Levi Strauss

CH1

Define Operation management, give a practical example

Operation Management is the management of all activities directly related to the creation of good and/or services though transforming of inputs to outputs. For example, at Hard Rock Café, they do the following that relates to operation management:

1. Providing meals for customer, design of goods and services.
2. Recruiting and Training employees, HR
3. Acquiring, Receiving and Storing Supplies (Supply Chain management)

Explain the distinction between goods and services, give a practical example

Goods and Service can be differentiated(most of the time) with the following elements:

For example, if I go to the dentist to do an implant, the fake tooth and screw….etc would be the goods, dentist, counter(installing the implant, appointments…etc) would be the service.

Explain the difference between production and productivity, give a practical example.

Production is the creation of goods and services.

Productivity is how efficient one or a company can transform input into outputs.

For example, creation of Iphone is productions. Productivity is measured when one can put together all the little components into a Iphone.

Compute Single Factor Productivity, give an example

Productivity = Unit Produced / Input Used. (See Test Bank for exmaples)

Compute Multi Factor Productivity, give an example

Productivity = output / (Labor + Materials + Energy + Capital + Misc)   See test bank for examples

Ch2

Define Mission and Strategy, give a pratical example

Mission tells an organization where it is going

Strategy tells the organizations how to get there.

For example, mission statements sets a goal for a company, and strategy are the plans to reach to goal

Identify and explain 3 strategic approaches to competitive advantage

1. Differentiation: better, or at lease different (BMW and Benz)
2. Cost Leadership – Cheaper (Walmart)
3. Response – More Responsive (Pizza Hut, McDonalds)

Understand the significant key success factors and core competencies

Product Quality, Process, Location, Layout, HR, Supply Chain, Inventory, Schedule, Maintenance.

Product Life Cycle

1 Introduction: Best period to increase market share

2 Growth: Practical to chine price or quality

3 Maturity: Poor time to make adjustments, but should be expecting highest sales

4 Decline: Product becoming out of date

CH3

Management of Projects

Planning- goal setting, defining the project, team organization

Scheduling- relate people, money and supplies to specific activities and activities to each other

Controlling- moniton resources, costs, quality and budgets

Draw AOA and AON Networks

AOA – activity on arrow

AON- Activity on node (see slide 40)

Complete forward and backward passes for a project

Determine a Critical Path

The longest path through the network, takes the shortest time to complete

Calculate the variance of activity times

Crash a project

Crash Cost per period = (Crash Cost – Normal Cost) / (Normal Time – Crash Time)

Crashing is decreasing activity time in a network to reduce time on the critical path so total completion time is shortened

CH4

Understand the three time horizon and explain which models apply for each use

Short term forecast- Maximum 1 year, Generally 3 month

        Purchasing, job scheduling, workforce levels, job assignments production levels

Medium range forecast

        3 month to 3 years

        Sales and production planning, budgeting

Long range forecast

        3+years in some industry, for technology people (1+years)

        New product planning, facility location, R&D

Explain when to use of the 4 qualitative model

1 Jury of executive opinion: pool opinions of high level experts, sometimes augment by statistical models

2. Delphi Method: Panel of experts, queried iteratively

        Decision makers: Evaluate responses and make decisions

        Staff: Administering Survey

        Respondents: People who can make valuable judgements