OM 300 TEST 1 NUNNELLEY QUESTIONS AND
ANSWERS
Operations management - Answers - is the set of activities that create value in the form
of goods and services by transforming inputs into outputs
The Supply Chain - Answers - a global network of organizations and activities that
supply a firm with goods and services
Goal of the supply chain - Answers - to achieve high levels of customer satisfaction,
efficiency and competitive advantage
Three major functions of any organization - Answers - 1. Marketing
2. Finance (accounting)
3. Operations management
Basic management functions - Answers - -planning
-organizing
-staffing
- leading
- controlling
Manufactures produce - Answers - tangible goods, services are intangible
Characteristics of Services - Answers - • Intangible: ride in an airplane seat
• Produced and consumed simultaneously
• Unique
• High customer interaction
• Inconsistent product definition
• Often knowledge based
• Services dispersed
• Quality may be hard to evaluate
-Reselling is unusual
Characteristics of goods - Answers - • Tangible: the seat itself
• Product can be kept in inventory
• Similar products produced
• Limited customer involvement in production
• Standard tangible product tends to make automation feasible
• Product typically produced at a fixed facility
• Easy to evaluate aspects of quality
• Product often has some residual value
, Productivity - Answers - measure of process improvement, represents output relative to
input
Management is the _________ of the annual increases to productivity - Answers -
largest, 52% of the 2.5% overall increase
next is capital 38%, then labor 10%
Productivity in the service sector is... - Answers - • Labor intensive
• Focused on special attributes
• normally Intellectual tasks
• Difficult to automate
• Difficult to check for quality
why do domestic business operations decide to change to an international operation? -
Answers - 1. Improve the supply chain
2. Reduce cost (labor, taxes, tariffs ect.)
3. Improve operations
4. Understand markets
5. Improve products
6. Attract and retain global talent
what is the challenge of globalization of business operations? - Answers - social and
cultural behaviors vary ex. bribery, lunch breaks, environment ect.
the mission statement tells an organization? - Answers - where it is going
The strategy tells the organization? - Answers - how it will get there
Strategies for competitive advantage - Answers - differentiation
cost leadership
response
Differentiation - Answers - considers everything that impacts a customers perception of
value
Cost leadership - Answers - - provide maximum perceived value, does not imply low
quality
Response - Answers - ○ Flexibility - responds to market changes in design innovation
and volumes
○ Reliability is meeting schedules
○ Timeliness is quickness in design, production and delivery
Issues in operation strategy - Answers - • Resources view
• Value chain analysis
• Five forces model
ANSWERS
Operations management - Answers - is the set of activities that create value in the form
of goods and services by transforming inputs into outputs
The Supply Chain - Answers - a global network of organizations and activities that
supply a firm with goods and services
Goal of the supply chain - Answers - to achieve high levels of customer satisfaction,
efficiency and competitive advantage
Three major functions of any organization - Answers - 1. Marketing
2. Finance (accounting)
3. Operations management
Basic management functions - Answers - -planning
-organizing
-staffing
- leading
- controlling
Manufactures produce - Answers - tangible goods, services are intangible
Characteristics of Services - Answers - • Intangible: ride in an airplane seat
• Produced and consumed simultaneously
• Unique
• High customer interaction
• Inconsistent product definition
• Often knowledge based
• Services dispersed
• Quality may be hard to evaluate
-Reselling is unusual
Characteristics of goods - Answers - • Tangible: the seat itself
• Product can be kept in inventory
• Similar products produced
• Limited customer involvement in production
• Standard tangible product tends to make automation feasible
• Product typically produced at a fixed facility
• Easy to evaluate aspects of quality
• Product often has some residual value
, Productivity - Answers - measure of process improvement, represents output relative to
input
Management is the _________ of the annual increases to productivity - Answers -
largest, 52% of the 2.5% overall increase
next is capital 38%, then labor 10%
Productivity in the service sector is... - Answers - • Labor intensive
• Focused on special attributes
• normally Intellectual tasks
• Difficult to automate
• Difficult to check for quality
why do domestic business operations decide to change to an international operation? -
Answers - 1. Improve the supply chain
2. Reduce cost (labor, taxes, tariffs ect.)
3. Improve operations
4. Understand markets
5. Improve products
6. Attract and retain global talent
what is the challenge of globalization of business operations? - Answers - social and
cultural behaviors vary ex. bribery, lunch breaks, environment ect.
the mission statement tells an organization? - Answers - where it is going
The strategy tells the organization? - Answers - how it will get there
Strategies for competitive advantage - Answers - differentiation
cost leadership
response
Differentiation - Answers - considers everything that impacts a customers perception of
value
Cost leadership - Answers - - provide maximum perceived value, does not imply low
quality
Response - Answers - ○ Flexibility - responds to market changes in design innovation
and volumes
○ Reliability is meeting schedules
○ Timeliness is quickness in design, production and delivery
Issues in operation strategy - Answers - • Resources view
• Value chain analysis
• Five forces model
