OSCM 373 - Exam 1 UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS
3 Basic functions of an organization Marketing, operations and finance
What is operations? Production of goods and or delivery of services
What is operation management? The management of systems or processes that create goods and or provide
services
OM affects Companies' ability to compete
The transformation process Inputs --> Transformation/Conversion Process --> Outputs --> Control --> Inputs
Inputs Land, labor, capital, materials, information
Outputs Goods and services
Feedback Measurements taken at various points in the transformation process
Control The comparison of feedback against previously established standards to
determine if corrective action is needed
Manufacturing Goods-oriented
Service Act-oriented, activities that provide some combination of time, location, form or
psychological value
Goods Physical items tangible
Products Package Combination of goods and services
Role of Operations manager To guide the system by decision making
Operations consists of _____ all activities directly related to producing goods or providing services
Type of decisions operations manager has to make System design and System Operation
System Design Decisions Capacity, Facility location, Facility layout, Product and service planning, Typically
a strategic decision: usually require long term commitment of resources and
determine parameters of system operation
, System Operation Decisions Generally tactical decisions: Management of personnel, inventory management
and control, scheduling, project management, quality assurance
Sources of Waste Inventory, over-production, waiting time, unnecessary transportation, over-
processing, inefficient work methods, product defects, under utilizing worker skills
The 5S to eliminate waste Sort, Simplify, Shine, Standardize, Sustain (Safety, Support)
Sort Keep only what is needed in the work area, remove waste
Simplify Improve work flow and reduce wasted motion
Shine Clean daily, use cleaning to inspect work area
Standardize Know the process, remove variations from processes
Sustain Review work, maintain correct procedures, implement standards maintain quality,
train employees
Safety Built into practice
Support Use preventative maintenance. Reduce variability and unplanned downtime
Modeling Key tool used by decision makers
Model An abstraction of reality; a simplification
Types of Models Physical, schematic, mathematical
3 Basic functions of an organization Marketing, operations and finance
What is operations? Production of goods and or delivery of services
What is operation management? The management of systems or processes that create goods and or provide
services
OM affects Companies' ability to compete
The transformation process Inputs --> Transformation/Conversion Process --> Outputs --> Control --> Inputs
Inputs Land, labor, capital, materials, information
Outputs Goods and services
Feedback Measurements taken at various points in the transformation process
Control The comparison of feedback against previously established standards to
determine if corrective action is needed
Manufacturing Goods-oriented
Service Act-oriented, activities that provide some combination of time, location, form or
psychological value
Goods Physical items tangible
Products Package Combination of goods and services
Role of Operations manager To guide the system by decision making
Operations consists of _____ all activities directly related to producing goods or providing services
Type of decisions operations manager has to make System design and System Operation
System Design Decisions Capacity, Facility location, Facility layout, Product and service planning, Typically
a strategic decision: usually require long term commitment of resources and
determine parameters of system operation
, System Operation Decisions Generally tactical decisions: Management of personnel, inventory management
and control, scheduling, project management, quality assurance
Sources of Waste Inventory, over-production, waiting time, unnecessary transportation, over-
processing, inefficient work methods, product defects, under utilizing worker skills
The 5S to eliminate waste Sort, Simplify, Shine, Standardize, Sustain (Safety, Support)
Sort Keep only what is needed in the work area, remove waste
Simplify Improve work flow and reduce wasted motion
Shine Clean daily, use cleaning to inspect work area
Standardize Know the process, remove variations from processes
Sustain Review work, maintain correct procedures, implement standards maintain quality,
train employees
Safety Built into practice
Support Use preventative maintenance. Reduce variability and unplanned downtime
Modeling Key tool used by decision makers
Model An abstraction of reality; a simplification
Types of Models Physical, schematic, mathematical
