Operations Management Lesson 1

Questions and Answers

What is one of the key roles of an operations manager?

Marketing advisor

Planner and decision maker (correct)

Sales representative

Financial auditor

Economic conditions have no significant impact on management decisions today.

False

List one key issue that operations managers face today.

Risk management

The ________ principle states that the good done by an action should outweigh any harm it causes.

Utilitarian Signup and view all the answers

Which of the following is a focus for companies competing in a global economy?

Outsourcing operations to low-wage areas Signup and view all the answers

Cybersecurity is becoming less relevant due to increased automation.

False Signup and view all the answers

What is emphasized in ensuring quality at customer service points?

Safety and efficiency Signup and view all the answers

Match the operations management focus area with its description:

Economic conditions = Impacts manager's caution Innovating = Finding new improved products or services Quality problems = Need for improved operations management Competing in a global economy = Outsourcing and improving productivity Signup and view all the answers

Which principle emphasizes respect for the moral rights of others?

Rights Principle Signup and view all the answers

The Common Good Principle supports actions that harm the community if the benefits outweigh the costs.

False Signup and view all the answers

What does the Fairness Principle advocate for?

Equal pay for equal work Signup and view all the answers

The __________ Principle involves actions that align with virtues like honesty and compassion.

Virtue Signup and view all the answers

Match the following supply chain challenges with their descriptions:

Increasing transportation costs = Rising expenses associated with moving goods Increasing levels of outsourcing = Organizations purchasing rather than producing goods Competitive pressures = Need for faster product development and customization Increasing globalization = Expanding complexity of managing supply chains globally Signup and view all the answers

Which factor has led to a greater emphasis on improving supply chain operations?

Efforts to reduce cost and improve quality Signup and view all the answers

Ethical frameworks only guide personal decisions and have no relevance in business operations.

False Signup and view all the answers

What is the goal of supply chain management in light of competitive pressures?

To manage the increasing number of new products and the demand for customization Signup and view all the answers

Which type of variation can be reduced or eliminated through corrective action?

Assignable variation Signup and view all the answers

Structural variation in demand includes random fluctuations that cannot be predicted.

False Signup and view all the answers

What is the primary focus of operations management within an organization?

Improving the efficiency of product or service systems. Signup and view all the answers

The ______ variation in demand includes trends and seasonal variations.

structural Signup and view all the answers

Which of the following best describes operations management?

Managing processes that transform inputs into goods and services Signup and view all the answers

Match the following operational activities with their descriptions:

Forecasting = Predicting future demand and conditions Capacity planning = Managing the ability to meet customer demand Locating facilities = Deciding where to provide services Scheduling = Organizing resources for operations Signup and view all the answers

Goods are intangible items that cannot be physically touched.

False Signup and view all the answers

Name the three basic functions of a business organization.

Finance, Marketing, Operations Signup and view all the answers

Which of the following activities is NOT part of operations management?

Salary negotiations Signup and view all the answers

Random variation is present in all processes and is influenced by managers.

False Signup and view all the answers

The sequence that involves organizations, facilities, functions, and activities in producing and delivering a product is called the _________.

supply chain Signup and view all the answers

What is one of the four major elements of the supply chain?

Integration Signup and view all the answers

What is capacity planning essential for in a service organization?

Maintaining cash flow and profitability. Signup and view all the answers

What is the primary role of operations in a business?

Producing goods or providing services Signup and view all the answers

Match the basic functions of business with their responsibilities:

Finance = Budgeting and resource allocation Marketing = Selling and promoting goods or services Operations = Producing goods and providing services Signup and view all the answers

Effective integration in the supply chain can lead to increased errors and costs.

False Signup and view all the answers

What is the goal of operations management?

To maximize efficiency while fulfilling customer needs Signup and view all the answers

Distribution is the final phase of the supply chain.

True Signup and view all the answers

What term describes the difference between the cost of inputs and the value or price of outputs?

Value Added Signup and view all the answers

The three categories of business processes include upper-management processes, _________ processes, and supporting processes.

operational Signup and view all the answers

Match the type of business process to its description:

Upper-management processes = Organizational governance and strategy Operational processes = Core processes like purchasing and production Supporting processes = Functions like accounting and IT Nonprofit organizations = Value to society is measured by effectiveness Signup and view all the answers

Which of the following is NOT a source of process variation?

Changes in market prices Signup and view all the answers

Profit organizations measure their value of outputs by the value they add to society.

False Signup and view all the answers

What is meant by 'process variation'?

Variation occurs in all business processes and can be due to variety or variability. Signup and view all the answers

Study Notes

Operations Management Overview

Operations management oversees processes transforming inputs into goods and services, enhancing customer value.
Operations are integral to businesses, focusing on the production of goods and services.
Goods include raw materials, parts, components, and final products, while services involve activities that offer time, location, form, or physical benefits.

Basic Functions of Business

Finance manages financial resources, budgeting, and investments.
Marketing analyzes consumer needs, selling, and promoting products or services.
Operations focuses on manufacturing goods and delivering services.

Supply Chain Dynamics

Supply chain encompasses the network involved in producing and delivering products, starting with raw material suppliers to the final customer.

Four Major Elements of Supply Chain

Integration: Essential for communication and collaboration among all parties to minimize errors.
Operations: Daily operations are critical for maintaining supply chain efficiency and monitoring progress.
Purchasing: Requires proactive management to prevent material shortages or excess purchases.
Distribution: Ensures products reach retail locations or customers effectively.

Value Creation

Value added is the difference between the cost of inputs and the selling price of outputs.
Nonprofit organizations emphasize societal value, while for-profit organizations value outputs based on market prices.

Operations Management Goals

Aim to maximize efficiency while effectively meeting customer demands.

Categories of Business Processes

Upper-management processes: Governing the entire organization, including strategy.
Operational processes: Core activities generating value, such as purchasing and marketing.
Supporting processes: Facilitate core processes, including roles like accounting and HR.

Managing Process Variations

Capacity must align with demand to ensure efficient output.

Four Sources of Variation

Variety of offerings affects production requirements.
Structural variations depend on trends and seasonal demands.
Random variations occur naturally and are unpredictable.
Assignable variations stem from defects and can be mitigated through corrective actions.

Scope of Operations Management

Encompasses product/service design, process selection, technology management, work systems, and facilities planning.

Operations in Service Organizations

Involves forecasting demand, capacity planning, facility location decisions, optimizing layout, scheduling, inventory management, assuring quality, and employee training.

Decision-Making in Operations Management

Operations managers play a crucial role in planning and making strategic decisions.

Key Issues Facing Business Operations

Economic conditions necessitate cautious management.
Innovation is essential for value creation.
Quality control is crucial given operational failures.
Risk management involves identifying and mitigating potential risks.
Cybersecurity requires enhanced measures against data breaches.
Competing globally demands careful analysis of operational strategies.

Ethical Conduct Principles

Utilitarian Principle: Actions should yield more good than harm.
Rights Principle: Respecting individuals’ moral rights is vital.
Fairness Principle: Equal treatment and evaluation standards are essential.
Common Good Principle: Contributions to community welfare are important.
Virtue Principle: Actions should align with virtues like honesty and integrity.

Importance of Supply Chain Management

Organizations prioritize supply chain management to enhance operations, manage outsourcing, control transportation costs, respond to competitive pressures, and navigate globalization challenges.

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Description

This quiz covers the fundamentals of Operations Management as introduced in Lesson 1. Learn about the transformation processes that convert inputs into goods and services, and understand the roles of goods and services in a business context.

Operations Management Lesson 1

Questions and Answers

What is one of the key roles of an operations manager?

Economic conditions have no significant impact on management decisions today.

List one key issue that operations managers face today.

The ________ principle states that the good done by an action should outweigh any harm it causes.

Which of the following is a focus for companies competing in a global economy?

Cybersecurity is becoming less relevant due to increased automation.

What is emphasized in ensuring quality at customer service points?

Match the operations management focus area with its description:

Which principle emphasizes respect for the moral rights of others?

The Common Good Principle supports actions that harm the community if the benefits outweigh the costs.

What does the Fairness Principle advocate for?

The __________ Principle involves actions that align with virtues like honesty and compassion.

Match the following supply chain challenges with their descriptions:

Which factor has led to a greater emphasis on improving supply chain operations?

Ethical frameworks only guide personal decisions and have no relevance in business operations.

What is the goal of supply chain management in light of competitive pressures?

Which type of variation can be reduced or eliminated through corrective action?

Structural variation in demand includes random fluctuations that cannot be predicted.

What is the primary focus of operations management within an organization?

The ______ variation in demand includes trends and seasonal variations.

Which of the following best describes operations management?

Match the following operational activities with their descriptions:

Goods are intangible items that cannot be physically touched.

Name the three basic functions of a business organization.

Which of the following activities is NOT part of operations management?

Random variation is present in all processes and is influenced by managers.

The sequence that involves organizations, facilities, functions, and activities in producing and delivering a product is called the _________.

What is one of the four major elements of the supply chain?

What is capacity planning essential for in a service organization?

What is the primary role of operations in a business?

Match the basic functions of business with their responsibilities:

Effective integration in the supply chain can lead to increased errors and costs.

What is the goal of operations management?

Distribution is the final phase of the supply chain.

What term describes the difference between the cost of inputs and the value or price of outputs?

The three categories of business processes include upper-management processes, _________ processes, and supporting processes.

Match the type of business process to its description:

Which of the following is NOT a source of process variation?

Profit organizations measure their value of outputs by the value they add to society.

What is meant by 'process variation'?

Study Notes

Operations Management Overview

Basic Functions of Business

Supply Chain Dynamics

Four Major Elements of Supply Chain

Value Creation

Operations Management Goals

Categories of Business Processes

Managing Process Variations

Four Sources of Variation

Scope of Operations Management

Operations in Service Organizations

Decision-Making in Operations Management

Key Issues Facing Business Operations

Ethical Conduct Principles

Importance of Supply Chain Management

Studying That Suits You

Description

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