Exam 2 Chapter 20
what is productivity?
An economic measure of efficiency that summarizes the value of outputs relative to the value of the resources used to produce them
what is the just in time (JIT) method?
An inventory system than has necessary materials arriving as soon as they are needed (just in time) so that the production process is not interrupted
what is a service organization?
An organization that transforms resources into an intangible output and creates time or place utility for its customers
what is a robot?
Any artificial device that can perform functions ordinarily thought to be appropriate for human beings
what is purchasing management? (procurement)
Controlling the buying of the materials and resources is at the heart of effective supply chain management
what are operations management as control?
Coordinating operations management with other functions helps insure the system focuses on critical elements crucial to goal attainment
what are facilities decisions?
Facilities are the physical locations where products or services are created, stored, and distributed
what is the importance of quality costs?
Improved quality reduces costs from customer returns, warranty, and lawsuits for faulty products, and lost sales to future customers
what are increasing employee involvement?
Increased employee participation can increase both quality and productivity. Cross-training of employees allows firms to function with fewer workers. Rewards are essential to success in improving productivity
what are capacity decisions?
Involve choosing amount of products, services, or both that can be produced by an organization. Can be high-risk decisions due to uncertainty about future product demand and incurred costs of additional, possibly excess, capacity
what is determining product-service mix?
Involves deciding how many and what kinds of products to offer in the marketplace
what is the importance of excellence in operations?
Is necessary for competitiveness and overall organization performance. Creates value and utility through the production of products and services.
what is inventory control? (materials control)
Managing the organization's raw materials, work-in- process, finished goods, and products in-transit
what is the Malcolm Baldrige award?
Named after a former secretary of commerce, this award is given by the Commerce Department to firms that achieve major quality improvements
what is the role of operations in organizational strategy?
Operations management has a direct impact on competitiveness, quality, productivity, and effectiveness. Operations management and organizational strategy have reciprocal effects on each other. Strategic goals cannot be met if there are deficiencies and insufficiencies in operations resources.
what is the importance of quality productivity?
Quality enhancement programs decrease defects, reduce rework, and eliminate the need for inspectors as employees assume responsibility for quality
what is the importance of quality competition?
Quality has become one of the most important competitive points in business today
what is service technology?
Services are rapidly moving toward automated systems and procedures
what are improving operations?
Spending more resources on research and development helps identify new products, new uses for existing products, and new methods for making products. Reworking transformation processes and facilities can boost productivity.
what is outsourcing?
Subcontracting operations/services to those who can do them cheaper and/or better
what is automation?
The process of designing work so that it can be completely or almost completely performed by machines
what is benchmarking?
The process of learning how and what other firms do in an exceptionally high-quality manner
what is supply chain management?
The process of managing operations control, resource and inventory acquisition and purchasing, and thus improving overall efficiency and effectiveness
what is operations management?
The set of managerial activities used by an organization to transform resource inputs into products, services, or both
what is technology?
The set of processes and systems used by organizations to convert resources into products or services
what is the meaning of quality?
The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs
what are the levels of productivity?
The unit of analysis used to calculate or define productivity
what is the cellular layout?
a configuration of facilities used when families of products can follow similar paths
what is a manufacturing organization?
a form of business that combines and transforms resource inputs into tangible outcomes that are then sold to others
what is fixed position layout?
facilities arranged around a single work area; used for the manufacture of large and complex products
what is process layout?
facilities arranged around the process; used in facilities that create or process a variety of products
what is product layout?
facilities arranged around the product; used when large quantities of a single product are needed
quality is relevant to both _______ and _______.
products; services
Quality is both a ____ and ____ concept.
relative; absolute
what is company productivity?
the level of productivity of a single company
what is layout?
the physical configuration of facilities, the arrangement of equipment within facilities, or both
what is individual productivity?
the productivity attained by a single person
what is unity productivity?
the productivity level of a unit or department.
what is robotics?
the science and technology of the construction, maintenance, and use of robots
what is aggregate productivity?
the total level of productivity for a country
what is industrial productivity?
the total productivity of all the firms in an industry
