1 Operations managers are responsible for managing activities and resources that
produce goods/service
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2. effectiveness refers to achieving achieving intended goals whereas efficiency
refers to minimizing costs and time.
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3. operations, marketing and finance function independently of each other in the
most organization
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4. The operation exists only firms that are goods-maded
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5. operations management pertaint exclusively to the management of
manufacturing operation.
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6. Value-added refers to the cost of the input required to produce goods and
services.
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7. storing an item earlier than the schedule delivery date is an example of a value
adding activity
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8. operations managements involve both system design and planning/control
decisions.
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9. System design decisions have very little impact on planning/control decisions.
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10. An example of an operations control decision is the choice of location.
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11. Scheduling jobs is a system design decisions and not a planning decisions
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12. Design decisions are usually strategy and long term while planning decisions
are tactical and medium term.
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13. Managing inventory level is considered planning/control operation decision
area
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14. Service involves a much higher degree of customer contact than the
production of goods
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15. Service often requare a higher labor content, where as the production of
goods is more capital intensive
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