OM Exam 1
operations management - Answer-business function responsible for planning, coordinating, and
controlling the resources needed to produce a company's goods and services.
role of OM - Answer-to transform organizational inputs into outputs
value added - Answer-the net increase creased during the transformation of inputs into final outputs
efficiency - Answer-performing activities at the lowest possible cost
manufacturing organizations - Answer-organizations that primarily produce a tangible product and
typically have low customer contact
service organization - Answer-organizations that primarily produce and intangible product, such as
ideas, assistance, or information and typically have high customer contact
strategic decisions - Answer-decisions that set the direction for the entire company; they are BROAD in
scope and LONG-TERM in nature; broad in scope, company-wide
tactical decisions - Answer-decisions that are SPECIFIC and SHORT-TERM in nature; bound by STRATEGIC
DECISIONS; narrow in scope, small group
, Scientific Management - Answer-an approach to management that focused on improving output by
redesigning jobs and determining acceptable levels of worker output
Hawthorne studies - Answer-the studies responsible for creating the human relations movement, which
focused on giving more consideration to workers' needs.
human relations movement - Answer-a philosophy based on the recognition that factors other than
money can contribute to worker productivity
management science - Answer-a field study that focuses on the development of quantitative techniques
to solve operational problems
JIT - Answer-a philosophy designed to achieve high-volume production through elimination of waste and
continuous improvement
total quality management - Answer-philosophy that seeks to improve quality by eliminating causes of
product defects and by making quality the responsibility of everyone in the organization
re-engineering - Answer-redesigning a company's processes to make them more efficient
flexibility - Answer-an organizational strategy in which the company attempts to offer a greater variety
of product choices to its customers
mass customization - Answer-the ability of a firm to highly customize goods and services at high volumes
time-based consumption - Answer-an organizational strategy focusing on efforts to develop new
products and deliver them to customers FASTER than competitors
operations management - Answer-business function responsible for planning, coordinating, and
controlling the resources needed to produce a company's goods and services.
role of OM - Answer-to transform organizational inputs into outputs
value added - Answer-the net increase creased during the transformation of inputs into final outputs
efficiency - Answer-performing activities at the lowest possible cost
manufacturing organizations - Answer-organizations that primarily produce a tangible product and
typically have low customer contact
service organization - Answer-organizations that primarily produce and intangible product, such as
ideas, assistance, or information and typically have high customer contact
strategic decisions - Answer-decisions that set the direction for the entire company; they are BROAD in
scope and LONG-TERM in nature; broad in scope, company-wide
tactical decisions - Answer-decisions that are SPECIFIC and SHORT-TERM in nature; bound by STRATEGIC
DECISIONS; narrow in scope, small group
, Scientific Management - Answer-an approach to management that focused on improving output by
redesigning jobs and determining acceptable levels of worker output
Hawthorne studies - Answer-the studies responsible for creating the human relations movement, which
focused on giving more consideration to workers' needs.
human relations movement - Answer-a philosophy based on the recognition that factors other than
money can contribute to worker productivity
management science - Answer-a field study that focuses on the development of quantitative techniques
to solve operational problems
JIT - Answer-a philosophy designed to achieve high-volume production through elimination of waste and
continuous improvement
total quality management - Answer-philosophy that seeks to improve quality by eliminating causes of
product defects and by making quality the responsibility of everyone in the organization
re-engineering - Answer-redesigning a company's processes to make them more efficient
flexibility - Answer-an organizational strategy in which the company attempts to offer a greater variety
of product choices to its customers
mass customization - Answer-the ability of a firm to highly customize goods and services at high volumes
time-based consumption - Answer-an organizational strategy focusing on efforts to develop new
products and deliver them to customers FASTER than competitors
