MAR 3203 TEST 1 QUESTIONS
AND ANSWERS
1. What is Operations Management? - ANSWER Operations management
consists of all the activities that create value in the form of goods and services
by transforming inputs into valued outputs of goods and services.
2. Organizing to Produce Goods and Services - ANSWER 1. Essential
functions:
Marketing- generates demand
2. Production/operations- creates the product
3. Finance/Accounting- keeps track of how well the organization is doing, pays
the bills, and collects the money.
3. The Supply Chain - ANSWER A worldwide network of organizations and
processes involved in the supply of goods and services to a company. Supply
chain members cooperate to provide high levels of customer satisfaction,
efficiency, and competitive advantage
4. Operations for Goods and Services - ANSWER -Manufacturers produce
tangible products, services often intangible.
-Operation activities are often very similar( but distinctions are not always
clear)
-Few pure services
5. The Productivity Challenge - ANSWER -Productivity-is the ratio of
outputs(goods and services) the inputs(resources such as labor and capital.
-A measure for output only(process improvement), NOT a measure of
efficiency!
-Measurement problems
1. Quality- may change while the quantity of inputs and outputs remains
constant.
,2. External Elements- may cause an increase or decrease in productivity
3. Precise units of measure may be lacking
6. A Global View of Operations and Supply Chains
Reasons to globalize - ANSWER 1. Improve the supply chain- locating
facilities closer to unique resources
2. Reduce cost and exchange rate risks- reduce direct/indirect costs. Trade
agreements can lower tariffs
3. Improve operations- understand differences between how business is handled
in other countries
4. Understand markets- interacting with foreign suppliers, customers, and
competition can lead to new opportunities
5. Product improvement-openness to the free flow of ideas
6. Acquisition and retention of global talent-providing the best job opportunities
7. Issues in Operations Strategy
Cultural and Ethical Issues and Notes - ANSWER -Cultural and Ethical Issues
1. Socio-cultural behaviour different
2. Laws, Agreements, code of conducts across the globe about ethics
3. Flow of capital, information goods and people
-Resources view, value chain analysis,Porter's 5 forces model, operating in a
system with many external factors
, 8. Strategy Development and Implementation
Process of strategy development (Strategy development process)
Explain 2 main parts - ANSWER -Strategy development process: Analyze the
environment→ Determine the corporate mission→ Form a strategy
Mission- where is the organization going?
Organizations purpose for being
Answers "What do we contribute to Society"
Provides boundaries and focus
Strategy- Tells the organization how to get there( action plan to achieve
mission)
Strategies exploit opportunities and strengths, neutralize threats, and avoid
weakness
Implementation of #8 strategy development process - ANSWER
Implementation:
-Identify key success factors
-Integrate OM with other activities
-Build and staff the organization
AND ANSWERS
1. What is Operations Management? - ANSWER Operations management
consists of all the activities that create value in the form of goods and services
by transforming inputs into valued outputs of goods and services.
2. Organizing to Produce Goods and Services - ANSWER 1. Essential
functions:
Marketing- generates demand
2. Production/operations- creates the product
3. Finance/Accounting- keeps track of how well the organization is doing, pays
the bills, and collects the money.
3. The Supply Chain - ANSWER A worldwide network of organizations and
processes involved in the supply of goods and services to a company. Supply
chain members cooperate to provide high levels of customer satisfaction,
efficiency, and competitive advantage
4. Operations for Goods and Services - ANSWER -Manufacturers produce
tangible products, services often intangible.
-Operation activities are often very similar( but distinctions are not always
clear)
-Few pure services
5. The Productivity Challenge - ANSWER -Productivity-is the ratio of
outputs(goods and services) the inputs(resources such as labor and capital.
-A measure for output only(process improvement), NOT a measure of
efficiency!
-Measurement problems
1. Quality- may change while the quantity of inputs and outputs remains
constant.
,2. External Elements- may cause an increase or decrease in productivity
3. Precise units of measure may be lacking
6. A Global View of Operations and Supply Chains
Reasons to globalize - ANSWER 1. Improve the supply chain- locating
facilities closer to unique resources
2. Reduce cost and exchange rate risks- reduce direct/indirect costs. Trade
agreements can lower tariffs
3. Improve operations- understand differences between how business is handled
in other countries
4. Understand markets- interacting with foreign suppliers, customers, and
competition can lead to new opportunities
5. Product improvement-openness to the free flow of ideas
6. Acquisition and retention of global talent-providing the best job opportunities
7. Issues in Operations Strategy
Cultural and Ethical Issues and Notes - ANSWER -Cultural and Ethical Issues
1. Socio-cultural behaviour different
2. Laws, Agreements, code of conducts across the globe about ethics
3. Flow of capital, information goods and people
-Resources view, value chain analysis,Porter's 5 forces model, operating in a
system with many external factors
, 8. Strategy Development and Implementation
Process of strategy development (Strategy development process)
Explain 2 main parts - ANSWER -Strategy development process: Analyze the
environment→ Determine the corporate mission→ Form a strategy
Mission- where is the organization going?
Organizations purpose for being
Answers "What do we contribute to Society"
Provides boundaries and focus
Strategy- Tells the organization how to get there( action plan to achieve
mission)
Strategies exploit opportunities and strengths, neutralize threats, and avoid
weakness
Implementation of #8 strategy development process - ANSWER
Implementation:
-Identify key success factors
-Integrate OM with other activities
-Build and staff the organization
