Operations Management Chapter 19: Quality and Financial Control

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Questions and Answers

What are the three popular recent trends in management thinking?

Customer relationship management, outsourcing, and supply chain management.

What is the primary purpose of customer relationship management systems?

To track customers' interactions with the firm and provide access to past transaction information.

What is outsourcing in the context of management?

Contracting out selected functions or activities to other organizations that can do the work more cost-efficiently.

What are the two components of an organization's external environment?

The general environment and the task environment. Signup and view all the answers

What is supply chain management?

Managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to final customers. Signup and view all the answers

What is the role of boundary-spanning roles in an organization?

To adapt to uncertainty by forming inter-organizational partnerships and mergers. Signup and view all the answers

What is the internal environment of an organization composed of?

Elements within the organization's boundaries, including employees, management, and corporate culture. Signup and view all the answers

How can an organization's fundamental values be understood?

Through visible manifestations of its corporate culture. Signup and view all the answers

What is the primary goal of management in an organization?

Attainment of organizational goals in an effective and efficient manner Signup and view all the answers

What are the four primary management functions?

Planning, organizing, leading, and controlling Signup and view all the answers

What is the main objective of total quality management?

Achieving total quality Signup and view all the answers

What is the organization viewed as in the context of managing the value chain?

A value chain Signup and view all the answers

What is the primary focus of supply chain management?

Managing the flow of goods, services, and information from raw materials to end customers Signup and view all the answers

What is the role of technology automation in managing the value chain?

Improving efficiency and reducing costs Signup and view all the answers

What is the primary goal of inventory management?

Maintaining the right level of inventory to meet customer demand Signup and view all the answers

What is the role of knowledge management and Web 2.0 in managing the value chain?

Enhancing collaboration and innovation Signup and view all the answers

What is crisis preparation, and what are the three steps involved in it?

Crisis preparation is detailed planning to handle a crisis when it occurs. The three steps involved are: designating a crisis management team and spokesperson, creating a detailed crisis management plan, and setting up an effective communications system. Signup and view all the answers

What are stretch goals, and what is their purpose in innovative planning?

Stretch goals are reasonable yet highly ambitious goals that are clear, compelling, and imaginative, aimed at firing up employees and engendering excellence. Signup and view all the answers

What is the role of an intelligence team in innovative planning?

An intelligence team is a cross-functional group of managers and employees that work together to gain a deep understanding of a specific business issue, providing insights, possibilities, and recommendations for goals and plans. Signup and view all the answers

What is the purpose of strategic management in an organization?

The purpose of strategic management is to formulate and execute strategies that provide a competitively superior fit between the organization and its environment, achieving organizational goals. Signup and view all the answers

What are the three levels of strategy in an organization?

The three levels of strategy are corporate-level, business-level, and functional-level. Signup and view all the answers

What is portfolio strategy, and how is it used in corporate-level strategy?

Portfolio strategy is an approach to understanding corporate-level strategy, which involves analyzing and managing a portfolio of businesses or products to achieve organizational goals. Signup and view all the answers

What is the BCG matrix, and how is it used in corporate-level strategy?

The BCG matrix is a tool used to analyze and evaluate the performance of different business units or products, helping organizations to identify areas for growth and investment. Signup and view all the answers

What is diversification, and how is it used in corporate-level strategy?

Diversification is a strategy used to expand an organization's product or service offerings, reducing dependence on a single market or product. Signup and view all the answers

Study Notes

Management Functions

The four management functions include planning, organizing, leading, and controlling.
Innovative management thinking is necessary for a changing world.

Trends in Management

Recent trends include customer relationship management, outsourcing, and supply chain management.
Customer relationship management: systems that help companies track customers' interaction with the firm and allow employees to call up information on past transactions.
Outsourcing: contracting out selected functions or activities of an organization to other organizations that can do the work more cost-effectively.
Supply chain management: managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to final customers.

Organizational Environment

An organization has an internal and an external environment.
The external environment includes the general environment and the task environment.
Corporate culture is an important aspect of the internal environment.
Fundamental values can be understood through visible manifestations.

External Environment

The external environment consists of the general environment and the task environment.
Each organization has two environments: internal and external.

Crisis Preparation

Crisis preparation involves three steps: designating a crisis management team and spokesperson, creating a detailed crisis management plan, and setting up an effective communications system.

Innovative Approaches to Planning

Stretch goals: reasonable yet highly ambitious goals that are clear, compelling, and imaginative.
Performance dashboards: keep track of key performance metrics.
Intelligence team: a cross-functional group of managers and employees who work together to gain a deep understanding of a specific business issue.

Strategy Formulation and Execution

Strategic management refers to the set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment.
There are several levels of strategy: corporate, business, and functional-level.
Three approaches to understanding corporate-level strategy include portfolio strategy, the BCG matrix, and diversification.

Value Chain Management

The organization as a value chain consists of service and manufacturing operations, supply chain management, facilities layout, technology automation, and inventory management.
Knowledge management and Web 2.0 are important aspects of inventory management.
The internet and e-business are critical components of the value chain.

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Description

This quiz covers topics related to quality and financial control, including total quality management and financial aspects of managing the value chain. Test your understanding of these important operations management concepts.