GMS 401 - Chapter 1 Study Guide with Complete Solutions

GMS 401 - Chapter 1 Study Guide with Complete Solutions Operations Management - Answer️️ -set of activities that create value (goods/services) by transforming inputs into outputs - discipline applied to any org activity - costly part of organization - opportunity to improve profitability and enhance service to society Characteristics of Goods - Answer️️ -Tangible product Consistent product definition Production usually separate from consumption Can be inventoried Low customer interaction Characteristics of Services - Answer️️ -Intangible product Produced and consumed at once Often unique (investment/insurance) Customized to your needs and preferences High customer interaction Inconsistent product definition ©SOPHIABENNET@2024/2025 Wednesday, August 21, 2024 12:13 PM TORONTO METROPOLITAN UNIVERSITY 2 Often knowledge-based Frequently dispersed (can be done anywhere) Responsibility of Operations Managers - Answer️️ -effective use of resources Operations Management Jobs - Answer️️ -In various areas Job titles can vary New jobs everyday New specialized areas Rise in entrepreneurship with tech advancemen and ecommerce 3 Essential Operation Functions to Create Goods/Service - Answer️️ -Marketing Production/Operations Finance Accounting Marketing - Answer️️ -generate demand (sales) Production/Operations - Answer️️ -Create and produce goods/service then deliver the product Finance Accounting - Answer️️ -pay bills, collect money Supply Chain - Answer️️ -A global network of organizations and activities that supply a firm with goods and services ©SOPHIABENNET@2024/2025 Wednesday, August 21, 2024 12:13 PM TORONTO METROPOLITAN UNIVERSITY 3 - begins with provider of basic raw materials - ends with customers in stores 4 Reasons to Study OM - Answer️️ -1) study how people organize themselves for a productive enterprise 2) to know how goods and services are produced 3) to understand what operations managers do 4) Because it is a costly part of an organization 1st Reason to Study OM - Answer️️ -to study how people organize themselves for a productive enterprise 2nd Reason to Study OM - Answer️️ -To know how goods and services are produced 3rd Reason to Study OM - Answer️️ -To understand what operations managers do 4th Reason to Study OM - Answer️️ -Because OM is a costly part of an organization Cost and Division of Labour - Answer️️ -Adam Sm