GMS 401 Midterm 1 Study Guide: Key Notes,
Practice Questions & Answers - Toronto
Metropolitan University (TMU)
Operations Management
- CORRECT ANSWER-the management of activities and resources that create goods and or
provide services
Activities in Operations
- CORRECT ANSWER-Forecasting
Capacity Planning
Scheduling
Managing Inventories
Assuring Quality
Employee Motivation and Training
Location of Facilities
Buying Materials
Efficiency
- CORRECT ANSWER-Operating at minimum cost and time
Effectiveness
- CORRECT ANSWER-Achieving quality and timeliness
,Functions within Organizations
- CORRECT ANSWER-Finance ->Operations->Marketing
Operations
- CORRECT ANSWER-manages all the activities directly related to producing goods or
providing services
Value Added
- CORRECT ANSWER-the difference between the cost of input and the value or price of
outputs
Non Profit Organizations
- CORRECT 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
- CORRECT ANSWER-the value of outputs is measured by the prices that customers are willing
to pay for those goods or services
Finance
- CORRECT 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:
- CORRECT ANSWER-1. Provision of funds
2. Economic analysis of capital investment proposals
, Provision of Funds
- CORRECT ANSWER-the necessary funding of operations and the amount and timing of
funding can be important
Economic Analysis of Capital Investment Proposals
- CORRECT ANSWER-evaluation of alternative investments in plant and equipment requires
inputs from both operations and finance people
Marketing
- CORRECT ANSWER-is responsible for assessing customer wants and needs and for
communicating those needs and feedback to operations and to product design.
Lead Time
- CORRECT ANSWER-the time between ordering a good or service and receiving it
Other Functions that interface with operations
- CORRECT ANSWER--Accounting
-Management Information Systems
-Purchasing
-Personnel or Human Resources
-Manufacturing Engineering
-Maintenance
-Product Design
-Logistics
Practice Questions & Answers - Toronto
Metropolitan University (TMU)
Operations Management
- CORRECT ANSWER-the management of activities and resources that create goods and or
provide services
Activities in Operations
- CORRECT ANSWER-Forecasting
Capacity Planning
Scheduling
Managing Inventories
Assuring Quality
Employee Motivation and Training
Location of Facilities
Buying Materials
Efficiency
- CORRECT ANSWER-Operating at minimum cost and time
Effectiveness
- CORRECT ANSWER-Achieving quality and timeliness
,Functions within Organizations
- CORRECT ANSWER-Finance ->Operations->Marketing
Operations
- CORRECT ANSWER-manages all the activities directly related to producing goods or
providing services
Value Added
- CORRECT ANSWER-the difference between the cost of input and the value or price of
outputs
Non Profit Organizations
- CORRECT 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
- CORRECT ANSWER-the value of outputs is measured by the prices that customers are willing
to pay for those goods or services
Finance
- CORRECT 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:
- CORRECT ANSWER-1. Provision of funds
2. Economic analysis of capital investment proposals
, Provision of Funds
- CORRECT ANSWER-the necessary funding of operations and the amount and timing of
funding can be important
Economic Analysis of Capital Investment Proposals
- CORRECT ANSWER-evaluation of alternative investments in plant and equipment requires
inputs from both operations and finance people
Marketing
- CORRECT ANSWER-is responsible for assessing customer wants and needs and for
communicating those needs and feedback to operations and to product design.
Lead Time
- CORRECT ANSWER-the time between ordering a good or service and receiving it
Other Functions that interface with operations
- CORRECT ANSWER--Accounting
-Management Information Systems
-Purchasing
-Personnel or Human Resources
-Manufacturing Engineering
-Maintenance
-Product Design
-Logistics
