Operations Management
MGT 502 Final Review Questions 1. List and explain the three ways to decrease process throughput time. 1) Perform activities in parallel a. A serial approach results in the throughput time for the entire process being the sum of individual steps plus transport and waiting time between steps. Using a parallel approach can reduce throughput time by as much as 80 percent and produces a better result. 2) Change the sequence of activities b. Altering the sequence of activities can make the process more efficient. 3) Reduce interruptions c. Less interruptions means smaller throughput time. 2. Define quality.
Quality – the ability of a product or service to consistently meet or exceed customer expectations 3. Define and explain benchmarking.
Benchmarking involves selecting a demonstrated standard of products, services, costs, or practices that represent the very best performance for processes or activities very similar to your own. The idea is to develop a target at which to shoot and then to develop a standard or benchmark against which to compare your performance. The steps for developing benchmarks are:
Selecting best practices to use as a standard for performance
a) Determine to what benchmark
b) Form a benchmark team
c) Identify benchmarking partners
d) Collect and analyze benchmarking information
e) Take action to match or exceed the benchmark
Typical performance measures used in benchmarking include percentage of defects, cost per unit per order, processing time per unit, service response time, ROI, customer satisfaction rates and customer retention rates. 1. List and explain the consequences of poor quality and their associated costs.
Poor quality results in a negative effect on your company’s reputation, increase product liability risk, and reduced ability to compete with competitors. Associated Costs: 1)Prevention Costs - cost of reducing potential defects
Quality – the ability of a product or service to consistently meet or exceed customer expectations 3. Define and explain benchmarking.
Benchmarking involves selecting a demonstrated standard of products, services, costs, or practices that represent the very best performance for processes or activities very similar to your own. The idea is to develop a target at which to shoot and then to develop a standard or benchmark against which to compare your performance. The steps for developing benchmarks are:
Selecting best practices to use as a standard for performance
a) Determine to what benchmark
b) Form a benchmark team
c) Identify benchmarking partners
d) Collect and analyze benchmarking information
e) Take action to match or exceed the benchmark
Typical performance measures used in benchmarking include percentage of defects, cost per unit per order, processing time per unit, service response time, ROI, customer satisfaction rates and customer retention rates. 1. List and explain the consequences of poor quality and their associated costs.
Poor quality results in a negative effect on your company’s reputation, increase product liability risk, and reduced ability to compete with competitors. Associated Costs: 1)Prevention Costs - cost of reducing potential defects