Chapter 1

Question 1

How theme parks and resorts like Disneyland creates value for people of all ages? They focus on:

Answer 1

• training employees
• Use of technology (e.g., facility layout, lighting,
  signage, music)
• Process design issues like efficient waiting lines
• Continuous improvement of everything they do
• Provide excellent service encounters (interactions between customer & service provider)

Question 2

Operations management (OM)

Answer 2

is the science and art of ensuring that goods and services are created and delivered successfully to customers.

Question 3

________ is the science and art of ensuring that goods and services are created and delivered successfully to customers.

Answer 3

Operations management (OM)

Question 4

The principles of OM help one to view a business enterprise as a _____ ____, in which all activities are coordinated, not only vertically throughout the organization, but also horizontally across multiple functions.

Answer 4

total system

Question 5

Total system

Answer 5

total system looks at the corporation as one unit

Question 6

How many units does the total system look at?

Answer 6

one unit

Question 7

What are examples of standardized goods

Answer 7

Dunkin Donuts

Question 8

What are examples of Customized goods

Answer 8

• Nike shoes

- Wedding planning

Question 9

Production management

Answer 9

based on product

Question 10

Whats’s a synonym Operations management

Answer 10

Supply chain Management

Question 11

What do operations managers do? (12)

Answer 11

1. Forecasting
2. Planning
3. Purchasing
4. supply chain management
5. facility layout and design 6. technology selection
6. quality management
7. resource and capacity management
8. process design
9. job design
10. service encounter design 12. scheduling

Question 12

What are examples of operations managers?

Answer 12

• Chief Operating Officer
• Hotel or Restaurant Manager
• Vice President of
• Manufacturing
• Customer Service Manager
• Plant Manager
• Field Services Manager
• Supply Chain Manager

Question 13

A ____ is a physical product that you can see, touch, or possibly consume. Examples: oranges, flowers, soap, televisions, airplanes, fish, furniture, coal, lumber, personal computers, paper, and industrial machines

Answer 13

good

Question 14

A ______ _____ is a product that typically lasts at least three years. Examples: vehicles, dishwashers, and furniture.

Answer 14

durable good

Question 15

A _____ is any primary or complementary activity that does not directly produce a physical product. Examples: legal service, accounting service, travel by air or bus, and warranty.

Answer 15

service

Question 16

How much percentage of the jobs in the U.S. economy are in the service sector?

Answer 16

~ 80-90% of the jobs in the U.S. economy are in the service sector

Question 17

Does the total system look at the corporation vertically or horizontally?

Answer 17

Horizontal

Question 18

True or false: Can services be considered as standardized or customized good

Answer 18

True

Question 19

(3) Examples of High Goods Content

Answer 19

Toothpaste
Bicycle
Medicine Prescription

Question 20

What are Low Goods Content

Answer 20

Intangible, Pure Service

Question 21

What are High Goods Content

Answer 21

(Tangible, Pure Goods)

Question 22

3 Examples of Low Goods Content

Answer 22

Psychiatric Session
Symphony, Play, and Movie
College

Question 23

[He said this will be on the test]

(3) Similarities Between Goods and Services

Answer 23

1. Goods and services provide value and satisfaction to customers.
2. They both can be standardized or customized to individual wants and needs.
3. A process creates and delivers each good or service, thus, OM is a critical skill.

Question 24

Differences Between Goods and Services

Answer 24

1. Goods are tangible while services are intangible.
2. Customers participate in many service processes, activities, &
   transactions.
3. The demand for services is more difficult to predict than demand for
   goods.
4. Goods can be stored as physical inventory while services can’t be
   stored.
5. Service management skills are paramount to a successful service
   encounter.
6. Service facilities typically need to be in close proximity to the
   customer.
7. Manufacturing facilities can be located anywhere in the world.
8. Patents do not protect services.

Question 25

What 2 things that goods and services provide:

Answer 25

Values and Satisfaction to customers

Question 26

What can Goods and Services be?

Answer 26

Standardized or customized

Question 27

A process creates and delivers each good or service, thus, OM is a ______ ____

Answer 27

Critical skill

Question 28

Goods are _____

Answer 28

Tangible

Question 29

Services are _____

Answer 29

Intangible

Question 30

Customers participate in many service ______, ______, and ______

Answer 30

Processes, activities, and transactions

Question 31

What can be produced and consumed at the same time?

Answer 31

Service

Question 32

What’s more difficult to predict good or services

Answer 32

Services

Question 33

Goods can be stored as ?

Answer 33

Physical inventory

Question 34

Can services be stored?

Answer 34

No

Question 35

______ _____ skills are paramount to a successful service encounter

Answer 35

Service management

Question 36

What needs to be in close proximity to the customer?

Answer 36

Service facilities

Question 37

What can be located anywhere in the world?

Answer 37

Manufacturing facilities

Question 38

What doesnt protect services?

Answer 38

Patent

Question 39

A customer benefit package

Answer 39

is a combination of goods and services to provide value to customers.

Question 40

A customer benefit package consists of:

Answer 40

primary good or service, coupled with peripheral goods and/or services.

Question 41

Primary Good or Service

Answer 41

Core Offering - automobile, laptop, airline flight, checking account, etc.

Question 42

Peripheral Goods or Services

Answer 42

Not essential to the primary good or service but enhance it - financing and leasing (Vehicle), free software (laptop), preferred seats (airline flight), online acces and bill payment (checking account)

Question 43

Variant

Answer 43

An attribute that departs from the standard CBP, and is normally location or firm specific a fishing pond at an automobile dealer, or an aquarium at a casino hotel

Question 44

Main purpose of a firm is to provide

Answer 44

value to its customers & stakeholders •

Question 45

Value:

Answer 45

is the perception of the benefits associated with a bundle of goods and/or services in relation to what buyers are willing to pay for them.

Question 46

A ____ ____ is a network of facilities and processes that describes the flow of goods, services, information, and financial transactions from suppliers through the facilities and processes that create goods and services and deliver them to customer – integrated supply chain

Answer 46

value chain

Question 47

A ____ _____ is the portion of the value chain that focuses mainly on the physical movement of goods and materials, and supporting flows of information and financial transactions through the supply, production, and distribution processes – internal supply chain

Answer 47

supply chain

Question 48

Frequently, the terms value chain and supply chain are used | __________.

Answer 48

interchangeably

Question 49

If the value ratio is high, the good or service is perceived

Answer 49

perceived favorably by customers.

Question 50

(3) To increase value (ratio), a firm must:

Answer 50

(a) Increase perceived benefits (b) Decrease price or cost, or (c) Simultaneously increase perceived benefits and reduce price or cost

Question 51

[test] Value formula

Answer 51

Perceived benefits / Price (cost) to the customer

Question 52

What are the 5 Eras of Operations Management

Answer 52

1. Cost minimization - > Sustainability 2. Mass production (economics of scale) -> Mass Customization 3. Manufacturing-based technology -> Information based technology 4. Focus on goods -> Focus on value and analysis 5. Local markets -> Global Market

Question 53

What year is Cost & Efficiency?

Answer 53

1960

Question 54

What year is Quality

Answer 54

1970

Question 55

What year is Customization and Design

Answer 55

1980

Question 56

What year is time?

Answer 56

1990

Question 57

What year is Service and Value

Answer 57

1900s - 2000s

Question 58

What year is Sustainability

Answer 58

2000s

Question 59

What year is Data and Analytics

Answer 59

2010s

Question 60

Current Challenges in OM

Answer 60

* Customer Expectations * Evolving Technology → Short Product Life Cycles * Managing Workforce * Globalization * Sustainability * Optimizing Supply Chains * Business Analytics

Question 61

Sustainability –

Answer 61

ability to address current business needs and successfully | develop a long-term strategy to preserve resources for future generations

Question 62

Sustainability – Three Dimensions

Answer 62

• Economic sustainability focuses on making sound financial and operational decisions such as financial management, resource management, and emergency preparedness. • Environmental sustainability focuses on OM activities like remanufacturing, waste management, green supply chains, and energy conservation. • Social sustainability focuses on activities that impact the society as a part of the firm’s overall corporate responsibilities, such as creating a zero carbon footprint product, product safety, gambling addiction, & second-hand smoke.