OM 300 Exam 4 UPDATED QUESTIONS
AND CORRECT ANSWERS
What is Operations Management? - CORRECT ANSWER The set of activities that create
value in the form of goods and services by transforming inputs into outputs.
What are the 3 essential business functions? - CORRECT ANSWER Marketing generates
demand, Production/operations creates the product or service, Finance/accounting tracks performance
and manages finances.
What is a Supply Chain? - CORRECT ANSWER A global network of organizations and
activities that supply a firm with goods and services.
What are the 10 Strategic OM Decisions? - CORRECT ANSWER 1. Design of goods and
services 2. Managing quality and statistical process control 3. Process and capacity strategies 4.
Location strategies 5. Layout strategies 6. Human resources, job design, and work measurement 7.
Supply chain management 8. Inventory management 9. Scheduling 10. Maintenance.
What is Productivity? - CORRECT ANSWER The ratio of outputs (goods and services)
divided by the inputs (resources such as labor and capital).
What is an example of productivity improvement at Taco Bell? - CORRECT ANSWER Menu
revisions, new meals, efficient layout, employee empowerment, leading to water and energy savings.
What is a Mission in a business context? - CORRECT ANSWER The core reason for an
organization's existence.
What is Strategy in business? - CORRECT ANSWER How an organization expects to achieve
its mission and goals, encompassing various approaches to operations, marketing, and resource
management.
What is Differentiation? - CORRECT ANSWER Creating products that are better or at least
different from competitors.
, What is Cost Leadership? - CORRECT ANSWER Offering products at a lower price than
competitors.
What is Response in a competitive context? - CORRECT ANSWER Being more responsive to
customer needs than competitors.
What characterizes the Introduction phase of the Product Life Cycle? - CORRECT ANSWER
Best period to increase market share, critical R&D engineering, and frequent product design
changes.
What happens during the Growth phase of the Product Life Cycle? - CORRECT ANSWER
Practical changes in price or quality image, strengthening niche, and increasing capacity.
What is the focus during the Maturity phase of the Product Life Cycle? - CORRECT ANSWER
Cost control becomes critical, with emphasis on standardization and stability.
What is the Decline phase in the Product Life Cycle? - CORRECT ANSWER Cost control is
critical, with focus on minimizing costs and eliminating unprofitable items.
What is Outsourcing? - CORRECT ANSWER Procuring services or products from external
sources that are normally part of an organization.
What are the steps in the Management of Projects? - CORRECT ANSWER 1. Planning 2.
Scheduling 3. Controlling.
What is the role of a Project Manager? - CORRECT ANSWER To ensure all activities are
finished on time, within budget, and meet quality goals.
What are some ethical issues in Project Management? - CORRECT ANSWER Gifts from
contractors, pressure to alter status reports, false reports for charges, and compromising quality.
What is the Critical Path Method (CPM)? - CORRECT ANSWER A project management
technique that uses only one time factor per activity.
AND CORRECT ANSWERS
What is Operations Management? - CORRECT ANSWER The set of activities that create
value in the form of goods and services by transforming inputs into outputs.
What are the 3 essential business functions? - CORRECT ANSWER Marketing generates
demand, Production/operations creates the product or service, Finance/accounting tracks performance
and manages finances.
What is a Supply Chain? - CORRECT ANSWER A global network of organizations and
activities that supply a firm with goods and services.
What are the 10 Strategic OM Decisions? - CORRECT ANSWER 1. Design of goods and
services 2. Managing quality and statistical process control 3. Process and capacity strategies 4.
Location strategies 5. Layout strategies 6. Human resources, job design, and work measurement 7.
Supply chain management 8. Inventory management 9. Scheduling 10. Maintenance.
What is Productivity? - CORRECT ANSWER The ratio of outputs (goods and services)
divided by the inputs (resources such as labor and capital).
What is an example of productivity improvement at Taco Bell? - CORRECT ANSWER Menu
revisions, new meals, efficient layout, employee empowerment, leading to water and energy savings.
What is a Mission in a business context? - CORRECT ANSWER The core reason for an
organization's existence.
What is Strategy in business? - CORRECT ANSWER How an organization expects to achieve
its mission and goals, encompassing various approaches to operations, marketing, and resource
management.
What is Differentiation? - CORRECT ANSWER Creating products that are better or at least
different from competitors.
, What is Cost Leadership? - CORRECT ANSWER Offering products at a lower price than
competitors.
What is Response in a competitive context? - CORRECT ANSWER Being more responsive to
customer needs than competitors.
What characterizes the Introduction phase of the Product Life Cycle? - CORRECT ANSWER
Best period to increase market share, critical R&D engineering, and frequent product design
changes.
What happens during the Growth phase of the Product Life Cycle? - CORRECT ANSWER
Practical changes in price or quality image, strengthening niche, and increasing capacity.
What is the focus during the Maturity phase of the Product Life Cycle? - CORRECT ANSWER
Cost control becomes critical, with emphasis on standardization and stability.
What is the Decline phase in the Product Life Cycle? - CORRECT ANSWER Cost control is
critical, with focus on minimizing costs and eliminating unprofitable items.
What is Outsourcing? - CORRECT ANSWER Procuring services or products from external
sources that are normally part of an organization.
What are the steps in the Management of Projects? - CORRECT ANSWER 1. Planning 2.
Scheduling 3. Controlling.
What is the role of a Project Manager? - CORRECT ANSWER To ensure all activities are
finished on time, within budget, and meet quality goals.
What are some ethical issues in Project Management? - CORRECT ANSWER Gifts from
contractors, pressure to alter status reports, false reports for charges, and compromising quality.
What is the Critical Path Method (CPM)? - CORRECT ANSWER A project management
technique that uses only one time factor per activity.
