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ODU OPMT 303 - Exam 1 Study Guide

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OPMT 303 1st EditionExam # 1 Study Guide chapter: 1 -6Lecture 1 January 14Introduction to Operations ManagementInformal definition- the objective of business id to make a product that cost a dime, sells for a dollar, and is habit formingOperations Management definition- activities, whereby resources, flowing within a defined system, are combined and transferred in a controlled manner to add value in accordance with policies communicated by management.The goal of any company is to measure the effectiveness of making money. The ideal situation would be to get an economic match of supply and demand. Excess is wasteful and costly and too little could lead to customer dissatisfaction and lost opportunity.The conversion system is the creation of goods or services involves transforming or converting inputs into outputs and sometimes more than one transformation process if used on inputs.Inputs Transformation OutputInputs are raw materials, labor, equipment, money, knowledge, and information; The transformation process involves technological processes such as storing, transporting, and repairing; and the output is the goods are services that come from the transformation processManagers have a few responsibilities. These include planning, organizing, directing, and controlling.1. planning- all future managerial activities to meet the objective of the organization2. Organizing- bringing together the resources3. Directing- turning plans into realities4. Controlling- evaluating the performance and if necessary taking corrective actionsGoods and services can get confused. Gods are physical items produced by business organizations and services are activities that provide some combination of time, location, form, and psychological value. There are some major differences between each. Goods are physical, durable products while services areintangible and perishable. Goods outputs can be inventoried which services outputs cannot be stored. Goods require low customer contact while services involve high customer contact. Goods have long time response while services are immediate demand. Goods have regional to international markets while services are for local demand. Goods require large economic facilities while services need small factories to address individual needs. And lastly goods are capital intensive while services are labor intensive.There are a few different types of operations. They are goods producing, storage transportation, exchange retailing, entertainment, and communication1. Goods producing- farming, mining, power generation, construction, manufacturing 2. Storage transportation-warehousing, trucking, mail, service, moving, taxis, buses, hotels, and airlines3. Exchange-retailing, wholesaling, banking, renting, leasing, library loans 4. Entertainment-films, radio and television, concerts, recording 5. Communication- newspapers, radio and tv newscasts, telephoneLecture 2 January 21There are 3 primary areas of technology. Product Technology is new products and services designed by engineers. Process Technology is new methods to accomplish tasks. And information Technology is ways to acquire, process, and transmit information. Technology has been used to achieve social progress, commit crimes, and threaten social values. Some examples are identity theft and the music industry through illegal file sharing onlineThere are six general ethical principles in choosing new technology. They are as followed: The Golden rule which states do unto others as you would have them do to you; Descartes rule of change which states if an actions can’t be taken multiple times then it is not the right action to take; Immanuel Kant’s categorical imperative which states if action is not right for the whole group, then it is not right for anyone; the Utilitarian Principle which states take action that gets the greatest value; the Risk Aversion Principle which says take the action that causes the least potential harm; and lastly the “No Free Lunch” rule which says that virtually all objects are owned by someone else and that owner may want compensation.How does marketing influence competitiveness?Marketing influences competitiveness by identifying consumer wants and needs, by pricing and quality, and by advertising and promoting.How does operations influence competitiveness?Operations influences competitiveness through product and service design, cost, location, quality, quick response, flexibility in volume and variety, inventory management, supply chain management, service, and managers and workers.*** time is the most important/critical resources***How to improve productivity1. Develop productivity measures2. Find bottlenecksa. Anything in a system that restricts the flow of products through the system3. Develop methods for achieving productivity improvements4. Establish reasonable goals5. Consider incentives to reward workers for contributions6. Measure improvements and publicize them7. Productivity vs efficiencySTRATEGIC PLANWhen coming up with a strategic plan the objective is to determine the MISSION. The mission of a strategic plan should say what kind of business you’re looking to start, what customer demographic, and what goal (profit). The input of a strategic plan is changes in environment. A few examples of his would be competition, economic trends, technologies, social changes, political changes, and availability of resources. The output of the strategic plan would be the business plan and production plan.SWOT analysis- strengths, weaknesses, opportunities, and threatsWho is responsible: owner, CEO, or top managementBUSINESS PLANWhen coming up with a business plan the objective would be to develop and statement of income projections, costs and profits, balance sheet, and cash flow statement. A few characteristics of a businessplan are it comes together into one coherent package the plans and expectations of the firm’s operationsand usually up to two years or on a monthly or quarterly basis.Responsible: vice president for financeLecture 3 January 28There are a few reasons for product and service design. The economic reason would come from low demand and high cost, warranty claims, and the need to reduce cost; The social and demographic reasonwould be aging and population shifts; The political or legal would be because of government changes, new laws, and safety issues; The competitive reason would be new products or services, enhanced


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