Management 3200 Bhutta Midterm 1 – Flashcards
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What are the Limitations of Mathematical Models when used in Decision Making?
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1. Models can be incorrectly applied and the results misinterpreted 2. Qualitative information can be difficult to quantify into a model 3. The use of models does not guarantee good decision making
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Mis-matching capacity with demand will lead to:
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1. Wastefulness (too much capacity) 2. Lost profits (capacity is costly) 3. Lost revenue (too little capacity)
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What are the three functional areas of a business?
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1. Finance 2. Operations 3. Marketing
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The degree to which a company offers customization will affect:
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1. Employee skill level 2. More specialized equipment
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What are Theory X and Theory Y?
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X: Workers do not like work, must be induced into doing it Y: Workers enjoy work
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Variability does what to the managing process?
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1. (Demand) Increases the difficulty of process planning 2. (Supply) Leads to problems with poor product quality
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When the term 'Mass Production' is used, it is referring to:
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The production of large volumes of standardized goods by low-skill or intermediate skilled workers using highly specialized machines
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What are the four stages of the evolution of operations management?
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1. Industrial Revolution 2. Scientific Management 3. HR Movement 4. Decision Models
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Identify and describe what operations management is:
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The functional area of the business that is responsible for the creation of goods/services, and it is the management of the systems/processes which do the production
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Briefly identify and describe the three possibilities of supply and demand, and their effect on the business:
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1. Supply > Demand - This is costly and wasteful 2. Supply < Demand - This is costly (Opportunity Loss) and will lead to Customer Dissatisfaction 3. Supply = Demand - This is ideal
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What is the transformation process and what types of processes are there?
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A series of activities along a value chain extending from supplier to customer. Physical: Manufacturing Locational: Transportation Exchange: Retail Physiological: Health Care Psychological: Entertainment Informational: Communication
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What are the four sources of process variation?
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1. Variety in goods/services offered 2. Structural variation in demand 3. Random variation 4. Assignable variation
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Describe the system design decisions and why they are important:
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1. Capacity - How much? 2. Location - Where? 3. Layout - How? 4. Product/Service Planning 5. Acquisition/Placement of Equipment - With what?
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Describe the system operation decisions and why they are important:
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1. Management of Personnel - Who? 2. Inventory Management - What? 3. Scheduling - How? 4. Project Management 5. Quality Assurance
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What are the strategies for a competitive advantage?
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1. Differentiation - Uniqueness 2. Cost Leadership - Maximum value per dollar spent 3. Quick Response
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Briefly describe operations management and the supply chain:
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Operations function of a business includes any function that's purpose is to provide services / produce goods. A supply chain is simply the parties involved in fulfilling a customer request.
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What are some examples of what an operations manager can do if supply is larger/smaller than demand?
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Larger: Advertising/Price reductions, Store excess Smaller: Outsource, work overtime, hire temporary workers (Additionally, if there is few competitors: Raise prices)
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Operations management requires:
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Knowledge of the facts and how to interpret information
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Why does operations management require constant improvement?
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Due to competition in the marketplace and advancements in technology
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Good product and process design is:
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Customer driven
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What question must operations managers answer?
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What type of process is best suited to fulfill our customer's needs?
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What is the goal in selecting a supplier?
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Best product for the best price
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The global market enables the operations manager:
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To choose the most cost effective supplier
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How do you know if your process is the most efficient for your product or service?
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Measuring
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Monitoring the consistency and repeat-ability of a process is called:
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Statistical Process Control
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Operations management incorporates which of the following groups?
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Suppliers, employees, distributors and retailers
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What would cause a business to change its product or service design?
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Changes in the market
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What is the first step in creating a new operation?
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Determining the design of the product and the process that will produce it
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A company that served 315 meals at an anniversary using 11 workers compared to a company that served 225 meals using 5 workers...Which company (anniversary/wedding) had a higher labor productivity?
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Anniversary: 315/11 = 28.6 meals per labor input Wedding: 225/5 = 45.0 meals per labor input Wedding had a higher labor productivity per input.
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All else being equal, a labor size of 2 people that produce 54 units of output; compared with a labor size of 5 that produces 100 units of output: Which labor size 'works best'?
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'Works Best' = Highest labor productivity per unit 100/5 = 20 54/2 = 27 Crew size of 2 workers
