of Management and Production/ Ben McLarty/ Fall 2018/ Test #5 (Final)

___ decisions deal with: Capacity Facility location Facility layout Product and service planning Acquisition and placement of equipment

System Design

___ decisions are generally tactical and operational decisions that deal with: Management of personnel Inventory management and control Scheduling Project management Quality assurance

System Operation (Operations managers spend more time on system operation decision than any other decision area)

continuous improvement (Kaizen in Japanese)

TQM is focused on a never-ending push to improve the process of converting inputs into outputs. This philosophy is called?

is composed of specific groups and organizations that affect the firm

Task Environment

___ and ___ are 2 types of team roles that impact team effectiveness

Task roles- initiator, information seeker, opinion giver, elaborator, coordinator, evaluator, recorder Maintenance roles- encourager, harmonizer, compromiser, standard setter, follower

states that employees work harder if they receive added attention, and think that managers care about their welfare.

The Hawthorne Effect

quality

The ability of a product or service to consistently meet or exceed customer expectations

quality at the source

The philosophy of making each worker responsible for the quality of his or her work

service level

The probability that demand will not exceed supply during lead time Service level=100%-stockout risk

B3: Which of the following is NOT a benefit of using models in decision making?

They force the decision maker to take into account qualitative issues such as personalities and emotions

lead time

Time interval between ordering and receiving the order

forecasts that project patterns identified in recent time-series observations (observations taken at regular time intervals)

Time series forecasts

What is the goal of capacity planning?

To achieve a match between the long-term supply capabilities of an organization and the predicted level of long-term demand

the ___ strategy adds capacity in relatively small increments to keep pace with increasing demand

Tracking Capacity

Uses of Productivity Measures

Tracking an operating unit's performance over time; judging the performance of an entire industry or country

When should you use teams, and when should you not?

Use teams when 1) there is a clear reason to 2) job can't be done unless people work together 3) rewards can be provided for teamwork and team performance 4) ample resources are available

Firm expands into businesses that provide the supplies it needs to make its products or that distribute and sell its products

Vertical Integration

Henry Ford revolutionized the world with his production facilities in Michigan. Part of his approach involved purchasing suppliers of metal and rubber that he used to build the model T and owning the dealerships that sold them to the public. Ford was using what tactic?

Vertical Integration

What is the difference between voluntary and involuntary separation?

Voluntary separation occurs when employees decide to quit or retire. Involuntary separation (dismissal) is moving employees out of the organization through layoffs, downsizing, and firings (termination)

1. The systems are based on valid performance standards. 2. They communicate adequate information to employees. 3. They are acceptable to employees. 4. They use multiple approaches. 5. They recognize the relationship between empowerment & control.

Ways to make control systems more effective

1) It allows us to use labor and equipment more efficiently. 2) it avoids fairness issues that arise when one workstation must work harder than another.

What are 2 reasons why balancing is important?

1) necessary for operations and 2) contribute to customer satisfaction

What are 2 reasons why inventory is important?

ad: Very efficient, very high volume disad: Very rigid, lack of variety, costly to change, very high cost of downtime

What are the advantages and disadvantages of continuous processing?

ad: Low unit cost, high volume, efficient disad: Low flexibility, high cost of downtime

What are the advantages and disadvantages of repetitive/assembly processing?

Flowcharts Check sheets Histograms Pareto Charts Scatter diagrams Control charts Cause-and-effect diagrams Run charts

What are the basic quality tools?

1. Enhanced reputation for quality 2. Ability to command premium prices 3. Increased market share 4. Greater customer loyalty 5. Lower liability costs 6. Fewer production or service problems 7. Lower production costs 8. Higher profits

What are the benefits of good quality?

1. Loss of business 2. Liability 3. Decreased Productivity 4. Increased Costs

What are the consequences of bad quality?

1. Customer expectations and management perceptions of those expectations 2. Management perceptions, customer expectations, and service-quality specifications 3. Service quality and service actually delivered 4. Service actually delivered and what is communicated about the service to customers 5. Customers' expectations of the service provider and their perceptions of provider delivery

What are the issues in assessing service quality?

sum of all task times

What is maximum cycle time?

max (longest) task time

What is minimum cycle time?

Quality assurance is more reactive and finds and corrects defects after they reach the market. Strategic approaches are better, however, because they are proactive and find mistake before they occur.

What is the difference between quality assurance & more strategic approaches?

Random (common cause) variation: Natural variation in the output of a process, created by countless minor factors; Amount can vary from process to process Assignable (special cause) variation: A variation whose cause can be identified; A nonrandom variation like equipment out of adjustment, carelessness etc.

What is the difference bw random and assignable variation?

Economic Order Quantity (EOQ) Model is used to find the fixed order quantity that will minimize total annual inventory costs

What is the purpose of Basic EOQ Model?

The dividing lines between random and nonrandom deviations from the mean of the distribution. If a sample is outside of the upper or lower control limits, the variation is abnormal due to assignable sources

What is the purpose of control limits?

Having knowledge of substandard work and failing to correct and report them in a timely manner is unethical

What is the relationship between ethics and quality?

Businesses need their supply chains in order to achieve their quality goals. A business' supply chain quality management can benefit from a collaborative relationship with suppliers

What is the relationship between quality & the supply chain?

Minimum and maximum cycle times establish the range of output for the line. Min cycle time is the shortest time it can take you, aka you can produce most output. Max cycle time is the longest is can take you, aka you can produce least output

What is the significance of min and max cycle times?

He wrote the 14 points; special vs. common causes of variation

What was Deming's impact on quality?

Reorder point (ROP)

When the quantity on hand of an item drops to this specified amount, the item is reordered

when you need a combination of product, process, and fixed layout. Some cellular and flexible manufacturing systems (hospitals, supermarkets, shipyards) use a combination

When would you use a combination layout?

Fixed-position layouts are used when projects require layouts. The product or project remains stationary, and workers/mats/equipment are moved as needed.

When would you use a fixed-position layout?

Process layouts are used for intermittent (irregular) processing. Use process layout when you need to handle VARIED functional processing requirements. Equipment is arranged by type.

When would you use a process layout?

Product layouts are most conducive to REPETITIVE processing. It uses standardized processing operations to achieve smooth, rapid, high-volume flow.

When would you use a product layout?

1. Inefficient operations (high cost, bottlenecks) 2. Accidents or safety hazards 3. Changes in product or service design 4. Introduction of new products or services 5. Changes in output volume or product mix 6. Changes in methods or equipment 7. Changes in environmental or other legal requirements 8. Morale problems

Why do you need layout planning?

specialized products would need to go to a centralized testing facility for a very detailed inspection

Why would you use centralized inspection?

quicker decisions are made, you would avoid introduction of extraneous (irrelevant) factors, it would provide you with quality at the source (each worker is responsible for the quality of his/her work)

Why would you use on-site inspection?

Statistical Process Control (SPC)

___ involves periodically taking samples of process output and computing sample statistics (either sample means or # of occurrences of some outcome) to judge the randomness of process variation

rate of output actually achieved - cannot exceed effective capacity

actual output

what are advantages and disadvantages of external recruiting (hiring from outside your company)?

advantages: 1. applicants may have specialized knowledge 2. fresh viewpoints disadvantages: 1. expensive, takes longer 2. risky

What are the advantages and disadvantages of internal recruiting (hiring from within your company)?

advantages: 1. employees are inspired to greater effort and loyalty 2. cheaper 3. safer disadvantages: 1. restricts the competition for positons 2. employees assume if they've been working for the company forever, they'll be promoted 3. whenever a job is filled, it creates a vacancy elsewhere

occurs when an organization uses an employment practice or procedure that results in unfavorable outcomes to a protected class

adverse impact

B3: Kevin Ketterman, owner & CEO of Ketterman's Ketchup has always preached the gospel of cost containment and frugality to employees on the shop floor. However, his office presents the picture of a penthouse filled with marble bathroom & gold covered faucets and showerheads, very expensive paintings on the walls & expensive antique furniture. Ketterman appears to violate which of these issues related to changing an organizational culture?

aligning artifacts to match the values of the organization

B23: Bethany is writing a paper for her Management class. She already has a strong A in the class, and only needs to get a C on the paper to keep her A. As she prepares the final version of the paper, she takes special care that the paper is well-written, insightful, and error-free, something that she can be proud of. Bethany is experiencing

an intrinistic reward

control process

any process that directs the activities of individuals toward the achievement of organizational goals

B19: Which of the following is NOT an employee benefit required by law? a) worker's compensation b) supplemental insurance c) unemployment insurance d) medical insurance

b) supplemental insurance

factors that make it difficult and costly for an organization to enter a particular task environment or industry

barriers to entry

Stop firms from reducing capacity even when demand is weak and excess capacity exists.

barriers to exit

B8: Principal Durbin is supportive of his employees and prefers to have verbal conversations rather than written memos. His style is

behavioral

The operation with the least capacity; improving the capacity of any other operation in the business, other than the bottleneck, will NOT improve the efficiency of the system

bottleneck

B14: Which of the following is NOT an example of a BFOQ? a) hiring a man to model men's clothing b) requiring that an employee be a certain age to drive a bus c) requiring that only women be allowed to work as bartenders d) hiring employees at a call center that speak foreign language proficiently

c) Requiring that only women be allowed to work as bartenders

the upper limit or ceiling on the load that an operating unit can handle

capacity

B19: Which of the following is not a reason why capacity decisions are so important?

capacity affects organizations' image

Decision making errors that we are all prone to making & have been repeatedly verified in research. Managers with good information can still make bad decisions.

cognitive biases

the financial and nonfinancial rewards that organizations give employees in exchange for their work

compensation

the ability of an organization to produce goods or services more effectively than its competitors do, thereby outperforming them

competitive advantage

How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services

competitiveness

something that limits the performance of a process or system in achieving its goals

constraint

the ___ perspective of motivation focuses on the NEED that motivates people; it asks, "What causes motivation?" , whereas the ___ perspective of motivation is concerned with the THOUGHT PROCESSES by which people decide how to act; it asks, "How does motivation occur?"

content; process

The special attributes or abilities that give an organization a competitive edge

core competency

What is Walmart's strategy?

cost-leadership

Be able to calculate productivity growth

(current productivity-previous productivity/previous productivity) x 100 %

What are the problems with tall hierarchies?

***1. Information distortion by accident as it passes through layers in a hierarchy. ***2. Deliberate distortion by midlevel managers who are trying to gain favor or pursue some agenda of their own (influence costs). 3. They are expensive & can cause a competitive disadvantage 4. Opposition to change.

What are some examples of cognitive biases?

1) Availability bias 2) Representativeness bias 3) Confirmation bias 4) Sunk-cost bias 5) Anchoring and adjustment bias 6) Overconfidence bias 7) Hindsight bias 8) Framing bias 9) Escalation of commitment bias 10) Reasoning by analogy bias

Factors that influence whether a company will outsource or not

1) Available capacity 2) Expertise 3) Quality considerations 4) The nature of demand (when high and steady—the organization is better off doing the work itself) 5) Cost 6) Risks (loss of control, information and service considerations; OR reputation—Nike getting in trouble for child-labor conditions)

5 conflict-handling styles

1) Avoiding - "Maybe the problem will go away" 2) Accommodating - "Let's do it your way" 3) Competing/Forcing - "You have to do it my way" 4) Compromising - "Let's split the difference" 5) Collaborating - "Let's cooperate to reach a win-win solution that benefits both of us" *Collaborating is the BEST!

3 conditions for decisions

1) Certainty 2) Risk 3) Uncertainty

4 Types of Relationship-Oriented Leadership and impact on job satisfaction

1) Consideration 2) empowering leadership 3) ethical leadership 4) servant leadership

Factors that enhance capacity management

1) Design flexibility into systems 2) Take stage of life cycle into account 3) Take a "big-picture" approach (i.e., systems approach) to capacity changes 4) Prepare to deal with capacity "chunks" 5) Attempt to smooth capacity requirements 6) Identify the optimal operating level 7) Choose a strategy if expansion is involved

6 Steps in the Forecasting Process

1) Determine the purpose of the forecast 2) Establish a time horizon 3) Obtain, clean, and analyze appropriate data 4) Select a forecasting technique 5) Make the forecast 6) Monitor the forecast errors

4 motivational mechanisms of goal-setting

1) Directs your attention 2) Regulates the effort expended 3) Increases your persistence 4) Fosters use of strategic and action plans

key issues for operation managers today

1) Economic conditions 2) Innovating 3) Quality problems 4) Risk management 5) Competing in a global economy 6) Environmental issues/sustainability

8 Steps in Capacity Planning

1) Estimate future capacity requirements 2) Evaluate existing capacity and facilities; identify gaps 3) Identify alternatives for meeting requirements 4) Conduct financial analyses 5) Assess key qualitative issues 6)Select the best alternative for the long term 7) Implement alternative chosen 8) Monitor results

4 qualitative methods of judgmental forecasts

1) Executive opinions 2) Sales force opinions 3) Consumer surveys 4) Other approaches

What are the 3 major components of Expectancy Theory?

1) Expectancy- how likely is it that my efforts will lead to productivity? 2) instrumentality- how likely is it that my productivity will lead to reward 3) valence- how much do I want that reward?

What are the 2 types of rewards?

1) Extrinsic rewards- payoff a person receives from others for performing a particular task 2) Intrinsic rewards- satisfaction a person receives from performing the particular task itself

benefits of participating in decision making

1) Greater pool of knowledge 2) Different perspectives 3) Intellectual stimulation 4) Better understanding of decision rationale 5) Deeper commitment to the decision 6) more "polar" ideas 7) responsibility spread further

2 Factors in Herzberg's Two Factor Theory

1) Hygiene factors (compensation, job security) 2) Motivators (responsibility, job satisfaction)

What are the components of a job analysis?

1) Job Description- summarizes what the holder of the job does (duties, activities) and how (tools, equipment) and why he or she does it 2) Job Specification- describes the minimum qualifications a person must have to perform a job successfully

3 Types of Forecasts

1) Judgmental (qualitative) - uses subjective inputs like opininons 2)Associative models (quantitative) - uses explanatory variables to predict the future 3) Time series (quantitative) - uses historical data assuming the future will be like the past

5 sources of power for leaders

1) Legitimate power (managers' formal position) 2) Reward power (authority to reward subordinates) 3) Coercive power (authority to punish subordinates) 4) Expert power (their expertise) 5) Referent power (their personal attraction; people like you)

Benefits of time based strategies

1) Lower costs 2) higher quality 3) higher productivity 4) time-to-market is faster 5) customer service is improved

5 Factors that impact productivity

1) Methods 2) quality 3) management 4) technology 5) capital

6 Assumptions of a Cost-Volume Analysis

1) One product is involved 2) Everything produced can be sold 3) The variable cost per unit is the same regardless of volume 4) Fixed costs don't change with volume changes, or they are step changes 5) The revenue per unit is the same regardless of volume 6) Revenue per unit exceeds variable cost per unit

Areas where time reductions occur

1) Planning time 2) product/service design time 3) processing time 4) changeover time 5) delivery time 6) response time for complaints

What are some issues with the Trait perspective?

1) Some traits are "natural" while others can be developed over time 2) disagreement about which traits are important 3) !!!!!!NONE OF THE TRAITS CONSISTENTLY PREDICT EFFECTIVE LEADERSHIP!!!!!!!

reasons to use teams

1) Teams are generally more successful than individuals working alone 2) Team members can quickly share ideas and coordinate tasks. 3) Teams typically provide superior customer service. 4) Teams can help organizations to respond to specific problems and challenges.

Features common to all forecasts

1) Techniques assume some underlying causal system that existed in the past will persist into the future 2) Forecasts are not perfect 3) Forecasts for groups of items are more accurate than those for individual items 4) Forecast accuracy decreases as the forecasting horizon increases

What conditions cause groupthink?

1) The group is insulated from others who might have different perspectives. 2) The group leader begins by expressing strong preference for a particular decision. 3) The group has no established procedure for systematically defining problems and exploring alternatives. 4) Group members have similar backgrounds and experiences.

4 Sources of Forecast Errors

1) The model may be inadequate due to omission of an important variable, a change in the variable the model cannot handle, or the appearance of a new variable 2) Irregular variations may have occurred 3) The forecasting technique has been incorrectly applied 4) Random variation

issues in supply chain

1) The need to improve operations 2) Increasing levels of outsourcing 3) Increasing transportation costs 4) Competitive pressures 5) Increasing globalization 6) Increasing importance of e-business 7) The complexity of supply chains 8) The need to manage inventories

Evidence-based management turns principles (based on evidence) into into practice. What makes it hard to be evidence-based?

1) There's too much evidence 2) There's not enough good evidence 3) The evidence doesn't quite apply 4) People are trying to mislead you 5) You are trying to mislead you 6) The side effects outweigh the cure 7) Stories are more persuasive anyway

5 methods employees use to restore equity when under rewarded

1) They will reduce their inputs 2) They will try to change the outputs or rewards they receive 3) They will distort the inequity 4) They will change the object of comparison 5) They will leave the situation (quit)

4 reasons why team norms are followed

1) To help the group survive 2) To clarify role expectations 3) To help individuals avoid embarrassing situations 4) To emphasize group importance and identity

Factors that influence a quality-based strategy

1) Trying to overcome a poor quality reputation 2) Desire to maintain a quality image 3) A desire to catch up with the competition 4) A part of a cost reduction strategy

4 assumptions of simple linear regression

1) Variations around the line are random 2) Deviations around the average value (the line) should be normally distributed 3) Predictions are made only within the range of observed values 4) Assumes a linear relationship between predictor and outcome variables

5 types of teams

1) Work teams (permanent, committed) 2) Project teams (assembled to solve a particular problem) 3) Cross-functional teams (include members from different departments) 4) Self-managed teams (given administrative oversight for their task domains) 5) Virtual teams (communicate via electronic media, skype)

2 implications of behavioral approaches

1) a leader's behavior is more important than his or her traits. 2) there is not one best style of leadership. How effective a particular leadership behavior is depends on the situation at hand.

rational decision making model assumes managers have complete information, no uncertainty and unemotional analysis. In reality, limits to rational decision making include:

1) complexity 2) time and money constraints 3) imperfect info 4) info overload 5) different priorities 6) conflicting goals 7) different values, skills

2 schedules of reinforcement

1) continuous- consequence follows every instance of a behavior. 2) intermittent- consequence follows once a specified time has elapsed

How are managers and leaders similar?

1) create an agenda 2) develop a human network 3) execute plans 4) produce outcomes

2 aspects of forecasts

1) expected level of demand 2) accuracy

5 stages of team development

1) forming 2) storming 3) norming (harmony, unity, team goals) 4) performing 5) adjourning

4 stages of rational decision making

1) identify the problem or opportunity 2) think up alternative solutions 3) evaluate alternatives and select a solution 4) implement and evaluate the solution chosen

8 ways capacity decisions are strategic

1) impact the ability of the organization to meet future demands 2) affect operating costs 3) are a major determinant of initial cost 4) often involve long-term commitment of resources 5) can affect competitiveness 6) affect the ease of management 7) have become more important and complex due to globalization 8) need to be planned for in advance due to their consumption of financial and other resources

when does social loafing (exerting less effort when working in a group than working alone) occur?

1) in large groups where individual output is hard to identify 2) when people believe their contributions are not important 3) when people believe others will do the work for them 4) when people think their lack of effort will go undetected 5) when people think they will be the lone sucker if they work hard but others don't

what are some reasons why teams fail?

1) ineffective communication 2) Lack of effective chartering, visioning & goal setting 3) Lack of clarity about roles 4) Keeping morale and momentum high is difficult 5) Keeping productivity high is challenging 6) Lack of trust

List some sample Operations strategies

1) low cost 2) short processing times 3) on-time delivery 4) high performance design and/or high-quality processing 5) consistent quality 6) innovation 7) flexibility 8) volume 9) superior customer service 10) convenience

How are managers and leaders different?

1) managers plan; leaders establish direction 2) managers organize and staff; leaders align 3) managers control; leaders motivate and inspire 4) managers produce predictability and consistency; leaders produce change

3 innate needs of Self-Determination Theory

1) need of autonomy (self-determination) 2) need to show their competence 3) need to feel related

Why do some organizations fail?

1) neglecting operations strategy 2) Failing to take advantage of strengths and opportunities and/or failing to recognize competitive threats 3) Too much emphasis on short-term financial performance at the expense of R&D 4) Too much emphasis in product and service design and not enough on process design and improvement 5) Neglecting investments in capital and human resources 6) Failing to establish good internal communications and cooperation 7) Failing to consider customer wants and needs

3 components of organizational culture

1) observable artifact- physical manifestation of culture (visible) 2) espoused values- explicitly stated values and norms (invisible) 3) basic assumptions- core beliefs of the organization (invisible)

3 types of models

1) physical models (look like real-life) 2) schematic models (look less like) 3) mathematical models (don't look like)

2 uses of forecasts

1) plan the system (long-term plans like type of product to offer, equipment levels, facility location) 2) plan the use of the system (short-term plans like inventory management, workforce levels, purchasing, production, scheduling)

What are the 4 functions of management?

1) planning 2) organizing 3) controlling 4) leading

7 Elements to a GOOD forecast

1) should be timely 2) should be accurate 3) should be reliable 4) should be expressed in meaningful units 5) should be in writing 6) technique should be simple to understand and use 7) should be cost-effective

3 characteristics that substitute for leadership

1) subordinates (their abilities) 2) task (their routineness) 3) organization (its formalization)

pitfalls of group decision making

1) takes longer to make a decision 2) Few people dominate or intimidate 3) Satisficing - the "good enough" decision 4) Goal displacement - other issues may arise 5) Groupthink - agreeing for the sake of unanimity and thus avoid accurately assessing the decision situation

4 Categories of Behavioral Leadership

1) task-oriented (concerned about work) 2) relationship-oriented (concerned about ppl) 3) passive 4) transformational

3 Challenges to service capacity planning

1) the need to be near customers (example: hotels have to be where ppl want them) 2) the inability to store services (example: once the plane goes up, the unsold seat is wasted and can't be saved for later) 3) the degree of demand volatility (example: banks are busier on certain days of the week bc the time of demand for money to be withdrawn changes)

2 common features of a model

1) they are simplifications of real-life phenomena 2) they omit unimportant details of the real-life systems they mimic

4 Non-monetary ways to motivate employees

1) work-life benefits 2) ability to expand skills 3) well-being; positive work environment 4) finding meaning in work

2 main purposes of performance appraisal?

1. Administrative appraisals aid in making decisions about pay raises, promotions, and training and terminations; helps employees understand & accept these decisions. 2. Developmental appraisal provides feedback to employees to improve their performance, identify needed training and plan future careers.

4 Strategies to merge organizational cultures

1. Assimilation-acquired company willingly embraces acquiring firm's culture—rare but does occur when acquired company has a weak , dysfunctional culture. 2. De-culturation- acquiring firm imposes its culture on unwilling acquired firm. People who can't adapt are terminated. 3. Integration- combining two or more cultures into a new composite culture. It is a slow & risky process because many forces preserve existing culture. 4. Separation- merging companies remain distinct entities with minimal exchange of culture or organizational practices (when Amazon bought Zappos)

3 consequences of power

1. Commitment ("I'll do it bc I want to do it") 2. Compliance ("I'll do it bc I'm obligated to do it") 3. Resistance ("I'll do it bc I'm forced to do it")

2 Tools for identifying forecast errors/biases

1. Control charts 2. Tracking signals

What are the 3 functions of a strong culture?

1. Control system—operates like an auto pilot directing employees in ways that are consistent with organizational expectations. 2. Social *_____—it bonds people together & makes them feel part of the organizational experience. 3. Sense making—culture assists the ability of employees to understand what goes on and why things happen in a company—easier to understand expectations & interact with others.

4 adaptive strategies

1. Defenders- seek steady growth 2. Prospectors- seek fast growth 3. Analyzers- seek blend of 1 & 2 4. Reactors- dont follow a strategy

6 ways to improve productivity

1. Develop productivity measures for all operations 2. Determine critical (bottleneck) operations 3. Develop methods for productivity improvements 4. Establish reasonable goals 5. Make it clear that management supports and encourages productivity improvement 6. Measure and publicize improvements

3 Dark Side Traits

1. Narcissism (self-centered) 2. Machiavellianism (manipulative) 3. Psychopathy (no emotions)

10 ways businesses compete using operations

1. Product and service design 2. Cost 3. Location 4. Quality 5. Quick response 6. Flexibility 7. Inventory management 8. Supply chain management 9. Service 10. Managers and workers

What are the two types of sexual harassment?

1. Quid pro quo: jeopardizes being hired or obtaining job benefits or opportunities unless he or she implicitly or explicitly submits 2. Hostile environment: doesn't risk economic harm but experiences an offensive or intimidating work environment

What is the difference between shared, espoused, and enacted values?

1. Shared values: values that people within the organization or work unit have in common and place near the top of their hierarchy of values (part of culture) 2. Espoused values: values people say they use & in many cases, think they use even if they don't 3. Enacted values: values people actually rely on to guide their directions & actions.

types of artifacts (observable symbols)?

1. Stories and legends 2. Rituals and ceremonies 3. Language 4. Physical structure and decor (Ewing Oil Company's picture of founder on their wall)

Porters 5 forces of the competitive environment

1. Threat of entry 2. Bargaining Power of suppliers 3. Bargaining Power of buyers 4. Threat of substitutes 5. Rivalry among existing competitors

5 ways that time series behave

1. Trend 2. Cycles 3. Seasonality 4. Irregular variations 5. random variation

4 approaches to deciding ethical dilemmas?

1. Utilitarian Approach (greatest good for greatest # of ppl) 2. Individual Approach (individuals best long-term interest) 3. Moral-Rights Approach (guided by humans rights ie Bill of Rights) 4. Justice Approach (fairness)

types of selection tests?

1. ability test 2. performance (skills) test 3. personality test 4. integrity test

4 forms of discrimination

1. age discrimination 2. gender discrimination 3. racial or ethnic discrimination 4. disability discrimination

5 phases of a training process?

1. assessment (is training needed?) 2. objectives (what should training achieve?) 3. selection (which training methods should be used?) 4. implementation (how should training be affected?) 5. evaluation (is the training working?)

2 components of vertical differentiation (the location of decision-making responsibilities within a structure)?

1. authority 2. heirarchy

2 command issues

1. chain of command (line of authority that clarifies who reports to whom) 2. unity of command (workers should report to just one boss; prevents confusion)

4 types of culture in the Competing Values Framework

1. clan culture -has an internal focus & values flexibility rather than stability; NFL team collaborates 2. adhocracy culture- has an external focus & values flexibility; Facebook creates 3. market culture- focused on the external environment & values stability, rewards and control; Walmart competes 4. hierarchy culture- has an internal focus & values stability and control over flexibility; Investment Company is formal

3 functions of the leader according to Path-Goal Theory

1. clearing the confusion 2. clarifying the behavior 3. making desirable rewards available

2 methods to deal with uncertainty?

1. collecting information 2. exerting control on the environment

Dimensions of authority

1. command 2. delegation 3. degree of centralization

Porters 4 competitive strategies

1. cost-leadership strategy (big market) 2. cost-focus strategy (narrow market) 3. differentiation strategy (big market) 4. focused-differentiation strategy (narrow market)

what are the 3 elements of Environmental Uncertainty?

1. environmental complexity 2. resource scarcity 3. changing environments

3 internally motivating psychological states in the JCM

1. experienced meaningfulness of work 2. experienced responsibility for work outcomes 3. knowledge of actual results of the work

what are 2 aspects of superior performance?

1. high profitability 2. growth in profits over time

3 types of managerial roles

1. interpersonal roles 2. informational roles 3. decisional roles

4 methods to overcome discrimination

1. mentorship 2. internal liaison 3. gather and examine data 4. actively work to find jobs for qualified workers

what does the triple bottom line represent?

1. people (social) 2. profit (financial) 3. planet (environmental)

3 broad steps in the HRM process?

1. plan and attract an effective workforce 2. develop an effective workforce 3. maintain an effective workforce

3 reasons why planning and strategic management are important?

1. providing direction and momentum 2. encouraging new ideas 3. developing a sustainable competitive advantage

3 errors in performance evaluation

1. recency error (boss bases judgement of Jimmy on Jimmy's most recent performance) 2. leniency and strictness error (boss is too easy, too strict, or rates all employees as "average") 3. halo error (boss rates Jimmy as good at everything just because he's good at one thing)

4 aspects of sustainable competitive advantage?

1. responsiveness to customers 2. innovation 3. quality 4. effectiveness

3 types of values in an organization?

1. shared values 2. espoused values (values ppl say they use, but they dont really ie Hummer ¨Save the Planet¨ bumper stickers) 3. enacted values

5 core characteristics of jobs that can be redesigned according to the Job Characteristics Model (JCM)

1. skill variety 2. task identity 3. task significance 4. autonomy 5. feedback

2 types of hierarchies?

1. tall hierarchies (organizations with many layers of management and narrow spans of control) 2. short hierarchies (organizations with few layers of management and wide spans of control)

4 sources of process variation

1. variety of goods or services being offered 2. structural variation in demand (predictable) 3. random variation (natural) 4. assignable variation (reducible)

List some methods to change or strengthen a culture

1.Formal statements: mission, vision, values 2.Language, slogans, sayings, and acronyms 3.Rites and rituals 4.Stories, legends, and myths 5.Managerial responses to critical incidents 6.Role modeling, training, and coaching 7.Through physical design (align the artifacts of the culture with the values of the culture) 8.With rewards, titles, promotions, and bonuses 9. Establishing goals and performance criteria 10. Through measurable and controllable activities 11. By changing organizational structure 12. Using organizational systems and procedures 13.Hire people with values and beliefs consistent with desired culture

B18: Given forecast errors of -5, -10, and +15, the MAD is:

10 (bc 5+10+15= 30/3= 10)

B11: In an assembly operation at a furniture factory, six employees assembled an average of 450 standard chairs per five-day week. What is the labor productivity of this operation?

15 chairs/worker/day

After World War II, the US produced 8 times the quantity of Japan. In what year did production of Japan exceed that of the US?

1980

1. Issue of Process Control • Are the variations random? If nonrandom variation is present, the process is said to be unstable. 2. Issue of Process Capability • Given a stable process, is the inherent variability of the process within a range that conforms to performance criteria?

2 basic questions of process variations?

1) degree of customer contact 2) degree of customization

2 factors that impact service layout requirements

1. Periodic System - Physical count of items in inventory made at periodic intervals 2. Perpetual Inventory System - continuously keeps track of removals from inventory, thus monitoring current levels of each item

2 inventory counting systems

1. achieve satisfactory level of customer service 2. keep costs of ordering and carrying inventories reasonable

2 objectives of inventory control

B24: The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new variety of rosebush, which she could then sell for $6 each. Per-unit variable cost would be $3. How many rosebushes would she have to produce and sell in order to break even?

2,000 How? Q= FC/ R-v Q= $6,000/ ($6-$3)

B31: Andy is determined to complete anger management training quickly by using name repetition, "personality mirroring", and positive reinforcement through nods and smiles. What basic influence tactic is Andy using?

Ingratiation

2 Types of Task-Oriented Leadership

Initiating-structure leadership- organizes and defines what employees should be doing to maximize output; affects subordinates' job performance Transactional leadership- provides rewards and punishments based on performance (give and take)

list pros of planning

Intensified effort Persistence Direction Creation of task strategies Provides direction & purpose Helps to allocate resources Helps budgeting processes Assigns roles & responsibilities Provides _______ over the organization

the conditions and forces within an organization

Internal environment

making a choice based on a hunch without the use of conscious thought or logical inference. Decisions stem from: expertise (your knowledge) and automated experience (your involuntary emotional response)

Intuition model

safety stock

Inventory held to reduce the probability of a stockout is called safety stock

B22: Everything else being equal, a firm considering outsourcing can be reasonably certain that:

Its supplier probably has more expertise in whatever is being outsourced

the division of an organization's work among its employees and the application of motivational theories to jobs to increase satisfaction and performance

Job Design

The ability to influence employees to voluntarily pursue organizational goals

Leadership

What is the difference between long- and short-term forecasting capacity requirements?

Long-term forecasting would be used to figure out overall capacity needs (like facility size). It requires forecasting demand over a time horizon and converting those needs into capacity requirements, whereas short-term forecasting capacity is less concerned with cycles and trends and more concerned with seasonal variations in demand

weights all errors evenly

MAD (Mean Absolute Deviation)

What are the three metrics use to measure forecast accuracy?

MAD, MSE, MAPE

weights errors according to relative error

MAPE (Mean Absolute Percent Error)

B14: Which of the following is NOT a forecast accuracy metric?

MAR

weights errors according to their squared values

MSE (Mean Squared Error)

How to calculate an Exponential Smoothing Forecast

MSU uses exponential smoothing to forecast attendance at home football games each month. September attendance was forecasted to be 80% of capacity of Davis Wade; actual attendance was 86.6% of capacity. A smoothing constant of .25 is used. .80 + .25(.866-.80)= 81.65%

automation

Machinery that has sensing and control devices that enable it to operate automatically

____ is the pursuit of organizational goals efficiently and effectively by integrating the work of people through planning, organizing, leading, and controlling the organization's resources

Management

B6: Which of the following is NOT an advantage of a divisional structure?

Managers focus on their division to the exclusion of the rest of the organization

According to ___, there are 3 needs that motivate people's behavior in the workplace.

McClelland's Acquired Needs Theory

What is the difference between mechanistic and organic organizations?

Mechanistic organizations are more centralized, strict, specialized tasks, formal, few teams, have narrow span of control. Organic organizations are more decentralized, few rules, shared tasks, informal, many teams, and have wide span of control

An abstraction of reality; a simplification of something

Model

What is the importance of using a common forecast?

Most forecasts involve decisions that have consequences in other areas—so all affected areas need to agree on a common forecast.

represents the forces within a person that affect his or her DIRECTION, INTENSITY, and PERSISTENCE of voluntary behavior.

Motivation

According to the MARS model, M+A+R+S= job performance. M stands for ___ and means ___

Motivation; effort, the degree to which someone works hard to do the job well.

Anxious, irritable, aggressive, temperamental, and moody.

Neuroticism

-problem is novel, unstructured with much uncertainty regarding cause and effect -decision procedure needs creativity, intuition, tolerance, for ambiguity, creative problem solving

Non-programmed decisions

assumes that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal decisions

Non-rational decision making (includes using satisficing and intuition)

How do you calculate processing requirements?

Nr= the sum of [p(D)] divided by T Nr= number of required machines p= standard processing time D= demand T= processing time available A single machine can be used 8 hours a day for 250 days of the year. How many machines would be needed to handle the required volume of 5,800 hours? 8 hr/day X 250 days/ yr= 2,000 hr/yr. 5,800 hours/2,000 hrs per machine= 2.90 machines. ALWAYS ROUND UP 3 machines required

Which part of the Big 5 Personality test tells whether you are curious, original, intellectual, creative, and open to new ideas?

Openness

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

Operations Management

___ are characteristics that customers perceive as minimum standards of acceptability for a product or service to be considered as a potential for purchase whereas ___ are characteristics of an organization's goods or services that cause it to be perceived as better than the competition

Order Qualifiers and Order Winners

1. Variety - How much variety will the process need to be able to handle? 2. Equipment Flexibility - To what degree is it needed? 3. Volume - How much volume will the process need to be able to handle?

3 Key questions in process selection

1) Assign tasks with no predecessors (or where proceeding tasks have already been assigned). 2) Assign tasks in order of most following tasks (If Task A has 6 following tasks, but Task B only has 2 tasks that follow it, assign Task A first) 3) Assign tasks in order of greatest positional weight (longest processing time). (If B takes me the longest, I want to go ahead and get it done as early as possible).

3 Rules (Heuristics) for Line Balancing

1. The average demand rate and average lead time 2. Demand and lead time variability 3. The desired service level

3 factors that influence amount of safety stock

1. Appraisal Costs 2. Prevention Costs 3. Failure Costs

3 forms of costs related to quality

1. Costs 2. Productivity 3. Competitiveness

3 impacts of process technology

1. Brainstorming 2. Quality circles 3. Benchmarking

3 methods of idea generation

1) Establishment of clear standards of performance 2) Comparing performance to those standards 3) Taking corrective action to repair performance deficiencies

3 steps in a generalized control process

1) Fixed automation—least flexible & used for high volume 2) Programmable automation—may be used for batches 3) Flexible automation—more customizable & requires less changeover time

3 varieties of automation

1. Excellence 2. Value (this is a customer perspective) 3. Conformance to specifications

3 ways to measure quality

Employees are appraised not only by their managerial superiors but also by peers, subordinates, and sometimes clients

360 degree performance review

In 1913, Ford's turnover rate skyrocketed to ___ bc workers were fed up with harsh working conditions

380%

1) product layouts 2) process layouts 3) fixed-position layouts 4) combination layouts

4 Basic Layout Types

1) record keeping 2) Variation reduction 3) lean operations 4) Supply chain management

4 areas that can lead to better inventory processes

1) Job shop: Small scale; customizable; craft (ex: vet care) 2) Batch: Moderate volume of related items. (ex: bakery) 3) Repetitive/assembly line: High volumes of standardized goods or services (ex: chocolate candies) 4) Continuous: Very high volumes of non-discrete goods (ex: electricity)

4 basic process types

1. Purchase Cost 2. Holding (Carrying) Cost 3. Ordering Cost 4. Shortage Cost

4 categories of inventory costs

1. Quality of design 2. Quality of conformance 3. Ease-of-Use and user instructions 4. After-the-sale service

4 determinants of quality

1. The rate of demand (usually based on a forecast) 2. The lead time 3. The extent of demand and/or lead time variability 4. The degree of stock out risk acceptable to management

4 factors that determine ROP

1. Directive 2. Analytical 3. Conceptual 4. Behavioral

4 general decision making styles

1. How much to inspect and how often? 2. At what points in the process should we inspect? 3. Should we inspect in a centralized or on-site location? 4. Should we inspect attributes or variables?

4 questions related to inspection issues

What percent of the of the world's goods were produced in the US by the late 1920's?

43%

1. Simplify—eliminate steps, reduce the number of parts, use modular design 2. Standardize—use standard parts, standard procedures 3. Made mistake-proof—design parts that can only be assembled the correct way; have simple checks to verify a procedure has been performed correctly 4. Upgrade equipment—replace worn out equipment; take advantage of technological improvements. 5. Automate—substitute automated processing for manual processing.

5 methods for improving process capability

1. Prevent crisis 2. Standardize outputs 3. Appraise employee performance 4. Update plans 5. Protect the organization's assets

5 reasons for control

B21: Determine the number of machines needed given the following capacity information for creating robots: It takes 1.2 hours to complete each robot 1500 robots are in demand per year Machines are available for 4 hour daily shifts 80 days per year

6 How? 4 hr/day X 80 days/year= 320 hr/year 1.2 hr/robot X 1500 robots= 1800 hours 1800 hr/ 320 hr/year= 5.625 machines

1. Define 2. Measure 3. Compare 4. Evaluate reasons for deviation 5. Correct 6. Monitor

6 Steps in a statistical control process

B20: Given the following information, what would efficiency be? Effective capacity = 80 units per day Design capacity = 100 units per day Utilization = 48%

60% How? Utilization= actual/ design actual/ 100= 48%, so actual= 48%(100)= 48 Efficiency= actual/ effective 48/80= .60

B17: For the trend data given below, what would the naive forecast be for period 5? 1) 58 2) 59 3) 60 4) 61 5) ?

62 (If it weren't trend data, the naive forecast would be 61)

Ford's River Rouge Plant in Michigan was impressive because it used ___ workers and ___ miles of conveyors

75,000 workers 30 miles of conveyors

1. To meet anticipated customer demand 2. To smooth production requirements 3. To decouple operations like bottlenecks 4. To protect against stock outs-safety stock 5. To take advantage of order cycles 6. To hedge against price increases 7. To permit operations--WIP 8. To take advantage of quantity discounts - Sam's Club

8 functions of inventory

B9: Which of the following is NOT an element of authority? a) delegation b) command c) centralization d) division

d) division

B21: Which of the following is NOT a method that organizations can use to overcome discrimination? a) mentorships b) provide an internal liason c) gather and examine data d) passively work to find jobs for qualified people

d) passively work to find jobs for qualified people

___ is a situational approach where you determine the effectiveness of leader by whether the leader clears the confusion, clarifies the behavior, and makes rewards desirable.

Path-goal leadership style

Examples of Incentive Compensation ($) Plans

Pay for performance Piece rate Sales commission Bonuses Profit-sharing (get a share if you create profits) Gainsharing (get a share if you save costs) Stock options Pay for knowledge

the relatively stable set of behaviors, attitudes, and emotions displayed over time that makes people different from each other

Personality

PDSA cycle

Plan-Do-Study-Act (PDSA) Cycle is the conceptual basis for problem solving activities

___ attempts to explain leadership effectiveness in terms of the amount of power (legitimate, expert, reward etc) possessed by a leader

Power and Influence Approach

a measure of the effective use of resources, usually expressed as the ratio of output to input

Productivity

Six Sigma; conceptually

Program designed to reduce defects or variation

What is the difference bw proximal goals and distal goals?

Proximal goals are short-term goals or subgoals. They are often more motivating than waiting to achieve far-off distal goals. Distal- long-term or primary goals.

How do you calculate the volume needed to make a certain profit x?

Q= (FC + desired profit) / (R-v)

How do you calculate the volume needed to breakeven?

Qbe= FC/ (R-v)

___forecasting approaches use soft information (human factors, personal opinions, and hunches) that is difficult to quantify, whereas ___ forecasting approaches rely on hard data (historical data, causal variables)

Qualitative Quantitative

TQM (Total Quality Management)

A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction

quality control

A process that evaluates output relative to a standard and takes corrective action when output doesn't meet standards

inventory

A stock or store of goods; independent demand items

Point of Sale (POS) systems

A system that electronically records actual sales. Such demand information is very useful for enhancing forecasting and inventory management and helps to make restocking decisions UPC codes usually used

sampling disitribution

A theoretical distribution that describes the random variability of sample statistics

control chart

A time ordered plot of representative sample statistics obtained from an ongoing process (e.g. sample means), used to distinguish between random and nonrandom variability

According to the MARS model, M+A+R+S= job performance. A stands for ___ and means ___

Ability; the degree to which workers possess the knowledge, skills, and talent needed to do a job well

ad: 1) Can handle a variety of processing requirements 2) Not particularly vulnerable to equipment failures 3) General-purpose equipment is often less costly and easier to maintain 4) It is possible to use individual incentive systems Disad: 1) In-process inventories can be high 2) Routing and scheduling pose continual challenges 3) Equipment utilization rates are low 4) Material handling is slow and inefficient 5) Reduced spans of supervision 6) Special attention necessary for each product or customer 7) Accounting, inventory control, and purchasing are more involved

Advantages & disadvantages of process layouts?

ad: 1) High rate of output 2) Low unit cost 3) Labor specialization 4) Low material handling cost per unit 5) High utilization of labor and equipment 6) Established routing and scheduling 7) Routine accounting, purchasing, and inventory control disad: 1) Creates dull, repetitive jobs 2) Poorly skilled workers may not maintain equipment or quality of output 3) Fairly inflexible to changes in volume or product or process design 4) Highly susceptible to shutdowns 5) Preventive maintenance, capacity for quick repair and spare-parts inventories are necessary expenses 6) Individual incentive plans are impractical

Advantages & disadvantages of product layouts?

a measurement of the percentage of variability in the values of y that is "explained" by the independent variable

R2 (ranges bw 0 and 1; The higher the R-square the stronger the relationship bw cost and volume)

process selection

Refers to deciding on the way production of goods or services will be organized

Suggests that behavior with positive consequences tends to be repeated, whereas behavior with negative consequences tends not to be repeated

Reinforcement Theory

What is the importance and differences between reliability and validity?

Reliability and validity are validation measures to determine how well a selection test predicts future job performance. Reliability—consistency of test scores Validity—accuracy of the selection test

What are the advantages and disadvantages of Matrix structures?

Advantages: 1) Enhances organizational *_________. 2) Fosters high motivation and increased organizational commitment. 3) Provide opportunity for team members to learn new skills. 4) Makes efficient use of human resources. 5) Allows team members to serve as bridges to their departments. 6) Is a useful vehicle for decentralization. Disadvantages: 1) Employees are uncertain about reporting relationships. 2) Managers may view design as an anarchy in which they have unlimited freedom. 3) The dynamics of group behavior may lead to slower decision making, one-person domination, compromise decisions, or a loss of focus. 4) More time may be required for coordinating task-related activities.

Advantages and disadvantages of centralization?

Advantages: 1. Facilitates coordination 2. Ensures decisions are consistent with organizational objectives 3. Avoids duplication of activities by different subunits 4. Can give top level managers the means to bring about needed major organizational changes. 5. Temporary centralization of decision making power is often an important step in organizational change. Disadvantages: 1. employees feel too controlled and less flexible

A strategic approach for competitive advantage that emphasizes the use of flexibility to adapt and prosper in an environment of change

Agile Operations

affable, tolerant, sensitive, trusting, kind, and warm

Agreeableness

inspection

An appraisal activity that compares goods or services to a standard

benchmarking

An approach that measures an organization's performance against the best in the industry

1. Only one product is involved 2. Annual demand requirements are known 3. Demand is spread evenly throughout the year so that the demand rate is reasonably constant. 4. Lead time is known and constant 5. Each order is received in a single delivery 6. There are no quantity discounts

Assumptions of Basic EOQ Model

coercive control

B10: Which of the following is NOT a control method?

Central Limit Theorem

B11: The _______ states that the distribution of sample averages tends to be normal regardless of the shape of the process distribution.

.21 (Be able to look at a chart and go to number of observations (16), then look at the factor to the right of it (.21))

B12: If you were preparing a mean control chart using range values and a sample size of 16, what control chart factor would you utilize in your calculations?

2.75 (Be able to look at a Z-value Chart and combine the column value (2.7) and the row value (.05) to get 2.75)

B13: What is the appropriate z value that corresponds to 99.7% of the area under the normal distribution curve?

small scale and flexible; large-scale and inflexible

B1: Job shops tend to be __________ while continuous processes tend to be __________?

47%

B2: According to the CBS news video we watched, what percentage of jobs will be replaced by automation in the next 20 years?

produce

B3: What is the first thing that supermarkets present to customers when they enter the store?

fixed-position

B4: If you were an operations manager in charge of constructing the new Dudy-Noble baseball stadium which type of layout would most likely be used?

price

B5: Which of the following is NOT a dimension of either product or service quality? a) performance b) reliability c) price d) responsiveness

decreased productivity

B6: Which of the following is NOT a benefit of improved quality? a) higher profits b) greater customer loyalty c) increased market share d) decreased productivity

Total Quality Management

B7: TQM stands for:

brainstorming

B8: A quality improvement technique that involves the sharing of thoughts and ideas in a way that encourages unrestrained collective thinking is:

monitor every activity of employees on an assembly line

B9: Which of these is NOT a reason to practice control? a) Prevent crises b) Standardize outputs c) Monitor every activity of employees on an assembly line d) Protect the organization's assets

an exception in employment law that permits gender, age and religion to be used when making employment decisions, but only if they are "reasonably necessary to the normal operation of that particular business."

BFOQ (Bona Fide Occupational Qualification)

A top-down management system that organizations can use to clarify their vision and strategy and transform them into action

Balanced Scorecard

the volume of output at which total cost and total revenue are equal

Break Even Point

Six Sigma

Business quality process for improving quality, reducing costs, increasing customer satisfaction

extra capacity used to offset demand uncertainty

Capacity Cushion Capacity cushion = Capacity - expected demand

ABC Classification System

Classifying inventory according to some measure of importance (usually $ value * usage rate), and allocating control efforts accordingly A items (very important) B items (moderately important) C items (least important)

According to the MARS model, M+A+R+S= job performance. R stands for ___ and means ___

Role perceptions; the degree of understanding of the specifics, importance & preferred behaviors to achieve the task.

characteristics of SMART goals?

S- specific M- measurable A- attainable R- results-oriented (relevant) T- target dates (timely)

List the components of a SWOT analysis

S= strengths W= weaknesses O= opportunities T= threats

when managers seek a satisfactory option rather than spending more time and effort to find the optimal option, they are

Satisficing

According to the MARS model, M+A+R+S= job performance. S stands for ___ and means ___

Situational constraints; factors beyond the control of individual employees, such as tools, policies, and resources that have an effect on job performance.

In terms of integrating an organization, ___ has to do with establishing common routines and procedures that apply uniformly to everyone (standards for types of computer equipment the organization will use), whereas ___ has to do with the presence of rules and regulations governing how people in the organization interact (written policies regarding attendance and dress).

Standardization; formalization

What are the 2 types of interviews, and which is best?

Structured and unstructured interviews; structured is best because you ask all applicants the same set of questions and compare their responses to a standardized set of answers

organized, systematic, punctual, achievement oriented, and dependable

Conscientiousness

___ is a situational approach where you determine the effectiveness of a leader by whether a leader's style (task-oriented or relationship-oriented) is best suited for the situation at hand. How? By using the Least Preferred Coworker Scale.

Contingency leadership style

Emphasizes that a manager's approach should vary according to the individual and the environmental situation; the best theory depends on the kinds of problems at hand

Contingency management

B12: Which of the following is not a key step toward improving productivity?

Converting bond debt to stock ownership

measures the direction and strength of the linear relationship between two quantitative variables

Correlation (r) (ranges bw -1 and +1)

Focuses on the relationship between cost, revenue, and volume of output

Cost-Volume Analysis

___ leaders are good at seeing things as they are & facing them head-on, making no excuses and harboring no wishful illusions, saying what needs to be said to those who need to hear it, and persisting despite resistance criticism, abuse & setbacks

Courageous

attributes COUNT the number of occurrences. Yes/No inspection. Discrete measurement. Statistic is proportion (ex: # of defective hamburgers) Variables MEASURE the characteristic. continuous measurement. Statistic is mean. (ex: weight of hamburger)

Difference between attributes and variables?

1. Centralized—take product to centralized testing facility (lab) 2. On-Site—examine quality on the spot. Sometimes done by self-inspections. (TQM and Lean Manufacturing are done on-site and enable quality at the source)

Difference between centralized inspection and on-site inspection

employees from protected groups are intentionally treated differently

Disparate Treatment

___ exists in an organization when there are a variety of demographic, cultural, and personal differences among employees and customers, whereas ___ refers to purposeful steps taken by an organization to create employment opportunities for minorities and women

Diversity; affirmative action

What are the Do's and "Don'ts during a termination interview?

Do's: 1. Sit down one-on-one with the individual in a private office 2. Complete a termination session within 15 minutes 3. Be sure the employee hears about his or her termination from a manager, not a colleague Dont's: 1. Leave room for confusion when firing 2. Allow time for debate during a termination session 3. Make personal comments when firing someone 4. Rush a fired employee offsite unless security is an issue

achieving results, making the right decisions, and successfully carrying them out so that they achieve the organizations goals *doing the right things

Effectiveness

actual output/effective capacity

Efficiency

using resources (people, money, raw materials) wisely and cost effectively *doing things right

Efficiency

What is the difference between productivity and efficiency?

Efficiency is a narrower concept that looks at getting the most of a fixed set of resources...productivity is a broader concept that pertains to effective use of overall resources

What was the outcome of the Hawthorne Studies, which studied early behavioralism through illumination and relay assembly tests?

Employees knew they were being studied, and this made them work harder if they received added attention, and thought that managers cared about their welfare and that supervisors paid special attention to them.

Enabling workers to set own work goals, make decisions, and solve problems within their sphere of influence.

Empowerment

1. Raw materials and purchased parts 2. Work-in-process (WIP) 3. Finished goods inventories or merchandise 4. Tools and supplies 5. Maintenance and repairs (MRO) inventory 6. Goods-in-transit to warehouses or customers (pipeline inventory)

Examples of inventory types

the theory that people will be motivated by how much they want something and how likely they think they are to get it

Expectancy Theory

1 of 4 reinforcement contingencies aimed at decreasing a behavior by ignoring it or making sure it is not reinforced

Extinction

outgoing, talkative, sociable, and enjoys being in social situations

Extraversion

How to calculate a naïve forecast

For trend data: forecast follows the same pattern as the previous values For non-trend data: forecast= previous value

statement about the future value of a variable of interest

Forecast

who conducted MOTION STUDIES and applied them to work processes (e.g., bricklaying) to eliminate motions and reducing fatigue?

Frank and Lillian Gilbreth

who pioneered scientific management, which emphasized the scientific study of work methods to improve the productivity of individual workers?

Fred Taylor (He said, "Hardly a competent workman can be found...")

What is the difference between functional and divisional structures?

Functional structures put people with the same occupational specialities together. (ex: Marking Dep, Finance Dep, HR Dep). This results in plantwide inspection department. Divisional structures put people with different occupational specialities together based on customer, product, or geographic region (North region, South region etc). This results in each product group doing its own inspection.

What is the difference between functional and dysfunctional turnover?

Functional turnover is the when bad workers choose to leave; this gives the organization a chance to replace poor performers with better workers. Dysfunctional turnover is the loss of high performers who choose to leave

How did GM "beat" Ford, even though Ford was far more efficient in its production of the Model T?

GM offered more variety(colors and styles) and had different plants to produce more cars.

B30: In Earl's department at Pencilchicken, Inc. employees get money based on how much the department has been able to save in costs. This is an example of a ___ compensation plan.

Gainsharing

a theory that contends that decisions in organizations are random and unsystematic—problems, solutions, participants, and choice opportunities are floating around randomly—if they happen to connect, a decision is made

Garbage Can Model

the theory that people will be motivated by specific, challenging goals and by receiving feedback that indicates their progress toward goal achievement

Goal Setting Theory

quality circles

Groups of workers who meet to discuss ways of improving products or processes (Less structured and more informal than teams involved in continuous improvement)

Six Sigma; statistically

Having no more than 3.4 defects per million opportunities in any process, product or service

d= 2/day LT= 7 days ROP= 2 X 7= 14 pills

Henry takes two-a-day vitamins, which are delivered to his home by a service seven days after an order is placed. When should Henry reorder his pills?

mental rules of thumb/short-cuts used to make speedy decisions by simplifying the process; used to satisfice

Heurisitics

Reasons why productivity matters

High productivity is linked to higher standards of living; also leads to competitive advantage in the marketplace

ROP= d X LT where d= demand rate (units/ period) LT= lead time

How do you calculate ROP when demand is certainty?

Balance delay is a percentage of idle time (idle time per cycle)/ (# of stations X CT) X 100

How do you calculate balance delay?

go to slide 41 in Ch 10 powerpoint

How do you calculate control limits when only the range is known?

Cycle time= (Operating time per day) / (Desired output rate) Output rate= (Operating time per day) / (Cycle Time)

How do you calculate cycle time? How do you calculate output rate?

100% - Balance Delay

How do you calculate efficiency?

Nmin= sum of task times / CT ALWAYS ROUND UP! You can't have 3.6 of a workstation

How do you calculate minimum number of workstations needed for line balancing?

q= order quantity H= holding cost per unit D= demand S= ordering cost per order

How do you calculate total inventory costs?

Mean control charts are used to monitor the central tendency of a process using "x- bar" charts based on a normal distribution Can be constructed in 2 ways depending on if standard deviation or range is known

How do you use a mean control chart?

A diagram that shows elemental tasks and their precedence requirements. aka: it is a diagram read left to right showing you what task has to be done before another task can be started

How does a precedence diagram work?

cycle time establishes the OUTPUT RATE of a line; line capacity is a function of cycle time (ie if cycle time=2 min, units will come off of the line at a rate of 1 every 2 min)

How is cycle time used in line balancing?

consists of the activities managers perform to plan for, attract, develop, and retain an effective workforce

Human Resource Management

B4: Which of the following best describes the technique that Michael Scott used to merge the cultures of Dunder-Mifflin Scranton and Stamford?

de-culturation

Using information to make decisions to solve problems or take advantage of opportunities and being an entrepreneur, disturbance handler, resource allocator and negotiator are examples and duties of ___ role of managers

decisonal

economies of scale says that if output rate is less than the optimal level, increasing the output rate results in _________ average per unit costs

decreasing

consists of differences that are communicated through verbal and nonverbal behaviors and are recognized only through extended interaction

deep-level diversity

assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible.

delegation of authority

___ is the maximum output rate or service capacity an operation, process, or facility is designed for, whereas ___ is design capacity minus allowances such as personal time, maintenance, and scrap

design capacity effective capacity

*What are the dimensions of designing structure?

differentiation (dividing organization into subunits), integration (differentiated subunits working together), and departmentalization (process of grouping jobs)

B23: If the output rate is increased but the average unit costs also increases, we are experiencing:

diseconomies of scale

B1: Which of the following is NOT a characteristic of service operations?

easy measurement of productivity

B11: Which of these is NOT a condition where social loafing on a team less likely to occur?

effective communication exists between team members (Why? bc you can have great communication and still socially loaf)

___ may exist offering a host of opportunities for advancement, rewards for creativity, and productivity, but ___ may prevail that punishes change advocates, rewards only those who promote the status quo & inhibit productivity.

enlightened meritocracy inert bureaucracy

The Equity/Justice Theory is a model of motivation that explains how people strive for fairness in social exchanges. If ___ is perceived, they are satisfied and wont change their behavior. If ___ is perceived, they are dissatisfied and will change their behavior.

equity; inequity

According to Maslow's Hierarchy of Needs, bonuses, promotions and rewards are what kind of need?

esteem

using power to serve, and letting your followers establish the vision are examples of ___ charismatic behaviors, whereas using power to manipulate and having inflated egos are examples of ___ charismatic behaviors.

ethical; unethical

B4: Which of the following is NOT a condition for making decisions?

flexibility

the ___ strategy builds capacity when demand exceeds current capacity

following capacity

How to calculate a Moving Average Forecast

for a 4-year moving average, add the values of the previous 4 units then divide by 4

B13: Which of the following is not a feature common to all forecasts?

forecasts are perfect

B7: XYZ Hospital has a chief of medical services, a director of administrative services, and a director of outpatient services. XYZ has a ___________ structure.

functional

___ benefits the main purposes of the organization and serves its interests, whereas ___ hinders the organization's performance or threatens its interest

functional conflict; dysfunctional conflict

B20: Over the past year, George has been a disruptive influence on his coworkers at Play Now and has limited his team's ability to achieve its objectives. Recently, George informed his boss that he had taken a position at a new organization. Which of the following terms best describes his separation from Play Now?

functional turnover

B6: What form of decision making BEST describes what Michael Scott is using to choose the person to fire?

garbage can model

is a set of broad dimensions and forces in an organization's surroundings that determine its overall context

general environment

an invisible barrier that makes it difficult for minorities and women to be promoted beyond a certain level in the organization

glass ceiling

___ are physical items, whereas ___ are activities that provide some combination of time, location, form or psychological value

goods services

Manufacturing companies differ from service companies in that manufacturing companies are ___-oriented, while service companies are ___-oriented

goods-oriented act-oriented

B17: Which of the following selection methods would be difficult to argue has both reliability AND validity?

handwriting analysis (because handwriting doesn't consistently and accurately assess whether or not someone is capable/smart)

B24: Pat prefers working alone, is comfortable taking moderate risks, and feels good when accomplishing a goal. Pat probably has a

high need for achievement

When analyzing the "W" in SWOT analysis, Roberta, the manager might be assessing:

high turnover of employees

B22:Todd Packer is constantly telling off-color jokes and using profanity in front of his coworker Phyllis. This situation could be considered a(n)

hostile work environment

the economic or productive potential of employee knowledge, experience, and actions

human capital

diseconomies of scale says that if the output rate is more than the optimal level, increasing the output rate results in __________ average per unit costs

increasing

receiving and communicating information and being a monitor, disseminator, and spokesperson are examples and duties of ___ role of managers

informational

B27: Last year, Diana's boss promised her a big bonus if she met her goals. At the end of the year, after Diana had exceeded her goals, she found her bonus was very small. In the future, Diana's _____ will probably be ____.

instrumentality; low

CEO Gary Kelly sets the direction and strategy for Southwest Airlines by dealing with people both inside and outside the company. What type of managerial role is he performing?

interpersonal

interacting with people inside and outside their work units and being a figurehead, leader, and liaison are examples and duties of ___ role of managers

interpersonal

B5: Rick has been a scientist for decades. He has seen many different situations and has had many different experiences. He often makes decisions without really thinking about them. This is called

intuition

cycle stock

inventory intended to meet expected demand

B2: Which of the following does not relate to system design?

inventory management

B15: Joe, a human resources specialist for Sullivan's Office Supplies Co., rides along with the furniture delivery people to observe the problems they were encountering and what activities they were required to perform. Joe was performing a:

job analysis

There are 3 ways of designing a job to fit a person: by changing FROM ONE ROUTINE TASK TO ANOTHER to alleviate boredom,called ___, giving people ADDITIONAL tasks to alleviate boredom, called ___, or changing A TASK ITSELF to make it more rewarding and satisfying, called ___

job rotation, job enlargement, job enrichment

in some situations, leader behavior is replaced by characteristics of subordinates, the task, and the organization. This is called?

leadership substitutes

the ___ strategy builds capacity in anticipation of future demand increases

leading capacity

Japan used what philosophy that focused on using less to produce more

lean manufacturing

ChemTech International is being picketed by a group of people who live by their biggest plant. The group is concerned about ChemTech's disposal of waste products into nearby waterways. In this instance, ChemTech is dealing with the ____ part of its ____ environment.

local communities; task

B34: Rayford is head of a task force consisting of his peers from other departments in the organization. According to Fiedler's Contingency Theory, Rayford has

low position power

What is the importance of decision-making?

manager's decision-making is key to success bc it pervades all basic management functions--planning, organizing, leading, and controlling

a company with low labor content, low customer contact, high uniformity of input/output, and easy measurement of productivity is what type?

manufacturing company

an organization's basic purpose and scope of operations; should describe ends, imply effort Ex: Starbucks Coffee issued the statement "To inspire and nurture the human spirit..."

mission

B32: Which of the following characteristics possessed by a leader is generally NOT considered to be positive for leadership success?

narcissism

Physiological or psychological deficiencies that arouse behavior

needs

1 of 4 reinforcement contingencies aimed at increasing a behavior by withdrawing something negative. Example: I will stop (-) questioning you if you tell me the truth.

negative reinforcement

B29: When a manager stops nagging a subordinate, the manager is using

negative reinforcement

B5: The United Way, a charitable organization, is considered a ______ organization.

nonprofit

B18: Luann is conducting a performance appraisal on Bill. The form her company uses asks her to list the objectives that she and Bill agreed to last year, and indicate how well he met each objective. Luann's company is using a(n) ________ system of performance appraisal.

objective

___are based on fact and are often numerical (like output, scrap, sales, etc.), whereas ___ are based on a manager's perceptions and observations of an employee's traits and behaviors (like Behaviorally Anchored Rating Scale (BARS))

objective appraisals; subjective appraisals

first-line managers direct daily tasks (like supervising the assembly line workers). What type of planning is this?

operational planning (1-52 weeks)

B10: With regard to the formulation of operations strategy, organization strategy should, ideally, take into account:

operations' strengths and weaknesses

The set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments; the basic pattern of values & assumptions shared by employees within an organization and seen visibly by artifacts

organizational culture

A formal system of task and reporting relationships that coordinates and motivates an organization's members so that they can work together to achieve the organization's goals; aka who reports to whom

organizational structure

Be able to calculation multifactor productivity

output/ (labor + material + overhead)

Be able to calculate productivity

output/input

B25: When Sheldon realized that his gift to Penny was inadequate, he attempted to compensate by giving her multiple gifts. Sheldon was experiencing what according to Equity Theory?

over reward; Shelden felt he was over-rewarded by Penny

giving employees a voice in making decisions about work

participation

B35: Which Leadership model argues that leaders should make it clear how followers can achieve organizational goals, take care of problems that prevent followers from achieving goals, and then find more and varied rewards to motivate followers who achieve those goals?

path- goal theory

B7: Norma is trying to decide on a new contract for copier services. One of the salesman has an excellent bid, but Norma feels that there are things he is not telling her. Why does this make it hard for her to use evidence-based decision making?

people are trying to mislead you

B33: Research has shown that a leader's task-oriented behaviors generally impact employee job ______ while a leader's relationship-oriented behaviors generally impact employee job ________.

performance; satisfaction

___ is power directed at helping yourself, whereas ___ power is directed at helping others

personalized power; socialized power

1 of 4 reinforcement contingencies aimed at increasing a behavior by using a positive consequence. Example: You get (+) a cookie if you run 5 miles.

positive reinforcement

-Problem is frequent, repetitive, routine with much certainty regarding cause & effect relationships -Decision procedure depends on policies, rules, etc.

programmed decisions

a view of industry evolution asserting that long periods of equilibrium are punctuated by periods of rapid change when industry structure is revolutionized by innovation

puncuated equilibrium theory

1 of 4 reinforcement contingencies aimed at decreasing a behavior by presenting something negative (give more paperwork) or withdrawing something positive (take away paid vacation)

punishment

DMAIC

quality strategy used to improve processes by: Defining the objectives Measuring the baseline performance Analyzing cause-and-effect relationships of processes Improving the process Controlling (sustaining the improvements)

a decision-making model that describes how managers SHOULD behave in order to maximize some outcome; it ASSUMES managers will make logical decisions

rational decision making model

___ approach to forecasting views forecasts as probable future demand, whereas ___ approach seeks to actively influence demand (by advertising, pricing)

reactive, proactive

B16: Melanie scheduled a special interview with Gina before Gina was hired, in which Melanie painted a picture of both the positive and negative features of the job. Mel was performing a(n)

realistic job preview

the process of locating and attracting qualified applicants for jobs open in the organization; creating a pool of applicants

recruitment

B16: Which of the following is NOT a way that a time series can behave?

regular variations

According to the Strategic Reference Points Theory, if we are satisfied where we are, we view external activities as threats, and ultimately leads to undesired results

risk-avoidant

what is the difference between risk-avoiding and risk seeking orientations?

risk-avoiding- protects existing advantage risk-seeking- creates new advantage

According to the Strategic Reference Points Theory, if we are dissatisfied with where we are, we view external activities as opportunities, and ultimately leads to desired results

risk-taking

screening job applicants to ensure that the most appropriate candidates are hired

selection

consists of unwanted sexual attention that creates an adverse work environment

sexual harrassment

A technique that fits a line to a set of data points to estimate the relationship between variables

simple linear regression (used in Associative forecasting)

1) Control loss—occurs when procedures do not conform to standards & managers need to find out what they could have done to prevent it. 2) Regulation costs--costs associated with implementing or maintaining control; benefits must outweigh costs 3) Cybernetic feasibility--the extent to which it is possible to implement each of the steps in the control process.

situations where control is not possible?

the number of direct reports a manager can handle

span of control

B12: Calvin's workgroup is having a lot of disagreement over the direction the group should take. They are involved in the __________ stage of group development.

storming

Danny is participating with other managers in a discussion about what her organization's goals should be for the next decade. She is participating in?

strategic planning

top management makes longterm decisions about the overall direction of the company. What type of planning is this?

strategic planning (1-5 years)

a comprehensive plan of action for accomplishing an organization's goals

strategy

B10: Which of the following is NOT a situation where span of control should be wide?

subordinates prefer close supervisory control

A system within another system that is important due to its interdependence on other sub-systems within the organization

subsystems

a sequence of activities and organizations involved in producing and delivering a good or service

supply chain

consists of differences that are immediately observable, typically unchangeable, and easy to measure (race, sex, age)

surface-level diversity

Open systems are organizations that continually interact with their environment and have the potential to produce ____, or the idea that the whole is greater than the sum of its parts

synergy

Emphasizes interrelationships among subsystems (big picture). The main theme in this type of approach is that the whole is greater than the sum of its parts. The output and objectives of the organization take precedence over those of any one subsystem

systems approach

middle managers implement the policies and plans of top management. What type of planning is this?

tactical planning (6 months-1 year)

What does the phrase "taylorizing" the work mean?

taking the skill out of the work so it could move faster

B13: Layla works during her meeting to pull together the ideas of her committee members into a coherent whole. Layla is performing a ___________ role.

task

B28: When assembly line employees at General Electric were introduced to the cancer survivors who had used the scanning technology they had built, these employees recognized what about their work according to the Job Characteristics Model?

task significance

the productive output of the team meets or exceeds the standards of quantity & quality that an individual could produce; focus on performance and need feedback

team effectiveness

Small group of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable

teams

facilities layout

the configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system

cycle time

the maximum time allowed at each workstation to complete its set of tasks on a unit before it moves on

line balancing

the process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements

Why was it difficult for Ford to switch production from the Model T to the Model A?

they had to retool the entire assembly line, costing approximately $250 million

How to calculate a Weighted Moving Average Forecast

this involves putting more weight on recent data and less weight on old data

Tom and his family have developed a successful business selling a liquid spray fertilizer to farmers. The fertilizer consists of rich, organic, composted material. Recently NuBreed Seed, a national seed company, has been marketing a powdered chemical fertilizer to its customers; NuBreed's fertilizer is less expensive than Tom's product. NuBreed's efforts are an example of the ___ in Porter's model for industry analysis.

threats of substitute products or services

1. Cash flow analysis 2. Balance sheets 3. Income statements 4. Financial ratios (like Debt to Equity and Asset turnover) 5. Budgets

types of financial controls

Usefulness of process yields

used where products are involved; where services are involved, process yield measurement is often dependent on the particular process

actual output/design capacity

utilization

B26: When Dwight designed his motivational system at the office, what issue according to expectancy theory did he fail to take into account?

valence

______ are the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior; the philosophical properties to which management is committed; should provide the reasoning for action

values

B15: Which of the following is NOT an assumption of linear regression?

variations around the line are non-random

B8: Sally, Greg, Juan, and Amar are working on a project for a customer that is aimed at cutting the client's electrical costs. The four members of this workgroup are located throughout the Midwest, and they are utilizing the phone, e-mail, and collaborative computing to complete this project. This workgroup is an example of a

virtual organization

the long-term direction & strategic intent of a company that points to the future; should inspire org employees offering a worthwhile target to achieve together

vision

What is the importance of vision for good leadership?

vision creates high performance expectations, the nature of business strategy, or the kind of workplace

ad: Flexibility; easy to add or change products or services disad: Moderate cost per unit, moderate scheduling complexity

what are the advantages and disadvantages of batch processing?

ad: Able to handle a wide variety of work disad: Slow, high cost per unit, complex planning and scheduling

what are the advantages and disadvantages of job shop processing?

ad: usually measureable, should lead to increased efficiency, promotes consistency in quality disad: hard to evaluate, promotes standardization which makes change hard, less appropriate for services

what are the advantages and disadvantages of measuring quality by conformance to specifications?

ad: clear vision, being the "best" is motivating to managers and employees disad: no practical guidance, excellence is ambiguous

what are the advantages and disadvantages of measuring quality by excellence?

ad: appeals to customers who know excellence "when they see it", customers recognize differences in value disad: difficult to measure and control, difficult to know what factors influence value, difficulty in balancing bw excellence and cost

what are the advantages and disadvantages of measuring quality by value?

B9: Groupthink is more likely to occur under all of the following conditions except:

when the group has an established procedure for systematically defining problems and exploring alternatives.

Abusive, physical, psychological, verbal, or nonverbal behavior that is threatening, humiliating, or intimidating

workplace bullying

What are the 3 types of organizations?

1. For-profit- formed to make profit 2. Nonprofit- formed to offer service (hospitals, colleges) 3. Mutual-benefit- formed to advance members' interests (unions, trade associations)

3 cons of planning?

1. Impedes change and prevents or slows adaptation 2. Creates a false sense of certainty 3. Detachment of planners

4 behaviors of Transformational Leaders (4 "I's")

1. Inspirational motivation: "Let me share a vision that transcends us all." 2. Idealized influence (charismatic behavior): "We are here to do the right thing." 3. Individualized consideration: "You have the opportunity to grow and excel here." 4. Intellectual stimulation: "Let me describe the great challenges we can conquer together."

3 Situational Favorableness Variables under which task or relationship-oriented leaders are more effective

1. Leader-member relations 2. Task structure 3. Position power

3 transfers involved in delegation process?

1. Manager transfer full RESPONSIBILITY for the assignment to the subordinate 2. Manager gives the subordinate full AUTHORITY over budget, resources, and personnel needed to do the job. 3. Transfer of ACCOUNTABILITY—must get the job done.