Chapter 8
When does routing take place for operations managers
After materials have been purchased and their use determined
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
_____ 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
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 quantity that customers will purchase at the going price is called the
market demand.
The major decisions involved in design planning deal with
product line, required capacity, and use of technology
All of the activities involved in obtaining required materials, supplies, and parts from other firms are called
purchasing
Which term describes the act of buying of all materials needed by the organization
purchasing
The process of checking and testing products to ensure that they meet specifications is called
quality Control
In many cases, customers will travel farther to purchase a(n) ____ than they would travel to purchase a(n) ____
good; service
If a good or service satisfies a human need, it has
utility
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
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
Design Planning
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
Which technique do businesses use to improve quality of products and services, as well as overall performance
Six Sigma
A group of similar products that differ only in relatively minor characteristics is called
a product line
A product layout is often referred to as a(n)
assembly line
During the process of operational planning, management must compare market demand with
capacity
The development of a plan for converting a product idea into an actual product is called
design planning
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:
development and implementation
A business will usually choose to produce a new product in an existing facility if the cost is less than the cost of building a new one and the
existing factory has enough capacity to handle demand for the new product as well as the existing products
Product extension and refinement
extend the product life cycle
A(n) ______________ combines electronic machines and computer-integrated manufacturing in a single production system
flexible manufacturing system
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
The type of utility on which production and operations management focuses is ____ utility
form
One primary difference between services and the production of goods is that services are consumed ____ whereas goods can be ____
immediately; stored
The choice of a particular location for production facilities
often involves balancing the variables
All of the managerial activities in which managers engage for the purpose of creating goods and services are known as ____ management
operations
Most companies use _____ to determine which goods and services to provide and the features they need to possess
research and development (R&D)
Products that have been partially completed but require further processing are known as ____ inventory
work-in-process
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
Which of the following is not one of the four types of utilities: Time Form Possession Magnitude Place
Magnitude
Which of the following is least likely to be a role of operations management? Oversee the transformation process Manufacturing productivity Quality control Managing logistics Marketing of products
Marketing of products
A specialized area of management involving all the activities needed to convert or transform resources into goods and services is
Operations management
When looking at plant layout, Ford most likely uses a ____ because automobiles undergo the same operations in the same order
Product layout
_____ refers to the processes an organization uses to maintain its own established quality standards within the organization
Quality control
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
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
applied research
The amount of products or services that an organization can produce in a given time is known as
capacity
All of the following are steps in the operational planning process, except a. selecting a planning horizon. b. adjusting products or services to meet demand. c. comparing market demand with capacity. d. developing a plan to convert the idea into a new good or service. e. estimating market demand.
d
When a very large product that is hard to move is produced, a(n) ____ is used
fixed-position layout
____ include(s) stocks of completed goods, work in process, and raw materials
inventories
The degree to which input resources are physically changed by the conversion is referred to as the
magnitude of change
The period of time over which an operational plan will be in effect is known as a
planning horizon.