Operations Management Exam 1 UPDATED ACTUAL Questions And Correct
Answers
Terms in this set (68)
Operations Management The management of processes that contribute to creating goods and/or services.
Goods vs. Services Goods are tangible, have low customer contact, high uniformity of input, easily
measured by quality, and can be inventoried. Services are intangible, have high
customer contact, low uniformity, are difficult to measure quality, and cannot
easily be inventoried.
Product variety More variety leads to more processes
Structural variation Trends and seasonality (predictable).
Random variation Inherent in all processes (cannot be controlled).
Assignable variation Caused by defective inputs or poor workflow (can be reduced).
Competitiveness How effectively an organization meets the wants and needs of customers relative
to others offering the same goods/services.
Order Qualifiers The ʺbare minimumʺ characteristics that customers perceive as standard for a
product to even be considered.
Order Winners Characteristics that cause a good or service to be perceived as better than
alternatives. Over time, order winners can become order qualifiers.
Productivity A measure of the effective use of resources, calculated as Output / Input.
Single‐Factor Productivity Output / Labor.
Multifactor Productivity Output / (Labor + Capital + Utilities), etc..
Productivity Growth (Current Productivity ‐ Previous Productivity) / Previous Productivity * 100%.
Properties of Forecasts Forecasts are rarely perfect, they are more accurate for groups of items than
individual items, and accuracy decreases as the time horizon increases.
Judgmental Approach Arrive at a number for forecasting based on expert opinions, surveys, or the
Delphi Method (multiple rounds of questionnaires by experts).
Time-Series Approach Assumes future values can be estimated from past values (Trend, Seasonality,
Cycles, Random Variation).
Naive Forecast Simply uses the single previous periodʹs actual value.
Answers
Terms in this set (68)
Operations Management The management of processes that contribute to creating goods and/or services.
Goods vs. Services Goods are tangible, have low customer contact, high uniformity of input, easily
measured by quality, and can be inventoried. Services are intangible, have high
customer contact, low uniformity, are difficult to measure quality, and cannot
easily be inventoried.
Product variety More variety leads to more processes
Structural variation Trends and seasonality (predictable).
Random variation Inherent in all processes (cannot be controlled).
Assignable variation Caused by defective inputs or poor workflow (can be reduced).
Competitiveness How effectively an organization meets the wants and needs of customers relative
to others offering the same goods/services.
Order Qualifiers The ʺbare minimumʺ characteristics that customers perceive as standard for a
product to even be considered.
Order Winners Characteristics that cause a good or service to be perceived as better than
alternatives. Over time, order winners can become order qualifiers.
Productivity A measure of the effective use of resources, calculated as Output / Input.
Single‐Factor Productivity Output / Labor.
Multifactor Productivity Output / (Labor + Capital + Utilities), etc..
Productivity Growth (Current Productivity ‐ Previous Productivity) / Previous Productivity * 100%.
Properties of Forecasts Forecasts are rarely perfect, they are more accurate for groups of items than
individual items, and accuracy decreases as the time horizon increases.
Judgmental Approach Arrive at a number for forecasting based on expert opinions, surveys, or the
Delphi Method (multiple rounds of questionnaires by experts).
Time-Series Approach Assumes future values can be estimated from past values (Trend, Seasonality,
Cycles, Random Variation).
Naive Forecast Simply uses the single previous periodʹs actual value.
