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

What are 2 reasons why inventory is important?

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

4 determinants of quality

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

Examples of inventory types

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)

interpersonal

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?

functional conflict; dysfunctional conflict

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

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

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

System Design

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

Diversity; affirmative action

___ 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

Time interval between ordering and receiving the order

lead time

How do you calculate total inventory costs?

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

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

quality

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

quality at the source

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

quality circles

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

quality control

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

small scale and flexible; large-scale and inflexible

What is the purpose of Basic EOQ Model?

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

systems approach

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

Contingency management

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

360 degree performance review

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

Empowerment

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

How do you use a mean control chart?

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

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

*What are the dimensions of designing structure?

programmed decisions

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

Non-programmed decisions

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

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?

.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))

Extinction

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

punishment

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)

positive reinforcement

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.

negative reinforcement

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.

3 Rules (Heuristics) for Line Balancing

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).

situations where control is not possible?

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.

3 steps in a generalized control process

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

3 varieties of automation

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

What are 2 reasons why balancing is important?

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.

4 basic process types

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)

2 factors that impact service layout requirements

1) degree of customer contact 2) degree of customization

4 Basic Layout Types

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

4 areas that can lead to better inventory processes

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

3 forms of costs related to quality

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

3 methods of idea generation

1. Brainstorming 2. Quality circles 3. Benchmarking

types of financial controls

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

Difference between centralized inspection and on-site inspection

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)

3 impacts of process technology

1. Costs 2. Productivity 3. Competitiveness

What are the issues in assessing service 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

6 Steps in a statistical control process

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

4 general decision making styles

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

What are the benefits of good quality?

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

3 ways to measure quality

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

4 questions related to inspection issues

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?

Why do you need layout planning?

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

2 basic questions of process variations?

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?

What are the consequences of bad quality?

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

Assumptions of Basic EOQ Model

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

2 inventory counting systems

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

5 reasons for control

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

4 categories of inventory costs

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

5 methods for improving process capability

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.

3 factors that influence amount of safety stock

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

4 factors that determine ROP

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

Ways to make control systems more effective

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.

8 functions of inventory

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

3 Key questions in process selection

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?

2 objectives of inventory control

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

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

10 ways businesses compete using operations

How do you calculate efficiency?

100% - Balance Delay

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

2 Factors in Herzberg's Two Factor Theory

1. Control charts 2. Tracking signals

2 Tools for identifying forecast errors/biases

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)

2 Types of Task-Oriented Leadership

1) expected level of demand 2) accuracy

2 aspects of forecasts

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)

2 command issues

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

2 common features of a model

1. authority 2. heirarchy

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

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.

2 implications of behavioral approaches

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.

2 main purposes of performance appraisal?

1. collecting information 2. exerting control on the environment

2 methods to deal with uncertainty?

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

2 schedules of reinforcement

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)

2 types of hierarchies?

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)

2 uses of forecasts

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

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)

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)

3 Challenges to service capacity planning

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

3 Dark Side Traits

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

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

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

3 Types of Forecasts

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

3 broad steps in the HRM process?

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

3 characteristics that substitute for leadership

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 components of organizational culture

1) Certainty 2) Risk 3) Uncertainty

3 conditions for decisions

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

3 cons of planning?

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")

3 consequences of power

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)

3 errors in performance evaluation

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

3 functions of the leader according to Path-Goal Theory

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

3 innate needs of Self-Determination Theory

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

3 internally motivating psychological states in the JCM

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

3 reasons why planning and strategic management are important?

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.

3 transfers involved in delegation process?

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

3 types of managerial roles

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

3 types of models

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

3 types of values in an organization?

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

4 Categories of Behavioral Leadership

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

4 Non-monetary ways to motivate employees

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

4 Sources of Forecast Errors

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)

4 Strategies to merge organizational cultures

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

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

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

4 adaptive strategies

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)

4 approaches to deciding ethical dilemmas?

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

4 aspects of sustainable competitive advantage?

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

4 assumptions of simple linear regression

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."

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

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

4 forms of discrimination

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

4 methods to overcome discrimination

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

4 motivational mechanisms of goal-setting

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

4 qualitative methods of judgmental forecasts

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

4 reasons why team norms are followed

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

4 sources of process variation

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

4 stages of rational decision making

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

4 types of culture in the Competing Values Framework

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

47%

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

5 Factors that impact productivity

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!

5 conflict-handling styles

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

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

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)

5 methods employees use to restore equity when under rewarded

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?)

5 phases of a training process?

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)

5 sources of power for leaders

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

5 stages of team development

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)

5 types of teams

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

5 ways that time series behave

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

6 Assumptions of a Cost-Volume Analysis

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

6 Steps in the Forecasting Process

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

6 ways to improve productivity

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

7 Elements to a GOOD forecast

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

8 Steps in Capacity Planning

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

8 ways capacity decisions are strategic

How does a precedence diagram work?

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

organizational structure

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

Agile Operations

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

subsystems

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

simple linear regression (used in Associative forecasting)

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

Balanced Scorecard

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

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)

ABC Classification System

workplace bullying

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

esteem

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

McClelland's Acquired Needs Theory

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

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

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

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

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

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

According to the MARS model, M+A+R+S= job performance. R 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.

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

risk-taking

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-avoidant

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

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

Advantages and disadvantages of centralization?

1980

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?

Model

An abstraction of reality; a simplification of something

Neuroticism

Anxious, irritable, aggressive, temperamental, and moody.

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

Areas where time reductions occur

subordinates prefer close supervisory control

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

operations' strengths and weaknesses

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

15 chairs/worker/day

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?

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

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

storming

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.

Converting bond debt to stock ownership

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

task

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

forecasts are perfect

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

MAR

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

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

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

job analysis

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:

variations around the line are non-random

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

realistic job preview

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)

regular variations

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

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

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) ?

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

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

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

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

objective

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.

b) supplemental insurance

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

capacity affects organizations' image

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

easy measurement of productivity

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

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

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

functional turnover

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?

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

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

d) passively work to find jobs for qualified people

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

Its supplier probably has more expertise in whatever is being outsourced

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

hostile work environment

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)

an intrinistic reward

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

diseconomies of scale

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

high need for achievement

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

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

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?

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

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?

valence

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

instrumentality; low

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 ____.

task significance

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?

negative reinforcement

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

inventory management

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

Gainsharing

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.

Ingratiation

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?

narcissism

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

performance; satisfaction

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 ________.

low position power

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

path- goal theory

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?

aligning artifacts to match the values of the organization

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?

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

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

de-culturation

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

flexibility

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

intuition

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

nonprofit

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

garbage can model

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

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

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

people are trying to mislead you

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?

functional

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

behavioral

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

virtual organization

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

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

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

d) division

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

How do you calculate balance delay?

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

output/input

Be able to calculate productivity

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

Be able to calculate productivity growth

output/ (labor + material + overhead)

Be able to calculation multifactor productivity

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

Benefits of time based strategies

What is the relationship between quality & the supply chain?

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

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

Central Limit Theorem

local communities; task

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.

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

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

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)

DMAIC

strategic planning

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?

cognitive biases

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.

1. command 2. delegation 3. degree of centralization

Dimensions of authority

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

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

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

Examples of Incentive Compensation ($) Plans

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

Factors that enhance capacity management

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

Factors that influence a quality-based strategy

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)

Factors that influence whether a company will outsource or not

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

Features common to all forecasts

Vertical Integration

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

When would you use a fixed-position layout?

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

What are the basic quality tools?

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

Cost-Volume Analysis

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

75,000 workers 30 miles of conveyors

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

What is the relationship between ethics and quality?

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

What was Deming's impact on quality?

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

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?

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

How are managers and leaders different?

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

How are managers and leaders similar?

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

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

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

How do you calculate processing requirements?

Qbe= FC/ (R-v)

How do you calculate the volume needed to breakeven?

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

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

competitiveness

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

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

How to calculate a Moving Average Forecast

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

How to calculate a Weighted Moving Average Forecast

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

How to calculate a naïve 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%

How to calculate an Exponential Smoothing Forecast

380%

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

Standardization; formalization

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).

lean manufacturing

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

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

List some methods to change or strengthen a culture

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

List some sample Operations strategies

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

List the components of a SWOT analysis

goods-oriented act-oriented

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

What is the significance of min and max cycle times?

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

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

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

synergy

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

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

PDSA cycle

needs

Physiological or psychological deficiencies that arouse behavior

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

Point of Sale (POS) systems

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

Porters 4 competitive strategies

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

Porters 5 forces of the competitive environment

When would you use a process 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 product layout?

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

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

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.

How do you calculate ROP when demand is certainty?

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

What is the difference bw random and assignable variation?

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.

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

Reasons why productivity matters

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

Reorder point (ROP)

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

Six Sigma

Program designed to reduce defects or variation

Six Sigma; conceptually

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

Six Sigma; statistically

teams

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

___ 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

Statistical Process Control (SPC)

barriers to exit

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

Reinforcement Theory

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

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

TQM (Total Quality Management)

equity; inequity

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.

Leadership

The ability to influence employees to voluntarily pursue organizational goals

What is the purpose of control limits?

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

Operations Management

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

bottleneck

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

organizational culture

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

core competency

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

job rotation, job enlargement, job enrichment

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 ___

threats of substitute products or services

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.

B7: TQM stands for:

Total Quality Management

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

Usefulness of process yields

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

Uses of Productivity Measures

decisonal

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

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

What are some examples of cognitive biases?

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!!!!!!!

What are some issues with the Trait perspective?

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

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

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

What are the 2 types of rewards?

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.

What are the 3 functions of a strong culture?

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 3 major components of Expectancy Theory?

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)

What are the 3 types of organizations?

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

What are the 4 functions of management?

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

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

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

What is the importance of using a common forecast?

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

What is the importance of vision for good leadership?

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.

What are the advantages and disadvantages of Matrix structures?

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

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

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

What are the components of a job analysis?

***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 the problems with tall hierarchies?

MAD, MSE, MAPE

What are the three metrics use to measure forecast accuracy?

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 are the two types of sexual harassment?

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.

What conditions cause groupthink?

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

What does the phrase "taylorizing" the work mean?

cost-leadership

What is Walmart's strategy?

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 divisional structures?

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

What is the difference between functional and dysfunctional turnover?

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

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

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

What is the difference between mechanistic and organic organizations?

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 is the difference between productivity and efficiency?

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.

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

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)

What is the difference between voluntary and involuntary separation?

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.

What is the difference bw proximal goals and distal goals?

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

What is the goal of capacity planning?

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 is the importance and differences between reliability and validity?

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

What is the importance of decision-making?

43%

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

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.

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

high turnover of employees

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

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

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

Openness

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

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

Why do some organizations fail?

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

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

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

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

reactive, proactive

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

Order Qualifiers and Order Winners

___ 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

goods services

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

Power and Influence Approach

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

Contingency leadership style

___ 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.

Path-goal leadership style

___ 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.

personalized power; socialized power

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

design capacity effective capacity

___ 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

Courageous

___ 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

enlightened meritocracy inert bureaucracy

___ 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.

Management

____ 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

values

______ 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

objective appraisals; subjective appraisals

___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))

Qualitative Quantitative

___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)

manufacturing company

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

strategy

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

rational decision making model

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

Productivity

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

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

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

supply chain

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

Garbage Can Model

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

puncuated equilibrium theory

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

Effectiveness

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

utilization

actual output/design capacity

Efficiency

actual output/effective capacity

Advantages & disadvantages of product 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 process layouts?

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

what are the advantages and disadvantages of job shop 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 batch processing?

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 repetitive/assembly processing?

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

What are the advantages and disadvantages of continuous processing?

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 measuring quality by value?

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 excellence?

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 conformance to specifications?

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

Agreeableness

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

barriers to entry

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

BFOQ (Bona Fide Occupational Qualification)

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."

glass ceiling

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

mission

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..."

delegation of authority

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

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

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

Difference between attributes and variables?

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)

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

automation

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

benchmarking

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

benefits of participating in decision making

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

brainstorming

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

characteristics of SMART goals?

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

coercive control

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

facilities layout

deep-level diversity

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

surface-level diversity

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

Human Resource Management

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

sexual harrassment

consists of unwanted sexual attention that creates an adverse work environment

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

continuous improvement (Kaizen in Japanese)

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

control chart

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

control process

inventory intended to meet expected demand

cycle stock

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

cycle time

How is cycle time used in line balancing?

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)

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?

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

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

decreased productivity

increasing

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

decreasing

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

Disparate Treatment

employees from protected groups are intentionally treated differently

Capacity Cushion Capacity cushion = Capacity - expected demand

extra capacity used to offset demand uncertainty

operational planning (1-52 weeks)

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

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?

fixed-position

Time series forecasts

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

participation

giving employees a voice in making decisions about work

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

go to slide 41 in Ch 10 powerpoint

leadership substitutes

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

An appraisal activity that compares goods or services to a standard

inspection

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

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

key issues for operation managers today

A stock or store of goods; independent demand items

inventory

general environment

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

Task Environment

is composed of specific groups and organizations that affect the firm

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

issues in supply chain

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

line balancing

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

list pros of planning

Intuition model

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)

What is minimum cycle time?

max (longest) task time

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

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

Heurisitics

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

tactical planning (6 months-1 year)

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

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

monitor every activity of employees on an assembly line

adverse impact

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

Conscientiousness

organized, systematic, punctual, achievement oriented, and dependable

Extraversion

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

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

pitfalls of group decision making

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

price

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

process selection

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

produce

Why would you use on-site 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)

actual output

rate of output actually achieved - cannot exceed effective capacity

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

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

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.

reasons to use teams

informational

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

Motivation

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

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

safety stock

A theoretical distribution that describes the random variability of sample statistics

sampling disitribution

selection

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

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

service level

constraint

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

Why would you use centralized inspection?

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

Forecast

statement about the future value of a variable of interest

The Hawthorne Effect

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

What is maximum cycle time?

sum of all task times

content; process

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?"

Tracking Capacity

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

leading capacity

the ___ strategy builds capacity in anticipation of future demand increases

following capacity

the ___ strategy builds capacity when demand exceeds current capacity

competitive advantage

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

Internal environment

the conditions and forces within an organization

Job Design

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

human capital

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

compensation

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

vision

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

span of control

the number of direct reports a manager can handle

recruitment

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

team effectiveness

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

Personality

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

Expectancy Theory

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

Goal Setting Theory

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

capacity

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

Break Even Point

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

strategic planning (1-5 years)

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

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)

types of artifacts (observable symbols)?

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

types of selection tests?

ethical; unethical

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.

Efficiency

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

MAD (Mean Absolute Deviation)

weights all errors evenly

MAPE (Mean Absolute Percent Error)

weights errors according to relative error

MSE (Mean Squared Error)

weights errors according to their squared values

1. high profitability 2. growth in profits over time

what are 2 aspects of superior performance?

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

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

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

what are some reasons why teams fail?

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

what are the 3 elements of Environmental Uncertainty?

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

what does the triple bottom line represent?

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

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

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

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

Satisficing

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

When would you use a combination layout?

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

Frank and Lillian Gilbreth

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

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

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