Chapter 8

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

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

Routing

_______of materials is the sequence of workstations that the materials will follow in the production process.

analytical process; synthetic process

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 _______.

operations management

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

service economy

In 1900 only 28 percent of American workers were employed in service firms but by the beginning of 2017 this figure had risen to 88 percent. This increase in service-related business has led to America being said to have a ______

magnitude of change

The ______ refers to the degree to which resources are physically changed during the conversion process.

capacity

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

Form utility

Utility is the ability of a good or service to satisfy a human need. Which type of utility is the concern of operations management?

Form utility

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

Quality control

When a company tests products to ensure that the goods and services are produced in accordance with design specifications, it is engaged in _______

applied research

When a research and development department is engaged in activities geared toward discovering new knowledge with some potential use it is engaged in _____

flexible manufacturing system

A(n) ______________ combines electronic machines and computer-integrated manufacturing in a single production system.

operations manager

A(n) ______manages the systems that convert resources into goods and services.

design planning

After Ford has recognized a trend that they would like to implement into a vehicle, they engage in _______, the development of a plan for converting an idea into an actual product.

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

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

basic research.

Ford conducted research that gave them insights into characteristics of Gen Z. Although Ford finds the information important, they aren't currently developing a specific feature in their vehicles to address the Gen Z characteristics. The R&D completed could then be characterized as

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

How are basic research and applied research different?

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

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

Innovation and skilled workers

Manufacturing in the United States has dropped significantly, however the cost of manufacturing has decreased. Which of the following can be attributed to the increase in manufacturing productivity in the United States?

research and development (R&D)

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

To ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost

Once the production process begins, a company must engage in operations control, which includes purchasing, inventory control, scheduling, and quality control. What is the objective of purchasing?

refinement; extension

Part of the development of a product involves _____and _____ as the product is improved, which generally results in an essentially new product.

development and implementation

Recognizing that Americans will live longer, and likely want to drive longer, Ford created a "Third Age" suit which simulates conditions older drivers face. This suit helps Ford create features in vehicles that can assist older drivers. This type of R&D is

product line, required capacity, and use of technology

The major decisions involved in design planning deal with:

The magnitude of change of a conversion process is the degree to which the resources are physically changed.

The major resources used in production are financial, material, information, and people. What does the magnitude of change have to do with the conversion process of these resources?

Flexible production systems

The manufacturing process requires the use of a variety of technologies. Which of the following is not one of the technologies used in the manufacturing process?

inventory control.

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:

Eliminating waste from all of the activities required to produce a good or service

What do business people mean when they talk about lean manufacturing?

Lean manufacturing

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?

Determine who the customer is and what needs the customer has

What is the first step for a service business to begin planning and provide the services its customers want?

Service economy

What is the name given to an economy in which less effort is devoted to the production of goods than other things?

Design planning

What is the name given to determining what a product will look like, what options it will have, where it will be made, and other variables that arise when a company has an idea for a product and moves it into research and development?

Scheduling

What part of operations control involves the process of ensuring that materials and other resources are at the right place at the right time?

focus; magnitude

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.

After materials have been purchased and their use determined

When does routing take place for operations managers?

product layout

When looking at plant layout, Ford most likely uses a ____ because automobiles undergo the same operations in the same order.

Research and development begins with an idea.

Where does research and development begin?

Marketing of products

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

Magnitude

Which of the following is not one of the four types of utilities?

Six Sigma

Which technique do businesses use to improve quality of products and services, as well as overall performance?

Purchasing

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

Facility location

_____ 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.

Quality control

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

Planning for production

______ involves three phases to convert an idea that meets customer needs to an actual good or service.

Inventory control

______ is the process of managing inventories in such a way as to minimize costs, including both holding costs and potential stock-out costs.

Services

_______is/are characterized by being consumed immediately, being provided when and where the customer desires them, is/are labor-intensive, and has/have a high degree of customer involvement.