MGMT 300 Exam 2 Study Guide || QUESTIONS AND ANSWERS 100% CORRECT!!
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Course
MGMT 300
Institution
MGMT 300
chapter 1 : 1. Definition of OM and 3 core issues correct answers Operations Management (OM)
- science and art of ensuring that goods and services are created and delivered successfully to customers.
3 Core Issues
1. Cost
A. Sales products service = revenue
B. Marketing = how to sell mo...
MGMT 300 Exam 2 Study Guide || QUESTIONS AND
ANSWERS 100% CORRECT!!
chapter 1 : 1. Definition of OM and 3 core issues correct answers Operations Management
(OM)
- science and art of ensuring that goods and services are created and delivered successfully to
customers.
3 Core Issues
1. Cost
A. Sales products service = revenue
B. Marketing = how to sell more
* minimize cost
( revenue / cost = revenue)
2. Efficiency
- closely related to cost
- how well resources are used in creating output
3. Quality
- low quality = people will not buy
- not just about making things cheaper
Chapter 2 : 1. Difference Between Value and Supply Chain correct answers Value Chain
- Network of facilities and processes describing the flow of material goods, services
information etc. through all facilities and processes that create goods and services and
delivers them to customers.
Ex: education is value chain only (service)
Supply Chain
- special value chain, primary focus on physical good.
Ex: Iphone production
* Value Chain is broader than a supply chain
Chapter 2 : 2. The definition of Value correct answers Perception of benefits associate with
goods/service, in relation to what buyers willing to pay
Determined by : 2 Things
1. Perceived Benefit
(divided by ^^ )
2. Price (Cost) to the numbers
Chapter 2 : 3. The Definition of a Value Proposition correct answers Tells how your product
is different. "Positioning Statement", the benefit your product can bring to customers and
why it is different.
Chapter 2 : 4. What is Core Process, Support Processes, General management processes
(page 28). correct answers Core Process
,- Directly create delivered goods/services.
Ex: Surgery at a Hospital / teaching students
Support Processes
- Behind the scenes
Ex: medical services / school janitorial services
General Management Processes
- Need for efficiency
Chapter 2 : 5. Pre/Post production service perspective of Value Chain. ** Amazon Example
correct answers Pre-Production Service
*** Gaining Customers***
- Goods, service design, financing, goods service guarantee
Post-Production Service
***Keeping Customers***
- Servicing loans/financing
Amazon Example
Pre-Production Services
* Focus on (gaining a customer)
includes:
1. Product Variety : Greater product selection that can
be found in a typical "bricks-and-mortar" store.
2. Amazon.com Website : Order entry uses (customer labor)
3. Low Prices : through operations / supply chain management. Continually improving
efficiencies and leveraging economies of scale.
4. Seller and Distributor (Partnerships) : Parters with third party sellers (normal competitors).
Expanding offerings, providing competitive prices and services. Third party transportation
firms (UPS/FedEx) to deliver orders to customers.
Core Processes (key) ****Value Creation****
1. Order fulfillment
2. Distribution center location
3. Shipping Options
4. Seller Support
Post-Production Services
***Focus on (Keeping Customers)***
1. Order tracking : emails updates
2. Customer Service and Returns : 30 days policy , return procedures
3. Product Suggestions : Wish list , Recommendations based on past orders
4. Customer Loyalty : Free movies , lending library, increases spending by loyalty
, 5. Payment Management : Manage credit/gift cards store their shipping and credit card
information, order goods and services "one click"
Chapter 2 : 6. Operational structure (page 33) correct answers Value chain configuration of
resources (suppliers, factories, warehouses etc.)
ex: wall mart = value convenience (more than 500)
ex: amazon = bring cost down (fulfillment centers only 90)
- technology enables processes and value chains to lower the cost of goods and services,
speedy delivery, and provide customization where equipped.
Ex: geographic / wireless info systems to locate vehicles an inventory
Chapter 2 : 7. Three Waves of Outsourcing correct answers First Wave: Manufacturing and
goods producing jobs
Second Wave : Service work
Third Wave : Skilled Knowledge Work
- engineering design, graphic artist, architectural plans.
Chapter 2 : 8. The Economics of Outsourcing correct answers Decision on wether to
outsource using a (break-even) analysis. Used to provide insight into the best decision.
Q* = FC / VC2 -VC1
Q* = Quality Produced
FC = Fixed cost associated with producing the part
VC1 = Variable cost/unit if produced
VC2 = variable cost/unit if outsourced
Chapter 2 : 9. Definition of Vertical Integration, Backward/Forward Integration (examples),
Outsourcing, Value Chain Integration, Offshoring, Reshoring correct answers Value Chain
Integration
- Is the process of managing information, physical goods, and services to ensure their
availability at the right place/time/cost/quantity/ with the highest attention to quality
Ex: A. Wall-Mart : Values Convenience (more than 500 fulfillment centers)
Ex: B. Amazon : Bring Cost Down ( Only 90 fulfillment centers )
Backward Integration
- Acquiring capabilities towards suppliers
Ex: Manufacture wants to purchase suppliers (integrating backwards)
- ie: Delta (transport service) need fuel
- purchased fuel refinery to control price in production of fuel (backwards)
Forward Integration
- Acquiring capabilities toward distribution or even customers
Ex: Distributor buying retail stores (forward integration)
Ex: Apple store forward
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