ch01_ISM[1] - CHAPTER Operations and Productivity 1...

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1 1 CHAPTER Operations and Productivity D ISCUSSION Q UESTIONS 1. The text suggests four reasons to study OM. We want to under- stand (1) how people organize themselves for productive enterprise, (2) how goods and services are produced, (3) what operations managers do, and (4) this costly part of our economy and most enterprises. 2. Possible responses include: Adam Smith (work specializa- tion/division of labor), Charles Babbage (work specialization/ division of labor), Frederick W. Taylor (scientific management), Walter Shewart (statistical sampling and quality control), Henry Ford (moving assembly line), Charles Sorensen (moving assem- bly line), Frank and Lillian Gilbreth (motion study), Eli Whitney (standardization). 3. See references in the answer to question 2. 4. The actual charts will differ depending on the specific organi- zation the student chooses to describe. The important thing is for students to recognize that all organizations require, to a greater or lesser extent, (a) the three primary functions of operations, finance/accounting, and marketing; and (b) that the emphasis or detailed breakdown of these functions is dependent on the spe- cific competitive strategy employed by the firm. 5. The answer to this question may be similar to that for question 4. Here, however, the student should be encouraged to utilize a more detailed knowledge of a past employer and indicate on the chart additional information such as the number of persons employed to perform the various functions and, perhaps, the position of the functional areas within the overall organization hierarchy. 6. The basic functions of a firm are Marketing, Accounting/ Finance, and Operations. An interesting class discussion: “Do all firms/organizations (Private, Government, Not-for-profit) perform these three functions?” The authors’ hypothesis is yes, they do. 7. The ten decisions of operations management are: Product De- sign, Quality, Process, Location, Layout, Human Resources, Sup- ply Chain Management, Inventory, Planning (aggregate and short term), Maintenance. We find this structure an excellent way to
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ch01_ISM[1] - CHAPTER Operations and Productivity 1...

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