SCM 310 EXAM 1 STUDY GUIDE
What is a system? - answer --group of items, events, and actions that are
interdependent
-ex: going to class, reading assignments, doing homework, passing exams, passing this
class
-ex: practice, analyzing practices, watching game films, adjusting game plan, winning
games
Why do companies exist? - answer --book: "exist to meet the needs of society"
-people go into business to make a profit
-people go into business to put the competition out of business
The operations function
Operations as a transformation process - answer -1. Inputs (materials, machines, labor,
management, capital)
2. Transformation process
3. Outputs (goods, services)
4. Feedback
The operations function
Operations as a basic function - answer -1. Inputs (capital, materials, equipment,
facilities, suppliers, labor, knowledge, time)
2. Transformation process
3. Outputs
-products: goods/services
-waste, pollution
What is the primary objective of operations management? - answer -to add value to the
firm
The operations function
Operations as the technical core - answer -?
How do firms add value? - answer --competitive advantage
-core competency: things that a business does better than anyone else (ex: customer
service)
Is a service a product? - answer -ex: restaurant, the product is the food that is served to
customers
Does service depend on the manufacturing sector? - answer -ex: restaurant depends
on the manufacturing sector because they need plates, tables/chairs, food, etc.
Impacts on ops mgmt: key events
, Industrial revolution - answer --from everyone making all goods on their own to having
other people do it
-steam engine: 1769, james watt
-division of labor: 1776, adam smith
-interchangeable parts: 1790, eli whitney
Impacts on ops mgmt: key events
Scientific management - answer --principles: 1911, frederick w. Taylor
-activity scheduling chart: 1912, henry gantt
-moving assembly line: 1913, henry ford
Impacts on ops mgmt: key events
Human relations - answer --hawthorne studies: 1930, elton mayo
-motivation theories: 1940s abraham maslow, 1950s frederick hetzberg, 1960s douglas
mcgregor
Impacts on ops mgmt: key events
Management science - answer --linear programming: 1947, george dantzig
-digital computer: 1951, remington rand
-simulation: 1950s, operations research groups
Impacts on ops mgmt: key events
Quality emphasis - answer --theory of constraints: eli goldratt
-strategy and operations: skinner, hayes
-reenigneering: 1990s, hammer, champy
-world trade organization: 1990s, numerous countries and companies
Impacts on ops mgmt: key events
Globalization - answer --european union and other trade agreements: 1990s
Impacts on ops mgmt: key events
Information age/internet revolution - answer --internet, supply chain management, e-
commerce: 1990s, sap, oracle, amazon, yahoo, ebay, others
Categories of e-commerce - answer --b2b: staples
-b2c: amazon
-c2b: blogger linking a business on their post
-c2c: ebay, poshmark
E-business promotes... - answer --in theory (clausewitz) "things change from theory to
the real world"
-not better customer relations
-more efficient processes
-lower cost of materials
-information technology synergy
-should get better and faster decision-making
What is a system? - answer --group of items, events, and actions that are
interdependent
-ex: going to class, reading assignments, doing homework, passing exams, passing this
class
-ex: practice, analyzing practices, watching game films, adjusting game plan, winning
games
Why do companies exist? - answer --book: "exist to meet the needs of society"
-people go into business to make a profit
-people go into business to put the competition out of business
The operations function
Operations as a transformation process - answer -1. Inputs (materials, machines, labor,
management, capital)
2. Transformation process
3. Outputs (goods, services)
4. Feedback
The operations function
Operations as a basic function - answer -1. Inputs (capital, materials, equipment,
facilities, suppliers, labor, knowledge, time)
2. Transformation process
3. Outputs
-products: goods/services
-waste, pollution
What is the primary objective of operations management? - answer -to add value to the
firm
The operations function
Operations as the technical core - answer -?
How do firms add value? - answer --competitive advantage
-core competency: things that a business does better than anyone else (ex: customer
service)
Is a service a product? - answer -ex: restaurant, the product is the food that is served to
customers
Does service depend on the manufacturing sector? - answer -ex: restaurant depends
on the manufacturing sector because they need plates, tables/chairs, food, etc.
Impacts on ops mgmt: key events
, Industrial revolution - answer --from everyone making all goods on their own to having
other people do it
-steam engine: 1769, james watt
-division of labor: 1776, adam smith
-interchangeable parts: 1790, eli whitney
Impacts on ops mgmt: key events
Scientific management - answer --principles: 1911, frederick w. Taylor
-activity scheduling chart: 1912, henry gantt
-moving assembly line: 1913, henry ford
Impacts on ops mgmt: key events
Human relations - answer --hawthorne studies: 1930, elton mayo
-motivation theories: 1940s abraham maslow, 1950s frederick hetzberg, 1960s douglas
mcgregor
Impacts on ops mgmt: key events
Management science - answer --linear programming: 1947, george dantzig
-digital computer: 1951, remington rand
-simulation: 1950s, operations research groups
Impacts on ops mgmt: key events
Quality emphasis - answer --theory of constraints: eli goldratt
-strategy and operations: skinner, hayes
-reenigneering: 1990s, hammer, champy
-world trade organization: 1990s, numerous countries and companies
Impacts on ops mgmt: key events
Globalization - answer --european union and other trade agreements: 1990s
Impacts on ops mgmt: key events
Information age/internet revolution - answer --internet, supply chain management, e-
commerce: 1990s, sap, oracle, amazon, yahoo, ebay, others
Categories of e-commerce - answer --b2b: staples
-b2c: amazon
-c2b: blogger linking a business on their post
-c2c: ebay, poshmark
E-business promotes... - answer --in theory (clausewitz) "things change from theory to
the real world"
-not better customer relations
-more efficient processes
-lower cost of materials
-information technology synergy
-should get better and faster decision-making
