GMS 401 - Midterm #1 Study Guide Solutions

GMS 401 - Midterm #1 Study Guide Solutions Operations Management - ANSWER-the management of activities and resources that create goods and or provide services Activities in Operations - ANSWER-Forecasting Capacity Planning Scheduling Managing Inventories Assuring Quality Employee Motivation and Training Location of Facilities Buying Materials Efficiency - ANSWER-Operating at minimum cost and time Effectiveness - ANSWER-Achieving quality and timeliness ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 2/26 Functions within Organizations - ANSWER-Finance -Operations-Marketing Operations - ANSWER-manages all the activities directly related to producing goods or providing services Value Added - ANSWER-the difference between the cost of input and the value or price of outputs Non Profit Organizations - 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 - ANSWER-the value of outputs is measured by the prices that customers are willing to pay for those goods or services Finance - 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: - ANSWER-1. Provision of funds 2. Economic analysis of capital investment proposals Provision of Funds - ANSWER-the necessary funding of operations and the amount and timing of funding can be important Economic Analysis of Capital Investment Proposals - ANSWER-evaluation of alternative investments in plant and equipment requires inputs from both operations and finance people ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 3/26 Marketing - ANSWER-is responsible for assessing customer wants and needs and for communicating those needs and feedback to operations and to product design. Lead Time - ANSWER-the time between ordering a good or service and receiving it Other Functions that interface with operations - ANSWER--Accounting -Management Information Systems -Purchasing -Personnel or Human Resources -Manufacturing Engineering -Maintenance -Product Design -Logistics The Scope of Operations Management - ANSWER-Designing Planning Scheduling Executing ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 4/26 Controlling Activities/ Operations Design - ANSWER-involves product design, production capacity, the location of facilities, arrangement of departments and placement of equipment within physical structures, acquisition of equipment, and work/job design Planning/ Controlling Activities - ANSWER-includes quality planning and control, inventory planning and control, production planning, scheduling and project management. Operations management - ANSWER-is more involved in day-to-day operating decisions and planning than design Production of goods - ANSWER-results in tangible outpu