OM 300 Exam 1 Study Materials

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University of Alabama *

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300

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Management

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Feb 20, 2024

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pdf

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OM 300 TEST 1 STUDY MATERIAL Excel What is a model? - A model is a purposeful representation of the key elements of an object or system and the relationships among those elements. - Models are abstract representations of something that is real. - Models have enough detail so that key elements and relationships are accurately represented. - Models omit unnecessary details. What are the 4 different types of models? - Mental models, Visual models, Physical models, and Mathematical models What are the ABCs of spreadsheet modeling? - A ll your work must B e C orrect, D ocumented, E ngineered, and F lexible. What is an influence chart? Why is it used? - An influence chart is a simple diagram to show the relationship between inputs and outputs in a spreadsheet model. - The goal of an influence chart is to define the problem structure while ignoring all available numerical data. - An influence chart identifies the main elements of a model and helps to define the assumptions of the model.
OM 300 TEST 1 STUDY MATERIAL Chapter 1: Operations & Productivity What is Operations Management? - Operations Management is the set of activities that create value in the form of goods and services by transforming inputs into outputs. - Challenges in OM: globalization, supply-chain partnering, sustainability, technological change, mass customization, lean operations What are the 3 main functions of any business? - Marketing: generates demand - Finance/Accounting: tracks how well the organization is doing, pays bills, collects the money - Production/Operations: creates the product What types of decisions do Operation Managers make? (there are 10) - The Base o people, product, process - The Place o location, layout - The Stuff o quality management, inventory management, supply chain management - The Face o scheduling, maintenance What are the differences between goods and services? - Goods: Manufacturers produce tangible products (cars, shoes, paper, etc.) - Services: Economic activities that typically produce an intangible product (education, entertainment, lodging, government, etc.) What is Productivity? How is it calculated? - Productivity is the ratio of outputs (goods and services) divided by the inputs (resources like labor and capital) - Productivity is a measure of process improvement; standard of living can only improve through productivity increases - Single- and Multi-factor productivity calculations Which 3 factors affect productivity? - Quality: may change while the quantity of inputs and outputs remains constant - External Elements: may cause an increase or decrease in productivity - Precise Units: of measure may be lacking
OM 300 TEST 1 STUDY MATERIAL Chapter 2: Operations Strategy in a Global Environment A Global View of Operations - Examples of global companies: o Apple, Microsoft, McDonald’s, Google, Starbucks, Amazon, etc. - Why do companies choose to expand globally? Expanding globally... o Improves supply chain o Reduces costs and exchange rate risks o Improves operations o Helps to understand markets o Improves products o Attracts and retains global talent Developing Mission and Supporting Strategies - Hierarchy of strategies (i.e., business strategy vs. operations strategy): - How do companies achieve competitive advantages? o Differentiation: better or different o Cost leadership: cheaper o Response: rapid response - Product life cycle implications: How do companies go about developing strategies? - Identify key success factors (KSF) - Build and staff the organization - Integrate Operations Management with other activities What is Outsourcing? What are the benefits/risks? - Outsourcing: transferring activities that traditionally been internal to external suppliers Benefits Risks - Cost savings - Increased logistics and inventory costs - Gaining outside expertise - Loss of control (quality, delivery, etc) - Improving operations and service - Potential creation of future competition - Maintaining a focus on core competencies - Negative impact on employees - Accessing outside technology - Risks may not manifest themselves for years
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