OM 300 test 1 nunnelley Exam Questions and
Answers
Operations management - -is the set of activities that create value in the form of goods and
services by transforming inputs into outputs
-The Supply Chain - -a global network of organizations and activities that supply a firm
with goods and services
-Goal of the supply chain - -to achieve high levels of customer satisfaction, efficiency and
competitive advantage
-Three major functions of any organization - -1. Marketing
2. Finance (accounting)
3. Operations management
-Basic management functions - --planning
-organizing
-staffing
- leading
- controlling
-Manufactures produce - -tangible goods, services are intangible
-Characteristics of Services - -• 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 - -• 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 - -measure of process improvement, represents output relative to input
, -Management is the _________ of the annual increases to productivity - -largest, 52% of the
2.5% overall increase
next is capital 38%, then labor 10%
-Productivity in the service sector is... - -• 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? - -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? - -social and cultural
behaviors vary ex. bribery, lunch breaks, environment ect.
-the mission statement tells an organization? - -where it is going
-The strategy tells the organization? - -how it will get there
-Strategies for competitive advantage - -differentiation
cost leadership
response
-Differentiation - -considers everything that impacts a customers perception of value
-Cost leadership - -- provide maximum perceived value, does not imply low quality
-Response - -○ 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 - -• Resources view
• Value chain analysis
• Five forces model
Product life cycle
-Product life cycle - -introduction
growth
maturity
Answers
Operations management - -is the set of activities that create value in the form of goods and
services by transforming inputs into outputs
-The Supply Chain - -a global network of organizations and activities that supply a firm
with goods and services
-Goal of the supply chain - -to achieve high levels of customer satisfaction, efficiency and
competitive advantage
-Three major functions of any organization - -1. Marketing
2. Finance (accounting)
3. Operations management
-Basic management functions - --planning
-organizing
-staffing
- leading
- controlling
-Manufactures produce - -tangible goods, services are intangible
-Characteristics of Services - -• 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 - -• 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 - -measure of process improvement, represents output relative to input
, -Management is the _________ of the annual increases to productivity - -largest, 52% of the
2.5% overall increase
next is capital 38%, then labor 10%
-Productivity in the service sector is... - -• 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? - -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? - -social and cultural
behaviors vary ex. bribery, lunch breaks, environment ect.
-the mission statement tells an organization? - -where it is going
-The strategy tells the organization? - -how it will get there
-Strategies for competitive advantage - -differentiation
cost leadership
response
-Differentiation - -considers everything that impacts a customers perception of value
-Cost leadership - -- provide maximum perceived value, does not imply low quality
-Response - -○ 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 - -• Resources view
• Value chain analysis
• Five forces model
Product life cycle
-Product life cycle - -introduction
growth
maturity
