Test 3 Review (Ch. 1, 2, 3 of Operations management)
What is a set of interrelated parts that must work together?
● For the Math section of the test study the math in class assignments!
● This REVIEW is DEFINITION BASED
Ch.1
1. ___________ is the part of business organizations that is responsible for producing goods or services.
Operations
2. ___________ is the management of systems or processes that create goods and/or provide services.
Operations management
3. ___________ is a set of interrelated parts that must work together.
System
4. The three subsystems are?
Marketing
Operations
Finance
5. The _________ approach emphasizes interrelationships among subsystems. Systems
What are the three basic functions of the business organization?
6. The main theme of the Systems approach is that the ________ is greater than the sum of
its parts. If you want to learn more check out What is the pyruvate dehydrogenase complex?
Whole
7. In systems theory terminology Operations management is most focused on the ___________ .
Transformation Process
8. ___________ are measurements taken at various points in the transformation process. Feedback
9. ___________ is the comparison of feedback against previously established standards to determine if corrective action is needed.
Control
10. What are the three basic functions of the business organization?
Marketing
Operations
Finance
11. When Supply _ Demand it is wasteful and costly.
What are the three categories of business processes?
>
12. When Supply _ Demand there is opportunity loss and customer dissatisfaction. <
13. When supply _ Demand it is ideal.
=
14. _________ is a sequence of activities and organizations involved in producing and delivering a good or service.
Supply Chain
15. The operations function consists of all activities ________ related to producing goods or providing services.
Directly
16. A primary function of the operations manager is to guide the system by ___________ Decision Making We also discuss several other topics
like What are the early limits on voting rights?
17. ___________ is one or more actions that transform inputs and outputs. Process
18. What are the three categories of Business processes?
Upper management process
Operational processes
Supporting Processes
19. ___________ govern the operation of the entire organization.
Upper management Process
20. ___________ are the core processes that make up the value stream. Operational Processes
21. ___________ support the core processes.
Supporting processes
22. What are the four sources of variation
Variety of goods or services being offered
Structural variation in demand
Random variation
Assignable variation
23. ___________ are physical items that include raw materials, parts, subassemblies, and final products.
Goods
24. ___________ are activities that provide some combination of time, location, form or psychological value.
Services
25. The ___________ states that products are typically neither purely serviceor purely goods based.
Goods service continuum We also discuss several other topics like What is the full name for dna? rna?
26. Manufacturing organizations are ______ oriented
Goods
27. Services are ______ oriented
Act
28. Operations decisions usually include what 5 questions?
Who, what, when, where, and How?
29. ___________ is a key tool used by all decision makers.
Modeling
30. A ___________ is an abstraction of reality; a simplification of something. Model
31. A ___________ model looks like their real life counterparts; allows for visual correspondence. We also discuss several other topics like Why is water a powerful solvent?
We also discuss several other topics like What
is the definition of dual citizenship?
Physical
32. A ___________ model is easy to construct and change. Retains some degree of visual correspondence.
Schematic
33. A ___________ model looks nothing like their reallife counterparts. It's the easiest to manipulate and are important forms of inputs for computers and calculators. Mathematical
34. A ___________ is a decisionmaking approach that frequently seeks to obtain a mathematically optimal solution.
Quantitative Approach
35. A ________ is giving up something in return for something else. If you want to learn more check out
What is the definition of separation anxiety disorder?
Tradeoff
36. Profits, cost, quality, productivity, flexibility, inventories, schedules, and forecast accuracy are all examples of ____________.
Performance metrics
37. ___________ is a system in which highly skilled workers use simple flexible tools to produce small quantities of customized goods.
Craft production
38. Scientific management was a movement led by efficiency engineer _____________. Frederick Winslow Taylor
39. The ___________ movement emphasized the importance of the human element in job design.
Human relations movement
40. ___________ refined and developed management practices that increased productivity. Also credited with fueling the “quality revolution” and JustInTime production. Japanese manufacturers.
41. ___________ is using resources in ways that do not harm ecological systems that support human existence.
Sustainability
Ch.2
1. ___________ is how effectively an organization meets the wants and needs of customers relative to others that offer similar products/ services.
Competitiveness
2. Hierarchical planning consists of what 5 things?
Mission
Goals
Organizational strategies
Functional Strategies
Tactics
3. ___________ is the reason for an organization’s existence. Answers the question “What business are we in?”
Mission
4. ___________ provide detail and the scope of the mission.
Goals
5. ___________ is a plan for achieving organizational goals.
Strategy
6. The ___________ states the purpose of an organization.
Mission statement
7. The ___________ serves as the basis for organizational goals.
Mission statement
8. ___________ strategies are overall strategies that relate to the entire organization Organizational
9. ___________ strategies are strategies that relate to each of the functional areas and that support achievement of the organizational strategy.
Functional Level
10. ___________ are the methods and actions taken to accomplish strategies. The “How to” part of the process.
Tactics
11. ___________ are the actual “doing” part of the process.
Operations
12. ___________ are the special attributes or abilities that give an organization a competitive edge.
Core competencies
13. Effective strategy formulation requires taking into account what?
Core competencies
Environmental scanning (SWOT)
14. Successful strategy formulation also requires taking into account what two things? Order qualifiers and order winners
15. ___________ are characteristics that customers perceive as minimum standards of acceptability for a product or service to be considered as a potential for purchase. Order Qualifiers
16. ___________ are characteristics of an organization’s goods or services that cause it to be perceived as better than the competition.
Order winners
17. Environmental scanning is necessary to identify _______ and ________ factors. Internal and external
18. ___________ factors deal with strengths and weaknesses.
Internal
19. ___________ factors deal with opportunities and threats.
External
20. What are the 6 key external factors?
Economic conditions
Political conditions
Legal environment
Technology
Competition
Markets
21. What are the 8 Key internal factors?
Human resources
Facilities and equipment
Financial resources
Customers
Products and services
Technology
Supplies
Other
22. ___________ is the approach used to guide the operations function Operations management
23. ___________ is a strategy that focuses on quality in all phases of an organization. QualityBased strategy
24. ___________ are strategies that focus on the reduction of time needed to accomplish a task
Timebased strategies
25. Areas where organizations have achieved time reductions would include what? Planning time
Product/service design time
Processing time
Changeover time
Delivery time
Response time for complaints
26. ___________ are a strategic approach for competitive advantage that emphasizes the use of flexibility to adapt and prosper in an environment change.
Agile operations.
27. ___________ is a topdown management system that organizations can use to clarify their vision and strategy and transform them into action.
The Balanced Scorecard approach
28. ___________ is a measure of the effective use of resources, usually expressed as ratio of output to input
Productivity
29. ___________ productivity is linked to higher standards of living
Higher
30. ___________ productivity relative to the competition leads to competitive advantage Higher
31. A useful measure related to productivity is ___________
Process yield
32. What are the 5 factors affecting productivity
Methods
Capital
Quality
Technology
Management
Ch. 3
1. ___________ is a statement about the future value of a variable of interest. Forecast
2. What are two important aspects of forecasts?
Expected level of demand
Accuracy
3. ___________ is the level of demand that may be a function of some structural variation such as a trend or seasonal variation
Expected level of demand
4. ___________ is related to the potential size of forecast error.
Accuracy
5. What are the elements of a good forecasts?
Should Be: Timely, accurate, reliable, expressed in meaningful units, in writing, simple to understand and use, and cost effective.
6. What are the 6 steps in the forecasting process?
Determine purpose of forecast
Establish a time horizon
Obtain, clean, and analyze appropriate data
Select a forecasting technique
Make the forecast
Monitor the forecast
7. ___________ Forecast use subjective inputs obtained from various sources such as consumer surveys, sales staff, experts, etc.
Judgemental
8. ___________ Forecast uses historical data assuming the future will be like the past Time series
9. ___________ forecasts use explanatory variables to predict the future. Associative models
10. ___________ is a timeordered sequence of observations taken at regular time intervals. Timeseries
11. ___________ forecasting techniques are based on the development of an equation that summarizes the effect of predictor materials.
Associative
12. ___________ are variables that can be used to predict the values of the variable of interest
Predictor variables
13. ___________ is a longterm upward or downward movement in data. Ex: (Population shifts and changing income)
Trend
14. ___________ is a shortterm, fairly regular variations related to the calendar or time of day. (restaurants, service calls centers, and theaters experience seasonal demand) Seasonality
15. A ___________ has wavelike variations lasting more than one year. Cycle
16. ___________ happens due to unusual circumstances that do not reflect typical behavior. Ex: (Labor strike or weather event)
Irregular variation
17. ___________ is residual variation that remains after all other behaviors have been
accounted for.
Random variation
18. ___________ uses a single previous value of a time series as the basis for a forecast. Naive Forecast
19. What are the three commonly used measures for summarizing historical errors in forecasting?
Mean Absolute Deviation
Mean Squared Error
Mean Absolute Percent error
20. The ___________ views forecasts as a probable future demand. React to meet that demand.
Reactive approach
21. The ___________ seeks to actively influence demand.
Proactive approach
22. The better the forecast, the more able organizations will be able to take advantage of future opportunities and reduce risk.
IN CLASS REVIEW
1. Although productivity is important for all business organizations, it is particularly important for organizations that use a strategy of……
2.
Low Cost
3. An assembly line operation consists of 3 sequential tasks. Task 1 takes 90 seconds. Task 2 takes 65 seconds. Task 3 Takes 80 seconds.
If your goal is to improve the productivity of the system, which task should your productivity efforts target first?
Task 1
4. Which is not a significant difference between manufacturing and service operations? A) Labor content of jobs
B) Uniformity of Output
C) Cost per Unit
D) Customer contact
E) ALL OF THE ABOVE ARE SIGNIFICANT DIFFERENCES.
5. Which of the following is a characteristic of service operations?
A) Intangible output
B) High labor content
C) Low uniformity of input
D) ALL OF THE ABOVE
6. Demand for Toyota products shortly after WWII could best be described as… Low Volume, High Variety
7. The process of comparing outputs to previously established standards to determine if corrective action is needed is called controlling. True or false?
True
8. Which of the following is an emphasis in a lean production system? Eliminating waste
9. What is an example of a service?
Hair Cut
10. The term forecast refers to the maximum quantity an operating unit can process. True or false?
False
11. Operations management can best be defined as…
Management of systems that create goods and/or services
12. Demand for Ford products in the early 1900s could best be described as… High Volume, Low variety
13. “Kaizan” means…
Continuous improvement
14. Lean Production was developed by the Japanese auto manufacturers in order to… Create a more flexible manufacturing process
15. Which of the following is NOT a part of a simple product supply chain? A) Direct suppliers
B) Producer
C) Distributor
D) COMPETITOR
16. An operation that processes less than other operations in a system is called a: Bottleneck
17. According to a Systems Theory perspective, Operations management is most focused on…
Transition process
18. Given forecast errors of 4,8, and 3 what is the mean absolute deviation (MAD)? 5 (Take absolute value of each error, then add them, then divide by total # of errors)
19. Which of the following values of alpha would cause exponential smoothing to respond the most quickly to sudden changes in forecast errors?
.15 (choose highest value)
20. The adoption of which two key concepts launched mass production in the US? Interchangeable parts and Division of labor