BAM 199 Operations Management (TQM)

Module 1-4 Reviewer

Productivity Tip: “Success is the sum of small efforts, repeated day in and day out.”

FACTS:

Marketing functional area that is responsible for assessing consumer wants and needs and selling and promoting the
organization’s goods or services.

Operations, marketing, and finance are naturally dependent upon one another.

There are very few pure goods or pure services, so most companies sell product packages which combine goods and
services. Therefore, most production systems involve a blend of goods and services.

Models are useful, but their use does not guarantee the best decisions.

Service often requires relatively greater labor content when compared to manufacturing.

Operations are also relevant to non-profit organizations such as hospitals and police and fire departments.

The Pareto phenomenon is one of the most important and pervasive concepts that can beapplied at all levels of
management.

Operations and sales are the two line functions in a business organization. All other functions including accounting, finance,
IT, and human resources exist to support these two line functions.

As an abstraction of reality, a model is a simplified version of a real phenomenon.

Often, the collective success or failure of companies' operations functions will impact the ability of a nation to compete with
other nations.

Ethics issues are touching on all areas of management, including operations.

Many operations management decisions can be described as trade-offs.

One reason to study operations management is to learn how people organize themselves for productive enterprise.

Operations Management is the management of systems or processes that create goods and/or provide services. Its focus is
on efficiency and effectiveness of processes.

A key aspect of operations management is process management.

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 BAM 199 Operations Management (TQM)
Module 1-4 Reviewer

1. Marketing personnel and product designers must work closely with operations to successfullydevelop and produce
new products because operations personnel can best judge how manufacturable new product designs will be.

2. Business organizations consist of three major functional areas which, ideally support one another.

3. In their chief role of planner/decision maker, operations managers exert considerable influence over the degree to
which the goals and objectives of the organization are realized.

4. Product design and process selection are examples of system design decisions.

5. The responsibilities of the operations manager include: the creation of goods or provision of services.

6. Dealing with the fact that certain aspects of any management situation are more important than others is called:
recognition of priorities.

7. The fact that a few improvements in a few key areas of operations will have more impact than many improvements
in many other areas is consistent with the Pareto phenomenon.

8. Which of the following does not relate to system design?

Altering the system capacity
Location of facilities
Inventory management (does not belong)
Selection and acquisition of equipment

9. Taking a systems viewpoint with regard to operations in today's environment increasinglyleads decision makers to
consider sustainability in response to the threat of global warming.

10. Lets define variation

o Variation prevents a production process from being as efficient as it can be.
o Some variation can be prevented.
o Variation can either be assignable or random.

11. The Common Good Principle emphasizes that actions should make the community as awhole better off.

12. Operations management is applicable to all firms, whether manufacturing and service.

13. The following are the primary functions of all organizations: marketing, operations, and finance/accounting.

14. Reasons to study operations management include understanding what human resource managers’ does l earning
about a costly part of the enterprise.

15. An operations manager is not likely to be involved in the identification of customers' wants and needs.

16. Almost all services and almost all goods are a mixture of a service and a tangible product.

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 BAM 199 Operations Management (TQM)
Module 1-4 Reviewer

17. Typical differences between goods and services include ability to inventory items, timing of production and
consumption and customer interaction.

18. Differences between goods and services?

 Services are generally produced and consumed simultaneously; tangible goods are not.
 Services tend to be more knowledge-based than products.
 Services tend to have a more inconsistent product definition than goods.

19. Elementary services is least likely to be unique, i.e., customized to a particularindividual's needs.

20. Among the ethical and social challenges facing operations managers are maintaining a clean environment.

21. Productivity tends to be more difficult to improve in the service sector because the work is
 often difficult to automate
 typically labor-intensive
 frequently processed individually
 often an intellectual task performed by professionals
22. typical service attribute
 intangible product
 customer interaction is high
 simultaneous production and consumption

23. Typical attribute of goods

 output can be inventoried
 often easy to automate
 output can be resold

24. Typical differences between goods and services include

 ability to inventory items
 timing of production and consumption
 customer interaction

25. An operations manager is likely to be involved in

 the design of goods and services to satisfy customers' wants and needs
 the quality of goods and services to satisfy customers' wants and needs
 work scheduling to meet the due dates promised to customers

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