EXAM 2 REVIEW Chapters 9- 18 EXAM 2 REVIEW McGraw-Hill/Irwin
Copyright 2013 by The McGraw-Hill Companies, Inc. All rights
reserved.
Slide 2
Production and Operations Management Chapter 09
McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc.
All rights reserved.
Slide 3
Operations Management -- A specialized area in management that
converts or transforms resources into goods and services. Used in
both manufacturing and service industries. Operations management
includes: Inventory management Quality control Production
scheduling Follow-up services OPERATIONS MANAGEMENT LG2 From
Production to Operations Management 9-3
Slide 4
All about creating a good experience for those who use the
service. OPERATIONS MANAGEMENT in the SERVICE SECTOR LG2 Operations
Management in the Service Sector In hotels, like Ritz- Carlton,
operation management includes fine dining, fresh flowers, and
training for every employee. 9-4
Slide 5
Form Utility -- The value producers add to materials in the
creation of finished goods and services. When firms successfully
produce products, they create form utility FORM UTILITY LG3
Production Processes 9-5
Slide 6
Process Manufacturing -- The part of production that physically
or chemically changes materials. (boiling the egg) Assembly Process
-- The part of the production process that puts together
components. (egg, coffee, toast = breakfast) PROCESS and ASSEMBLY
in PRODUCTION LG3 Production Processes 9-6
Slide 7
Production processes are either continuous or intermittent.
Continuous Process -- Long production runs turn out finished goods
over time. (exp: long conveyor belt with eggs that continuously are
dropped into water continuous stream of 3 minute eggs) Intermittent
Process -- Production runs are short and the producer adjusts
machines frequently to make different products.(exp: a toaster in a
diner or oven in a bakery) KEY PRODUCTION PROCESSES LG3 Production
Processes 9-7
Slide 8
Quality Control Quality -- Consistently producing what the
customer wants while reducing errors before and after delivery.
Which is a never ending process lead to industry adoption of Six
Sigma Quality -- A quality measure that allows only 3.4 defects per
million opportunities. Detects problems early in the process
QUALITY CONTROL LG4 Photo Courtesy of: Argonne National Laboratory
9-8
Slide 9
Materials Requirement Planning Materials Requirement Planning
(MRP) -- A computer-based operations management system that uses
sales forecasts to make sure parts and materials are available when
needed. Enterprise Resource Planning (ERP) -- A newer version of
MRP, is a computer application that enables a firm to combine
computerized functions of all divisions and subsidiaries of the
firm into a single, integrated software program that uses a single
database. (including all functions like finance, HR, sales) MRP and
ERP LG4 9-9
Slide 10
Purchasing Purchasing -- Is the operations management planning
function that searches for high-quality material resources, finds
the best suppliers and negotiates the best price for goods and
services. PURCHASING LG4 9-10
Slide 11
Just-in-Time Inventory Control Just-in-Time (JIT) Inventory
Control -- The production process in which a minimum of inventory
is kept and parts, supplies and other needs are delivered just in
time to go on the assembly line. To work effectively, the process
requires excellent coordination with suppliers. Problems can arise
when suppliers are far awayenvironmental factors INVENTORY CONTROL
LG4 9-11
Slide 12
Motivating Employees Chapter 10 McGraw-Hill/Irwin Copyright
2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Slide 13
INTRINSIC REWARDS Intrinsic Rewards -- Personal satisfaction
you feel when you perform well and complete goals. Examples of
Intrinsic Rewards: The Value of Motivation Pride in your
performance Sense of achievement 10- 13
Slide 14
FREDRICK TAYLOR is known as the father of SCIENTIFIC MANAGEMENT
Scientific Management -- Studying workers to find the most
efficient ways of doing things and then teaching people those
techniques. This was the dominant strategy for improving
productivity during the early 1900s. Frederick Taylor: The Father
of Scientific Management LG1 10- 14
Slide 15
MOTIVATING ACROSS the GENERATIONS The workplace is now 4
generations deep When reflecting upon the newer generation, each
older generation says the same thing that the newer generation
"breaks the rules. When unhappy employees leave a company, the firm
normally ends up losing moneykeeping employees motivated is
important for all businesses. Motivating Employees Across
Generations LG8 10-15
Slide 16
MOTIVATING ACROSS the GENERATIONS Traditionalists (1925 - 1945)
Lived through the Great Depression and World War II Baby Boomers
(1946 1964) Experienced great economic prosperity, job security,
optimism about their future Generation X (1965 1980) Raised in
dual-career families, attended day care, feeling of insecurity
about jobs Generation Y or Millennials (1980 2000) Raised by
indulgent parents, used to many comforts like computers and cell
phones Motivating Employees Across Generations LG8 10-16
Slide 17
Traditionalists and Baby Boomers in the WORKPLACE
Traditionalists: prefer to communicate face-to-face. Their second
choice of communication is by phone recordings often (like
voicemail and automated answering systems) often frustrate them.
Baby Boomers: Are the idealistic generation that were raised during
a time of prosperity; Very focused on work; Do not embrace
work-life balance as much as more recent generations LG8 Motivating
Employees Across Generations 10-17
Slide 18
GENERATION X in the WORKPLACE -were raised by parents who
placed a lot of focus on work; - they're parents' layoffs added to
their insecurity, as well as the fact that they spent a lot of time
in daycare situations; motivated by flexibility in the workplace -
they are better than former generations at providing employee
feedback; - they believe in work-life balance; - past lessons make
them advocates of career security more than job security; - they
are good at collaboration and consensus building - they are more
free reign or democratic style of managers. LG8 Motivating
Employees Across Generations 10-18
Slide 19
MILLENNIALS and the WORKPLACE - were raised by indulgent
parents; - motivated by flexibility in the workplace - are very
tech savvy; - are not rushing to find a job; more focused on
choosing a career; - want employers who can adapt to them; - place
importance on work-life balance and want managers who understand
this; - are blunt, expressive, and image-driven; - they seem to
multi-task better than previous generations LG8 Motivating
Employees Across Generations 10-19
Slide 20
Human Resource Management: Finding and Keeping the Best
Employees Chapter 11 McGraw-Hill/Irwin Copyright 2013 by The
McGraw-Hill Companies, Inc. All rights reserved.
Slide 21
HUMAN RESOURCE MANAGEMENT (HRM) Human Resource Management --
The process of determining human resource needs and then
recruiting, selecting, developing, motivating, evaluating,
compensating and scheduling employees to achieve organizational
goals. HRMs role has grown because of: 1. Increased recognition of
employees as a resource. 2. Changes in law that rewrote old
workplace practices. LG1 Working with People is Just the Beginning
11- 21
Slide 22
DEVELOPING the FIRMS ULTIMATE RESOURCE The human resource job
is now the job of all managers in an organization...harder job
today as compared to previous decades. Developing the Firms
Ultimate Resource Service and high-tech manufacturing requires
employees with highly technical job skillsUS is facing a shortage
in skilled employees Such workers are scarce, making recruiting and
retention more important and more difficult LG1 11-22
Slide 23
CHALLENGES in FINDING HIGH-LEVEL WORKERS A shortage of trained
workers in key areas Worker shortage in skilled trades An
increasing number of baby boomers who delay retirement A declining
economy with fewer full-time jobs Increasing benefit demands and
benefit costs A decreased sense of employee loyalty higher turn
over A shift in employee attitudes toward work. Leisure time has
become a much higher priority, as have flextime and a shorter
workweek. The Human Resource Challenge LG1 11-23
Slide 24
HIRING CONTINGENT WORKERS Hiring Contingent Workers Contingent
Workers -- Include part-time and temporary workers, seasonal
workers, independent contractors, interns and co-op students. There
are about 5.7 million contingent workers in the U.S. Majority of
contingent workers are under 25; no health care; benefits. LG5
11-24
Slide 25
WHY HIRE CONTINGENT WORKERS? Companies hire contingent workers:
When full-time workers are on leave During periods of peak demand
In uncertain economic times To save on employee benefits To screen
candidates for future employment LG5 Hiring Contingent Workers
11-25
Slide 26
MOST COMMONLY USED TRAINING and DEVELOPMENT ACTIVITIES
Orientation On-the-Job Training Apprenticeships Off-the-Job
Training -- higher education Online Training Vestibule Training
near by classroom setting Job Simulation real conditions LG6
Training and Developing Employees for Optimum Performance 11-26
Note: Be sure you can identify and describe these!!!
Slide 27
USING NETWORKS and MENTORING Networking Networking --
Establishing and maintaining contacts with key managers in and out
of the organization and using those contacts to develop
relationships. Mentors -- Managers who supervise, coach and guide
selected lower-level employees by acting as corporate sponsors. LG6
11-27
Slide 28
Dealing with Union and Employee- Management Issues Chapter 12
McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc.
All rights reserved.
Slide 29
ORGANIZED LABOR LG1 Employee - Management Issues 12-29 Unions
-- Employee organizations whose main goal is to represent members
in employee- management negotiations of job-related issues.
Historically, managers were more concerned with productivity and
less concerned with safety, friendly relations with coworkers, fair
wages, etc. Labor unions were responsible for: Minimum wage laws
Overtime rules Workers compensation Job-safety regulations
Slide 30
TACTICS USED in CONFLICTS Tactics used by management include:
Lockouts Injunctions Strikebreakers LG4 Management Tactics
12-30
Slide 31
LOCKOUTS, INJUNCTIONS and STRIKEBREAKERS Lockout -- An attempt
by management to put pressure on workers by closing the business,
thus cutting off workers pay. Injunction -- A court order directing
someone to do something or refrain from doing something.
Strikebreakers -- Workers hired to do the work of striking workers
until the labor dispute is resolved; called scabs by unions.
(Unions call them Scabs) Management Tactics LG4 12-31
Slide 32
TACTICS USED in CONFLICTS when collective
bargaining/negotiations fail Tactics used by labor unions include:
Strikes Boycotts Work Slowdowns Pickets Tactics Used in Labor-
Management Conflicts LG4 12-32
Slide 33
STRIKES and BOYCOTTS Strikes -- A strategy in which workers
refuse to go to work. Primary Boycott -- When a union encourages
both its members and the general public not to buy the products of
a firm in a labor dispute. Secondary Boycott -- An attempt by labor
to convince others to stop doing business with a firm that is the
subject of a primary boycotthurts other businesses not directly
involved. Prohibited by Taft-Hartley Union Tactics LG4 12-33
Slide 34
LABOR UNIONS in the FUTURE Union membership will include more
white- collar, female and foreign-born workers than in the past.
Unions will take on a greater role in training workers, redesigning
jobs and assimilating the changing workforce. Unions will seek more
job security, profit sharing and increased wages. LG4 Future of
Unions and Labor- Management Relations 12-34
Slide 35
Marketing: Helping Buyers Buy Chapter 13 McGraw-Hill/Irwin
Copyright 2013 by The McGraw-Hill Companies, Inc. All rights
reserved.
Slide 36
Marketing today involves helping the buyer buy through:
Websites that help buyers find the best price, identify product
features, and question sellers. Blogs and social networking sites
that cultivate consumer relationships. Helps identify the best way
to get products to the consumer FOCUS of CONTEMPORARY MARKETING LG1
What is Marketing? 13- 36
Slide 37
Customer Relationship Management (CRM) -- Learning as much as
you can about customers and doing what you can to satisfy or exceed
their expectations over time. Organizations seek to enhance
customer satisfaction building long-term relationships. Today firms
like Priceline and Travelocity use CRM that allow customers to
build a relationship with the suppliers.PricelineTravelocity The
CUSTOMER RELATIONSHIP ERA LG1 The Evolution of Marketing 13-37
Slide 38
Developing an Effective Promotional Strategy Promotion -- All
the techniques sellers use to inform people about their products
and motivate them to purchase those products. INCLUDES Advertising!
Promotion includes: Advertising Personal selling Public relations
Word of mouth Sales promotions Relationships listening and
responding to customer feedback PROMOTING the PRODUCT LG2
13-38
Slide 39
Designing a Product to Meet Consumer Needs Product -- A good,
service, or idea that satisfies a consumers want or need.
DEVELOPING a PRODUCT LG2 Test Marketing -- Testing product concepts
among potential product users. 13-39
Slide 40
Providing Marketers with Information Marketing Research --
Analyzing markets to determine challenges and opportunities, and
finding the information needed to make good decisions. Research
used to determine what customers have purchased in the past, what
situational changes have occurred to change consumer preferences,
and what consumers are likely to want in the future. SEARCHING for
INFORMATION LG3 13-40
Slide 41
The Business- to-Business Market B2B marketers include:
Manufacturers Wholesalers and retailers Hospitals, schools and
charities Government Products are often sold and resold several
times before reaching final consumers. B2B market involves the
marketing of goods and services to institutions that sell, rent,
produce or supply goods to others BUSINESS-to-BUSINESS MARKET (B2B)
LG6 13-41
Slide 42
Developing and Pricing Goods and Services Chapter 14
McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc.
All rights reserved.
Slide 43
1) To attract buyers attention 2) Protect the goods inside and
be tamperproof 3) Be easy to open 4) Describe and give information
about the product 5) Explain the products benefits 6) Provide
warranty information and warnings 7) Give an indication of price,
value, and uses SOME KEY FUNCTIONS of PACKAGING LG3 Packaging
Changes the Product 14-43
Slide 44
Branding and Brand Equity Brand -- Name, symbol, or design that
identifies the goods or services and distinguishes them from
competitors offerings. UNDERSTANDING BRANDING Trademark -- A brand
that has exclusive legal protection for both its brand name and
design. LG4 14-44
Slide 45
Generic Goods -- Nonbranded products that sell at a discount
compared to manufacturers or dealers brands. KEY BRAND CATEGORIES
LG4 Branding and Brand Equity 14-45
Slide 46
The New Product Development Process The NEW PRODUCT DEVELOPMENT
PROCESS LG5 14-46 New product failure is common due to the fact
that companies fail to properly manage the new product development
process. 80% of all new products introduced in a year fail to meet
their business objective New product failure is common due to the
fact that companies fail to properly manage the new product
development process. 80% of all new products introduced in a year
fail to meet their business objective
Slide 47
Concept Testing -- Takes a product idea to consumers to test
reactions. BRINGING NEW PRODUCTS to the MARKET LG5 Product
Development and Testing 14-47
Slide 48
The Product Life Cycle Once a product has been developed and
testedit goes to market.. Product Life Cycle -- A theoretical model
of what happens to sales and profits for a product over time.
Product Life Cycle Stages: 1. Introduction 2. Growth 3. Maturity 4.
Decline The FOUR STAGES of a PRODUCT LIFE CYCLE LG6 14-48
Slide 49
Distributing Products Chapter 15 Copyright 2013 by The
McGraw-Hill Companies, Inc. All rights
reserved.McGraw-Hill/Irwin
Slide 50
The Emergence of Marketing Intermediaries Marketing
Intermediaries -- Organizations that assist in moving goods and
services from businesses to businesses (B2B) and from businesses to
consumers (B2C). Some economists would say that intermediaries add
costs to the channel of distribution and need to be eliminated.
HOWEVER. Intermediaries usually create enough value to justify
their inclusion in the distribution process WHAT are MARKETING
INTERMEDIARIES? LG1 15- 50
Slide 51
Agents and Brokers -- Intermediaries who bring buyers and
sellers together and assist in negotiating an exchange but do not
take title to the goods. Wholesaler -- An intermediary that sells
products to other organizations such as retailers, manufacturers,
and hospitals. Retailer -- An organization that sells products to
ultimate customers. TYPES of MARKETING INTERMEDIARIES LG1 The
Emergence of Marketing Intermediaries 15- 51
Slide 52
Logistics: Getting Goods to Consumers Efficiently Logistics -
Concerned with flows of materials, finished products, and
information. Materials Handling - movement of goods within a
warehouse (aka manufacturing firm). Most concerned with the flow of
goods as well as work in process within the manufacturing firm.
USING LOGISTICS LG7 15-52
Slide 53
Freight Forwarder -- Puts many small shipments together to
create a single large shipment that can be transported
cost-effectively by truck or train. Useful to a small manufacturer
that has shipments that are too small to fill a truck or railcar
LOGISTICS SPECIALISTS LG7 Logistics: Getting Goods to Consumers
Efficiently 15-53
Slide 54
Using Effective Promotions Chapter 16 McGraw-Hill/Irwin
Copyright 2013 by The McGraw-Hill Companies, Inc. All rights
reserved.
Slide 55
Integrated Marketing Communication (IMC) a technique that
combines all the promotional tools into one comprehensive unified
promotional strategy. Promotion mix: advertising, publicity,
personal selling, promotion INTEGRATED MARKETING COMMUNICATION
(IMC) LG1 Promotion and the Promotion Mix 16-55
Slide 56
1. Identify a target market 2. Define objectives 3. Determine a
promotional budget 4. Develop a unifying message 5. Implement the
plan 6. Evaluate effectiveness STEPS in a PROMOTIONAL CAMPAIGN LG1
Promotion and the Promotion Mix 16-56
Slide 57
Personal Selling: Providing Personal Attention Personal Selling
-- The face-to-face presentation and promotion of a product,
including the salespersons search for new prospects and follow-up
service. PERSONAL SELLING LG3 16-57
Slide 58
1. Prospect and qualify 2. Pre-approach research info gathering
3. Approach making the call 4. Make a presentation 5. Answer
objections 6. Close the sale Trial Close -- A statement or question
that moves the selling process toward the purchase. 7. Follow up
FINAL BUT IMPORTANT STEP!! STEPS in the SELLING PROCESS LG3 Steps
in the Selling Process 16-58
Slide 59
Sales Promotion -- The promotional tool that stimulates
consumer purchasing and dealer interest by means of short-term
activities. SALES PROMOTIONS Sales Promotion: Giving Buyers
Incentives LG5 16-59
Slide 60
Understanding Accounting and Financial Information Chapter 17
Copyright 2013 by The McGraw-Hill Companies, Inc. All rights
reserved.McGraw-Hill/Irwin
Slide 61
Accounting -- Recording, classifying, summarizing and
interpreting of financial events and transactions in an
organization to provide interested parties needed financial
information. An important difference between accounting and other
business functions, such as marketing and management, is that
Accounting offers us insight into whether the business is
financially sound WHATS ACCOUNTING? What is Accounting? LG1
17-61
Slide 62
Managerial Accounting -- Provides information and analysis to
managers inside the organization to assist them in decision making.
Managerial accounting is involved with: Costs of production Costs
of marketing Preparation and control of budgets Minimizing tax
liabilities MANAGERIAL ACCOUNTING Managerial Accounting LG2
17-62
Slide 63
Financial Accounting -- Financial information and analyses are
generated for people primarily outside the organization. Outside
users are interested in these questions: Is the organization
profitable? Is it able to pay its bills? How much debt does it owe?
Annual Report -- A yearly statement of the financial condition,
progress, and expectations of the firm. FINANCIAL ACCOUNTING
Financial Accounting LG2 17-63
Slide 64
Financial Statement -- A summary of all the financial
transactions that have occurred over a particular period. Helps to
assess the financial health of a business FINANCIAL STATEMENTS
Understanding Key Financial Statements Key financial statements of
business are: Balance sheet Income statement Statement of cash
flows LG3 17-64
Slide 65
Auditing -- Reviewing and evaluating the information used to
prepare a companys financial statements. Independent Audit -- An
evaluation and unbiased opinion about the accuracy of a companys
financial statements. Done by someone outside the organization.
Certified Internal Auditors (CIAs) -- Accountants who have a
bachelors degree and two years of experience in internal auditing
and pass an exam administered by the Institute of Internal
Auditors.Institute of Internal Auditors AUDITING CHECKS ACCURACY
Auditing LG2 17-65
Slide 66
Bookkeeping -- The recording of business transactions.
Bookkeepers divide a firms transactions into meaningful categories
and post them into a record book or computer program called a
journal. Bookkeeping is part of the accounting cycle, but
accounting goes far beyond the activities involved in bookkeeping
Double-Entry Bookkeeping -- Bookkeepers record all transactions in
two places so they can check one list of transactions against the
other for accuracy. BOOKKEEPERS ROLE LG3 The Accounting Cycle
17-66
Slide 67
Ledger -- A specialized accounting book that provides all the
information about a single account in one place is called the
ledger. BOOKKEEPERS TOOLS LG3 The Accounting Cycle 17-67
Slide 68
Current Assets -- Items that can or will be converted to cash
within one year such as cash, accounts receivable and inventory
Fixed Assets -- Long-term assets that are relatively permanent such
as land, buildings, or equipment. Intangible Assets -- Long-term
assets that have no physical form but do have value such as
patents, trademarks, and goodwill. CLASSIFYING ASSETS Listed in
this order on a balance sheet based on liquidityor how quickly they
can be turned into cash essay question! LG4 Classifying Assets
17-68
Slide 69
Financial Management Chapter 18 Copyright 2013 by The
McGraw-Hill Companies, Inc. All rights
reserved.McGraw-Hill/Irwin
Slide 70
Financial Managers -- Examine financial data and recommend
strategies for improving financial performance. FINANCIAL MANAGERS
LG1 The Role of Finance and Financial Managers Financial managers
are responsible for: Paying company bills Collecting payments
Staying abreast of market changes Assuring accounting accuracy
18-70
Slide 71
Finance -- The function in a business that acquires funds for a
firm and manages them within the firm. Finance activities include:
Preparing budgets Creating cash flow analyses Planning for
expenditures WHATS FINANCE? The Role of Finance and Financial
Managers LG1 18-71
Slide 72
1) Undercapitalization insufficient funds to start the business
2) Poor control over cash flow 3) Inadequate expense control WHY DO
FIRMS FAIL FINANCIALLY? The Value of Understanding Finance LG1
18-72
Slide 73
Budget -- Sets forth managements expectations for revenues and
allocates the use of specific resources throughout the firm. In
order to assist in revenue realization, a budget allocates
resources throughout the firm. The budget is the guide for
financial operations and expected financial needs in the futurenot
the past BUDGETING Working with the Budget Process LG2 18-73
Slide 74
Capital Budget -- Highlights a firms spending plans for major
asset purchases that often require large sums of money (property,
buildings and equipment). Cash Budget -- Estimates cash inflows and
outflows during a particular period like a month or quarter. Helps
managers anticipate borrowing, debt repayment, operating expenses,
and short- term investment opportunities Operating (Master) Budget
-- Ties together all the firms other budgets and summarizes its
proposed financial activities. TYPES of BUDGETS LG2 Working with
the Budget Process 18-74
Slide 75
Financial Control -- A process in which a firm periodically
compares its actual revenues, costs and expenses with its budget.
The main objective of financial control is to identify variances to
the financial plan and take corrective action if necessary.
ESTABLISHING FINANCIAL CONTROL Establishing Financial Control LG2
18-75
Slide 76
EXAM 1 73 questions total - 60 minutes to complete MUST HAVE
RED/PINK LARGE SCANTRON 35 multiple choice x 4 pts each 35 T/F x 2
pts each 3 written x 30pts each*** 300 points totals Chap 9 : 4 x
T/F and 4 x multiple choice Chapter 10: 3x T/F and 3 x multiple
choice Chapter 11: 4x T/F and 4x multiple choice Chap 12: 4x T/F
and 4 x multiple choice Chap 13: 3x T/F and 3 x multiple choice
Chap 14: 3x T/F and 3 x multiple choice Chap 15: 3x T/F and 3 x
multiple choice Chap 16: 3x T/F and 3 x multiple choice Chap 17: 4x
T/F and 4 x multiple choice Chap 18: 4x T/F and 4 x multiple choice
EXAM 2 Structure 5-76