GBA 5206

NOT 3 basic functional areas of business

-IT -accounting -human resources

evolution of ops management

1-industrial revolution 2-scientific management 3-industrialization 4-computerization

Which of the following is not an advantage of standardization?

The opportunity to freeze design at a very early stage.

quality based strategies may be a part of

another strategy

Which of the following is not among the chief reasons organizations fail?

emphasizing labor productivity in labor intensive environments

A house of quality is achieved when no department in a single location has more than 15 percent rejects.

false

3 basic functional areas of business

finance, marketing, operations

internal factors that may affect business

human resources suppliers

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

less; higher

3 basic business strategies

low cost, differentiation, responsiveness

order qualifiers are _____ standards expected by customers characteristics may be order qualifiers to order winners at ____points in time

minimum different

A company's _____ is the foundation for its goals, which provide detail and scope for the mission a ____ specifies the purpose of the organization

mission;

operations strategy and ______ strategy must be aligned ops strategy and _____ strategy must be aligned

organizational; financial

SWOT critically examines factors that may impact a business's ____ SWOT can be seen as the _____ between organizational and operation strategy

performance; link

The structural approach for integrating customer requirements into every aspect of product development is known as:

quality function deployment.

mass production involves the production of large volumes of ______ goods by low skilled or _____ workers using highly specialized equipment

standardized; semiskilled

tactics are the methods and actions taken to accomplish _______

strategies

Operations function

the creation of goods/services through the transformation of inputs to outputs

tactics are

the methods and actions taken to accomplish strategies implementations for strategies, which ultimately achieve goals

productivity measures

they can be used to evaluate a company's competitiveness can be used to track performance over time they can be used to evaluate an entire industry's performance they can be used to ID areas of improvement

Reliability can be improved by the use of backup components.

true

Theory X

workers don not like to work and must be induced to do it

Concurrent engineering means that at least two engineers are involved in product design at the same time.

false

National productivity is determined by averaging the productivity measures of various companies or industries.

false

Productivity tends to be only a very minor factor in an organization's ability to compete.

false

Quality function deployment (QFD) is based on a set of standards which relate customer requirements to company capabilities.

false

Quality function deployment is a structured approach that guarantees that the highest-quality product or service will be designed.

false

Robust design describes a product that will perform satisfactorily so long as it is used in a very narrow range of conditions.

false

operations strategy and ____ and ___ must be aligned

financial strategy; organizational strategy

efficiency is a _____ concept than productivity ______ may include the efficient use of a variety of resources

narrower; productivity

some reasons organizations fail

not focusing enough on process design and improvement failure to correctly identify customer wants and needs not investing enough in necessary capital or human resources putting too much emphasis on short term financial performance underestimating the importance of internal communication and cooperation between functional areas

The process of dismantling and inspecting a competitor's new or revised product for the purpose of gleaning design ideas is called:

reverse engineering

Concurrent engineering is another term for sequential development.

false

finance departments role

-allocating resources throughout org -budgeting -securing financial resources at favorable prices -analyzing investment proposals -providing funds for operations NOT -providing expense reimbursement (accounting) -issuing paychecks (accounting)

NOT role of operations in a business?

-assess customer needs -secure financial resources for projects Roles of ops in business -match supply with demand -produce goods/services

which of the following is correct?

-assignable variation is due to unusal occurrences during production/delivery process -structural var. in demand is caused by predictable trends or seasonality in data -random var. is present in any process and cannot be predicted -variety in goods/services increases the variation in production or service req'

advantages of using models as decision making tools?

-cheaper than dealing with the actual system -process makes users organize info and think about the system which can clarify additional problems -generally easy, fast, and inexpensive to build -consistent way of evaluating a system mass product

key issues for today's business operations?

-competing global economy -environmental concerns -risk management -economic condition -quality problems

outcomes of process improvement

-cost reduction -improved quality -time reduction

elements/components of supply chain management?

-forecasting -capacity planning -logistics -inventory management -suppliers -production

ways in which operations influences competitiveness?

-location can impact a business's procurement and transportation cost, and convenience to its customers -companies that are able to be responsive to customers have a competitive advantage. responsiveness depends on operations' ability to react.

role of operations in a business

-match supply with demand -produce goods/services

role of ops management

-match supply with demand -produce goods/services

which is true?

-model is abstraction of reality -a model is a simplified representation of something

Role of ops manager

-must decide when certain resources will be needed in what quantity -must decide what resources will be needed -may work with finance department to secure the necessary amount of funding for resource expansion

limitations using mathematical models as decision making tools?

-price of the model may outweigh its usefuleness -qualitative information can be difficult to capture in quantitative models

role of marketing for business

-promoting the org's goods/services -assessing consumer wants/needs NOT -designing new products to drive demand

True about production of goods?

-results in tangible output

steps a company can take to improve productivity

-take a systems view point to ensure changes impact the system as a whole -measure productivity of all operations -set reasonable improvement goals

supply chain definition

-the sequence of organizations - their facilities, functions, and activities that are involved in producing and delivering a product or service

possible outcomes of mismatched capacity and demand

-too little can result in lost revenue -too much is wasteful -too much capacity can be costly

craft production

-tools used were simple and flexible -highly skilled workers produced goods according to customer specs

lean systems:

-use a highly-skilled workforce -use less inventory than conventional systems -have higher quality than most conventional systems -are very responsive to customer demand

impact of variability on managing process

-variability in processing times can make planning/managing the process more challenging -can lead to produce delays and shortages, which can lead to damaged company rep

basic sources of process variation

-variety of goods/services -variation in demand -assignable variation -random variation

One step that is not part of service blueprinting is:

Eliminate boundaries for the service and decide on the level of interaction needed. _____Steps____ Identify and determine the sequence of customer and service actions and interactions. Develop time estimates for each phase of the process. Understand the time variability involved. Identify potential failure points and develop a plan to minimize them.

A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 6 workers, who together produced an average of 90 carts per hour. Workers receive $14 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour while output increased by 6 carts per hour. a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. (Round your answers to 2 decimal places.) Before carts per worker per hour After carts per worker per hour b. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure. (Round your answers to 2 decimal places.) Before carts/dollar cost After carts/dollar cost c. Comment on the changes in productivity according to the two measures. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "%" signs in your response.)

Explanation: a. Before: 90 ÷ 6 = 15.00 carts per worker per hour. After: 96 ÷ 5 = 19.20 carts per worker per hour. b. Before: $14 x 6 = $84 + $40 = $124; hence 90 ÷ $124 = 0.73 carts/dollar cost. After: $14 x 5 = $70 + $51 = $121; hence 96 ÷ $121 = 0.79 carts/dollar cost. c. Labor productivity increased by 28.00% (4.20/15.00). Multifactor productivity increased by 8.22% (0.06/0.73).

Which of the following statements about CAD is not true?

It is used successfully by all manufacturing companies. _____________ It increases the productivity of designers. It uses computer graphics. It requires a good database. Some systems permit engineering or cost analysis of proposed designs.

Operations strategy deals with things like product quality, costs and scheduling

NOT: financing, costing and product development

Service design generally differs from product design in which of the following ways?

There is less latitude in detecting and correcting errors prior to delivery.

Ethics is

a standards behavior that guides how one should act in various situations

The term "degrees of newness" is associated with:

degree of design change.

Competitiveness relates to the profitability of an organization in the marketplace.

false

competitiveness defines how _____ an organization meets the wants and needs of _______ relative to others that offer similar goods or services

effectively; customers

strategies are ways to achieve a company's ______ a company's mission is laid out in it's_____ _____

goals; mission statement

a company's product is either a____

good/service

As an example of a trade off decision faced by an operations manager, more options for customization of a laptop will lead to _____customer satisfaction and an____ in costs to the company

increased; increase

increased customization generally requires___ resources and effort than more standardized products/services

more

Productivity is expressed as:

output divided by input.

productivity is often expresses as ratio of _____ to _____

outputs; inputs

which of the following are places companies have achieved reduction in time required to complete activities?

planning time processing time delivery time

strategies are

plans to accomplish

Increasing the service offered to the customer makes it more difficult to compete on the basis of:

price

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

systems

Quantitative approaches

to a problem solving frequently try to find mathematical optimal solutions to business problems

a process is an action or series of actions that ____ ____ into___

transforms inputs; outputs

A business that is rated highly by its customers for service quality will tend to be more profitable than a business that is rated poorly.

true

A major benefit of computer-aided design (CAD) is the increased productivity of designers.

true

A mission statement should provide a guide for the formulation of strategies for the organization.

true

A service blueprint is quite similar to an architectural drawing.

true

Design for production takes into account the capabilities of the organization to produce or deliver a given product or service.

true

Most of the time what is called product or service design is actually a redesign of an existing product or service.

true

Often, the collective success or failure of companies' operations functions will impact the ability of a nation to compete with other nations.

true

One approach to extending a product's life cycle is to promote alternate uses of the product.

true

One motivation for an organization to redesign its product or service is to avoid the alternative of downsizing the organization.

true

Remanufacturing refers to removing some of the components of old products and reusing them in new products.

true

Research and development (R&D) refers to organized efforts that are directed toward increasing scientific knowledge and product (or process) innovation.

true

Service design often must take into account the degree of customer contact required.

true

Standardization has the advantage of reducing variability.

true

Theory Y

workers enjoy work and are committed to doing it