GMS 401 - Chapter 1 Questions And Answers With 100% Correct Answers

4 Reasons to Study OM - 1) study how people organize themselves for a productive enterprise 2) to know how goods and services are produced 3) to understand what operations managers do 4) Because it is a costly part of an organization Operations Management - set of activities that create value (goods/services) by transforming inputs into outputs - discipline applied to any org activity - costly part of organization - opportunity to improve profitability and enhance service to society Characteristics of Goods - Tangible product Consistent product definition Production usually separate from consumption Can be inventoried Low customer interaction Characteristics of Services - Intangible product Produced and consumed at once Often unique (investment/insurance) Customized to your needs and preferences High customer interaction Inconsistent product definition Often knowledge-based Frequently dispersed (can be done anywhere) Responsibility of Operations Managers - effective use of resourcesOperations Management Jobs - In various areas Job titles can vary New jobs everyday New specialized areas Rise in entrepreneurship with tech advancemen and ecommerce 3 Essential Operation Functions to Create Goods/Service - Marketing Production/Operations Finance Accounting Marketing - generate demand (sales) Production/Operations - Create and produce goods/service then deliver the product Finance Accounting - pay bills, collect money Supply Chain - A global network of organizations and activities that supply a firm with goods and services - begins with provider of basic raw materials - ends with customers in stores 1st Reason to Study OM - to study how people organize themselves for a productive enterprise 2nd Reason to Study OM - To know how goods and services are produced 3rd Reason to Study OM - To understand what operations managers do4th Reason to Study OM - Because OM is a costly part of an organization Cost and Division of Labour - Adam Smith 1776 and Charles Babbage 1852 Scientific Management (Frederick Taylor 1881, Henry L Gantt 1916, Frank and Lillian Gilbreth 1922) - Personnel selection Planning and scheduling Motion Study Gantt Charts Ergonomics Management should be more resourceful and aggressive in improvement of work methods