MGSC 346 FINAL EXAM STUDY GUIDE
Operations - Answers - the part of a business organization that is responsible for
producing goods or services
Management - Answers - Planning, Organizing, Staffing, Leading (directing)
Operations Management - Answers - Operations and supply chains are intrinsically
linked, operations management is responsible for managing that core
Supply chain management - Answers - involves coordinating activities across the supply
chain, elements include customers, forecasting, design, capacity planning, processing,
inventory, purchasing, suppliers, location, and logistics
Operations as one of the three primary functions in any organization - Answers -
Marketing: gets customer
Operations: consists of all activities DIRECTLY related to producing goods or providing
services, Finance: obtains funds, tracks $
Manufacturing vs. service operations - Answers - Production of goods result in a
tangible output, Delivery of a service implies an act
Definition of services - Answers - Economic activities that produce a place, time, form,
or psychological utility for the consumer.
Four types of utility providers with examples - Answers - 1. Place to Purchase-Target
2. Service- Jiffy Lube
3. Monthly statement- bank
4. Psychological benefit- concert
Characteristics of goods and services: - Answers - Goods: Output tangible, customer
contact low, labor content low, uniformity of input high, easy measurement of
productivity, high opportunity to correct problems before delivery, much inventory,
narrow wages, usually patentable
Services: intangible output, high customer contact, high labor content, low uniformity of
input, difficult measurement of productivity, low opportunity to correct problems before
delivery, little inventory, wide wages, not usually patentable
Front room - Answers - Pure service (ex. Band tellers, loan services)
Back room - Answers - More like a manufacturing operation (ex. Check processing,
printing statements)
,Make-to-stock - Answers - Items made and placed in stock before order is received
Make-to-Order - Answers - Assemble to order, Manufacture to order, Engineer to Order
Assemble-to-order - Answers - partially completed before, Customized auto, customized
bike, prefab homes, sandwich shop, irish pub, fence installers
Manufacture-to-order - Answers - processing starts after, Automobiles, grocery,
cosmetics, car wash, funeral home, scheduled flight
Engineer-to-order - Answers - design starts after, Construction projects, custom
designed clothing, aerospace projects
Service Factory - Answers - low labor intensity, low customer contact, ex. Airlines,
trucking, hotels
Service shop - Answers - low labor intensity, high customer contact, ex. Hospitals,
repair services
Professional service - Answers - high labor intensity, high customer contact, ex.
Physicians, lawyers, accountants
Mass service - Answers - high labor intensity, low customer contact, ex. Retailing
Strategy - Answers - A plan for achieving organizational goals (serves as a roadmap for
reaching the organizational destinations
Mission - Answers - The reason for an organization's existence
Operations strategy - Answers - A plan for the "doing part" of the process
Competitive priorities - Answers - A way for businesses to distinguish from, and
compete with, others (price, quality, delivery, flexibility)
Competency - Answers - collective knowledge and skills that distinguish a company
from the competition
Focus - Answers - stressing one or two key business values or areas of strength
Vertical alignment - Answers - should support the business strategy (competitive
advantage) and the corporate strategy (vertical alignment)
Horizontal alignment - Answers - should complement other functional strategies
Order Qualifiers - Answers - gain entry to a market, maintain position within a market,
have order-losing not order-winning characteristics
, Order Winners - Answers - Characteristics that will win the bid or the purchase. Not all
order winners are manufacturing related.
SWOT - Answers - Strengths, Weaknesses, Opportunities, and Threats
External factors: economic conditions, political conditions, legal environment,
technology, competition, markets
Internal factors: human resources, facilities and equipment, financial resources,
customers, products and services, technology, suppliers, other
Productivity - Answers - output/input
Efficiency - Answers - Greater ratio of Ouput to Input
Three levels of operations strategy - Answers - Corporate, Business Unit-Competitive
Priorities, Functional
structural decisions - Answers - location, technology/process, capacity, vertical
integration
Infrastructural decisions - Answers - product/service design, quality, organization, work
force, performance measures, planning and control
Trade-offs - Answers - linear xy plane with axis: cost, flexibility, quality, and delivery
Japanese - Answers - starts with quality, branches off into flexibility and delivery, and
narrows back into low cost
Sand Cone - Answers - smallest mound is quality, on top of that is dependability, then
speed, and then cost over all of them
Structural decision in operations - Answers - location, technology/process, capacity,
vertical integration
Infrastructural decisions in operations - Answers - product/service design, quality,
organization, work force, performance measures, planning & control
Why productivity matters - Answers - - High productivity is linked to higher standards of
living
- Higher productivity relative to the competition leads to competitive advantage in the
marketplace
Operations - Answers - the part of a business organization that is responsible for
producing goods or services
Management - Answers - Planning, Organizing, Staffing, Leading (directing)
Operations Management - Answers - Operations and supply chains are intrinsically
linked, operations management is responsible for managing that core
Supply chain management - Answers - involves coordinating activities across the supply
chain, elements include customers, forecasting, design, capacity planning, processing,
inventory, purchasing, suppliers, location, and logistics
Operations as one of the three primary functions in any organization - Answers -
Marketing: gets customer
Operations: consists of all activities DIRECTLY related to producing goods or providing
services, Finance: obtains funds, tracks $
Manufacturing vs. service operations - Answers - Production of goods result in a
tangible output, Delivery of a service implies an act
Definition of services - Answers - Economic activities that produce a place, time, form,
or psychological utility for the consumer.
Four types of utility providers with examples - Answers - 1. Place to Purchase-Target
2. Service- Jiffy Lube
3. Monthly statement- bank
4. Psychological benefit- concert
Characteristics of goods and services: - Answers - Goods: Output tangible, customer
contact low, labor content low, uniformity of input high, easy measurement of
productivity, high opportunity to correct problems before delivery, much inventory,
narrow wages, usually patentable
Services: intangible output, high customer contact, high labor content, low uniformity of
input, difficult measurement of productivity, low opportunity to correct problems before
delivery, little inventory, wide wages, not usually patentable
Front room - Answers - Pure service (ex. Band tellers, loan services)
Back room - Answers - More like a manufacturing operation (ex. Check processing,
printing statements)
,Make-to-stock - Answers - Items made and placed in stock before order is received
Make-to-Order - Answers - Assemble to order, Manufacture to order, Engineer to Order
Assemble-to-order - Answers - partially completed before, Customized auto, customized
bike, prefab homes, sandwich shop, irish pub, fence installers
Manufacture-to-order - Answers - processing starts after, Automobiles, grocery,
cosmetics, car wash, funeral home, scheduled flight
Engineer-to-order - Answers - design starts after, Construction projects, custom
designed clothing, aerospace projects
Service Factory - Answers - low labor intensity, low customer contact, ex. Airlines,
trucking, hotels
Service shop - Answers - low labor intensity, high customer contact, ex. Hospitals,
repair services
Professional service - Answers - high labor intensity, high customer contact, ex.
Physicians, lawyers, accountants
Mass service - Answers - high labor intensity, low customer contact, ex. Retailing
Strategy - Answers - A plan for achieving organizational goals (serves as a roadmap for
reaching the organizational destinations
Mission - Answers - The reason for an organization's existence
Operations strategy - Answers - A plan for the "doing part" of the process
Competitive priorities - Answers - A way for businesses to distinguish from, and
compete with, others (price, quality, delivery, flexibility)
Competency - Answers - collective knowledge and skills that distinguish a company
from the competition
Focus - Answers - stressing one or two key business values or areas of strength
Vertical alignment - Answers - should support the business strategy (competitive
advantage) and the corporate strategy (vertical alignment)
Horizontal alignment - Answers - should complement other functional strategies
Order Qualifiers - Answers - gain entry to a market, maintain position within a market,
have order-losing not order-winning characteristics
, Order Winners - Answers - Characteristics that will win the bid or the purchase. Not all
order winners are manufacturing related.
SWOT - Answers - Strengths, Weaknesses, Opportunities, and Threats
External factors: economic conditions, political conditions, legal environment,
technology, competition, markets
Internal factors: human resources, facilities and equipment, financial resources,
customers, products and services, technology, suppliers, other
Productivity - Answers - output/input
Efficiency - Answers - Greater ratio of Ouput to Input
Three levels of operations strategy - Answers - Corporate, Business Unit-Competitive
Priorities, Functional
structural decisions - Answers - location, technology/process, capacity, vertical
integration
Infrastructural decisions - Answers - product/service design, quality, organization, work
force, performance measures, planning and control
Trade-offs - Answers - linear xy plane with axis: cost, flexibility, quality, and delivery
Japanese - Answers - starts with quality, branches off into flexibility and delivery, and
narrows back into low cost
Sand Cone - Answers - smallest mound is quality, on top of that is dependability, then
speed, and then cost over all of them
Structural decision in operations - Answers - location, technology/process, capacity,
vertical integration
Infrastructural decisions in operations - Answers - product/service design, quality,
organization, work force, performance measures, planning & control
Why productivity matters - Answers - - High productivity is linked to higher standards of
living
- Higher productivity relative to the competition leads to competitive advantage in the
marketplace
