OM300 EXAM 1 CHAPTERS 1-4 UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. What is a transformation process?
Answer:
A diagram showing inputs (people, material, equipment, IT, capital) being "transformed" into outputs
(goods/services). Inputs -> Transformation process -> Outputs
customer feedback/performance information can also influence all 3 steps.
Question:
2. What is added value/ Non added value? What is the criteria for evaluating value?
Answer:
"Describes the net increase between the final value of a product and the value of all the inputs. The greater
the value added, the more productive a business is. An obvious way to add value is to reduce the cost of
activities in the transformation process. Activities that do not add value are considered wasteful; these
include certain jobs, equipment, and processes. In addition to value added, operations must be efficient."
-the criteria is is if provides an efficient transformation.
Question:
3. What are the similarities of Manufacturing vs. Service?
Answer:
Use of technology, both have quality/productivity/ response issues, must forecast demand, has
capacity/layout/location issues, all have customers/suppliers/scheduling/staffing issues.
Question:
4. What are the differences of Manufacturing Vs. Service?
Answer:
Manufacturing orgs produce tangible goods (products) and have little direct contact with customers (such
as a factory). service orgs provide intangible goods (services) and have direct contact with customers, such
as a hospital.
Question:
5. What are the trends in service versus manufacturing?
Answer:
-service sector growing to 50-80% of non farm jobs
-global competitiveness
-demand for higher quality
-tech changes
-time based competition
-work force diversity
Question:
6. ***What are some key points from the Industrial Revolution? Key people?
, Answer:
"Brought in innovations that changed production by using machine power instead of human power." Steam
engine- 1769 James Watt Division of labor- 1776 Adam Smith Interchangeable parts- 1790 Eli Whitney
Question:
7. ***What are some key points from the Scientific Management? Key people?
Answer:
"Brought the concepts of analysis and measurement of the technical aspects of work design and
development of moving assembly lines and mass production." Principles of scientific management- 1911
Frederick W. Taylor Time and motion studies- 1911 Frank/Lillian Gilbreth Activity scheduling chart-
1912 Henry Gantt Moving assembly line- 1913 Henry Ford
Question:
8. ***What are some key points from the Human Relations era? Key people?
Answer:
"Focused on understanding human elements of job design, such as worker motivation and job satisfaction."
Hawthorne studies- 1930 Elton Mayo Motivation theories- 1940s-1960s Abraham Maslow, Frederick
Herzberg, Douglas McGregor
Question:
9. ***What are some key points from the Management science era? Key people?
Answer:
"Focused on the development of quantitative techniques to solve operations problems." Inventory
mgmt.-1913 F.W. Harris Linear programming-1947 George Dantzig Statistical sampling, forecasting,
project mgmt., other tools- mid 1900s Various
Question:
10. What are some key points from the Ford, Taylor 1920's YouTube video?
Answer:
-After using an assembly line, production increased which made cars more accessible and gave workers
larger wages.
-English classes were held
Question:
11. Why OM? +Last 60yrs history of American business
Answer:
-the 1950-60 era was the U.S. golden era where primary opportunities were marketing
-the 1970-80 U.S. companies experiences a large decline in productivity growth-international firms began
to challenge in many markets
-the 1970-80 era saw U.S. firms lagging behind in methods and processes
-the resurgence of American business in the 1980s capitalized on improved operations
Question:
12. 6 transformation process dimensions
Answer:
physical- as in manufacturing op. locational- as in transportation op. exchange- as in retail op.
physiological- as in healthcare psychological- as in entertainment informational- as in communication
QUESTIONS AND CORRECT ANSWERS
Question:
1. What is a transformation process?
Answer:
A diagram showing inputs (people, material, equipment, IT, capital) being "transformed" into outputs
(goods/services). Inputs -> Transformation process -> Outputs
customer feedback/performance information can also influence all 3 steps.
Question:
2. What is added value/ Non added value? What is the criteria for evaluating value?
Answer:
"Describes the net increase between the final value of a product and the value of all the inputs. The greater
the value added, the more productive a business is. An obvious way to add value is to reduce the cost of
activities in the transformation process. Activities that do not add value are considered wasteful; these
include certain jobs, equipment, and processes. In addition to value added, operations must be efficient."
-the criteria is is if provides an efficient transformation.
Question:
3. What are the similarities of Manufacturing vs. Service?
Answer:
Use of technology, both have quality/productivity/ response issues, must forecast demand, has
capacity/layout/location issues, all have customers/suppliers/scheduling/staffing issues.
Question:
4. What are the differences of Manufacturing Vs. Service?
Answer:
Manufacturing orgs produce tangible goods (products) and have little direct contact with customers (such
as a factory). service orgs provide intangible goods (services) and have direct contact with customers, such
as a hospital.
Question:
5. What are the trends in service versus manufacturing?
Answer:
-service sector growing to 50-80% of non farm jobs
-global competitiveness
-demand for higher quality
-tech changes
-time based competition
-work force diversity
Question:
6. ***What are some key points from the Industrial Revolution? Key people?
, Answer:
"Brought in innovations that changed production by using machine power instead of human power." Steam
engine- 1769 James Watt Division of labor- 1776 Adam Smith Interchangeable parts- 1790 Eli Whitney
Question:
7. ***What are some key points from the Scientific Management? Key people?
Answer:
"Brought the concepts of analysis and measurement of the technical aspects of work design and
development of moving assembly lines and mass production." Principles of scientific management- 1911
Frederick W. Taylor Time and motion studies- 1911 Frank/Lillian Gilbreth Activity scheduling chart-
1912 Henry Gantt Moving assembly line- 1913 Henry Ford
Question:
8. ***What are some key points from the Human Relations era? Key people?
Answer:
"Focused on understanding human elements of job design, such as worker motivation and job satisfaction."
Hawthorne studies- 1930 Elton Mayo Motivation theories- 1940s-1960s Abraham Maslow, Frederick
Herzberg, Douglas McGregor
Question:
9. ***What are some key points from the Management science era? Key people?
Answer:
"Focused on the development of quantitative techniques to solve operations problems." Inventory
mgmt.-1913 F.W. Harris Linear programming-1947 George Dantzig Statistical sampling, forecasting,
project mgmt., other tools- mid 1900s Various
Question:
10. What are some key points from the Ford, Taylor 1920's YouTube video?
Answer:
-After using an assembly line, production increased which made cars more accessible and gave workers
larger wages.
-English classes were held
Question:
11. Why OM? +Last 60yrs history of American business
Answer:
-the 1950-60 era was the U.S. golden era where primary opportunities were marketing
-the 1970-80 U.S. companies experiences a large decline in productivity growth-international firms began
to challenge in many markets
-the 1970-80 era saw U.S. firms lagging behind in methods and processes
-the resurgence of American business in the 1980s capitalized on improved operations
Question:
12. 6 transformation process dimensions
Answer:
physical- as in manufacturing op. locational- as in transportation op. exchange- as in retail op.
physiological- as in healthcare psychological- as in entertainment informational- as in communication
