TOM 301 Chapter 1
10) Describe each of these systems: craft production, mass production, and lean production
Craft Production: Products are made by skilled workers (more costly and time consuming) Mass Production: Goods are produced in more quantity by low-skilled or semi-skilled workers and they use specialized equipments which was costly. Lean Production: Emphasizes on flexibility, time reduction, quality and teamwork. Led to fewer levels of management. Workers are highly skilled and equipment is also flexible. Has advantages of both craft and mass production because its volume is high and unit cost is low.
4) List five important differences between goods production and service operations; then list five important similarities
Differences - Goods are tangible/Services are intangible Goods are produced before consumed/Services are produces and consumed at the same time Goods can be stored in inventory/Services cannot be stored Quality assurance in goods is objective and measurable/Services is subjective Most manufactured goods can be patented/Services cannot be patented and therefore easily copied Similarities - Need good process management Forecasting and management of capacity is equally important Controlling of costs and productivity Supply chain manage>ment plays vital role Controlling variations
11) Why might some workers prefer not to work in a lean production environment?
Every worker is not only responsible for his particular job but also of the entire system. No supervisors. Workers are self-regulated. A lot of motivation and training is required to ensure acceptance of lean system.
6) Why are services important? Why is manufacturing important? What are nonmanufactured goods?
Important aspect of any country's economy. Pure services like hospitals and education establishments are vital daily services. The value of services is determined by a perceived value that is delivered. Manufacturing is important for any country because development of a country's economy is usually based on its manufacturing. The world needs manufactured goods in homes, offices, and various businesses around the world. Nonmanufactued goods are goods that do not come from a factory, but are either grown in fields, in orchards, or come from rivers and seas (fruits, vegetables, fish, etc.)
5) Briefly discuss each of these terms related to the historical evolution of operations management: Industrial Revolution Scientific management Interchangeable parts Division of labor
Industrial Revolution: Begins 1770s in England and spread throughout Europe and rest of world. Prior, manufacturing done in small shops by skilled craftsmen and their apprentices. No machines results in everything done be hand and there were no standardizations (everything was custom). Process was slow and expensive. Invention of steam engine eventually replaces hand tools of craftsmen. Factories develop and give simple jobs to many common people. Scientific management: Theory developed by Taylor. Based on observation, analysis, and measurement of work methods. Believed that managers should train workers to do job this way so that efficiency and productivity could be achieved. Believed in cooperation between management and workers. Methods were aimed to maximize output. This turned into higher production through abuse of workers. Congressional enquiry in 1911 calls Taylor to testify and leads to widespread acceptance of scientific management by industry. Interchangeable parts: Proposed by Eli Whitney in 1790. Did not find any practical application until Henry Ford adopted it in automobile manufacturing. Allowed for fast assembly lines and sales of replacement parts. Division of labor: Proposed by Adam Smith in 1776. Suggested that any major manufacturing task can be broken into smaller tasks and different people could be assigned to each task and develop an expertise. Lasted until Henry Ford and concept of an assembly line.
2) Identify the three major functional areas of business organizations and briefly describe how they interrelate
Operations - Take market requirement/demand from marketing and translate them into schedules that will then be given to the finance department to assess financial resources needed Finance - Responsible for obtaining financial resources and allocation of those resources throughout the organization. Responsible for budgeting, financial analysis, etc. Marketing - Responsible for assessing customer requirements/demands and translating them into products/good that the organization can produce/deliver. Analysis is sent to operations for scheduling and production plans
3) Describe the operations function and the nature of the operations manager's job
Operations function is the process of transforming one or more inputs and converting those inputs into a marketable output. This can apply to both products and services. The function of an Operations Manager is to coordinate activities of departments within an organization to ensure the product/service is provided in an efficient matter. An OM must ask the basic questions of "Who, what, when, where, how?"
17) Discuss the term sustainability, and its relevance for business organizations
Use of resources in a way to bring about minimal damage to the current environment in which an organization operates. Organizations try to not have negative long term impacts on the environment. An example of this is an organization's "carbon footprint". Every decision affects all areas of a business including product design, supply chain management, etc.