CBME REVIEWER FOR FINALS AND QUALIFYING EXAM

Introduction to Operation

Management

Production is the
creation of goods and
services

Operations management (OM) is the

set of activities that creates value in
the form of goods and services by
transforming inputs into outputs
What is operations management ?
The collection of people, technology, and
systems within a company
that has primary responsibility for providing the
organization’s products
or services.
Organizing to Produce Goods and Services
 Relationship to other areas in
organization
 Marketing – generates demand
 Finance/accounting – tracks how well
the organization is doing, pays bills,
collects the money
 HR department. Training, Hiring,
Motivation
 Production/operations – creates the
product

2-The management of the direct resources that

are required to produce
and deliver an organization's goods and
services .

3- A discipline and profession that studies

and practices
the process of planning, designing, and
operating
GOAL OF OPERATION MANAGEMENT
production systems and subsystems to achieve  TO MEET THE CUSTOMERS’
SATISFACTION!
the goals of
 ROI/PROFITABILITY TO
the organization.
SHAREHOLDERS!

4- The business function responsible for

planning, coordinating, and
controlling the resources needed to produce a
company’s products
and services.

5- The management of the conversion process

that transforms inputs
into outputs in the form of finished goods and
OPERATION MANAGEMENT IN
services.
PRODUCTION OF GOODS VS SERVICES

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 CBME REVIEWER FOR FINALS AND QUALIFYING EXAM

Goods are items that are usually (but not

always) tangible, such as pens, salt, apples,
and hats. Services are activities provided by Why Study OM?
other people, who include doctors, lawn care
workers, dentists, barbers, waiters, or online
servers, a book, a digital videogame or a digital
movie

These days, many firms are trying to mix

products with services in an effort to boost
revenue.Products and services combined into
innovative offerings can help companies attract
new customers and increase demand among
existing ones by providing superior value.

 Manufacturing organizations

Organizations that primarily produce a tangible

product and typically have low customer
contact.

 Service organizations

Organizations that primarily produce an

intangible product, such as ideas, assistance,
or information,

Key Differences
1. Customer contact
2. Uniformity of input
3. Labor content of jobs
4. Uniformity of output
5. Measurement of productivity
6. Production and delivery
7. Quality assurance
8. Amount of inventory
9. Evaluation of work
10. Ability to patent design

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CBME REVIEWER FOR FINALS AND QUALIFYING EXAM

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 CBME REVIEWER FOR FINALS AND QUALIFYING EXAM

14. Which facility layout utilizes stationary

products? Fixed Position Layout
15. Product layouts usually require less skilled
workers than process layouts. True
16. A process type associated with the highest
volume and lowest variety? Continuous
17. In which type of process the unit cost is
low? Continuous
18. Mass or repetitive production is
characterized by: High volume low
variety
19. In a ------ layout all machines and process
of the same type are group together.
1. Which of the following does not cause to Process
production? Minimum Material Handling 20. Company owns and control businesses
2. The following type of layout is preferred to that are ahead in the value chain of its
manufacture a standard product in large industry, Forward Integration
quantity. Product Layout 21. It refers to a productive process that
3. The following type of layout is preferred for requires a high percentage of investment in
low volume production of non standard fixed assets like automation. Capital
products. Process Layout Intensity
4. In ship manufacturing, the type of layout 22. Type of process used by schools. Batch
preferred is Fixed Position Layout 23. All are objectives of facility layout EXCEPT:
5. Process selection is primarily considered Can duplicate work
during: Planning 24. In designing a process of a company the
6. The type of operation being carried out by first thing that you have to do is, Gather
an organization depends upon: Both information in process
Volume and Standardization 25. The way in which a firm competes has no
7. Automation is preferred because of the relationship to the way the task are
following except: More labor force to hire organized. False
8. An eyeglass repair shop would be matched 26. Process analysis is used to determine
with which basic type of process? Job possible improvement the way product is to
Shop be produced. True
9. Choose the best process you would need 27. All are financial justifications in technology
for custom man made handbags that Except: Location
requires a lot of detailed work. Batch 28. In which of the following layout, materials
10. Continuous processing is the best way to are fed into first machine and finished
produce customized product. False products come out on last machine.
11. Which of the following is not a way of Product
organizing a production process? Factory 29. Job-shop processing system generally
12. Which is the disadvantage of automation? requires less-skilled workers than a
Very high initial costs continuous processing system. False
13. Which of this is disadvantage of 30. All are considered as the major factor in
continuous process? All of the above design strategy EXCEPT: Customer
advantages

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 CBME REVIEWER FOR FINALS AND QUALIFYING EXAM

31. This is a reason of product or service 45. A method used in service design to
design that focuses on government describe and analyze a proposed service.
changes, safety issues and new Service blueprint
regulations. Political, legal 46. Phase in product design and development
32. Extent which there is an absence of variety wherein a few units of new product are
in a product, service or process. produced to see if there are any problem.
Standardization Prototype development
33. Which of the following is a disadvantage of 47. A phase in product design and
Standardization? Absence of variety to development that tests and determines the
meet customers’ preferences customer reception of the product. Test
34. Form of a standardization in which Market
component parts are subdivided into 48. Increasing the standardization of
modules that are easily replaced or components tends to make products more
interchanged. Modular design difficult to manufacture. False
35. Companies recycle for a variety of reason 49. Wholesale brands opening their own stores
EXCEPT: Customer Preferences is an example of vertical integration. True
36. What is meant by term standardization? 50. Most firms define their product type by
Absence of variety in product and selecting the price point that their target
process. customer would be willing to pay. True
37. Under this product life cycle stage, the
familiarity of the customers hence, the
demand for the product, is still low.
Introduction
38. Under this product life cycle stage,
customer awareness is already increasing.
Growth
39. Under this product life cycle stage, demand
is already leveling off and product designs
are being slightly manipulated. Maturity
40. Under this product life cycle stage, demand
declines and market becomes saturated.
Decline
41. This is a strategy of producing basically
standardized goods and services, with a
degree of customization. Mass
Customization
42. In ____________, component parts are
grouped into modules that are easily
changeable. Modular Design
43. The combination of goods and services
provided to a customer. Product Bundle
44. The facilities, processes, and skills needed
to provide a service. Service delivery
system