10 Strategic Operations Management Decisions Quiz and Flashcards

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Questions and Answers

Which strategic decision involves defining what is required of operations and how product design impacts cost, quality, sustainability, and human resources?

Managing quality

Design of goods and services (correct)

Location strategy

Process and capacity design

What does managing quality strategic decision involve?

Addressing layout strategy needs

Establishing policies for inventory management

Determining customer quality expectations (correct)

Defining process and capacity design

Which strategic decision involves committing management to specific technology, quality, human resources, and investments?

Location strategy

Layout strategy

Inventory management

Process and capacity design (correct)

What does the location strategy decision take into consideration?

Nearness to customers, suppliers, and talent Signup and view all the answers

Which strategic decision focuses on integrating capacity needs, personnel levels, technology, and inventory for efficient material, people, and information flow?

Layout strategy Signup and view all the answers

What is the main purpose of finance/accounting within an organization?

Tracking organizational performance and managing finances Signup and view all the answers

Why is it important to study Operations Management (OM)?

To study how people organize themselves for productive enterprise Signup and view all the answers

What are the basic management functions that Operations Managers perform?

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

What does the supply chain refer to?

A network of organizations collaborating to supply goods and services to a firm Signup and view all the answers

Which strategic decision is related to designing goods and services according to the text?

Designing goods and services Signup and view all the answers

What is the main focus of operations management?

Creating value by transforming inputs into outputs Signup and view all the answers

Which of the following is NOT listed as one of the essential functions in organizing to produce goods and services?

Accounting - managing financial records Signup and view all the answers

What is the primary goal of production according to the text?

Creating value through goods and services Signup and view all the answers

What does single-factor productivity measure?

The efficiency of transforming inputs to outputs using a single variable Signup and view all the answers

Which function is responsible for creating the product in organizing to produce goods and services?

Operations management Signup and view all the answers

What is the main goal of productivity?

To improve the ratio of outputs to inputs Signup and view all the answers

What key technique did Henry Ford introduce in 1913?

Moving assembly line for Model T Signup and view all the answers

In the context of W. Edwards Deming, what did his methods involve?

Implementing quality control techniques in Japan Signup and view all the answers

What is the difference between productivity and production?

Productivity measures efficiency, while production measures output only Signup and view all the answers

What issue may arise even when the quantity of inputs and outputs remains constant?

A change in productivity Signup and view all the answers

Which individual demonstrated that machine tools could make standardized parts to exact specifications?

Eli Whitney Signup and view all the answers

Who is known as the 'father of scientific management'?

Frederick W. Taylor Signup and view all the answers

What did Frederick W. Taylor study while serving as the chief engineer for Midvale Steel?

How tasks were done Signup and view all the answers

Which principle emphasized by Taylor suggests that management should match employees to the right job?

Matching employees to right job Signup and view all the answers

Which engineering team applied efficiency methods not only in their work but also in managing a large family?

Frank and Lillian Gilbreth Signup and view all the answers

Study Notes

What is Operations Management?

Operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs.
OM is essential for any organization, as it involves planning, organizing, staffing, leading, and controlling the production of goods and services.

Organizing to Produce Goods and Services

Three essential functions of an organization:
- Marketing – generates demand
- Production/operations – creates the product
- Finance/accounting – tracks how well the organization is doing, pays bills, and collects money

The Supply Chain

A global network of organizations and activities that supplies a firm with goods and services.
Members of the supply chain collaborate to achieve high levels of customer satisfaction, efficiency, and competitive advantage.

Why Study OM?

OM is one of three major functions of any organization.
Understanding how goods and services are produced is crucial.
Operations managers play a vital role in organizations.
OM is a costly part of an organization.

Ten Strategic Decisions of Operations Management

Design of goods and services
Managing quality
Process and capacity strategy
Location strategy
Layout strategy
Human resources and job design
Supply-chain management
Inventory management
Scheduling
Maintenance

The Strategic Decisions

Design of goods and services: defines what is required of operations and determines cost, quality, sustainability, and human resources.
Managing quality: determines customer quality expectations and establishes policies to achieve that quality.
Process and capacity design: determines how goods or services are produced and commits management to specific technology, quality, human resources, and investments.
Location strategy: considers nearness to customers, suppliers, and talent, as well as costs, infrastructure, logistics, and government.
Layout strategy: integrates capacity needs, personnel levels, technology, and inventory to determine the efficient flow of materials, people, and information.

Significant Events in OM

Eli Whitney: developed interchangeable parts for muskets in 1798.
Frederick W. Taylor: known as the "father of scientific management," introduced efficiency principles and time studies.
Frank and Lillian Gilbreth: developed work measurement methods and applied efficiency methods to their home and family.
Henry Ford: introduced the moving assembly line in 1913 to produce the Model T.
W. Edwards Deming: taught Japan quality control methods and used statistics to analyze process.

Operations for Goods and Services

Services: economic activities that produce an intangible product (e.g., education, entertainment, lodging, government, financial, and health services).

Productivity Challenge

Productivity: the ratio of outputs (goods and services) divided by the inputs (resources such as labor and capital).
The objective is to improve productivity.
Note: production is a measure of output only and not a measure of efficiency.

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Description

Test your knowledge on strategic decisions in operations management including design of goods and services, process and capacity strategy, location strategy, layout strategy, human resources and job design, supply-chain management, inventory management, scheduling, and maintenance. Copyright © 2020 Pearson Education Ltd.

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