GMS 401 - Midterm #1 Exam Questions and Answers 100% Pass

GMS 401 - Midterm #1 Exam Questions and Answers 100% Pass Operations Management - Answer- the management of activities and resources that create goods and or provide services Activities in Operations - Answer- Forecasting Capacity Planning Scheduling Managing Inventories Assuring Quality Employee Motivation and Training Location of Facilities Buying Materials Efficiency - Answer- Operating at minimum cost and time Effectiveness - Answer- Achieving quality and timeliness Functions within Organizations - Answer- Finance -Operations-Marketing Operations - Answer- manages all the activities directly related to producing goods or providing services Value Added - Answer- the difference between the cost of input and the value or price of outputs Non Profit Organizations - Answer- the value of outputs is their value to society, the greater the value added, the greater the efficiency of these operations For-profit Organizations - Answer- the value of outputs is measured by the prices that customers are willing to pay for those goods or services Finance - Answer- performs activities related to securing funds at favourable prices and allocating those funds throughout the organization. Finance and operations Management exchange information such as: - Answer- 1. Provision of funds 2. Economic analysis of capital investment proposals Provision of Funds - Answer- the necessary funding of operations and the amount and timing of funding can be important Economic Analysis of Capital Investment Proposals - Answer- evaluation of alternative investments in plant and equipment requires inputs from both operations and finance people Marketing - Answer- is responsible for assessing customer wants and needs and for communicating those needs and feedback to operations and to product design. Lead Time - Answer- the time between ordering a good or service and receiving it Other Functions that interface with operations - Answer- -Accounting -Management Information Systems -Purchasing -Personnel or Human Resources -Manufacturing Engineering -Maintenance -Product Design -Logistics The Scope of Operations Management - Answer- Designing Planning Scheduling Executing Controlling Activities/ Operations Design - Answer- 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 - Answer- includes quality planning and control, inventory planning and control, production planning, scheduling and project management. Operations management - Answer- is more involved in day-to-day operating decisions and planning than design Production of goods - Answer- results in tangible outputs Services - Answer- implies an act Similarities between Production of Goods and Services - Answer- 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 - Answer- 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 The performance of services - Answer- occur at the point of consumption Production of Goods - Answer- allows a separation between production and consumption so that it may occur away from the consumer Operations manager - Answer- has the responsibility for the creation of goods or performance of services. exerts considerable influence over the degree to which the goals and objectives of the organization are realized. Model - Answer- an abstraction of reality; a simplified representation of something Mathematical models - Answer- represent important characteristics of the object by mathematical symbols and their relationship by mathematical equations and inequalities Schematic models - Answer- are graphs, charts, and drawings Common Statistical Models - Answer- include Normal distribution and regression equations Quantitative techniques - Answer- -linear programming -queuing techniques -inventory techniques -project scheduling techniques -forecasting techniques -statistical techniques Linear Programming - Answer- is widely used for optimal allocation of scarce resources Queuing techniques - Answer- are useful for analyzing situations