I-Core P370 Operations Midterm Questions
With Correct Answers.
Transformation System
A user of resources that transforms inputs into some desired outputs
Types of Transformations (6 Total)
Physical - Manufacturing
Locational - Transportation
Exchange - Retailing
Storage - Warehousing
Physiological - Health Care
Informational - Telecommunications
Triple bottom line
An accounting framework with three parts: social, environmental (or ecological) and financial.
[People, Planet, Profit]
Operations Management is...
The design, operation and improvement of the systems that creates the firm's primary products and
services
3 Types of OM Decisions
Strategic - Long Term, Often involving acquisition of new resources
Tactical - Medium Term, Using existing resources
Operational - Short Term, (Think shift scheduling at a hospital)
Functional Strategies
Finance Strategy
Marketing Strategy
Operations Strategy is derived from the...
Corporate Strategy
Hierarchy of Strategic Roles (4 Stages)
Stage 1 - Internally Neutral (Don't Mess Up)
- Minimize Downside
Stage 2 - Externally Neutral (Keep up with Joneses)
- Match competitors performance
Stage 3 - Internally Supportive (Consistency with Corporate Strategy [50's and 60's])
- Strategy is formulated and adhered to
Stage 4 - Externally Supportive (be a full partner in the company)
- Using operations as a competitive advantage
Design (Product) Quality & Process Quality
Performance & Consistency
, Southwest's Quick Gate Policy focused on what?
Becoming the lowest internal cost airplane policy
Productivity Formula
Outputs/Inputs
4 Types of Productivity
Partial (Over a single input)
labor productivity = outputs/labor input
Total (Over all inputs)
total productivity = output/(labor + materials + ... + energy)
Multi-Factor (Over some inputs)
multi-factor productivity = outputs/(labor + materials)
Dimensionless productivity - Same units $
indicates profitability
Absolute and Growth Productivity
Absolute - A snapshot in time
Growth - Change over time
Growth = (P2 - P1)/P1
~ P stands for productivity
~ Each P should be the same type
Sources of Productivity
External Factors - interest rates, environmental
Improved Labor Inputs - education, demographics
Capital-labor substitution
Economies of Scale
Technological Change
Most common source of growth
Technology
Find the Average total productivity this month
Units Produced: 2300
Hours Worked Per Machine: 325
Number of Machines: 3
2300/(325 * 3)
2.36
What is expected productivity in May, assuming this rate of growth remains constant?
March April
Productivity: 1.75 2.34
With Correct Answers.
Transformation System
A user of resources that transforms inputs into some desired outputs
Types of Transformations (6 Total)
Physical - Manufacturing
Locational - Transportation
Exchange - Retailing
Storage - Warehousing
Physiological - Health Care
Informational - Telecommunications
Triple bottom line
An accounting framework with three parts: social, environmental (or ecological) and financial.
[People, Planet, Profit]
Operations Management is...
The design, operation and improvement of the systems that creates the firm's primary products and
services
3 Types of OM Decisions
Strategic - Long Term, Often involving acquisition of new resources
Tactical - Medium Term, Using existing resources
Operational - Short Term, (Think shift scheduling at a hospital)
Functional Strategies
Finance Strategy
Marketing Strategy
Operations Strategy is derived from the...
Corporate Strategy
Hierarchy of Strategic Roles (4 Stages)
Stage 1 - Internally Neutral (Don't Mess Up)
- Minimize Downside
Stage 2 - Externally Neutral (Keep up with Joneses)
- Match competitors performance
Stage 3 - Internally Supportive (Consistency with Corporate Strategy [50's and 60's])
- Strategy is formulated and adhered to
Stage 4 - Externally Supportive (be a full partner in the company)
- Using operations as a competitive advantage
Design (Product) Quality & Process Quality
Performance & Consistency
, Southwest's Quick Gate Policy focused on what?
Becoming the lowest internal cost airplane policy
Productivity Formula
Outputs/Inputs
4 Types of Productivity
Partial (Over a single input)
labor productivity = outputs/labor input
Total (Over all inputs)
total productivity = output/(labor + materials + ... + energy)
Multi-Factor (Over some inputs)
multi-factor productivity = outputs/(labor + materials)
Dimensionless productivity - Same units $
indicates profitability
Absolute and Growth Productivity
Absolute - A snapshot in time
Growth - Change over time
Growth = (P2 - P1)/P1
~ P stands for productivity
~ Each P should be the same type
Sources of Productivity
External Factors - interest rates, environmental
Improved Labor Inputs - education, demographics
Capital-labor substitution
Economies of Scale
Technological Change
Most common source of growth
Technology
Find the Average total productivity this month
Units Produced: 2300
Hours Worked Per Machine: 325
Number of Machines: 3
2300/(325 * 3)
2.36
What is expected productivity in May, assuming this rate of growth remains constant?
March April
Productivity: 1.75 2.34
