ISDS 3115 Kelle Chapter 1 – Flashcards
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* 3 functions for production and an organizations survival
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1.marketing - which generates the demand , or takes the order for a product of service 2.production / operations - creates the product 3. finance / accounting - tracks how well an organization is doing , tracks bills and collects the money
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the supply chain
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the global network of organizations and activities that supplies a firm with goods and services
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*an example of a supply chain could be the soft drink supply chain
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farmer ---syrup producer --- bottler --- distributor --- retailer
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What fosters specialization and worldwide supply chains?
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specialized expert knowledge instant communication cheaper transportation
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Why study OM?
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1. how people organize themselves for productive enterprise 2. we want to know how goods and services are produced 3. to understand what operation managers do 4. we study it because it is such a costly part of production
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What operation managers do
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planning organizing staffing leading controlling
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10 strategic OM decisions
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decisions of goods and services managing quality process strategy location strategies layout strategies human strategies supply chain management inventory management scheduling maintenance
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service sector
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the segment of the economy that includes trade, financial , lodging , education, and other professional occupations
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productivity
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the ratio of outputs ( goods and services) divided by one or more inputs (labor , capital, or management)
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Which one of these is NOT one of the basic functions of the management process? staffing controlling inspecting leading
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inspecting
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Which one of these is NOT one of the 10 strategic OM decisions? scheduling marketing layout strategies managing quality
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marketing
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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? human resoures and job design design of goods and services process and capacity design managing quality
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process and capacity design
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What best defines scheduling?
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Determines and implements INTERMEDIATE- and SHORT term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands
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Which of the following does NOT contribute to OM? other disciplines including industrial engineering , statistics, management, and economics innovations from physical sciences information technology unsystematic processing of data
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unsystematic processing of data
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The person who introduced standardized, interchangeable parts was W. Edwards Derning Eli Whitney Frederick W. Taylor Henry Ford
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Eli Whitney
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The father of scientific management is W. Edwards Derning Eli Whitney Frederick W. Taylor Henry Ford
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Frederick W. Taylor
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The person who believed that management must do more to improve the work environment and processes so that quality can be improved was W. Edwards Derning Eli Whitney Frederick W. Taylor Henry Ford
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W. Edwards Deming
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The service sector constitutes what percentage of employment in the United States? 50-60 80-90 60-70 70-80
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80-90
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Which of the following is NOT a characteristic of services? produced and consumed simultaneously standardized product unique intangible
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standardized product
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Which of the following organizations does not belong to the service sector? costco san diego zoo southwest airlines ford motor company
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ford motor company
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What is the goal for mass customization?
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the goal is to produce customized products, whenever and wherever needed
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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 entry level
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inventory provides safety against higher than expected demand
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Which of the following trends is NOT part of the exciting OM challenges currently facing operation managers? local focus sustainability rapid product development supply chain partnering
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local focus
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Which of the following is NOT considered to be a stakeholder? competitors distributors customers community members
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competitors
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Productivity is generally more difficult to improve in the service sector than in the manufacturing sector
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true
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low cost leadership is the ability to distinguish the offerings of the organization in a way that the customer perceives as adding value
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false
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considers inventory ordering and holding decisions is within the strategic operations management decision area of managing quality true or false
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false
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acording to the authors which of the following strategic concepts allow firms to achieve their missions? -distinctive competency, cost leadership, and experiene -productivity , efficiency , and quality leadership - differentiation , cost leadership, and response
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differentiation, cost leadership, and response
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standardization is an appropriate strategy in which stage of the product life cycle? maturity growth introduction retirement decline
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maturity
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"considers inventory ordering and holding decisions" is within the strategic operations management decision area of MANAGING QUALITY? T . F
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false
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Productivity is generally more difficult to improve in the service sector than in the manufacturing sector. T. F
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true
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Which of the following tasks within an airline company are related to operations? international monetary exchange crew scheduling advertising sales accounts payable
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crew scheduling
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Which of the following attributes us most typical of a service? mass production production and consumption occur simultaneously consistency tangible easy to automate
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production and consumption occur simultaneously
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Low cost leadership is the ability to distinguish the offerings of the organization in a way that the customer perceives as adding value T. F
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false
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All organizations, including service firms such as banks and hospitals, have a production function. T. F
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true
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Customer interaction is often high for manufacturing processes, but low for service T. F
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false
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Production processes are being dispersed to take advantage of national differences in labor costs. T. F
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true
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Cost cutting in international operations can take place because of less stringent regulations lower wage scales lower indirect costs lower taxes and tariffs all of the above
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all of the above
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which of the following is the best example of competing on low - cost leadership? a firm produces its product with less raw material waste than its competitors do a firms products are introduced into the market faster than its competitors products are a firm offers more reliable products than its competitors do
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a firm produces its product with less raw material waste than its competitors do
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which of the following is an example of competing on the basis of differentiation? a firm produces its product with less raw material waste than its competitors do a firms products are introduced into the market faster than its competitors products are a firm offers more reliable products than its competitors do
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a firm offers more reliable products than its competitors do
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competition in the 21st century is no longer between companies, it is between supply chains T . F
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true
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Which of the following does NOT represent a valid reason for globalizing operations? reduce costs understand markets attract and retain global talent improve the supply chain reduce responsivenss
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reduce responsiveness
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Which of the following is an example of competing on quick response? a firm produces its product with less raw material waste than its competitors do a firms products are introduced into the market faster than its competitors products are a firm offers more reliable products than its competitors do a firms products are introduced into the market faster than its competitors products
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a firms products are introduced into the market faster than its competitors products
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standardization is an appropriate strategy in which stage of the product life cycle?
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maturity
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Boeings development of the 787 Dreamliner is an example of a company obtaining a competitive advantage through differentiation/innovation T.F
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true
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The creation of goods and services
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Production
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Activities that relate to the creation of goods and services through the transformation of inputs to outputs
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Operations Management (OM)
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A global network of organizations and activities that supplies a firm with goods and services
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Supply Chain
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Design of goods and services, managing quality, process strategy, location strategy, layout strategies, human resources, supply-chain management, inventory management, scheduling, and maintenance
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10 Strategic OM Decisions
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Economic activities that typically produce an intangible product (such as education, entertainment, lodging, government, financial, and health services)
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Services
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The segment of the economy that includes trade, financial, lodging, education, legal, medical, and other professional occupations
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Service Sector
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The ratio of outputs (goods and services) divided by one or more inputs (such as labor, capital, or management)
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Productivity
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Indicates the ratio of one resource (input) to the goods and services produced (outputs)
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Single-Factor Productivity
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Indicates the ratio of many or all resources (inputs) to the goods and services produced (outputs)
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Multifactor Productivity
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The three factors critical to productivity improvement--labor, capital, and the art and science of management
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Productivity Variables
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A society in which much of the labor force has migrated from manual work to work based on knowledge
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Knowledge Society
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Those with a vested interred in an organization, including customers, distributors, suppliers, owners, lenders, employees, and community members
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Stakeholders
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good food and entertainment
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Hard rock cafe creates value in the form of ______
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production
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the creation of goods and services
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operations management
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the set of activities that creates value in the form of goods and services by transforming inputs into outputs
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marketing, productions operations, finance accouting
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What are the 3 essential functions?
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planning, organizing, staffing, leading and controlling
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What are the 5 basic management functions?
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design of goods, managing quality, process design, location strategy, layout strategy, job design, supply chain management, inventory management, scheduling and maintenance
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What are the 10 critical decisions of OM managers?
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plant manager, quality manager, operations analyst, process improvement consultants and supply chain manager
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Give 5 examples of OM jobs
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Eli whitney
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showed that machine tools could make standardized parts to exact specifications (musket parts could be used in any musket)
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fred taylor
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created efficiency principles and known as the "father of scientific management"
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taylor's principles
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-Matching employees to right job -providing the proper training -providing proper work methods and tools -establishing legitimate incentives for work to be accomplished
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Gilbreths
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husband and wife engineering team, applied efficiency methods to their home and 12 children
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henry ford
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First used moving assembly line to make car
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Deming
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credited with teaching japan quality control methods in post-ww2 and used statistics to analyze process
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tangible, consistent definition, production separate from consumption, inventoried and low customer interaction
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What are the 5 characteristics of goods?
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intangible, produced and consumed at same time, unique, high customer interaction, inconsistent definition, knowledge based and dispersed
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What are the 7 characteristics of services?
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new trends in OM
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global focus, just in time, supply chain, rapid product development, mass customization, empowered employees, environmentally sensitive and ehtics
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productivity
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The ratio of outputs divided by the inputs
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output, efficiency
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Production is a measure of _____ ONLY and not a measure of ________
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quality
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Measurement problem: May change while the quantity of inputs and outputs remains constant
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external elements
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measurement problem: May cause an increase or decrease in productivity
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precise units
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measurement problem: ________ of measure may be lacking