OM 300 Exam 1 with correct
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detailed solutions |!
operations management - Correct answer ✔a set of activities
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that create value in the form of goods and services by
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transforming the inputs into outputs |! |! |! |!
Explain the distinction between goods and services - Correct
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answer ✔Services: intangible, produced and consumed
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simultaneously, unique, high customer interaction, inconsistent |! |! |! |! |! |!
product definition, often knowledge based, services dispersed,
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quality may be hard to evaluate, and reselling is unusual.
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Goods:Tangible, product can usually be kept in inventory, similar |! |! |! |! |! |! |! |! |!
products produced, limited customer involvement in production,
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product standardized, standard tangible product tends to make
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automation feasible, product typically produced at a fixed
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facility, many aspects of quality for tangible products are easy to
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evaluate, product often has some residual value
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Explain the difference between production and productivity -
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Correct answer ✔production: a measure of output ONLY and NOT
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a measure of efficiency
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-a creation of goods and services
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-productivity: the ratio of output (goods and services)/ the input
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(labor and capital).
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,(labor productivity= units produced/labor hours used)
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-The objective is to improve productivity.
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single-factor productivity - Correct answer ✔(Units |! |! |! |! |! |!
produced/Input used) |!
multi-factor productivity - Correct answer ✔(Output/ Labor +
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Material + Energy + Capital + Misc.)
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Role of Operations - Correct answer ✔-manages people,
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equipment, technology, materials, and information |! |! |! |!
-produces goods or services |! |! |!
Strategic vs Tactical level decisions - Correct answer ✔Strategic
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Decisions
-broad in scope |! |!
-long-term in nature |! |!
-all encompassing
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Tactical Decisions |!
-narrow in scope |! |!
-short term in nature
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-concerning a small group of issues |! |! |! |! |!
Service vs. Manufacturing operations - Correct answer ✔Services
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, -Intangible product |!
-product cannot be inventoried
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-high customer contact
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-short response time
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-labor intensive|!
Manufacturing
-Tangible product |!
-product can be inventoried|! |! |!
-low customer contact
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-longer response time|! |!
-capital intensive |!
Productivity Measures - Correct answer ✔Productivity
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(Units produced/Input used)
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-Measure of process improvement |! |! |!
-represents output relative to input |! |! |! |!
-Only through productivity increases can our standard of living
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improve
Labor Productivity
|!
-Units produced/labor-hours used
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-one resource input à single factor productivity
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detailed solutions |!
operations management - Correct answer ✔a set of activities
|! |! |! |! |! |! |! |! |!
that create value in the form of goods and services by
|! |! |! |! |! |! |! |! |! |! |!
transforming the inputs into outputs |! |! |! |!
Explain the distinction between goods and services - Correct
|! |! |! |! |! |! |! |! |!
answer ✔Services: intangible, produced and consumed
|! |! |! |! |! |!
simultaneously, unique, high customer interaction, inconsistent |! |! |! |! |! |!
product definition, often knowledge based, services dispersed,
|! |! |! |! |! |! |!
quality may be hard to evaluate, and reselling is unusual.
|! |! |! |! |! |! |! |! |!
Goods:Tangible, product can usually be kept in inventory, similar |! |! |! |! |! |! |! |! |!
products produced, limited customer involvement in production,
|! |! |! |! |! |! |!
product standardized, standard tangible product tends to make
|! |! |! |! |! |! |! |!
automation feasible, product typically produced at a fixed
|! |! |! |! |! |! |! |!
facility, many aspects of quality for tangible products are easy to
|! |! |! |! |! |! |! |! |! |!
evaluate, product often has some residual value
|! |! |! |! |! |! |!
Explain the difference between production and productivity -
|! |! |! |! |! |! |! |!
Correct answer ✔production: a measure of output ONLY and NOT
|! |! |! |! |! |! |! |! |!
a measure of efficiency
|! |! |! |!
-a creation of goods and services
|! |! |! |! |!
|!
-productivity: the ratio of output (goods and services)/ the input
|! |! |! |! |! |! |! |! |! |!
(labor and capital).
|! |! |!
,(labor productivity= units produced/labor hours used)
|! |! |! |! |! |!
-The objective is to improve productivity.
|! |! |! |! |!
single-factor productivity - Correct answer ✔(Units |! |! |! |! |! |!
produced/Input used) |!
multi-factor productivity - Correct answer ✔(Output/ Labor +
|! |! |! |! |! |! |! |!
Material + Energy + Capital + Misc.)
|! |! |! |! |! |!
Role of Operations - Correct answer ✔-manages people,
|! |! |! |! |! |! |! |!
equipment, technology, materials, and information |! |! |! |!
-produces goods or services |! |! |!
Strategic vs Tactical level decisions - Correct answer ✔Strategic
|! |! |! |! |! |! |! |! |!
Decisions
-broad in scope |! |!
-long-term in nature |! |!
-all encompassing
|!
Tactical Decisions |!
-narrow in scope |! |!
-short term in nature
|! |! |!
-concerning a small group of issues |! |! |! |! |!
Service vs. Manufacturing operations - Correct answer ✔Services
|! |! |! |! |! |! |!
, -Intangible product |!
-product cannot be inventoried
|! |! |!
-high customer contact
|! |!
-short response time
|! |!
-labor intensive|!
Manufacturing
-Tangible product |!
-product can be inventoried|! |! |!
-low customer contact
|! |!
-longer response time|! |!
-capital intensive |!
Productivity Measures - Correct answer ✔Productivity
|! |! |! |! |!
(Units produced/Input used)
|! |!
-Measure of process improvement |! |! |!
-represents output relative to input |! |! |! |!
-Only through productivity increases can our standard of living
|! |! |! |! |! |! |! |! |!
improve
Labor Productivity
|!
-Units produced/labor-hours used
|! |!
-one resource input à single factor productivity
|! |! |! |! |! |!
