MGSC 395 Exam 1 Correct 100%

5 functions of a manager (Fayol) - Answer plan organize staff lead control An operations manager is in charge of - Answer the systematic design, direction, and control of processes that transform inputs into services and products for internal, as well as external customers operations management inputs - Answer workers managers equipment facilities materials land energy operations management outputs - Answer goods services inputs - Answer financial, physical process - Answer operation - Answer goods - Answer Can be resold Can be inventoried Some aspects of quality measurable Selling is distinct from production Product is transportable Site of facility important for cost Capital intensive Often easy to automate Revenue generated primarily from tangible product services - Answer Reselling unusual Difficult to inventory Quality difficult to measure Selling is part of service (high customer contact) Provider is transportable Site of facility important for customer contact Labor intensive Often difficult to automate Revenue generated primarily from the intangible service internal customer - Answer external customer - Answer manufacturing process characteristics - Answer Physical, Durable Output Output can be inventoried Low customer contact Long response time Capital intensive Quality easily measured service process characteristics - Answer Intangible, perishable output Output cannot be inventoried High customer contact Short response time Labor intensive Quality not easily measured productivity - Answer the value of outputs (services and products) produced divided by the value of inputs (labor, materials, equipment, etc.) Productivity = output/input elements of a customer driven operations strategy - Answer what? how much? when? how will you service? dimensions of operations strategy - Answer competitive capabilities -cost -quality -time -flexibility 4 categories of competitive priorities - Answer cost, quality, time, flexibility 9 typical competitive priorities - Answer 1. low-cost operations 2. top quality 3. consistent quality 4. delivery speed 5. on-time delivery 6. development speed 7. customization 8. variety 9. volume flexibility low-cost operations - Answer processes must be designed and operated to make them efficient ex: Costco top quality - Answer may req. a high level of customer contact & may req. superior product features ex: Ferrari consistent quality - Answer processes designed and monitored to reduce errors and prevent defects ex: McDonald's delivery speed - Answer quickly filling a customer's order; design processes to reduce lead time ex: Dell on-time delivery - Answer meeting delivery-time promises; planning processes to increase percent of customer orders shipped when promised ex: UPS development speed - Answer quickly introducing a new science or a product; cross-functional integration and involvement of critical external suppliers ex: Li & Fung customization - Answer low volume, close customer contact, and easily reconfigured ex: Ritz Carlton variety - Answer handling a wide assortment of services or products efficiently; capable of larger volumes than processes supporting customization ex: Amazon volume flexibility - Answer accelerating or decelerating the rate of production of service or products quickly to handle large fluctuations in demand; processes must be designed for excess capacity ex: USPS UPS - Answer competitive/corporate strategy: sustainability; want to cut carbon, avoid left turns to avoid idle time, used software (operational strategy) supply chain parts - Answer manufacturer (oem), retailer, logistics, supplier, distributor/reseller, customer retail supply chain - Answer product manager sourcing manager vendor/supplier transporter warehouse or regional distribution center retail outlet managing processes - Answer process strategy process analysis quality & performance capacity planning lean systems