OM 300 EXAM 1 QUESTIONS AND ANSWERS
What is operations management? - Answers - the set of activities that creates value in
the form of goods and services by transforming inputs into outputs
What are the three essential functions of an organization? - Answers - 1. Marketing
2. Finance/Accounting
3. Production/Operations
What is the supply chain? - Answers - a global network of organizations and activities
that supplies a firm with goods and services
What are the 10 strategic OM decisions? - Answers - 1. Design of goods and services
2. Managing quality and statistical process control
3. Process and capacity strategies
4. Location strategies
5. Layout strategies
6. Human resources, job design and work measurement
7. Supply chain management
8. Inventory management
9. Scheduling
10. Maintenance
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What types of decisions do Operation Managers make? - Answers - The Base: People,
Product Process
The Place: Location, Layout
The Stuff: Quality Management, Inventory Management, Supply Chain Management
The Face: Scheduling, Maintenance
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What is the difference between goods and services? - Answers - Goods are tangible
and services are intangible
What is productivity? - Answers - the ratio of outputs (goods and services) divided by
the inputs (resources such as labor and capital)
[Ratio of outputs / inputs]
How is productivity used in the service sector? - Answers - Productivity is hard in the
service sector bc service in intangible. It is hard to measure and different people have
different opinions/expectations.
What three factors affect productivity? - Answers - 1. Quality
, 2. External elements
3. Precise units
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What is globalization? - Answers - means customers, talent, and supplier are worldwide
What are four examples of companies that have globalized? - Answers - 1. Boeing -
they are competitive bc both its sales and supply chain are world wide
2. Italy's Benetton - moves inventory to stores around the world faster than its
competition
3. Sony - purchases components from a supply chain that extends to Thailand,
Malaysia, and other places around the world for assembly of its electronic products
4. Volvo - a Swedish company, was purchased by a Chinese company, Geely, but
Volvo assembles cars in Sweden, Belgium and China
(Video examples = Texas Instruments, Caterpillar, and Otis Elevator)
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What are the six reasons why companies chose to expand globally? - Answers - 1.
Improve the supply chain
2. Reduce costs and exchange rate risks
3. Improve operations
4. Understand markets
5. Improve products
6. Attract and retain global talent
PUT ON SHEET
How do companies go about developing strategies? - Answers - 1. Identify key success
factors (KSF)
2. Understand core competencies
3. Build and staff the organization
4. Integrate OM with other activities
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How do companies achieve competitive advantage? - Answers - 1. Differentiation -
better or different
2. Cost leadership - cheaper
3. Response - rapid response
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What is a strategy? - Answers - organization's action plan to achieve the mission
What is a mission statement? - Answers - organization's purpose as to what it will
contribute to society
True or False: Never outsource your core competencies. - Answers - True
What is operations management? - Answers - the set of activities that creates value in
the form of goods and services by transforming inputs into outputs
What are the three essential functions of an organization? - Answers - 1. Marketing
2. Finance/Accounting
3. Production/Operations
What is the supply chain? - Answers - a global network of organizations and activities
that supplies a firm with goods and services
What are the 10 strategic OM decisions? - Answers - 1. Design of goods and services
2. Managing quality and statistical process control
3. Process and capacity strategies
4. Location strategies
5. Layout strategies
6. Human resources, job design and work measurement
7. Supply chain management
8. Inventory management
9. Scheduling
10. Maintenance
PUT ON SHEET
What types of decisions do Operation Managers make? - Answers - The Base: People,
Product Process
The Place: Location, Layout
The Stuff: Quality Management, Inventory Management, Supply Chain Management
The Face: Scheduling, Maintenance
PUT ON SHEET
What is the difference between goods and services? - Answers - Goods are tangible
and services are intangible
What is productivity? - Answers - the ratio of outputs (goods and services) divided by
the inputs (resources such as labor and capital)
[Ratio of outputs / inputs]
How is productivity used in the service sector? - Answers - Productivity is hard in the
service sector bc service in intangible. It is hard to measure and different people have
different opinions/expectations.
What three factors affect productivity? - Answers - 1. Quality
, 2. External elements
3. Precise units
PUT ON SHEET
What is globalization? - Answers - means customers, talent, and supplier are worldwide
What are four examples of companies that have globalized? - Answers - 1. Boeing -
they are competitive bc both its sales and supply chain are world wide
2. Italy's Benetton - moves inventory to stores around the world faster than its
competition
3. Sony - purchases components from a supply chain that extends to Thailand,
Malaysia, and other places around the world for assembly of its electronic products
4. Volvo - a Swedish company, was purchased by a Chinese company, Geely, but
Volvo assembles cars in Sweden, Belgium and China
(Video examples = Texas Instruments, Caterpillar, and Otis Elevator)
PUT ON SHEET
What are the six reasons why companies chose to expand globally? - Answers - 1.
Improve the supply chain
2. Reduce costs and exchange rate risks
3. Improve operations
4. Understand markets
5. Improve products
6. Attract and retain global talent
PUT ON SHEET
How do companies go about developing strategies? - Answers - 1. Identify key success
factors (KSF)
2. Understand core competencies
3. Build and staff the organization
4. Integrate OM with other activities
PUT ON SHEET
How do companies achieve competitive advantage? - Answers - 1. Differentiation -
better or different
2. Cost leadership - cheaper
3. Response - rapid response
PUT ON SHEET
What is a strategy? - Answers - organization's action plan to achieve the mission
What is a mission statement? - Answers - organization's purpose as to what it will
contribute to society
True or False: Never outsource your core competencies. - Answers - True
