OM Chapter 1: Introduction

(1)Which of the following statement(s) is/are NOT correct

(1) Organizations that provide services never sell any goods Organizations that sell goods never provide any services

(1) True or False: A company's supply chain consists of the sequence of organizations, including their facilities, functions, and activities, that are involved in producing and delivering a good or service.

(1) True

Stages of evolution of Operations Management in chronological order, with the oldest one listed first.

1. Industrial Revolution 2. Scientific Management 3. Human Relations Movement 4. Decision Models

Which of the following is/are true?

A model is an abstraction of reality A model is a simplified representation of something

Which of the following statements is true?

A systems approach to decision making assumes that the entire system must be considered when making decisions.

Virtue Principle

Actions should be consistent with certain ideal virtues.

Common Good Principle

Actions should contribute to the common good of the community.

Rights Principle

Actions should respect and protect the moral rights of others.

Which of the following is/are the responsibility of marketing?

Assessing customer wants and needs. Promoting goods and services. Communicating customer needs to manufacturing.

Finance and operations management personnel cooperate by exchanging information and expertise in which activities?

Budgeting Analysis of investment proposals Provision of funds

(3) Which of the following statements is correct?

Business sustainability refers to economic, environmental, and social sustainability.

Increasing levels of outsourcing:

Buying goods or services instead of producing or providing them themselves. (it does not have to be offshoring)

Which of the following are inputs involved in operations function?

Capital Information Land Labor

HR Function of Operations:

Concerned with recruitment and training of personnel, labor relations, contract negotiations, wage and salary administration, assisting in manpower projections, and ensuring the health and safety of employees.

Industrial Engineering Function of Operations:

Concerned with scheduling, performance standards, work methods, quality control, and material handling.

Which of the following are characteristics of the Japanese approach to manufacturing?

Continual Improvement Employee empowerment Emphasis on quality

In practice, there is significant interfacing and collaboration among the various functional areas. What does this involve?

Cooperative decision making Exchange of information

Which of the following is/are NOT part of the role of marketing for a business?

Designing new products to drive demand

MIS Function of Operations:

Designing systems to capture relevant information and designing reports.

Fairness Principle

Equals should be held to, or evaluated by, the same standards.

True or False: Outsourcing is sending production overseas. For example, to China.

False

Which of the following are elements or components of supply chain management?

Forecasting Logistics Inventory Capacity planning

Which of the following is a function or components of a supply chain?

Forecasting Production Inventory management Scheduling Delivery Purchasing

Purchasing Function of Operations:

Has responsibility for procurement of materials, supplies, and equipment.

Increasing globalization

Having far-flung customers and/or suppliers means longer lead times and greater opportunities for disruption of deliveries. (While some see offshoring as a negative, everyone agrees that having international customers is a good thing.

(2) Which of the following statements is correct?

Interchangeable parts increased efficiency and reduced costs by simplifying production processes.

Which of the following characteristics tends to be higher in production of goods?

Inventory Uniformity of inputs Opportunity to correct problems

Distribution Function of Operations:

Involves the shipping of goods to warehouses, retail outlets, or final customers.

Which of the following statements is true about production of goods?

It results in a tangible output.

Which of the following area are part of, or support, the operations function?

Maintenance Purchasing Industrial engineering Distribution

Which of the following is/are advantages of using models as decision making tools?

Models can provide a consistent way of evaluating a system. There is usually less risk associated with experimenting with models than with the real system.

Legal Function of Operations:

Must be consulted on contracts with employees, customers, suppliers, and transporters, as well as on liability and environmental issues.

_______ management can influence the entire organization.

Operations

What are the three functional areas of business?

Operations Marketing Finance

During the 1960's management science techniques were highly regarded; in the 1980s, they lost some favor. What lead to their resurgence in popularity.

Personal Computers User-Friendly software

A scale-model building is an example of which classification of model?

Physical models

What are the advantages for students who join one or more professional organizations.

Possibly earn certifications Learn about jobs in the field Job Networking

Managers must learn how to establish _____. Managers must focus on issues or items that will do the most good.

Priorities

Which of the following is/are part of the role of operations in a business

Produce goods and/or services Match supply with demand

(1) Which of the following statements is correct?

Quantitative approaches to problem solving frequently try to find mathematical optimal solutions to business problems.

Product and Service Technology

Refers to the discovery and development of new products and services.

Information Technology

Refers to the science and use of computers and other electronic equipment to store, process, and send information.

PR function of Operations:

Responsible for building and maintaining a positive public image of the organization.

Maintenance's Function of Operations:

Responsible for general upkeep and repair of equipment, building and grounds, heating and air-conditioning removing toxic wastes: parking and perhaps security.

What are the two line functions in a business organization?

Sales Operations

Which of the following statements is/are correct?

Scientific management was management style more in-line with the higher levels of productivity introduced by the Industrial Revolution Scientific management placed great value on maximizing output.

Which of the following is/are NOT part of the role of operations in a business?

Secure financial resources for projects Promote organization's good or service

Which of the following statements is true about delivery of services?

Services are intangibles, implying acts that create value.

Which of the following statements is/are correct regarding craft production?

Skilled craftsmen were able to create goods to exact customer specifications. The craft production process was slow and expensive because of the lack of standardized parts. Highly-skilled workers produced goods according to customer specifications. The tools used were simple and flexible.

Accounting Function of Operations:

Supplies information to management on costs of labor, materials, and overhead, and may provide reports on items such as scrap, downtime, and inventories.

What are some problems associated with supply chains?

Supply chains operating independently of each other Late deliveries Inventory stock outs Large oscillations of inventories.

Utilitarian Principle

The good done by an action or inaction should outweigh any harm it causes or might cause.

Which among the following is/are correct statements about the role of an operations manager?

The operations manager must decide what resources will be needed The operations manager may work with the finance department to determine the necessary amount of funding for resource expansion.

Competitive Pressures:

This has led to an increasing number of new products, shorter product development cycles, and increased demand for customization. (Firms have to keep up with one another or they lose customers.)

Inventory

This plays a major role in the success or failure of a supply chain, so it is important to coordinate this throughout a supply chain. (Supply chains are all about bringing in inventory)

Which of the following is the primary function of an operations manager?

To guide the system by decision making.

Which of the following is/are possible outcomes of mismatched capacity and demand?

Too much capacity is wasteful. Too much capacity can be very costly. Too little capacity can result in lost revenue.

which of the following is/are correct statements about the limitations of using mathematical models as decision making tools?

Too much emphasis may be placed on quantitative information The models may be applied incorrectly The average user may not understand the details of a model.

A process is an action or series of actions that _______ _________into _______.

Transforms, inputs, and outputs.

Which of the following is/are true about the impact of variation on managing processes?

Variability in demand can make process planning difficult Variability in inputs can lead to problems with product quality.

Theory X

Workers do not like to work and must be induced to do it.

Theory Y

Workers enjoy work and are committed to doing it.

Which of the following statements is/are true?

World War 2 furthered the field of Operations Management because of the great need for manufactured products. World War 2 generated many advances in both the military and in manufacturing. During World War 2, specialists from a variety of fields gathered to aid in solving military and manufacturing problems.

Value-added is the term used to describe the difference between the ______ of inputs and the value or price of outputs?

cost

Process Technology

includes methods, procedures, and equipment used to produce goods and provide services

As an example of a trade-off decision faced by on operations manager, an increased warranty period on a car will lead to ______ customer satisfaction and a/an ______ in costs to the company.

increase, increase

As an example of a trade-off decision faced by on operations manager, more options for customization of a laptop will lead to _______ level of customer satisfaction and a/an increase in costs to the company.

increased

Lean systems use much ______ of certain resources then conventional systems. The quality in lean systems tends to be much ____ than in traditional mass manufacturing environments.

less, higher

_______ _________ involves the production of large volumes of standardized goods by low-skilled or semiskilled workers using highly-specialized equipment.

mass production

Increased customization in products and services generally requires _______ resources and effort.

more

Compared to craft production, division of labor allowed employers to employ ___________-skilled workers.

non