BIT 3414 - Quiz 1 Materials
QUESTIONS WELL ANSWERED
PASSED
Operations - CORRECT ANSWER ✔✔a function or system that transforms inputs into outputs of
greater value
Value chain - CORRECT ANSWER ✔✔Inputs (labor, equipment, money, skills) --> Transformation
process (creates value) (value of sum of inputs < value of sum of outputs) --> outputs (goods,
services)
Types of Transformation Processes (can combine these) - CORRECT ANSWER ✔✔- Physical -
manufacturing
- Locational - transportation (FedEx), storage
- Exchange - retail (Kroger, Amazon retail)
- Physiological - healthcare, fitness trainer
- Psychological - entertainment
- Informational - communications, VT teaching
- Extraction - mining, logging
Operations management - CORRECT ANSWER ✔✔the design, operation, and improvement of
productive systems
Manufacturing facility decision examples - CORRECT ANSWER ✔✔1) how many units should we
produce this month? MARKETING
, 2) Component X is held in our inventory. When should place an order to replenish the
inventory? How many units should we order? SUPPLIERS
3) How many workers should we hire this month to meet our production schedule? HUMAN
RESOURCES
4) Which piece of production equipment should we purchase for workstation #3? AUTOMATED
LABOR vs. DIRECT LABOR
Process planning - CORRECT ANSWER ✔✔determines how a product will be produced or a
service provided
Process strategy - CORRECT ANSWER ✔✔approach for producing good or providing services. A
firm's process strategy define its: vertical integration, capital intensity, process flexibility,
customer involvement, customer involvement
Vertical integration - CORRECT ANSWER ✔✔- extent to which firm will produce inputs and
control outputs of each stage of the transformation process
- coming up with new product, designing, producing, and sending off to customers --> does
every step = high vertical integration
Capital intensity - CORRECT ANSWER ✔✔- mix of capital (i.e., equipment, automation) and
labor resources used in production process
- more automation --> more capital invested --> high degree of capital intensity
- how much automation process has vs. direct labor
Cost Equipment vs. Cost of Direct Labor (inverse relationship)
Process flexibility - CORRECT ANSWER ✔✔- ease with which resources can be adjusted in
response to changes in demand, technology, products, or services, and resource availability
- process becomes more efficient when you specialize (one particular thing)
- when you change your product, process isn't as easy
QUESTIONS WELL ANSWERED
PASSED
Operations - CORRECT ANSWER ✔✔a function or system that transforms inputs into outputs of
greater value
Value chain - CORRECT ANSWER ✔✔Inputs (labor, equipment, money, skills) --> Transformation
process (creates value) (value of sum of inputs < value of sum of outputs) --> outputs (goods,
services)
Types of Transformation Processes (can combine these) - CORRECT ANSWER ✔✔- Physical -
manufacturing
- Locational - transportation (FedEx), storage
- Exchange - retail (Kroger, Amazon retail)
- Physiological - healthcare, fitness trainer
- Psychological - entertainment
- Informational - communications, VT teaching
- Extraction - mining, logging
Operations management - CORRECT ANSWER ✔✔the design, operation, and improvement of
productive systems
Manufacturing facility decision examples - CORRECT ANSWER ✔✔1) how many units should we
produce this month? MARKETING
, 2) Component X is held in our inventory. When should place an order to replenish the
inventory? How many units should we order? SUPPLIERS
3) How many workers should we hire this month to meet our production schedule? HUMAN
RESOURCES
4) Which piece of production equipment should we purchase for workstation #3? AUTOMATED
LABOR vs. DIRECT LABOR
Process planning - CORRECT ANSWER ✔✔determines how a product will be produced or a
service provided
Process strategy - CORRECT ANSWER ✔✔approach for producing good or providing services. A
firm's process strategy define its: vertical integration, capital intensity, process flexibility,
customer involvement, customer involvement
Vertical integration - CORRECT ANSWER ✔✔- extent to which firm will produce inputs and
control outputs of each stage of the transformation process
- coming up with new product, designing, producing, and sending off to customers --> does
every step = high vertical integration
Capital intensity - CORRECT ANSWER ✔✔- mix of capital (i.e., equipment, automation) and
labor resources used in production process
- more automation --> more capital invested --> high degree of capital intensity
- how much automation process has vs. direct labor
Cost Equipment vs. Cost of Direct Labor (inverse relationship)
Process flexibility - CORRECT ANSWER ✔✔- ease with which resources can be adjusted in
response to changes in demand, technology, products, or services, and resource availability
- process becomes more efficient when you specialize (one particular thing)
- when you change your product, process isn't as easy
