Operations Management Exam Prep |
Notes, Review & Practice Questions |
2026/2027
Define Operations Management - correct answer-The set of activities that creates
value in the form of goods and services by transforming inputs into outputs. The
administration of best business practices that will create the highest level of
efficiency possible within an organization. It includes converting materials and
labor into goods and services efficiently, and with the goal to maximize profits of
an organization. It also includes all of the processes associated with converting
materials into output of goods and services with the highest level of quality and
the lowest cost. OM concerns the marketing, finance and operations of an
organization. Operations managers are involved with planning, organizing,
staffing, leading and controlling.
Goods - correct answer-- products we use or consume like clothing, cars,
computers etc. It is something tangible that you can see and feel. Can be
inventoried. Low customer interaction. Produced ahead of consumption.
Services - correct answer-- something that someone does for you like a haircut, a
car wash, restaurant service etc. Greater customer service involved with services.
Produced and consumed simultaneiously. Intangible.
, Production - correct answer-- is concerned with the physical output during the
production process. It is the creation of goods and services. It is a measure of
output only and not a measure of efficiency.
Productivity - correct answer-- is concerned with resource factors such as time,
people, money and the level at which they all work together to produce a unit of
output. Often production and productivity are measured together in order to
analyze the overall productivity in an organization.
Productivity Equation - correct answer-= ratio of outputs (goods & services) /
inputs (resources such as labor and capital)
Or
Units produced / labor-hours used
Mission - correct answer-- A long-term end result or achievement. Objectives,
goals, strategies and tactics are all used to achieve the mission. Mission
statements are created for an organization by senior management and captures
the vision of the organization.
Strategy - correct answer-- is how to go about achieving an objective or goal. It is
a plan or action constructed and executed in order to achieve the result. The
pattern of decisions that determine and reveal a company's goals, policies, and
plans to meet the needs of its stakeholders. Through an effective strategy, a
business creates a sustainable competitive advantage.
Strategic approaches to competitive advantages: - correct answer-- A low
cost/price strategy focusing on providing goods or services at a lower cost than
the competition
Notes, Review & Practice Questions |
2026/2027
Define Operations Management - correct answer-The set of activities that creates
value in the form of goods and services by transforming inputs into outputs. The
administration of best business practices that will create the highest level of
efficiency possible within an organization. It includes converting materials and
labor into goods and services efficiently, and with the goal to maximize profits of
an organization. It also includes all of the processes associated with converting
materials into output of goods and services with the highest level of quality and
the lowest cost. OM concerns the marketing, finance and operations of an
organization. Operations managers are involved with planning, organizing,
staffing, leading and controlling.
Goods - correct answer-- products we use or consume like clothing, cars,
computers etc. It is something tangible that you can see and feel. Can be
inventoried. Low customer interaction. Produced ahead of consumption.
Services - correct answer-- something that someone does for you like a haircut, a
car wash, restaurant service etc. Greater customer service involved with services.
Produced and consumed simultaneiously. Intangible.
, Production - correct answer-- is concerned with the physical output during the
production process. It is the creation of goods and services. It is a measure of
output only and not a measure of efficiency.
Productivity - correct answer-- is concerned with resource factors such as time,
people, money and the level at which they all work together to produce a unit of
output. Often production and productivity are measured together in order to
analyze the overall productivity in an organization.
Productivity Equation - correct answer-= ratio of outputs (goods & services) /
inputs (resources such as labor and capital)
Or
Units produced / labor-hours used
Mission - correct answer-- A long-term end result or achievement. Objectives,
goals, strategies and tactics are all used to achieve the mission. Mission
statements are created for an organization by senior management and captures
the vision of the organization.
Strategy - correct answer-- is how to go about achieving an objective or goal. It is
a plan or action constructed and executed in order to achieve the result. The
pattern of decisions that determine and reveal a company's goals, policies, and
plans to meet the needs of its stakeholders. Through an effective strategy, a
business creates a sustainable competitive advantage.
Strategic approaches to competitive advantages: - correct answer-- A low
cost/price strategy focusing on providing goods or services at a lower cost than
the competition
