Ch. 8

When a local pizza parlor takes raw ingredients such as tomatoes, cheese, and flour to make a pizza for a customer, the raw ingredients are known as the _______ of the conversion process and the degree to which the resources are physically changed is known as the _______ of the conversion process.

Focus; magnitude

What utility is created by people converting raw materials, finances, and information into finished products?

Form utility

What is the concept's name that is built on an idea of eliminating waste from all of the activities required to produce a product or service?

Lean manufacturing

The production of services is different from the production of manufactured goods in all of the following ways, except:

When compared to services, customers are much more involved in obtaining the manufactured good they want or need.

Which term describes the act of buying of all materials needed by the organization?

Purchasing

_____ is a significant question because, once the decision has been made and implemented, the firm must live with it due to the high costs involved.

. Facility location

All of the following are steps in the operational planning process, except:

Developing a plan to convert the idea into a new good or service.

Which of the following is least likely to be a role of operations management?

Marketing of products

The major decisions involved in design planning deal with:

Product line, required capacity, and use of technology.

The process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs is referred to as:

Inventory control.

_____ refers to the processes an organization uses to maintain its own established quality standards within the organization.

Quality control

Most companies use _____ to determine which goods and services to provide and the features they need to possess.

Research and development (R&D)

When does routing take place for operations managers?

After materials have been purchased and their use determined.

How are basic research and applied research different?

Basic research just wants to uncover new knowledge; while, applied research wants to discover new knowledge with some potential use.

How is the production of services similar to the production of manufactured goods?

Both types of businesses must plan, design, execute, evaluate, improve, and redesign their products to satisfy customers.

The acronym for a complete system that designs products, manages machines and materials, and controls the operations function is:

CIM

The amount of products or services that an organization can produce in a given time is known as:

Capacity.

A process in operations management in which raw materials are broken into different component parts is known as _______; while, a process in which raw materials or components are combined to create a finished product is known as _______.

Analytical process; synthetic process

A specialized area of management involving all the activities needed to convert or transform resources into goods and services is:

Operations management.