OM 300 Test 1 UPDATED ACTUAL Exam
Questions and CORRECT Answers
What is operations management? - CORRECT ANSWER -Creating value by
efficiently/effectively transforming inputs into outputs
What are three main types of any business? - CORRECT ANSWER -Marketing (generates
the demand)
Production/Operation (creates the product)
Finance/Accounting (follows success and finances)
What types of decisions do operations managers make? - CORRECT ANSWER -Planning,
organizing, staffing, leading, and controlling; How people organize themselves for productive
enterprises.
What are the differences between goods and services? - CORRECT ANSWER -
Manufacturers produce a tangible product (good), whole service products are often intangible.
Many products are a combination between the two.
What is productivity? - CORRECT ANSWER -A measure of process improvement. It
represents our outputs relative to input.
How is productivity calculated? - CORRECT ANSWER -outputs divided by inputs/
What are the two types of productivity calculations? - CORRECT ANSWER -1. Single
factor: units produced/resources used
ex: labor prod.
2. Multi factor: output / (labor + material + energy + capital + misc)
*always a dollar amount
, What is a global view of operations? - CORRECT ANSWER -Customers, talent, and
suppliers are worldwide. Global markets contribute efficiency, value to products/services but
also intensify complexity, risk and competition.
What are some examples of global companies? - CORRECT ANSWER -Boeing, cars,
athletic wear, etc.
Why would a company expand globally? - CORRECT ANSWER -Improve supply chain,
reduce costs (labor, taxes, tariffs, etc.), improve operations, understand markets, improve
products, attract/attain global talent.
Mission - CORRECT ANSWER -Tells an organization where it is going.
Strategy - CORRECT ANSWER -Tell an organization how it will get where it wants to
go.
How do companies achieve competitive advantage? - CORRECT ANSWER -Competing
on Differentiation (Better)
Competing on Costs (Cheaper)
Competing on Response (Faster)
Product Life Cycle Implications - CORRECT ANSWER -1. Introduction- high costs,
design/ development are critical, frequent design changes, attention to quality.
2. Growth- forecasting is critical, increase capacity, shift toward product focus, more reliability.
3. Maturity- Standardization, fewer rapid changes, increased stability, optimum capacity, cost
cutting, product improvement.
4. Decline- cost minimization, overcapacity- reduce capacity, prune line.
What are the three primary activities involved in
Questions and CORRECT Answers
What is operations management? - CORRECT ANSWER -Creating value by
efficiently/effectively transforming inputs into outputs
What are three main types of any business? - CORRECT ANSWER -Marketing (generates
the demand)
Production/Operation (creates the product)
Finance/Accounting (follows success and finances)
What types of decisions do operations managers make? - CORRECT ANSWER -Planning,
organizing, staffing, leading, and controlling; How people organize themselves for productive
enterprises.
What are the differences between goods and services? - CORRECT ANSWER -
Manufacturers produce a tangible product (good), whole service products are often intangible.
Many products are a combination between the two.
What is productivity? - CORRECT ANSWER -A measure of process improvement. It
represents our outputs relative to input.
How is productivity calculated? - CORRECT ANSWER -outputs divided by inputs/
What are the two types of productivity calculations? - CORRECT ANSWER -1. Single
factor: units produced/resources used
ex: labor prod.
2. Multi factor: output / (labor + material + energy + capital + misc)
*always a dollar amount
, What is a global view of operations? - CORRECT ANSWER -Customers, talent, and
suppliers are worldwide. Global markets contribute efficiency, value to products/services but
also intensify complexity, risk and competition.
What are some examples of global companies? - CORRECT ANSWER -Boeing, cars,
athletic wear, etc.
Why would a company expand globally? - CORRECT ANSWER -Improve supply chain,
reduce costs (labor, taxes, tariffs, etc.), improve operations, understand markets, improve
products, attract/attain global talent.
Mission - CORRECT ANSWER -Tells an organization where it is going.
Strategy - CORRECT ANSWER -Tell an organization how it will get where it wants to
go.
How do companies achieve competitive advantage? - CORRECT ANSWER -Competing
on Differentiation (Better)
Competing on Costs (Cheaper)
Competing on Response (Faster)
Product Life Cycle Implications - CORRECT ANSWER -1. Introduction- high costs,
design/ development are critical, frequent design changes, attention to quality.
2. Growth- forecasting is critical, increase capacity, shift toward product focus, more reliability.
3. Maturity- Standardization, fewer rapid changes, increased stability, optimum capacity, cost
cutting, product improvement.
4. Decline- cost minimization, overcapacity- reduce capacity, prune line.
What are the three primary activities involved in
