OM300 Exam 1 Chapters 1-4 UPDATED
QUESTIONS AND CORRECT ANSWERS
What is a transformation process? - CORRECT ANSWER A diagram showing inputs (people,
material, equipment, IT, capital) being "transformed" into outputs (goods/services).
Inputs -> Transformation process -> Outputs
customer feedback/performance information can also influence all 3 steps.
What is added value/ Non added value? What is the criteria for evaluating value? - CORRECT
ANSWER "Describes the net increase between the final value of a product and the value of all
the inputs. The greater the value added, the more productive a business is. An obvious way to add
value is to reduce the cost of activities in the transformation process.
Activities that do not add value are considered wasteful; these include certain jobs, equipment, and
processes. In addition to value added, operations must be efficient."
-the criteria is is if provides an efficient transformation.
What are the similarities of Manufacturing vs. Service? - CORRECT ANSWER Use of
technology, both have quality/productivity/ response issues, must forecast demand, has
capacity/layout/location issues, all have customers/suppliers/scheduling/staffing issues.
What are the differences of Manufacturing Vs. Service? - CORRECT ANSWER
Manufacturing orgs produce tangible goods (products) and have little direct contact with
customers (such as a factory).
service orgs provide intangible goods (services) and have direct contact with customers, such as a
hospital.
What are the trends in service versus manufacturing? - CORRECT ANSWER -service sector
growing to 50-80% of non farm jobs
-global competitiveness
-demand for higher quality
-tech changes
-time based competition
, -work force diversity
***What are some key points from the Industrial Revolution? Key people? - CORRECT ANSWER
"Brought in innovations that changed production by using machine power instead of human
power."
Steam engine- 1769 James Watt
Division of labor- 1776 Adam Smith
Interchangeable parts- 1790 Eli Whitney
***What are some key points from the Scientific Management? Key people? - CORRECT ANSWER
"Brought the concepts of analysis and measurement of the technical aspects of work design and
development of moving assembly lines and mass production."
Principles of scientific management- 1911 Frederick W. Taylor
Time and motion studies- 1911 Frank/Lillian Gilbreth
Activity scheduling chart- 1912 Henry Gantt
Moving assembly line- 1913 Henry Ford
***What are some key points from the Human Relations era? Key people? - CORRECT ANSWER
"Focused on understanding human elements of job design, such as worker motivation and job
satisfaction."
Hawthorne studies- 1930 Elton Mayo
Motivation theories- 1940s-1960s Abraham Maslow, Frederick Herzberg, Douglas McGregor
***What are some key points from the Management science era? Key people? - CORRECT
ANSWER "Focused on the development of quantitative techniques to solve operations
problems."
Inventory mgmt.-1913 F.W. Harris
Linear programming-1947 George Dantzig
Statistical sampling, forecasting, project mgmt., other tools- mid 1900s Various
What are some key points from the Ford, Taylor 1920's YouTube video? - CORRECT ANSWER
-After using an assembly line, production increased which made cars more accessible and gave
workers larger wages.
-English classes were held
QUESTIONS AND CORRECT ANSWERS
What is a transformation process? - CORRECT ANSWER A diagram showing inputs (people,
material, equipment, IT, capital) being "transformed" into outputs (goods/services).
Inputs -> Transformation process -> Outputs
customer feedback/performance information can also influence all 3 steps.
What is added value/ Non added value? What is the criteria for evaluating value? - CORRECT
ANSWER "Describes the net increase between the final value of a product and the value of all
the inputs. The greater the value added, the more productive a business is. An obvious way to add
value is to reduce the cost of activities in the transformation process.
Activities that do not add value are considered wasteful; these include certain jobs, equipment, and
processes. In addition to value added, operations must be efficient."
-the criteria is is if provides an efficient transformation.
What are the similarities of Manufacturing vs. Service? - CORRECT ANSWER Use of
technology, both have quality/productivity/ response issues, must forecast demand, has
capacity/layout/location issues, all have customers/suppliers/scheduling/staffing issues.
What are the differences of Manufacturing Vs. Service? - CORRECT ANSWER
Manufacturing orgs produce tangible goods (products) and have little direct contact with
customers (such as a factory).
service orgs provide intangible goods (services) and have direct contact with customers, such as a
hospital.
What are the trends in service versus manufacturing? - CORRECT ANSWER -service sector
growing to 50-80% of non farm jobs
-global competitiveness
-demand for higher quality
-tech changes
-time based competition
, -work force diversity
***What are some key points from the Industrial Revolution? Key people? - CORRECT ANSWER
"Brought in innovations that changed production by using machine power instead of human
power."
Steam engine- 1769 James Watt
Division of labor- 1776 Adam Smith
Interchangeable parts- 1790 Eli Whitney
***What are some key points from the Scientific Management? Key people? - CORRECT ANSWER
"Brought the concepts of analysis and measurement of the technical aspects of work design and
development of moving assembly lines and mass production."
Principles of scientific management- 1911 Frederick W. Taylor
Time and motion studies- 1911 Frank/Lillian Gilbreth
Activity scheduling chart- 1912 Henry Gantt
Moving assembly line- 1913 Henry Ford
***What are some key points from the Human Relations era? Key people? - CORRECT ANSWER
"Focused on understanding human elements of job design, such as worker motivation and job
satisfaction."
Hawthorne studies- 1930 Elton Mayo
Motivation theories- 1940s-1960s Abraham Maslow, Frederick Herzberg, Douglas McGregor
***What are some key points from the Management science era? Key people? - CORRECT
ANSWER "Focused on the development of quantitative techniques to solve operations
problems."
Inventory mgmt.-1913 F.W. Harris
Linear programming-1947 George Dantzig
Statistical sampling, forecasting, project mgmt., other tools- mid 1900s Various
What are some key points from the Ford, Taylor 1920's YouTube video? - CORRECT ANSWER
-After using an assembly line, production increased which made cars more accessible and gave
workers larger wages.
-English classes were held
