I-Core P370 Operations Midterm Questions With Correct Answers.

I-Core P370 Operations Midterm Questions With Correct Answers. Transformation System A user of resources that transforms inputs into some desired outputs Types of Transformations (6 Total) Physical - Manufacturing Locational - Transportation Exchange - Retailing Storage - Warehousing Physiological - Health Care Informational - Telecommunications Triple bottom line An accounting framework with three parts: social, environmental (or ecological) and financial. [People, Planet, Profit] Operations Management is... The design, operation and improvement of the systems that creates the firm's primary products and services 3 Types of OM Decisions Strategic - Long Term, Often involving acquisition of new resources Tactical - Medium Term, Using existing resources Operational - Short Term, (Think shift scheduling at a hospital) Functional Strategies Finance Strategy Marketing Strategy Operations Strategy is derived from the... Corporate Strategy Hierarchy of Strategic Roles (4 Stages) Stage 1 - Internally Neutral (Don't Mess Up) - Minimize Downside Stage 2 - Externally Neutral (Keep up with Joneses) - Match competitors performance Stage 3 - Internally Supportive (Consistency with Corporate Strategy [50's and 60's]) - Strategy is formulated and adhered to Stage 4 - Externally Supportive (be a full partner in the company) - Using operations as a competitive advantage Design (Product) Quality & Process Quality Performance & Consistency Southwest's Quick Gate Policy focused on what? Becoming the lowest internal cost airplane policy Productivity Formula Outputs/Inputs 4 Types of Productivity Partial (Over a single input) labor productivity = outputs/labor input Total (Over all inputs) total productivity = output/(labor + materials + ... + energy) Multi-Factor (Over some inputs) multi-factor productivity = outputs/(labor + materials) Dimensionless productivity - Same units $ indicates profitability Absolute and Growth Productivity Absolute - A snapshot in time Growth - Change over time Growth = (P2 - P1)/P1 ~ P stands for productivity ~ Each P should be the same type Sources of Productivity External Factors - interest rates, environmental Improved Labor Inputs - education, demographics Capital-labor substitution Economies of Scale Technological Change Most common source of growth Technology Find the Average total productivity this month Units Produced: 2300 Hours Worked Per Machine: 325 Number of Machines: 3 2300/(325 * 3) 2.36 What is expected productivity in May, assuming this rate of growth remains constant? March April Productivity: 1.75 2.34