OM 300 TEST 1 UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. What is operations management?
Answer:
Creating value by efficiently/effectively transforming inputs into outputs
Question:
2. What are three main types of any business?
Answer:
Marketing (generates the demand) Production/Operation (creates the product) Finance/Accounting
(follows success and finances)
Question:
3. What types of decisions do operations managers make?
Answer:
Planning, organizing, staffing, leading, and controlling; How people organize themselves for productive
enterprises.
Question:
4. What are the differences between goods and services?
Answer:
Manufacturers produce a tangible product (good), whole service products are often intangible. Many
products are a combination between the two.
Question:
5. What is productivity?
Answer:
A measure of process improvement. It represents our outputs relative to input.
Question:
6. How is productivity calculated?
Answer:
outputs divided by inputs/
Question:
7. What are the two types of productivity calculations?
Answer:
1. Single factor: units produced/resources used ex: labor prod.
2. Multi factor: output / (labor + material + energy + capital + misc) *always a dollar amount
Question:
8. What is a global view of operations?
, Answer:
Customers, talent, and suppliers are worldwide. Global markets contribute efficiency, value to
products/services but also intensify complexity, risk and competition.
Question:
9. What are some examples of global companies?
Answer:
Boeing, cars, athletic wear, etc.
Question:
10. Why would a company expand globally?
Answer:
Improve supply chain, reduce costs (labor, taxes, tariffs, etc.), improve operations, understand markets,
improve products, attract/attain global talent.
Question:
11. Mission
Answer:
Tells an organization where it is going.
Question:
12. Strategy
Answer:
Tell an organization how it will get where it wants to go.
Question:
13. How do companies achieve competitive advantage?
Answer:
Competing on Differentiation (Better) Competing on Costs (Cheaper) Competing on Response (Faster)
Question:
14. Product Life Cycle Implications
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.
Question:
15. What are the three primary activities involved in managing a project?
Answer:
Planning (goal setting, project definition, and team organization) Scheduling (relate activities to each
other) Controlling (monitor resources, costs, quality, and budgets)
Question:
16. What are the responsibilities of a project manager?
CORRECT ANSWERS
Question:
1. What is operations management?
Answer:
Creating value by efficiently/effectively transforming inputs into outputs
Question:
2. What are three main types of any business?
Answer:
Marketing (generates the demand) Production/Operation (creates the product) Finance/Accounting
(follows success and finances)
Question:
3. What types of decisions do operations managers make?
Answer:
Planning, organizing, staffing, leading, and controlling; How people organize themselves for productive
enterprises.
Question:
4. What are the differences between goods and services?
Answer:
Manufacturers produce a tangible product (good), whole service products are often intangible. Many
products are a combination between the two.
Question:
5. What is productivity?
Answer:
A measure of process improvement. It represents our outputs relative to input.
Question:
6. How is productivity calculated?
Answer:
outputs divided by inputs/
Question:
7. What are the two types of productivity calculations?
Answer:
1. Single factor: units produced/resources used ex: labor prod.
2. Multi factor: output / (labor + material + energy + capital + misc) *always a dollar amount
Question:
8. What is a global view of operations?
, Answer:
Customers, talent, and suppliers are worldwide. Global markets contribute efficiency, value to
products/services but also intensify complexity, risk and competition.
Question:
9. What are some examples of global companies?
Answer:
Boeing, cars, athletic wear, etc.
Question:
10. Why would a company expand globally?
Answer:
Improve supply chain, reduce costs (labor, taxes, tariffs, etc.), improve operations, understand markets,
improve products, attract/attain global talent.
Question:
11. Mission
Answer:
Tells an organization where it is going.
Question:
12. Strategy
Answer:
Tell an organization how it will get where it wants to go.
Question:
13. How do companies achieve competitive advantage?
Answer:
Competing on Differentiation (Better) Competing on Costs (Cheaper) Competing on Response (Faster)
Question:
14. Product Life Cycle Implications
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.
Question:
15. What are the three primary activities involved in managing a project?
Answer:
Planning (goal setting, project definition, and team organization) Scheduling (relate activities to each
other) Controlling (monitor resources, costs, quality, and budgets)
Question:
16. What are the responsibilities of a project manager?
