Business Management 3130 - Exam 1 || with 100% Correct
Answers.
Operations Management (About how things get done) correct answers The Process that
effectively produce, transform, and deliver a product or service
Operations and Supply Chain Management correct answers The design, operation, and
improvement of the systems that create and deliver the firms primary products and services
Process correct answers One or more activities that transform inputs such as raw material and
labor in to outputs in the form of finished goods and services
Inputs - transformation - outputs
OM is a process oriented discipline
What IS Cycle Time correct answers The average time between completion of successive units
What is utilization correct answers The ratio of the time that a resource is actually activated
relative to the time that it is available for use (which is NOT a measure of efficiency!)
Five Distinct Management Process correct answers 1.) Planning
2.) Sourcing
3.) Making
4.) Delivering
5.) Returning
Difference between Goods & Services correct answers 1.) Services are Intaingible and can not be
measured, where as Goods are Tangible
2.) Service requires some degree of customer interaction
3.) Usually heterogeneous i.e they vary from day to day as a function of the attitudes of the
customers and servers
4.) Perishable & Time Dependent can not be stored
5.) Specifications of a service are defined and evaluated as a package of features affecting the 5
senses
Product Service Bundling correct answers When a firm builds service activities into its product
offerings to create additional value for the customer
Efficiency, Effectiveness, and Value correct answers - Efficiency: Doing something at the lowest
possible cost
- Effectiveness: Doing the right thing to create the most value for the company
- Value: Quality divided by price
,Priorities correct answers - Competitive Priorities: What the company WOULD LIKE to achieve
- Competitive Capabilities: Knowledge the firm is able to ACTUALLY achieve to satisfy the
customer
What is Productivity and how is it measured ? correct answers Is a common measure of how well
a Country, Industry, or Business unit is using it's resources (or factors of production)
Productivity = Output (Goods and Services Produced) / Input (All Resources Used)
How do we improve productivity? correct answers 1. Increasing output
2. Decreasing input
Productivity is related to efficiency, effectiveness and value
Sustainability correct answers The ability to meet current resource needs without compromising
the ability of the future generations to meet their needs
Sustainable Strategy correct answers Triple Bottom Line (Also known as the Three P's):
evaluating the firm against economic, social and environmental criteria
1.) People (Social Responsibility): Employees and Stakeholders
2.) Profit (Economic Success): Beyond traditional accounting to include economic benefit for the
host society
3.) Planet (Environmental Stewardship): Use and impact of resources throughout the life cycle
What is the traditional view? correct answers Milton Friedman argued that the corporation only
has responsibility to its shareholders to crate wealth so long as it plays by the rules
People have social responsibility not corporations
What is the new view? correct answers The constituency of the corporation includes local
communities and society at large
What is Operations and Supply Chain Strategy correct answers - Setting goals, policies, and
creating plans foe using the firms resources to support the organizational strategy
- Longer range organizational strategy
- Mid-range conversion of strategy into more tactical activities
- Short range implementation of tactics
Order Winners correct answers Characteristics causing customers to PREFER you over your
competitors
, Order Qualifiers correct answers Characteristics you need to have o be CONSIDERED by
potential customers
Competitive Dimensions correct answers - Cost: high or low cost
- Quality: consistent quality, superior quality
- Time: delivery speed, on-time/reliable delivery, development, speed of new products/services
- Flexibility: volume flexibility, customization, postponement, mass customization, variety/mix
- Others
Trade-Off's correct answers - Try to do well in more than one priority which accepts a lesser
performance versus the single focus
- Focus on one competitive dimension to achieve excellence
Note: NO firm excels simultaneously in all Competitive Dimensions nor should it try
Risk correct answers Is represented by any source of unplanned disruption such as:
- severe weather event
- labor strikes
- facility disaster
- recalls
- terrorism
Total Cost of Queuing System correct answers Total Cost = Cw x L + Cs x s
= Waiting Costs + Service Costs
Cw = cost of customer waiting time per
time period
L = average number customers in system
Cs = cost of servers per time period
s = number of servers
Production Processes correct answers Used to make any manufactured item
Make to Stock (MTS) correct answers Complete processing prior to, and held as inventory until
the customer orders
Assemble to Order (ATO) correct answers Begin processing prior to receiving a customer order,
complete after receiving customer order
Make to Order (MTO) correct answers Begin processing only after receiving a customers order
Engineer to Order (ETO) correct answers No processing begins until the design is complete
Answers.
Operations Management (About how things get done) correct answers The Process that
effectively produce, transform, and deliver a product or service
Operations and Supply Chain Management correct answers The design, operation, and
improvement of the systems that create and deliver the firms primary products and services
Process correct answers One or more activities that transform inputs such as raw material and
labor in to outputs in the form of finished goods and services
Inputs - transformation - outputs
OM is a process oriented discipline
What IS Cycle Time correct answers The average time between completion of successive units
What is utilization correct answers The ratio of the time that a resource is actually activated
relative to the time that it is available for use (which is NOT a measure of efficiency!)
Five Distinct Management Process correct answers 1.) Planning
2.) Sourcing
3.) Making
4.) Delivering
5.) Returning
Difference between Goods & Services correct answers 1.) Services are Intaingible and can not be
measured, where as Goods are Tangible
2.) Service requires some degree of customer interaction
3.) Usually heterogeneous i.e they vary from day to day as a function of the attitudes of the
customers and servers
4.) Perishable & Time Dependent can not be stored
5.) Specifications of a service are defined and evaluated as a package of features affecting the 5
senses
Product Service Bundling correct answers When a firm builds service activities into its product
offerings to create additional value for the customer
Efficiency, Effectiveness, and Value correct answers - Efficiency: Doing something at the lowest
possible cost
- Effectiveness: Doing the right thing to create the most value for the company
- Value: Quality divided by price
,Priorities correct answers - Competitive Priorities: What the company WOULD LIKE to achieve
- Competitive Capabilities: Knowledge the firm is able to ACTUALLY achieve to satisfy the
customer
What is Productivity and how is it measured ? correct answers Is a common measure of how well
a Country, Industry, or Business unit is using it's resources (or factors of production)
Productivity = Output (Goods and Services Produced) / Input (All Resources Used)
How do we improve productivity? correct answers 1. Increasing output
2. Decreasing input
Productivity is related to efficiency, effectiveness and value
Sustainability correct answers The ability to meet current resource needs without compromising
the ability of the future generations to meet their needs
Sustainable Strategy correct answers Triple Bottom Line (Also known as the Three P's):
evaluating the firm against economic, social and environmental criteria
1.) People (Social Responsibility): Employees and Stakeholders
2.) Profit (Economic Success): Beyond traditional accounting to include economic benefit for the
host society
3.) Planet (Environmental Stewardship): Use and impact of resources throughout the life cycle
What is the traditional view? correct answers Milton Friedman argued that the corporation only
has responsibility to its shareholders to crate wealth so long as it plays by the rules
People have social responsibility not corporations
What is the new view? correct answers The constituency of the corporation includes local
communities and society at large
What is Operations and Supply Chain Strategy correct answers - Setting goals, policies, and
creating plans foe using the firms resources to support the organizational strategy
- Longer range organizational strategy
- Mid-range conversion of strategy into more tactical activities
- Short range implementation of tactics
Order Winners correct answers Characteristics causing customers to PREFER you over your
competitors
, Order Qualifiers correct answers Characteristics you need to have o be CONSIDERED by
potential customers
Competitive Dimensions correct answers - Cost: high or low cost
- Quality: consistent quality, superior quality
- Time: delivery speed, on-time/reliable delivery, development, speed of new products/services
- Flexibility: volume flexibility, customization, postponement, mass customization, variety/mix
- Others
Trade-Off's correct answers - Try to do well in more than one priority which accepts a lesser
performance versus the single focus
- Focus on one competitive dimension to achieve excellence
Note: NO firm excels simultaneously in all Competitive Dimensions nor should it try
Risk correct answers Is represented by any source of unplanned disruption such as:
- severe weather event
- labor strikes
- facility disaster
- recalls
- terrorism
Total Cost of Queuing System correct answers Total Cost = Cw x L + Cs x s
= Waiting Costs + Service Costs
Cw = cost of customer waiting time per
time period
L = average number customers in system
Cs = cost of servers per time period
s = number of servers
Production Processes correct answers Used to make any manufactured item
Make to Stock (MTS) correct answers Complete processing prior to, and held as inventory until
the customer orders
Assemble to Order (ATO) correct answers Begin processing prior to receiving a customer order,
complete after receiving customer order
Make to Order (MTO) correct answers Begin processing only after receiving a customers order
Engineer to Order (ETO) correct answers No processing begins until the design is complete
