Intro to Business Chapter 9 (Test Prep ?s)

What have U.S. manufacturers done to regain a competitive edge?

1. Focusing more on customers 2. Maintaining closer relationships with suppliers and other companies to satisfy customer needs 3. Practicing continuous improvement 4. Focusing on quality 5. Savings on costs through site selection 6. Relying on the internet to unite companies that work together 7. Adopting production techniques such as enterprise resource planning, manufacturing, flexible management, lean manufacturing, and robotics

What do you call the integration of CAD and CAM?

Design changes made in computer-aided design (CAD) are instantly incorporated into the computer-aided manufacturing (CAM) process. The linking of CAD and CAM is computer-integrated manufacturing (CIM).

What is just-in-time inventory control?

JIT required suppliers to deliver parts and materials just in time to go on the assembly line so they don't have to be stored in warehouses.

How could you use a Gantt chart to keep track of production?

Managers can trace the production process minute by minute to determine which tasks are on time and which are behind, so that adjustments can be made to allow the company to stay on schedule.

What led companies to focus on operations management rather than production?

The dramatic growth of the service sector led companies to focus on operations management rather than production.

What is form utility?

The value producers add to materials in the creation of finished goods and services.

What must U.S. companies do to continue to strengthen the country's manufacturing base?

Even though manufacturing companies offer fewer jobs, they have become more productive , meaning that they need fewer employees to do the same amount of work.

What are the major criteria for facility location?

Labor costs and land costs are two major criteria for selecting the right sites. Other criteria include whether resources are plentiful and inexpensive, skilled workers are available or are trainable, taxes are low and the local government offers support, energy and water are available, transportation costs are low, and the quality of like and of education are high.

What is the difference between MRP and ERP?

MRP is a computer-based operations management system that uses sales forecasts to make sure the needed parts and materials are available at the right time and place. Enterprise resource planning (ERP), a newer version, of MRP, combines the computerized functions of all the decisions and subsidiaries of the firm-such as finance, material requirements of planning, human resources, and order fulfillment- into a single integrated software program that uses a single database. The result is shorter time between orders and payment, less staff to do the ordering and order processing, reduced inventories, and better customer service for all the firms involved.

What is mass customization?

Mass customization means making custom-designed goods and services for a large number of individual customer. Flexible manufacturing makes mass customization possible. Given the exact needs of a customer, flexible machines can produce a customized as fast as mass-produced goods were once made. Mass customization is also important in service industries.

Define and differentiate the following: process manufacturing, assembly process, continuous process, and intermittent process.

Process manufacturing physically or chemically changes materials. Assembly processes put together components. Continuous processes turns out finished goods over time by long production runs. Intermittent process involved a short production run and he frequent changing of machines to make different products.

What are Six Sigma quality, the Baldrige Award, ISO 9000, and ISO 14000?

Six Sigma quality sets standards at just 3.4 defects per million opportunities and defects potential problems before they occur. Statistical quality control (SQC) is the process some managers use to continually monitor all processes in the production process and ensure quality is being built into the product from the beginning. Statistical process control (SPC) tests statistical samples of the product components at each stage of the production process and plots the results on a graph so managers can recognize and correct deviations from quality standards. To qualify for the Malcolm Baldridge National Quality Awards, a company must demonstrate quality in seven key areas: leadership, strategic planning, customer and market focus, information and analysis, human resources focus, customer management, and business results. International standards U.S. firms strive to meet include ISO 9000 and ISO 14000. The first is a world standard for quality and the section is a collection of the best practices for managing an organizations impact on the environment.