Exam 3- Chapter 9

What percent of the United States economy is service based and manufacturing based?

80% service and 20% manufacturing

What is the Malcolm Baldrige award?

Based on quality and seven different attributes Categories- 1. Manufacturing 2. Services 3. Small businesses 4. Nonprofit/government 5. Education 6. Healthcare Criteria- 1. Leadership 2. Strategy 3. Customers 4. Management 5. Workforce 6. Operations 7. Results

Define quality standard

Consistently producing what the customer wants while reducing errors before and after delivery to the customer.

What type of utility does production create and how is it created?

It creates form utility which is the value producers add to materials in the creation of finished goods and services. Process manufacturing- physically or chemically changes materials (cracking and scrambling an egg) Assembly process- puts together components (building a sandwich)

What was the idea behind mass production

Produce as much as possible with the great errors in the shortest amount of time with little cost

What is the difference between productions and operations?

Production (management)- the creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge. Ex. Found in factories or manufacturing. Operations (management)- a specialized area that converts or transforms resources (including human resources) into goods and services. Ex. Found in a restaurant. Includes inventory management, quality control, production scheduling, and follow up services

What is mass customization?

Tailoring products to meet the needs of individuals, More manufacturers are learning to customize, exists in the services sector too

What is ISO 9000

The common name given to quality management and assurance standards. It is a global standard for quality.

What is a fixed position layout?

The product remains in one location and machinery and employees come to it. Ex. Airplane assembly

What is the goal of forms that want to reduce time to market?

They want to be near major highways, railroads and airports

What is the goal of lean manufacturing?

Using less of everything than in mass production.