Podcast
Questions and Answers
What is the primary focus of operations management?
What is the primary focus of operations management?
- Designing new products
- Tracking financial performance
- Creating demand through marketing
- Transforming inputs into outputs (correct)
Which function is NOT considered essential in operations management?
Which function is NOT considered essential in operations management?
- Finance/accounting
- Sales promotion (correct)
- Production/operations
- Marketing
What does productivity measurement involve?
What does productivity measurement involve?
- Analyzing competition
- Evaluating the efficiency of resource use (correct)
- Assessing customer satisfaction
- Calculating marketing return on investment
Which of the following is a key responsibility of operations managers?
Which of the following is a key responsibility of operations managers?
What role does marketing play in operations management?
What role does marketing play in operations management?
Which of the following is an operational activity related to quality assurance?
Which of the following is an operational activity related to quality assurance?
What is one of the significant challenges in the field of Operations Management?
What is one of the significant challenges in the field of Operations Management?
In the context of operations management, what is the role of finance/accounting?
In the context of operations management, what is the role of finance/accounting?
What are the major functions of any organization?
What are the major functions of any organization?
Which of the following is NOT a key decision within Operations Management?
Which of the following is NOT a key decision within Operations Management?
What is the contribution figure if sales are $150,000 and costs of goods are $120,000 with finance costs at $6,000?
What is the contribution figure if sales are $150,000 and costs of goods are $120,000 with finance costs at $6,000?
Which function includes determining where to place a facility?
Which function includes determining where to place a facility?
Which of the following is a decision made under quality management?
Which of the following is a decision made under quality management?
What aspect is NOT typically addressed in layout design decisions?
What aspect is NOT typically addressed in layout design decisions?
Which question pertains to the intermediate and short-term scheduling function?
Which question pertains to the intermediate and short-term scheduling function?
What method did Eli Whitney demonstrate in 1798?
What method did Eli Whitney demonstrate in 1798?
Which principle is NOT part of Frederick W. Taylor's scientific management?
Which principle is NOT part of Frederick W. Taylor's scientific management?
In what year did Ford first use the moving assembly line?
In what year did Ford first use the moving assembly line?
Which invention is associated with the development of material requirements planning?
Which invention is associated with the development of material requirements planning?
What is the primary focus of motion study developed by Frank and Lillian Gilbreth?
What is the primary focus of motion study developed by Frank and Lillian Gilbreth?
Which of the following events is best known for introducing scientific management principles?
Which of the following events is best known for introducing scientific management principles?
Why did the assembly line created by Henry Ford become significant?
Why did the assembly line created by Henry Ford become significant?
Which concept did Deming contribute to quality management?
Which concept did Deming contribute to quality management?
Which of the following best describes the focus of Edwards Deming's contributions?
Which of the following best describes the focus of Edwards Deming's contributions?
What characteristic differentiates services from goods?
What characteristic differentiates services from goods?
Which new trend in operations management emphasizes global communication and transportation?
Which new trend in operations management emphasizes global communication and transportation?
What is a key characteristic of products classified as goods?
What is a key characteristic of products classified as goods?
What does the productivity ratio measure?
What does the productivity ratio measure?
Which of the following is NOT a characteristic of the service economy?
Which of the following is NOT a characteristic of the service economy?
Which of the following aspects do Deming's quality methods focus on?
Which of the following aspects do Deming's quality methods focus on?
Which alternative is a challenge in operations management?
Which alternative is a challenge in operations management?
What is a defining trait of mass customization in modern operations management?
What is a defining trait of mass customization in modern operations management?
Which of the following correctly differentiates goods from services regarding inventory?
Which of the following correctly differentiates goods from services regarding inventory?
What is the definition of productivity?
What is the definition of productivity?
Which component contributes the most to the annual increase in productivity?
Which component contributes the most to the annual increase in productivity?
What factors are considered in multi-factor productivity?
What factors are considered in multi-factor productivity?
How is productivity expressed in labor productivity calculations?
How is productivity expressed in labor productivity calculations?
Why is measuring productivity often challenging?
Why is measuring productivity often challenging?
What does the feedback loop in the productivity process help to improve?
What does the feedback loop in the productivity process help to improve?
Which of the following actions was taken in the LA Motor Pool to increase productivity?
Which of the following actions was taken in the LA Motor Pool to increase productivity?
What productivity improvement strategy was adopted at Taco Bell?
What productivity improvement strategy was adopted at Taco Bell?
Which factor is NOT considered a key variable for improved labor productivity?
Which factor is NOT considered a key variable for improved labor productivity?
What does the term 'inputs' refer to in the context of the economic system's transformation process?
What does the term 'inputs' refer to in the context of the economic system's transformation process?
What did the cost of the LA Motor Pool operations amount to annually?
What did the cost of the LA Motor Pool operations amount to annually?
Which productivity measurement focuses on the total output relative to several inputs?
Which productivity measurement focuses on the total output relative to several inputs?
What percentage of the productivity increase is attributed to labor?
What percentage of the productivity increase is attributed to labor?
Which type of productivity typically involves intellectual tasks performed by professionals?
Which type of productivity typically involves intellectual tasks performed by professionals?
Flashcards
Operations Management (OM)
Operations Management (OM)
The set of activities that create value by transforming inputs into outputs.
Production
Production
The creation of goods and services.
Marketing
Marketing
The essential function that generates demand for products or services.
Production / Operations
Production / Operations
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Finance / Accounting
Finance / Accounting
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Organizational Chart
Organizational Chart
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Essential Functions
Essential Functions
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Productivity Challenge
Productivity Challenge
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What is Operations Management?
What is Operations Management?
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What do Operations Managers do?
What do Operations Managers do?
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What is Service and Product Design?
What is Service and Product Design?
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What is Process and Capacity Design?
What is Process and Capacity Design?
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What is Location Decision in Operations?
What is Location Decision in Operations?
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What is Layout Design in Operations?
What is Layout Design in Operations?
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What is Supply Chain Management?
What is Supply Chain Management?
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What is Inventory and Material Requirements Planning?
What is Inventory and Material Requirements Planning?
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Standardized Parts
Standardized Parts
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Scientific Management
Scientific Management
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Coordinated Assembly Line
Coordinated Assembly Line
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Gantt Chart
Gantt Chart
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Motion Study
Motion Study
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Quality Control
Quality Control
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Computer
Computer
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CPM/PERT
CPM/PERT
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What is Operations Management (OM)?
What is Operations Management (OM)?
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What is productivity?
What is productivity?
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What is production?
What is production?
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What is Just-in-Time (JIT) production?
What is Just-in-Time (JIT) production?
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What is mass customization?
What is mass customization?
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What is employee empowerment?
What is employee empowerment?
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What is the productivity challenge?
What is the productivity challenge?
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What are the characteristics of goods?
What are the characteristics of goods?
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What are characteristics of services?
What are characteristics of services?
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Productivity
Productivity
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Production System
Production System
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Inputs
Inputs
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Outputs
Outputs
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Productivity Growth
Productivity Growth
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Labor Productivity
Labor Productivity
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Multi-Factor Productivity
Multi-Factor Productivity
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Process Improvement
Process Improvement
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Standard of Living
Standard of Living
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Feedback Loop
Feedback Loop
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Productivity Improvement Strategies
Productivity Improvement Strategies
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Cost Efficiency
Cost Efficiency
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Flexibility
Flexibility
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Quality
Quality
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Study Notes
Operations Management
- Operations management (OM) is the set of activities that creates goods and services.
- OM is one of three major organizational functions (alongside marketing and finance).
- Production is the creation of goods and services.
- Essential business functions include marketing (generating demand), production/operations (creating the product), finance/accounting (tracking performance and managing finances), and operations (various operational tasks).
- Organizational charts outline job roles and responsibilities within an organization.
- Several departments are detailed such as: Operations (Teller, Scheduling, Check Clearing, Collection), Transaction Processing, Facilities, Vault Operations, Maintenance, Security, Finance, Investments, Real Estate, Accounting, Auditing, Marketing, Loans, and Commercial,
- Specific functions like Industrial/Financial/Personal/Mortgage/Trust Department are also included, each with its own operations.
- In the case of a bank, departments like operations, vaults, and accounting are described, showing their relation to an organizational chart.
- Similar organizational charts for an airline detail Flight Operations (crew scheduling, flying, communications, dispatching), Finance/Accounting, Accounting, Payables, Receivables, General Ledger, Finance, Cash Control, International exchange, and Airline.
- Another example highlights Marketing (Traffic Admin, Reservations, Schedules, Tariffs, Sales, Advertising, Sales Promotion) along with Organizational charts and Operations.
- Additional roles in Manufacturing are tooling, fabrication, assembly, design, product development, detailed product specifications, industrial engineering, efficient use of machines, process analysis, development of tools, finance, accounting, and disbursements.
Operations Management and Productivity
- Operations and productivity are key to understanding what OM managers do.
- The quality of OM is essential for organizational success.
- Important aspects of OM include increasing contribution and cost of goods.
- Sales, costs of goods, and gross margin are variables crucial for organizational success.
- Financial costs and contribution are key aspects in the study of OM.
The Heritage of Operations Management
- Key figures and events in the history of Operations Management are detailed, including the division of labor, standardized parts, scientific management, assembly lines, Gantt charts, motion study, quality control, computers, CPM/PERT, material requirements planning, computer-aided design, flexible manufacturing systems, quality awards, computer-integrated manufacturing, globalization, and the internet.
New Trends in OM
- There is a move from a local/national focus to a global focus.
- Supply chain partners and enterprise resource planning are emphasized.
- The pressure on reducing inventory and cost of capital is increasing.
- Just-in-time shipments, low-bid purchasing, and quality emphasis are part of these trends.
- There is an emphasis on quality, shortened product life cycles, and flexible production processes.
Productivity Challenge
- Productivity is the ratio of outputs (goods and services) to inputs (labor, capital).
- Understanding the relationship between inputs and outputs is critical for organizational efficiency.
- Key aspects include the economic system, important processes, and measurement.
- Specific real-world examples such as the LA Motor Pool illustrate how productivity improvements can be implemented.
Productivity Variables
- The productivity of a company is linked to the contributions of various factors like labor, capital, and management in terms of efficiency improvements.
- Factors like labor force skills, social overhead, and use of technologies are linked to increasing productivity.
- Productivity is a critical organizational concern, and its improvement depends on understanding different influencing variables.
Characteristics of Goods and Services
- Goods are tangible and can be inventoried, are often produced separately from consumption, and typically follow a consistent product definition.
- Services are often intangible and cannot be inventoried, involve frequent customer interaction and may not always follow a consistent product definition.
- Goods and services are frequently distinguishable in their production characteristics, customer interaction, and how they are measured.
- The different characteristics of goods and services have implications for measuring their quality, production output, and operational efficiency.
Quality and Responsibilities
- Operations management focuses on various aspects of quality, which must be developed appropriately.
- Responsibilities include developing quality products, maintaining a clean environment, providing a safe workplace, and fulfilling community commitments.
Basic Management Functions
- The operations management function encompasses several basic management functions.
- Crucial decisions include service and product design choices, quality management decisions, process and capacity decisions, and other basic decisions.
Organizational Charts in Operations
- Organizational charts often provide a visual representation of how individuals and groups interact within a system.
- They also show the different ways operations are categorized and structured, along with their roles.
Measurement of Productivity
- Productivity can be calculated as the ratio of outputs to inputs.
- This is applied across various contexts.
- Different measures such as the number of titles created versus hours of employee labor are included.
- Measurement problems, such as changes in quality and external elements, can affect productivity.
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Description
Explore the key concepts of Operations Management, including its role as a fundamental organizational function. This quiz covers the creation of goods and services, essential business functions, and departmental responsibilities. Test your knowledge on how operations, marketing, and finance intertwine in successful organizations.
