SOM 306 FINAL EXAM (TIERNEY)QUESTIONS AND ANSWERS
What is operations? - CORRECT ANSWER✅✅business organizations responsible for transforming inputs
into goods/services. Operations encompasses many cost elements, which affect price, does not
determine price to customers
Operations Management? - CORRECT ANSWER✅✅The management of systems or processes that
create goods and/or provide services; organization that oversees activities directly related to the supply
chain
Effective/Effectiveness - CORRECT ANSWER✅✅achievement of a goal or objective
Efficient/efficiency - CORRECT ANSWER✅✅achieving the goal using fewer resources - Labor, material,
machines, less overhead
Goods/manufacturing vs. Services - CORRECT ANSWER✅✅aspects/characteristics, similarities and
differences
- Degree of customer contact
- Uniformity of input/output
- Labor content of jobs
- measurement of productivity
- amount of inventory
Three interconnected business functions - CORRECT ANSWER✅✅Operations, marketing, finance
Strategy - CORRECT ANSWER✅✅- A plan for achieving organizational goals. Serves as a roadmap for
reaching organizational destination.
Organizational Strategies - CORRECT ANSWER✅✅Overall strategies that relate to the entire
organization
Support the achievement of organizational goals and mission
, Functional Level Strategies - CORRECT ANSWER✅✅Strategies of functional areas that support
achievement of organization strategy
- Strategy formulation incorporates core competencies and SWOT analysis
Core Compentencies - CORRECT ANSWER✅✅The special attributes or abilities that give an organization
a competitive edge
- Core compentencies are those strengths, skills, knowledge, and capability that separate a company
from their competition
- Are never a consideration for outsourcing
- Can reside in multiple functions (operations, finance, marketing, R&D)
Productivity - CORRECT ANSWER✅✅measure of effectiveness regarding use of resources; ratio
outputs/ inputs; need to be tracked over time, compared to previous internal results, industry results, or
national results
Forecast - CORRECT ANSWER✅✅a statement about the future value of a variable of interest
- Forecasts are usually wrong, but the margin of error varies greatly; goal is to be close, not precise
- Forecasts for groups of items (higher level) are more accurate than for individual items
- Accuracy decreases as the horizon increases - short term forecasts tend to be more accurate
Naive - CORRECT ANSWER✅✅use previous time period's value (stable series, seasonal variation,
trends)
Average, Moving Average, Weighted Moving Average - CORRECT ANSWER✅✅smooth variations,
gradual changes; uses history, moving changes with newer, actual data, if weighted more emphasis put
on most recent data
3 Rs - CORRECT ANSWER✅✅reduce, reuse, recycle
Reduce - CORRECT ANSWER✅✅function, cost (cheaper material, lower quality) and quantity of part
numbers used or can standard or parts used on other products/models vs. custom parts used?
What is operations? - CORRECT ANSWER✅✅business organizations responsible for transforming inputs
into goods/services. Operations encompasses many cost elements, which affect price, does not
determine price to customers
Operations Management? - CORRECT ANSWER✅✅The management of systems or processes that
create goods and/or provide services; organization that oversees activities directly related to the supply
chain
Effective/Effectiveness - CORRECT ANSWER✅✅achievement of a goal or objective
Efficient/efficiency - CORRECT ANSWER✅✅achieving the goal using fewer resources - Labor, material,
machines, less overhead
Goods/manufacturing vs. Services - CORRECT ANSWER✅✅aspects/characteristics, similarities and
differences
- Degree of customer contact
- Uniformity of input/output
- Labor content of jobs
- measurement of productivity
- amount of inventory
Three interconnected business functions - CORRECT ANSWER✅✅Operations, marketing, finance
Strategy - CORRECT ANSWER✅✅- A plan for achieving organizational goals. Serves as a roadmap for
reaching organizational destination.
Organizational Strategies - CORRECT ANSWER✅✅Overall strategies that relate to the entire
organization
Support the achievement of organizational goals and mission
, Functional Level Strategies - CORRECT ANSWER✅✅Strategies of functional areas that support
achievement of organization strategy
- Strategy formulation incorporates core competencies and SWOT analysis
Core Compentencies - CORRECT ANSWER✅✅The special attributes or abilities that give an organization
a competitive edge
- Core compentencies are those strengths, skills, knowledge, and capability that separate a company
from their competition
- Are never a consideration for outsourcing
- Can reside in multiple functions (operations, finance, marketing, R&D)
Productivity - CORRECT ANSWER✅✅measure of effectiveness regarding use of resources; ratio
outputs/ inputs; need to be tracked over time, compared to previous internal results, industry results, or
national results
Forecast - CORRECT ANSWER✅✅a statement about the future value of a variable of interest
- Forecasts are usually wrong, but the margin of error varies greatly; goal is to be close, not precise
- Forecasts for groups of items (higher level) are more accurate than for individual items
- Accuracy decreases as the horizon increases - short term forecasts tend to be more accurate
Naive - CORRECT ANSWER✅✅use previous time period's value (stable series, seasonal variation,
trends)
Average, Moving Average, Weighted Moving Average - CORRECT ANSWER✅✅smooth variations,
gradual changes; uses history, moving changes with newer, actual data, if weighted more emphasis put
on most recent data
3 Rs - CORRECT ANSWER✅✅reduce, reuse, recycle
Reduce - CORRECT ANSWER✅✅function, cost (cheaper material, lower quality) and quantity of part
numbers used or can standard or parts used on other products/models vs. custom parts used?
