ISDS 3115 Chapter 1 Concepts
10 Strategic OM Decisions
1. Design of goods and services 2.Managing quality 3. Process and capacity strategy 4. Location strategy 5. Layout strategy 6. Human resource and job design 7. Supply chain management 8. Inventory management 9. Scheduling 10. Maintenance
Some challenges of OM:
1. Globalization 2. Supply-chain partnering 3. Sustainability 4. Rapid product development 5. Mass customization 6. Lean operations
What 3 factors are critical to improve productivity?
1. Labor 2. Capital 3. Management
Taylor believed management should assume more responsibility for:
1. Matching employees to the right job 2. Providing the proper training 3. Providing proper work methods and tools 4. Establishing legitimate incentives for work to be accomplished
Management process includes P.O.S.L.C, what are they?
1. Planning 2.Organizing 3. Staffing 4. Leading 5. Controlling
Two ways to improvement can be achieved:
1. Reducing inputs while keeping outputs constant 2. Increasing output while keeping inputs constant
Four reasons to study OM
1. To know how people organize themselves for productive enterprise 2. To know how goods and services are produced 3. To understand what operations managers do 4. Because it is such a costly part of an organization
3 functions that all organizations preform
1.Marketing 2.Production/Operations 3.Finance/Accounting
Labor contributes
10% of annual increase
Capital contributes
38% of annual increase
Management contributes
52% of annual increase
More than _____ of the workforce is employed to services
85%
Supply Chain
A global network of organizations and activities that supply a firm with goods and services
A global network of organizations and activities that supply a firm with goods and services is referred to as A. operations management. B. business functions. C. a supply chain. D. production.
A supply chain
The production process at Hard Rock Cafe does NOT include which of the following activities? A. receiving B. placing raw materials in cold storage C. cooking D. advertising
Advertising
Which of the following activities at a commercial bank is NOT an operations activity? A. security B. auditing C. check clearing D. maintenance
Auditing
Which of the following is NOT considered to be a stakeholder? A. community members B. competitors C. distributors D. customers
Competitors
Stakeholders
Customers, distributors, suppliers, owners, lenders, employees, and community
Which of the following best defines scheduling? A. Determines and implements long- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands. B. Determines and implements intermediate- and short-term schedules that effectively and efficiently utilize personnel while meeting customer demands. C. Determines and implements intermediate- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands. D. Determines and implements long- and short-term schedules that effectively and efficiently utilize personnel while meeting customer demands.
Determines and implements intermediate- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands.
Improving productivity means improving
Efficiency
The person who introduced standardized, interchangeable parts was A. Frederick W. Taylor. B. W. Edwards Deming. C. Henry Ford. D. Eli Whitney.
Eli Whitney
Which of the following tasks would NOT typically represent an operations management activity at Hard Rock Cafe? A. receiving a shipment of incoming food ingredients B. filing a tax return C. designing an efficient layout D. preparing an employee schedule
Filing a tax return
Which of the following organizations does NOT belong to the service sector? A. Costco B. San Diego Zoo C. Southwest Airlines D. Ford Motor Company
Ford Motor Company
The father of scientific management is A. Henry Ford. B. Henry L. Gantt. C. Frederick W. Taylor. D. Eli Whitney.
Frederick W. Taylor
Which operations function at a manufacturing facility strives for the efficient use of machines, space, and personnel? A. design B. process analysis C. industrial engineering D. production and inventory control
Industrial Engineering
Which of these is NOT one of the basic functions of the management process? A. staffing B. controlling C. inspecting D. leading
Inspecting
Which of the following is NOT one of the reasons operations managers want to work with their supply chains to viciously cut inventories at every level? A. Inventory constrains response to ever-shorter product life cycles. B. Inventory provides safety against higher-than expected demand. C. Inventory hides quality issues. D. Inventory requires financial resources.
Inventory provides safety against higher-than expected demand.
Why is productivity important?
It determines our standard of living
Which of the following trends is NOT part of the exciting OM challenges currently facing operations managers? A. local focus B. rapid product development C. sustainability D. supply chain partnering
Local focus
Which of the following is NOT one of the factors that fosters specialization and worldwide supply chains? A. cheaper transportation B. instant communication C. specialized expert knowledge D. marketing
Marketing
Which of these is NOT one of the 10 strategic OM decisions? A. layout strategies B. scheduling C. marketing D. managing quality
Marketing
A large percentage of the revenue of most firms is spent on which function? A. marketing B. operations C. finance D. research and development
Operations
Which of the following OM decisions determines how a good or service is produced and commits management to specific technology, quality, human resources, and capital investment? A. process and capacity design B. design of goods and services C. managing quality D. human resources and job design
Process and capacity design
The creation of goods and services is referred to as: A. transformation. B. formation. C. design. D. production.
Production
Only through increases in ______ can improve ___
Productivity, Standard of Living
Walter Shewhart (1924) created
Quality control
Which of these statements accurately captures a current trend in operations? A. There is increased focus on local market and local competition. B. Jobs are increasingly specialized as workers focus on basic assembly tasks. C. Rapid product development. D. Mass production at the expense of product variety.
Rapid Product Development
Which of the following is NOT considered to be one of the three primary functions that all organizations perform? A. research and development B. finance/accounting C. production/operations D. marketing
Research and development
Which of the following activities at an airline is NOT an operations activity? A. crew scheduling B. sales C. catering D. flying
Sales
The economic activities that typically produce an intangible product are referred to as A. phantoms. B. goods. C. services. D. products.
Services
As society becomes more technologically oriented, we see increasing ________
Specialization
Which of the following is NOT a characteristic of services? A. intangible B. standardized product C. produced and consumed simultaneously D. unique
Standardized product
Competition in the 21st century is no longer between companies; it is between A. supply chains. B. individuals. C. countries. D. technologies.
Supply chains
Production
The creation of goods and services
Eli Whitney (1800) is credited for
The early popularization of interchangeable parts, which was achieved through standardization and quality control
Frederick W. Taylor (1881) known as
The father of scientific management, contributed to personnel selection, planning and scheduling, motion study, and the now popular filed of ergonomics
What is the goal for mass customization? A. The goal is to let operations managers work with their supply chain to viciously cut inventories at every level. B. The goal is to enrich jobs and move more decision making to the individual contributor. C. The goal is to produce customized products, whenever and wherever needed. D. The goal is to seek creative designs, efficient production, and high-quality goods via international collaboration.
The goal is to produce customized products, whenever and wherever needed.
Productivity
The ratio of outputs divided by the inputs
Examples of Services
Transfer of funds from a savings account to a checking account, the transplant of a liver, the filling of an empty seat on an airplane
Which of the following is an example of a "hidden" production function? A. manufacturing a television B. transplanting a liver C. assembling a motorcycle D. producing a computer
Transplanting a liver
Which of the following does NOT contribute to OM? A. unsystematic processing of data B. information technology C. other disciplines including industrial engineering, statistics, management, and economics D. innovations from physical sciences
Unsystematic processing of data
The person who believed that management must do more to improve the work environment and processes so that quality can be improved was A. W. Edwards Deming. B. Henry Ford. C. Eli Whitney. D. Walter Shewhart.
W. Edwards Deming
Which of the following is NOT one of the four reasons that we study OM? A. We want to know how goods and services are produced. B. It is such a costly part of an organization. C. We want to understand what marketing managers do. D. It is one of the three major functions of any organization.
We want to understand what marketing managers do
The service sector constitutes what percentage of employment in the United States? A. between 50% to 60% B. between 60% to 70% C. between 70% to 80% D. between 80% to 90%
between 80% to 90%
Services
intangible products
In general, the supply chain starts with A. the provider of basic raw materials. B. final customers at the retail store. C. a distributor. D. research and development.
the provider of basic raw materials
Operations Management (OM)
the set of activities that creates value in the form of goods and services by transforming inputs into outputs
