Questions and Answers
Eli Whitney was instrumental in the development of standardized parts for muskets.
True
Frederick W. Taylor is known for developing the principles of flexibility in manufacturing.
False
The Gantt chart was introduced in 1916 by a figure named Gantt.
True
Operations management does not consider customer satisfaction as an optimization factor.
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Material requirements planning was developed by Orlicky in 1960.
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Quality control methods were introduced in the early 1900s and significantly evolved by Deming in the 1950s.
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The Internet had a significant impact on operations management starting in 1980.
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Operations managers focus primarily on cost reduction and ignore team development.
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Quality for tangible products is generally easy to evaluate.
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Reselling services like medical care is common.
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The overall average wage in the service sector is higher than the national average.
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Productivity is defined as the ratio of inputs to outputs.
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Starbucks has improved productivity by 27%, which is about 4.5% per year.
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Operations management is solely focused on maximizing profits.
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Hard Rock Café first opened in 1981.
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The supply chain is a network of organizations that operate in isolation from each other.
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Production refers to the process of creating goods and services.
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Operations management includes tracking financial performance.
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Hard Rock Café serves an average of 3,500 meals per day in Orlando.
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Multifactor productivity considers only one input to measure productivity.
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Marketing is responsible for creating the product in operations management.
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Frank and Lillian Gilbreth developed work measurement methods and applied efficiency methods to their home life.
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Henry Ford founded the Ford Motor Company in 1903 and was known for his low worker wages.
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W. Edwards Deming is recognized for teaching quality control methods to Japan after World War II.
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Services produced are tangible products, such as financial advisory services.
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Manufacturers produce products that can typically be kept in inventory, while services are consumed immediately.
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Personalized medical care is an example of a typical service that has high customer interaction.
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The main distinction between goods and services is that services can be standardized.
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Services are usually produced at fixed facilities, such as factories.
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Productivity is a measure of output relative to input.
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Single-factor productivity only considers labor hours as the input.
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Multi-factor productivity calculation includes labor, materials, and energy.
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The new labor productivity in the Collins Title example is greater than the old labor productivity.
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The old system produced more titles per labor hour than the new system.
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Old multifactor productivity is calculated using $640 + 400$ as total inputs.
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Overhead costs do not affect productivity calculations.
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The old labor productivity was $8$ titles per day with total labor hours of $32$.
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Study Notes
Operations Management Overview
- Operations management (OM) involves activities transforming inputs into outputs, creating value through goods and services.
- Essential functions in OM include marketing (generates demand), production/operations (creates products), and finance/accounting (tracks performance and handles financial transactions).
Hard Rock Café Case Study
- Founded in 1971, operates 150 restaurants in over 53 countries.
- Features rock music memorabilia and focuses on delivering quality food and entertainment.
- Serves over 3,500 custom meals daily in Orlando.
Supply Chain Dynamics
- The supply chain encompasses a network of organizations and activities that collaborate to deliver goods and services.
- Achieving customer satisfaction, efficiency, and competitive advantage are core goals of effective supply chain management.
Productivity Concepts
- Productivity is measured as outputs (goods and services) divided by inputs (resources like labor and capital).
- Single-factor productivity calculates output per specific input, while multifactor productivity assesses total output relative to a mix of inputs.
Operations for Goods and Services
- Services are characterized as intangible, produced and consumed simultaneously, and often highly customized.
- Goods are tangible and can be stored, usually produced in fixed facilities.
Challenges in Operations Management
- Modern OM faces challenges like inventory management, quality control, and maintaining ethical practices centered on social responsibility and sustainability.
- The aim is to improve productivity while managing costs and quality.
Historical Contributions to OM
- Key figures include:
- Eli Whitney (standardized parts).
- Frederick W. Taylor (scientific management and efficiency principles).
- Henry Ford (moving assembly line).
- W. Edwards Deming (quality control methods).
Certifications in OM
- Notable organizations offering certifications include APICS, ASQ, ISM, PMI, and CIPS, enhancing professional credibility in operations management.
Productivity Improvement Examples
- Starbucks implemented changes leading to increased productivity by 27%, resulting in higher annual revenues per outlet.
- Examples include process adjustments, such as faster transactions and improved equipment, showcasing the impact of operational efficiency.
Measurement Challenges
- Productivity calculations can be complicated by variations in labor hours, overhead costs, and other operational factors, necessitating accurate assessment methods.
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Description
This quiz covers Chapter 1 of the 12th Edition of Operations Management, focusing on operations and productivity. It examines key concepts such as the definition of operations management, the role of supply chains, and the significance of studying operations management.
