MGT 314 Exam 1 Study Guide Questions with 100% Complete Solutions Graded to Pass

Operations Management - The set of activities that create value in the form of goods and services by transforming inputs into outputs Organizing to produce goods and services - Marketing - basic demand Production/Operations - creates the product Finance/Accounting - tracks how well the organization Why study OM - 3 major functions: we want to study how people organize themselves for productive enterprise we want (and need) to know how goods and services are produced we want to understand what Operations managers do OM is such a costly part of an organization What Operations Managers do (POSLC) - Planning, Organizing, Staffing, Leading, Controlling 10 Strategic OM decisions (DMPLLSSMHI) - design of goods and services, managing quality, processes and capacity strategy, location strategy, layout, supply chain management, scheduling, maintenance, human resources and job design, inventory management Factors of Productivity variables (LMN) - Labor, Management, Number of potential hires Productivity improvement in services is difficult because: - typically labor intensive, frequently focused on unique individual attributes or desires, often an intellectual task performed by professionals, often difficult to mechanize and automate, and often difficult to evaluate for quality 6 reasons to make the change to international (IRIUIA) - improve the supply chain, reduce costs and exchange rate risks, improve operations, understand markets, improve products, attract and retain global talent Mission - Statement to tell an organization where it's going; the purpose; "what do we contribute to society" Strategy - Tell the organization how to get there; action plan to achieve mission; exploit opportunities and strengths, neutralize threats, avoid weaknesses Achieving a competitive advantage (DCR) - Differentiation, Cost Leadership, Response Core Competencies - A set of skills, talents and capabilities that a firm is strong in Key Success Factors - Activities or factors that are key to achieving a competitive advantage 4 Strategies for Global Operations - Global, Transnational, International, Multi-Domestic Global Strategy - Standardized product, economies of scale, cross-cultural learning Transnational strategy - move materials, people or ideas across national boundaries, economies of scale, cross-cultural learning International strategy - Import/export or license existing product