Exam 1: Product Line Planning and the Systems Approach

Understanding global competitors requires an understanding of their strategies within the context of the national character of their operations management system.

The methodology of P/OM was first developed by and for service,but is has now been extended to manufacturing with great success.

Daisy's Dog Beds plant and equipment cost $20,000 and are estimated to have a lifetime of 10 years.Straight-line depreciation is to be used.Additional fixed costs per year are $15,000.Variable costs are $8 and the price per bed is $25.What will annual profit be if the annual volume is 25,000 units?

The input-output profit model shows that

In the airline industry,total fixed costs decrease as there are more flights flown and more people flying.

_____ provide(s) necessary data about customer needs so that operations management can supply the required services.

How is the term operations defined? Why is the term operations used for manufacturing?

The traditional textbook publishing process is _____. It begins at a certain point and proceeds systematically through a series of steps.

There are more differences than similarities between P/OM manufacturing and OM service organizations.

Goals and strategies must be congruent and realistic.

The current ratio of service jobs to manufacturing jobs is nearly _____,compared to an approximate one-to-one ratio in the 1950s.

Most production managers will accept being called by the title of operations manager.

_____ is the traditional term for managing activities used to produce (and deliver) goods to customers.

The profit model operates differently according to the stage of development of the company's input-output operating system.

Operations managers learn how to study a process by observing it and mapping its flow.From that platform,the process performance can be improved.

The trend for manufacturing is that the labor component (the input of blue-collar workers) has been increasing as a percent of the cost of goods at an accelerating rate for over 50 years.

Comparing goods and services,the similarities stop,and significant differences occur,when the operations involve contact between people.

The _____ model assigns the costs and revenues of the traditional equation of profit to the inputs,the outputs,and the transformation process-all based on a specific period of time.

_____ companies practice continuous improvement,which means they persistently remove waste.

The systems approach