OM 300 CHILCUTT EXAM 1 STUDY GUIDE
Operations Management - Answers - the set of activities that create value in the form of
goods and services by transforming inputs into outputs
Marketing - Answers - generates demand
accounting - Answers - tracks how well the organization is doing, pays bills, and collects
money
operations - Answers - creates the product
supply chain - Answers - a global network of organizations and activities that supply a
firm with goods and services.
--Farm to fork
services - Answers - Economic activities that typically produce an intangible product
(such as education, entertainment, lodging, government, financial, and health services)
manufacturers - Answers - produce tangible products
productivity - Answers - the ratio of outputs (goods and services) divided by the inputs
(resources such as labor and capital)
--objective of businesses is to improve this
multi-factor productivity - Answers - the ratio between the amount of output produced by
an industry or business sector and the amount of inputs used
--often expressed in dollars
quality - Answers - may change while the quantity of inputs and outputs remains
constant
external elements - Answers - may cause an increase of decrease in productivity
precise units - Answers - may be lacking in our multi-factor productivity formula
Key Variables for Improved Labor Productivity - Answers - 1. Basic Education
appropriate for the labor force
2. Diet of the labor force
3. Social overhead that makes labor available
-Challenge is in maintaining and enhancing skills in the midst of rapidly changing
technology and knowledge
stakeholders - Answers - those with a vested interest in an organization, including
customers, distributors, suppliers, owners, lender, employees, and community members
, management - Answers - accounts about 52% of the annual increase in productivity
mission - Answers - organization's purpose or reason for being
strategy - Answers - a plan of action to achieve the mission of the organization
SWOT
competitive advantage - Answers - an advantage over competitors gained by offering
greater customer value, either by having lower prices or providing more benefits that
justify higher prices
strategies for competitive advantage - Answers - Differentiation - better, or at least
different
Cost leadership - cheaper
Response - more responsive
reasons to globalize - Answers - improve supply chain, reduce costs, improve
operations, understand markets, improve products, attract and retain global talent
differentiation - Answers - Uniqueness can go beyond both the physical characteristics
and service attributes to encompass everything that impacts customer's perception of
value
ex: Walt Disney World vs Six Flags
cost leadership - Answers - provide the maximum value as perceived by the customer
does not mean low quality.
example: Southwest Airlines
response - Answers - 1. Flexibility is matching market changes in design innovation and
volumes (HP staying on top of the tech game for the last 25 yrs)
2. Reliability is meeting schedules (BMW car is set to be done on Monday it better be
done Monday)
3. Quickness in design, production, and delivery
(pizza hut's half hour deal)
Product life cycle - Answers - introduction, growth, maturity, decline
introduction - Answers - best period in the product life cycle to increase market share
Research and Development engineering is critical
growth - Answers - practical to change price or quality image
Strengthen niche and forecasting is critical
ex : Furby missed their mark and went under in this stage
maturity - Answers - poor time to change image, price, or quality
Operations Management - Answers - the set of activities that create value in the form of
goods and services by transforming inputs into outputs
Marketing - Answers - generates demand
accounting - Answers - tracks how well the organization is doing, pays bills, and collects
money
operations - Answers - creates the product
supply chain - Answers - a global network of organizations and activities that supply a
firm with goods and services.
--Farm to fork
services - Answers - Economic activities that typically produce an intangible product
(such as education, entertainment, lodging, government, financial, and health services)
manufacturers - Answers - produce tangible products
productivity - Answers - the ratio of outputs (goods and services) divided by the inputs
(resources such as labor and capital)
--objective of businesses is to improve this
multi-factor productivity - Answers - the ratio between the amount of output produced by
an industry or business sector and the amount of inputs used
--often expressed in dollars
quality - Answers - may change while the quantity of inputs and outputs remains
constant
external elements - Answers - may cause an increase of decrease in productivity
precise units - Answers - may be lacking in our multi-factor productivity formula
Key Variables for Improved Labor Productivity - Answers - 1. Basic Education
appropriate for the labor force
2. Diet of the labor force
3. Social overhead that makes labor available
-Challenge is in maintaining and enhancing skills in the midst of rapidly changing
technology and knowledge
stakeholders - Answers - those with a vested interest in an organization, including
customers, distributors, suppliers, owners, lender, employees, and community members
, management - Answers - accounts about 52% of the annual increase in productivity
mission - Answers - organization's purpose or reason for being
strategy - Answers - a plan of action to achieve the mission of the organization
SWOT
competitive advantage - Answers - an advantage over competitors gained by offering
greater customer value, either by having lower prices or providing more benefits that
justify higher prices
strategies for competitive advantage - Answers - Differentiation - better, or at least
different
Cost leadership - cheaper
Response - more responsive
reasons to globalize - Answers - improve supply chain, reduce costs, improve
operations, understand markets, improve products, attract and retain global talent
differentiation - Answers - Uniqueness can go beyond both the physical characteristics
and service attributes to encompass everything that impacts customer's perception of
value
ex: Walt Disney World vs Six Flags
cost leadership - Answers - provide the maximum value as perceived by the customer
does not mean low quality.
example: Southwest Airlines
response - Answers - 1. Flexibility is matching market changes in design innovation and
volumes (HP staying on top of the tech game for the last 25 yrs)
2. Reliability is meeting schedules (BMW car is set to be done on Monday it better be
done Monday)
3. Quickness in design, production, and delivery
(pizza hut's half hour deal)
Product life cycle - Answers - introduction, growth, maturity, decline
introduction - Answers - best period in the product life cycle to increase market share
Research and Development engineering is critical
growth - Answers - practical to change price or quality image
Strengthen niche and forecasting is critical
ex : Furby missed their mark and went under in this stage
maturity - Answers - poor time to change image, price, or quality
