GMS 401 - Midterm #1 || 100% Correct Solutions.
Operations Management correct answers the management of activities and resources that create
goods and or provide services
Activities in Operations correct answers Forecasting
Capacity Planning
Scheduling
Managing Inventories
Assuring Quality
Employee Motivation and Training
Location of Facilities
Buying Materials
Efficiency correct answers Operating at minimum cost and time
Effectiveness correct answers Achieving quality and timeliness
Functions within Organizations correct answers Finance ->Operations->Marketing
Operations correct answers manages all the activities directly related to producing goods or
providing services
Value Added correct answers the difference between the cost of input and the value or price of
outputs
Non Profit Organizations correct answers the value of outputs is their value to society, the
greater the value added, the greater the efficiency of these operations
For-profit Organizations correct answers the value of outputs is measured by the prices that
customers are willing to pay for those goods or services
Finance correct answers performs activities related to securing funds at favourable prices and
allocating those funds throughout the organization.
Finance and operations Management exchange information such as: correct answers 1. Provision
of funds
2. Economic analysis of capital investment proposals
Provision of Funds correct answers the necessary funding of operations and the amount and
timing of funding can be important
Economic Analysis of Capital Investment Proposals correct answers evaluation of alternative
investments in plant and equipment requires inputs from both operations and finance people
, Marketing correct answers is responsible for assessing customer wants and needs and for
communicating those needs and feedback to operations and to product design.
Lead Time correct answers the time between ordering a good or service and receiving it
Other Functions that interface with operations correct answers -Accounting
-Management Information Systems
-Purchasing
-Personnel or Human Resources
-Manufacturing Engineering
-Maintenance
-Product Design
-Logistics
The Scope of Operations Management correct answers Designing
Planning
Scheduling
Executing
Controlling Activities/ Operations
Design correct answers involves product design, production capacity, the location of facilities,
arrangement of departments and placement of equipment within physical structures, acquisition
of equipment, and work/job design
Planning/ Controlling Activities correct answers includes quality planning and control, inventory
planning and control, production planning, scheduling and project management.
Operations management correct answers is more involved in day-to-day operating decisions and
planning than design
Production of goods correct answers results in tangible outputs
Services correct answers implies an act
Similarities between Production of Goods and Services correct answers involves design and
planning/ control decisions, and decide what size facility is needed and make decisions on
location, scheduling and control of operations, and allocation of scarce resources
Differences between Production of Goods and Services correct answers 1. Customer contact, use
of inventories, and demand variability
2. Uniformity of input
3. Labour content of jobs
4. Uniformity of output
5. Measurement of productivity
6. Quality assurance
Operations Management correct answers the management of activities and resources that create
goods and or provide services
Activities in Operations correct answers Forecasting
Capacity Planning
Scheduling
Managing Inventories
Assuring Quality
Employee Motivation and Training
Location of Facilities
Buying Materials
Efficiency correct answers Operating at minimum cost and time
Effectiveness correct answers Achieving quality and timeliness
Functions within Organizations correct answers Finance ->Operations->Marketing
Operations correct answers manages all the activities directly related to producing goods or
providing services
Value Added correct answers the difference between the cost of input and the value or price of
outputs
Non Profit Organizations correct answers the value of outputs is their value to society, the
greater the value added, the greater the efficiency of these operations
For-profit Organizations correct answers the value of outputs is measured by the prices that
customers are willing to pay for those goods or services
Finance correct answers performs activities related to securing funds at favourable prices and
allocating those funds throughout the organization.
Finance and operations Management exchange information such as: correct answers 1. Provision
of funds
2. Economic analysis of capital investment proposals
Provision of Funds correct answers the necessary funding of operations and the amount and
timing of funding can be important
Economic Analysis of Capital Investment Proposals correct answers evaluation of alternative
investments in plant and equipment requires inputs from both operations and finance people
, Marketing correct answers is responsible for assessing customer wants and needs and for
communicating those needs and feedback to operations and to product design.
Lead Time correct answers the time between ordering a good or service and receiving it
Other Functions that interface with operations correct answers -Accounting
-Management Information Systems
-Purchasing
-Personnel or Human Resources
-Manufacturing Engineering
-Maintenance
-Product Design
-Logistics
The Scope of Operations Management correct answers Designing
Planning
Scheduling
Executing
Controlling Activities/ Operations
Design correct answers involves product design, production capacity, the location of facilities,
arrangement of departments and placement of equipment within physical structures, acquisition
of equipment, and work/job design
Planning/ Controlling Activities correct answers includes quality planning and control, inventory
planning and control, production planning, scheduling and project management.
Operations management correct answers is more involved in day-to-day operating decisions and
planning than design
Production of goods correct answers results in tangible outputs
Services correct answers implies an act
Similarities between Production of Goods and Services correct answers involves design and
planning/ control decisions, and decide what size facility is needed and make decisions on
location, scheduling and control of operations, and allocation of scarce resources
Differences between Production of Goods and Services correct answers 1. Customer contact, use
of inventories, and demand variability
2. Uniformity of input
3. Labour content of jobs
4. Uniformity of output
5. Measurement of productivity
6. Quality assurance
