MAR3203 EXAM 1 UCF
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87 Terms
What is operations management
is the set of activities that creates value in the form of goods and services by transforming inputs into outputs.
what are the three main essentials functions to create goods and services
marketing, operations, fiance
3 multiple choice options
Marketing
one of three main essentials to create goods/service
which generates the demand, or at least takes the order for a product or service
3 multiple choice options
Production/ operations
one of three main essentials to create goods/services
which creates, produces, and delivers the product.
3 multiple choice options
Finance/ accounting
one of three main essentials to create goods/services
which tracks how well the organization is doing, pays the bills, and collects the money
2 multiple choice options
supply chain
is a global network of organizations and activities that supply a firm with goods and services.
3 multiple choice options
Members of the supply chain collaborate to achieve high levels of customer _______ , _________ , and competitive _________.
satisfaction, efficiency, advantage
3 multiple choice options
OM transforms ______ to _______
inputs to outputs
1 multiple choice option
Why study OM?
1. OM is one of three major functions of any organization, we want to study how people organize themselves for productive enterprise
2. We want (and need) to know how goods and services are produced
3. We want to understand what operations managers do
4. OM is such a costly part of an organization
Which is NOT one of what operations managers do?
Promote org.
3 multiple choice options
Which of these is one of the three major functions within an​ organization?
marketing
3 multiple choice options
Which of the following is NOT one of the four reasons that we study​ OM?
We want to understand what marketing managers do.
3 multiple choice options
Which of these is one of the 10 strategic OM​ decisions?
all of the above
3 multiple choice options
Which of the following OM decisions determines how a good or service is produced and commits management to specific​ technology, quality, human​ resources, and capital​ investment?
process and capacity design
3 multiple choice options
Which of the following best defines​ scheduling?
Determines and implements​ intermediate- and​ short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands.
3 multiple choice options
Which of the following OM decisions determines customers quality expectations and establishes polices and procedures to identify quality
managing quality
3 multiple choice options
Process and capacity design
-How is a good or service produced?
-Commits management to specific technology, quality, resources, and investment
3 multiple choice options
Location strategy
-Nearness to customers, suppliers, and talent.
-Considering costs, infrastructure, logistics, and government.
3 multiple choice options
Layout strategy
-Integrate capacity needs, personnel levels, technology, and inventory
-Determine the efficient flow of materials, people, and information
Supply Chain Management
-Integrate supply chain into the firm's strategy.
-Determine what is to be purchased, from whom, and under what conditions.
Inventory Management
-Inventory ordering and holding decisions
-Optimize considering customer satisfaction, supplier capability, and production schedules
Maintenance
-Consider facility capacity, production demands, and personnel
-Maintain a reliable and stable process
The person who introduced​ standardized, interchangeable parts was
Eli Whitney
3 multiple choice options
The person who believed that management must do more to improve the work environment and processes so that quality can be improved was
W. Edwards Deming
3 multiple choice options
Which of the following does NOT contribute to​ OM?
unsystematic processing of data
3 multiple choice options
Services
Economic activities that typically produce an intangible product (such as education, entertainment, lodging, government, financial, and health services)
Productivity
the ratio of outputs (goods and services) divided by the inputs (resources such as labor and capital)
Production is a measure of _____ ONLY and not a measure of _____
output , efficiency
3 multiple choice options
formula for productivity
units produced/inputs used
3 multiple choice options
The use of just one resource input to measure productivity
single-factor productivity
3 multiple choice options
Formula for single-factor productivity
units produced/labor hours used
2 multiple choice options
Multifactor productivity Formula
Units produced / Labor + Material + Energy + Capital + Miscellaneous
Output
units produced
Which of these statements accurately captures a current trend in​ operations?
A current trend is industry 4.0 and rapid product development.
3 multiple choice options
What is the goal for mass​ customization?
The goal is to produce customized​ products, whenever and wherever needed.
3 multiple choice options
Which of the following trends is NOT part of the exciting OM challenges currently facing operations​ managers?
local focus
3 multiple choice options
customers, talent, and suppliers are worldwide.
Globalization
3 multiple choice options
Reasons to Globalize
1. Improve the supply chain
2. Reduce costs (labor, taxes, tariffs, etc.)
3. Improve operations
4. Understand markets
5. Improve products
6. Attract and retain global talent
Which reason to globalize determines interaction with foreign customers, suppliers, and other competitive businesses, international firms inevitably learn about opportunities
Understanding Markets
3 multiple choice options
Which reason to globalize determines locating facilities in countries where unique resources are available; may be human resource expertise, low-cost labor, or raw material.
Improve Supply Chain
3 multiple choice options
Improve Operations
- understand differences between how business is handled in other countries
- international operations can improve response time and customer service
Resources View
a method managers use to evaluate the resources at their disposal and manage or alter them to achieve competitive advantage
an alternative perspective from issues in Op. Strat
Value Chain Analysis
a way to identify those elements in the product/service chain that uniquely add value
an alternative perspective from issues in Op. Strat
areas where the firm adds its unique value through product research, design, human resources, supply-chain management, process innovation, or quality management.
value chain analysis
3 multiple choice options
Five Forces Model
a method of analyzing the five forces in the competitive environment
These potential competing forces are immediate rivals, potential entrants, customers, suppliers, and substitute products.
What does operating in a system with many other external factors influence
strategy development and execution and require constant scanning of the environment.
2 multiple choice options
Operations manager needs to understand that the firm is operating in a system with many other external factors. What are these factors?
economic, to legal, to cultural.
3 multiple choice options
Which of the following is NOT an OM​ strategy/issue during the maturity phase of the product life​ cycle?
high production costs
3 multiple choice options
Which of the following is NOT an OM​ strategy/issue during the introduction stage of the product life​ cycle?
long production runs
3 multiple choice options
Which of the following is NOT an OM​ strategy/issue during the growth stage of the product life​ cycle?
reduce capacity
3 multiple choice options
Key Success Factors
are those activities that are necessary for a firm to achieve its goals
core competencies
are the set of unique skills, talents, and capabilities that a firm does at a world-class standard.
They allow a firm to set itself apart and develop a competitive advantage.
core competencies
3 multiple choice options
What is a way to integrate OM with other activities
activity map
3 multiple choice options
Activity Map
a graphical link of competitive advantage, KSFs, and supporting activities
Outsourcing
transferring a firm's activities that have traditionally been internal to external suppliers
What three global trends are causing outsourcing to expand
(1) increased technological expertise
(2) more reliable and cheaper transportation
(3) the rapid development and deployment of advancements in telecommunications and computers.
Forecasting
Predicting future events; may involve taking historical data (such as past sales) and projecting them into the future with a mathematical model.
Short-range forecast
Up to 1 year, generally less than 3 months
Purchasing, job scheduling, workforce levels, job assignments, production levels
Medium-range forecast
3 months to 3 years
Sales and production planning, budgeting
Long range forecast
3+ years
New product planning, facility location, research and development
Step 1 in forecasting system
Determine use of forecast
3 multiple choice options
Step 2 in forecasting system
Select items to be forecasted
3 multiple choice options
Step 3 in forecasting system
Determine time horizon of the forecast
3 multiple choice options
Step 4 in Forecasting System
Select the forecasting model
3 multiple choice options
Step 5 in Forecasting System
Gather the data needed to make the forecast
3 multiple choice options
Step 6 in Forecasting System
Make the forecast.
3 multiple choice options
Step 7 in Forecasting System
Validate and implement the results
3 multiple choice options
What are the 4 components of time series forecasting
Trend, Cyclical, Random, Seasonal
3 multiple choice options
What is time series forecasting
Set of evenly spaced numerical data
- based only on past values, no other variables are important
Trend
is the gradual upward or downward movement of the data over time
Changes in income, population, age distribution, or cultural views may account for movement in trend.
3 multiple choice options
Seasonal
is a data pattern that repeats itself after a period of days, weeks, months, or quarters.
3 multiple choice options
Cyclical (cycle)
are patterns in the data that occur every several years
3 multiple choice options
Random
"blips" in the data caused by chance and unusual situations. They follow no discernible pattern, so they cannot be predicted
3 multiple choice options
Naive Approach
assumes demand in next period is the same as demand in most recent period
Sometimes cost effective and efficient
can be a good starting
What approach is this?
Naive Approach
3 multiple choice options
Compared to a global​ strategy, a multidomestic strategy has
higher local responsiveness and lower cost reduction.
3 multiple choice options
Which of the following is a reality each company faces regarding its forecasting​ system?
Outside factors that we cannot predict or control often impact the forecast.
3 multiple choice options
Inventory Management
is to strike a balance between inventory investment and customer service
One of the most expensive assets of many companies representing as much as 50% of total invested capital
WHAT DOES THIS REPRESENT?
The importance of inventory
3 multiple choice options
Less inventory _____ costs but ________ chances of running out
lowers, increases
3 multiple choice options
type of inventory
-Purchased but not processed
Raw material
3 multiple choice options
ABC Analysis
Divides inventory into three classes based on annual dollar volume
Class A
high annual dollar volume
2 multiple choice options
Class B
medium annual dollar volume
2 multiple choice options
Class C
low annual dollar volume
Used to establish policies that focus on thefew critical parts and not the many trivialones
ABC analysis