BADM 7120 EXAM 1 QUESTIONS AND
ANSWERS
Operations management focuses on ... - Correct Answers -decisions for the production
and delivery of the firm's products and services
3 aspects of Operations Management - Correct Answers -1. Decisions
2. Function
3. Process
Operations manager must decide: - Correct Answers -process, quality, capacity,
inventory, and supply chain
Major functional areas in organizations: - Correct Answers -operations, marketing, and
finance
Process: - Correct Answers -planning and controlling the transformation process and its
interfaces (internal/external)
Definition of Supply Chain - Correct Answers -- Network of manufacturing and service
operations that supply one another
- From raw materials through production to the end consumer
- Flows of materials, money, and information
- Links operations across organizations
Example of major decisions at Pizza USA - Correct Answers -Process - How should we
produce pizzas?
Quality- How do we meet quality standards and ensure a good customer experience?
Capacity - How much output do we need at various times?
Inventory - Which ingredients, when & how much?
Supply Chain - How to source inputs and manage logistics?
,Decisions related to process, quality, capacity, inventory, and supply chain must
account for: - Correct Answers --upstream suppliers
-downstream suppliers
-other functions
-support functions
-situations
-conditions
-many others
Operations primary production... - Correct Answers -function
Other primary operating functions.. - Correct Answers -Marketing and Finance
Operations as a process.. - Correct Answers -Inputs -> Transformation (Conversion
Process) -> Outputs
Operations as a process.. (F&A) - Correct Answers -Inputs -> Transformation
Fabrication -> Transformation Assembly -> Outputs
Fabrication (def.) - Correct Answers -Making the parts
Assembly (def.) - Correct Answers -putting the parts together
Operations as a Process (figure 1.2) - Correct Answers -Energy, Materials, Labor,
Capital, Information -> Transformation (Conversion Process) -> Goods or Services
Contemporary Operations Challenges - Correct Answers -- Service and Manufacturing
(differences and implications)
- Customer-Directed Operations ("voice of the customer")
- Integration of Decisions Internally and Externally
- Environmental Sustainability
- Globalization of Operations and the Supply Chain
Operation Strategy Process - Correct Answers -Figure 2.1 Study powerpoint
Operations Strategic Objectives - Correct Answers -Cost - resources used
Quality - conformance to customer expectations
Delivery - quickly and on time
Flexibility - ability to rapidly change operations
Example of Important Strategic Decisions: Process - Correct Answers -Type: span of
processes, automation, process flow, job specialization
, Choice: make or buy, hand/machine-made, project, batch, line or continuous, high or
low specialization
Examples of Important Strategic Decisions in Operations: Quality - Correct Answers -
Type: approach, training, suppliers
Choice: prevention or inspection, technical or managerial training, selected on quality or
cost
Examples of Important Strategic Decisions in Operations: Capacity - Correct Answers -
Type: facility size, location, investment
Choice: one large or several small facilities, near markets, low cost or foreign,
permanent or temporary
Examples of Important Strategic Decisions in Operations: Inventory - Correct Answers -
Type: Amount, distribution, control systems
Choice: high or low levels of inventory, centralized or decentralized warehouse, control
in greater or less detail
Examples of Important Strategic Decisions in Operations: Supply Chain - Correct
Answers -Type: sourcing or logistics
Choice: Insource or outsource products, national or global distribution
Distinctive Competence - Correct Answers -- This operations capability is something an
organization does better than any competing organization that adds value for the
customer
- Examples: Patents, proprietary technology, operations innovations
Business Strategy Alternatives - Correct Answers -- Product Imitator: operations must
focus on keeping costs low
- Product Innovator: operations must maintain flexibility in processes, labor and
suppliers
Customer Perspective - Correct Answers -- Order qualifiers: objectives customers
consider in the product/service
- Order winners: objectives that cause customer to choose a particular product/service
Product imitator vs Product Innovator - Correct Answers -Imitator -
Order Winner = price (low cost)
ANSWERS
Operations management focuses on ... - Correct Answers -decisions for the production
and delivery of the firm's products and services
3 aspects of Operations Management - Correct Answers -1. Decisions
2. Function
3. Process
Operations manager must decide: - Correct Answers -process, quality, capacity,
inventory, and supply chain
Major functional areas in organizations: - Correct Answers -operations, marketing, and
finance
Process: - Correct Answers -planning and controlling the transformation process and its
interfaces (internal/external)
Definition of Supply Chain - Correct Answers -- Network of manufacturing and service
operations that supply one another
- From raw materials through production to the end consumer
- Flows of materials, money, and information
- Links operations across organizations
Example of major decisions at Pizza USA - Correct Answers -Process - How should we
produce pizzas?
Quality- How do we meet quality standards and ensure a good customer experience?
Capacity - How much output do we need at various times?
Inventory - Which ingredients, when & how much?
Supply Chain - How to source inputs and manage logistics?
,Decisions related to process, quality, capacity, inventory, and supply chain must
account for: - Correct Answers --upstream suppliers
-downstream suppliers
-other functions
-support functions
-situations
-conditions
-many others
Operations primary production... - Correct Answers -function
Other primary operating functions.. - Correct Answers -Marketing and Finance
Operations as a process.. - Correct Answers -Inputs -> Transformation (Conversion
Process) -> Outputs
Operations as a process.. (F&A) - Correct Answers -Inputs -> Transformation
Fabrication -> Transformation Assembly -> Outputs
Fabrication (def.) - Correct Answers -Making the parts
Assembly (def.) - Correct Answers -putting the parts together
Operations as a Process (figure 1.2) - Correct Answers -Energy, Materials, Labor,
Capital, Information -> Transformation (Conversion Process) -> Goods or Services
Contemporary Operations Challenges - Correct Answers -- Service and Manufacturing
(differences and implications)
- Customer-Directed Operations ("voice of the customer")
- Integration of Decisions Internally and Externally
- Environmental Sustainability
- Globalization of Operations and the Supply Chain
Operation Strategy Process - Correct Answers -Figure 2.1 Study powerpoint
Operations Strategic Objectives - Correct Answers -Cost - resources used
Quality - conformance to customer expectations
Delivery - quickly and on time
Flexibility - ability to rapidly change operations
Example of Important Strategic Decisions: Process - Correct Answers -Type: span of
processes, automation, process flow, job specialization
, Choice: make or buy, hand/machine-made, project, batch, line or continuous, high or
low specialization
Examples of Important Strategic Decisions in Operations: Quality - Correct Answers -
Type: approach, training, suppliers
Choice: prevention or inspection, technical or managerial training, selected on quality or
cost
Examples of Important Strategic Decisions in Operations: Capacity - Correct Answers -
Type: facility size, location, investment
Choice: one large or several small facilities, near markets, low cost or foreign,
permanent or temporary
Examples of Important Strategic Decisions in Operations: Inventory - Correct Answers -
Type: Amount, distribution, control systems
Choice: high or low levels of inventory, centralized or decentralized warehouse, control
in greater or less detail
Examples of Important Strategic Decisions in Operations: Supply Chain - Correct
Answers -Type: sourcing or logistics
Choice: Insource or outsource products, national or global distribution
Distinctive Competence - Correct Answers -- This operations capability is something an
organization does better than any competing organization that adds value for the
customer
- Examples: Patents, proprietary technology, operations innovations
Business Strategy Alternatives - Correct Answers -- Product Imitator: operations must
focus on keeping costs low
- Product Innovator: operations must maintain flexibility in processes, labor and
suppliers
Customer Perspective - Correct Answers -- Order qualifiers: objectives customers
consider in the product/service
- Order winners: objectives that cause customer to choose a particular product/service
Product imitator vs Product Innovator - Correct Answers -Imitator -
Order Winner = price (low cost)
