Chapter 1 Disscussion

Chapter 1 Discussion Questions

1.) Briefly describe operations management. It is the management of systems or processes that create goods and/or provide services. Also historically known as production management.

2.) Identify the three major functional areas of business organizations and briefly describe how they interrelate. 1) Finance is the management area where all startup cost, operational cost ,investment funds and all financial activity is controlled.2) Operations management is the management of an organizations day to day operation with the goal of efficiency.3) Marketing is the area of management whose function is to get the product and/or service to potential and existing customers .

4) List 5 important differences and similarities between goods production and

service production.

Differences:

a) Degree of customer contact.

b) Uniformity of input and output. tangible vs intangible

c) Labor contents of jobs.

d) Measurement of productivity.

e) Ability to patent design.

Similarities:

a) Existence of process

b) Use of technology

c) Concern for quality

d) Productivity

e) Customer satisfaction

5) Briefly discuss each of these terms related to the historical evolution of

operations management.

a) Industrial revolution

b) Scientific management

c) Interchangeable parts

d) Division of labor

7) What are models and why are they important. A model is an abstraction of

reality, a simplified representation of something

8) Why is the degree of customization an important consideration in process

planning?

9) List the tradeoffs you would consider for each of these decisions.

a) Driving your car vs public transportation

b) Buying a computer now vs waiting for a improved model .

c) Buying a new car vs buying a new car....