OPMT Ch. 1

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  1. What is wealth? how is it created?
    -wealth is the output of goods and services produce by a nation in a given time.

    -wealth of country is measure by its gross national product

    -wealth is created by transforming raw materials (natural resources) into manufactured useful products.

    -to add value to the raw materials through manufacturing or production
  2. what is value added? how is it achieved?
    -value added is adding value to the raw materials to gain more wealth.

    -it is achieved by transforming the raw materials into more useful products through manufacturing
  3. 4 major factors affecting Operations Management ?
    1. Government - regulation of business such as environment issue, safety, product liability, and taxation. it can either help or hurt your business.

    2. Economy - economic conditions influence the demand for a company's products or services and the availability of inputs. (i.e. recession times, increase global competition)

    3. Competition - global competition, companies resorting to worldwide sourcing. transportation of products less costly than they used to be. worldwide communications are fast, effective, and cheap (i.e. internet search and websites).

    4. Customers - consumers and industrial customers became more demading and expectations are higher ( price, quality and delivery lead time).
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OPMT Ch. 1
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