Ch. 8

Which of the following describes a manufacturer?

A firm that makes tangible products

Which of the following is least likely a sustainability-related issue for businesses?

Employee benefits

True or false: It is typical for an organization to only inspect work-in-process and finished items that the company produced. It is not typical to inspect purchased items.

False

Match the design process with its brief description. Standardization Modular Customization

Making identical, interchangeable components or products. Making an item in self-contained units that can be combined or interchanged to create different products. Making products to meet a particular customer's needs or wants.

A layout that brings all resources required to create the product to a central location is known as ______.

a fixed-position layout

To obtain ISO 9000 certification, an independent _____ must verify that a business's factory, laboratory, or office meets quality standards.

auditor

The maximum load that an organization unit can carry or operate is its

capacity

Standardization, modular design, and ______________ are the three types of manufacturing processes used by organizations.

customization

The goal of JIT is to ______.

deliver the minimum amount of inventory at the proper time for the transformation process

Directing machinery by computer to adapt to different versions of similar operations takes place in ____ manufacturing.

flexible

Select from the following the resulting outputs in the transformation process.

goods, services, ideas

What service characteristic is best exemplified by the fact that a stylist gives a different haircut to each customer?

high customization

Standardization focuses on producing ______.

identical, interchangeable components or complete products

_____ reveals whether a product meets quality standards in an organization.

inspection

The process of determining how many supplies and goods are needed and keeping track of quantities on hand, where each item is, and who is responsible for it is referred to as ___________ control.

inventory

Joleen works in a warehouse. Among her duties, she must keep track of how many supplies and goods are on hand in the warehouse as well as a listing of where each item is located and who is responsible for each item. Joleen is responsible for ______.

inventory control

Service providers are usually more _____-intensive due to the high level of customer contact, perishability of the output (must be consumed immediately), and high degree of variation of inputs and outputs (customization).

labor

The term "_____" implies a firm that makes tangible products.

manufacturers

Typically, ______ have more control over the amount of variability of resources they use.

manufacturers

ISO 9000 is designed, in part, to ______.

provide a framework for documenting how a business tests products and fixes defects

Trying to obtain quality items in the right quantities at the lowest possible cost is the aim of ______.

purchasing

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

purchasing

A critical part of operations management is ________ control--the process an organization uses to maintain established standards of quality.

quality

The uniformity of output (or the final product) is more difficult for ______.

service providers

The manufacturing process that makes identical interchangeable components or products is called ______.

standardization

The _____ ________ integrates firms such as raw material suppliers, manufacturers, retailers to serve customers and generate a competitive advantage.

supply chain

It is the level of _____ of an organization's principal product that tends to classify the company as either a manufacturer or a service provider.

tangibility

True or false: Flexible manufacturing uses computers to direct machinery to adapt to different versions of similar operations.

true

What inventory method is designed to eliminate inventory waste by using smaller quantities of materials that arrive just prior to needing them for the transformation process?

JIT

Which of the following is true about control over variability of resources between manufacturers and service organizations?

Manufacturers typically have more control over variability of resources than does a service provider.

_____ for businesses was once primarily used as a cost-cutting tactic. It is now used, as well, to develop a competitive advantage for a company.

Outsourcing

Which facility layout is characterized by workers remaining in one location as the product moves from one worker to another with each person in turn performing his or her required tasks or activities?

Product layout

Which three characterize the process of standardization?

Quicker production times Reduced production costs Faster quality control checks

Which of the following is a philosophy of uniform commitment to quality in all areas within an organization?

TQM

______ involves coordinating efforts to improve customer satisfaction, increasing employee participation, forming and strengthening supplier partnerships, and facilitating an organizational culture of continuous quality improvement.

TQM

Which of the following statements regarding the transformation process is TRUE?

The transformation process occurs in all organizations regardless of what they produce or their objectives.

Outsourcing, once used primarily as a cost-cutting tactic, has increasingly been linked with the development of _____ through improved product quality, speeding up the time it takes products to get to the customer, and overall supply-chain efficiencies.

a competitive advantage

A manufacturer is typically more _____-intensive because of the machinery and technology used in mass production of highly similar goods.

capital

Sustainability issues include ______. (select all that apply)

climate change pollution of land and air urban sprawl

Using computers in place of paper to design components, products, and processes is referred to as ______.

computer-assisted design

In order to be a quality organization, a firm must _____.

consistently produce what the customer wants

Companies with a product layout and use assembly lines are usually known as _____ manufacturing organizations.

continuous

An assembly line is referred to as a _____ _______ organization.

continuous manufacturing

An assembly line is referred to as a _____ _________ organization.

continuous manufacturing

The ____ ________ quantity (EOQ) model identifies the optimum number of items to order to minimize costs of managing, ordering, storing, and using those items.

economic order

Which term refers to a company deciding where to establish its operations?

facility locations

True or false: Every organization is specifically and exclusively a manufacturer or a service provider.

false

True or false: In a manufacturing process, capacity is always measured in outputs, never in inputs.

false

True or false: Quality of life is never a reason for a facility location decision.

false

Doctors, makers of custom jewelry, and commercial printers are all ____________ organizations; they create products to customers' specifications and produce relatively few units of each product.

intermitted

Firms that use a process layout are sometimes referred to as _____ organizations, which deal with products of a lesser magnitude than do project organizations, and their products are not necessarily unique but possess a significant number of differences.

intermittent

Fabulous Fixtures manufactures custom lighting for its clients. Along with finished pieces, the company's warehouse houses tools, electrical components, glass and metal housings, and a wide array of decorative materials. All of these items are part of Fabulous Fixtures' ______.

inventory

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

marketing research

Although planning was once the sole realm of the _____ department, today's successful companies involve all departments within an organization, particularly marketing and research and development, in these decisions.

operations

A manufacturing business must take resources and transform them into goods and services. The development and administration of the activities involved in this process is referred to as ______.

operations management

A specialized area of management that oversees the process of transforming resources into goods and services is called ______.

operations management

Deciding what product a firm will produce, what group of customers it will produce it for, how the product will be made, and what facilities are necessary to produce the product are all decisions that fall under the realm of ______.

operations planning

The goods, services, and ideas that result from the conversion of inputs are called

output

A metal fabrication plant may have a cutting department, a drilling department, and a polishing department. A company organized in this way is utilizing a ____________________ layout.

process

Arranging the physical layout of a facility is a complex, highly technical task. Which of the following are the three basic layouts?

process fixed-position product

A layout that organizes the transformation process into departments that group related processes is known as a ______.

process layout

The layout that requires production to be broken down into relatively simple tasks assigned to workers, who are usually positioned along an assembly line is a ______ layout

product

____ reflects the degree to which a good or service meets the demands and requirements of customers.

quality

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

quality control

_____ is the sequencing of operations through which a product must pass.

routing

When inspection tests are destructive and/or pointless to use, _____ is likely to be used in an organization.

sampling

_____ is appropriate for an organization when it is infeasible to inspect every part manufactured by a company.

sampling

Each customer calling Fidelity Investments is likely to require different services due to differing needs, whereas many of the tasks required to manufacture a Ford Focus are the same across each unit of output. Consequently, the products of _____ tend to create more "customized" products or services for clients or customers.

service organizations

_______ process control is a system in which management collects and analyzes information about the production process to pinpoint quality problems in the production system.

statistical

Collecting and analyzing data about the quality of the production process of an organization is referred to as _______.

statistical process control

A major function of operations is _____, which refers to connecting and integrating all parties or members of the distribution system in order to satisfy customers.

supply chain management

True or false: Transformation processes occur in all organizations, regardless of what the organization produces.

true

The _____ is typically more challenging for service organizations since the human element is inherent and each service tends to be performed differently.

uniformity of outputs

Computer-assisted manufacturing ______.

uses computer systems to guide and control the transformation process

Which three are examples that would employ a fixed-position layout?

A bridge construction A new home build an office building

When does routing take place for operations managers?

After materials have been purchased and their use determined

What is the acronym used for the system of production that uses computers instead of paper to design components, products, and processes?

CAD

The acronym for using computers to guide and control the manufacturing process is referred to as ______.

CAM

Match the following facility layout terms to its brief description. Fixed-position layout Process layout

Central location for production Organized into departments that group related processes

Match the following facility layout terms to its brief description. Fixed-position layout Process layout Continuous manufacturing organization

Central location for production Organized into departments that group related processes Often use assembly lines

Which two tasks are most important for a company prior to making any product?

Design the product to satisfy wants Determine what consumers want

_____ is an inventory approach that identifies the optimum number of items to be ordered to minimize the costs of managing them.

EOQ

Services are characterized by which of the following? (Select all that apply)

Intangibility Customization Perishability Inseparability