FoB Chapter 8

(True or False) A purchasing agent need not worry about a tiny difference in price when a large quantity is being bought.

False

(True or False) Capacity is the degree to which input resources are physically changed by the conversion process.

False

(True or False) For a food-processing plant such as Kraft Foods, capacity refers to the number of employees working on an assembly line.

False

(True or False) Operations management is the process of creating a set of specifications from which the product can be produced.

False

(True or False) When work stations are arranged to match the sequence of operations, a process layout is being used.

False

(True or False) Work-in-process inventories are raw materials and supplies waiting to be processed.

False

(True or False) A synthetic process combines raw materials or components to create a finished product.

True

(True or False) Labor-intensive technology is accompanied by low initial costs and high operating costs.

True

(True or False) Reshoring is sometimes referred to as onshoring or insourcing.

True

(True or False) The purpose of research and development is to identify new ideas that have the potential to result in new goods and services.

True

Raw materials are broken into different components.

analytical process

Services differ from the production of manufactured goods in all ways except that services _______

aren't as important as manufactured products to the U.S. economy.

Work is accomplished mostly by equipment.

capital-intensive technology

Computers are the main tool used in the development of products.

computer-aided design

It is a plan for converting a product idea into an actual product or service.

design planning

A __________ manufacturing system combines electronic machines and computer-integrated manufacturing in a single-production system.

flexible

It is created by people converting materials, finances and information into finished goods.

form utility

One worker in Department A produces 45 units of work per day on a computer, whereas a co-worker produces only 40 units of work per day on a computer. Since the first worker produces more units, that worker has a _________

higher productivity rate.

A manufacturing process in which a firm's manufacturing machines and equipment are changed to produce different products.

intermittent process

Its focus is minimizing holding costs and potential stock-out costs.

inventory control

Procter & Gamble uses __________ production to produce household products.

mass

A common planning horizon for production activities is___________

one year.

Two important components of scheduling are ______________

place and time.

The time period during which an operational plan will be in effect.

planning horizon

The average level of output per worker per hour.

productivity

The process of acquiring materials, supplies, components, and parts from other firms is ____________

purchasing.

Input from workers is used to improve the workplace.

quality circle

The American economy is now characterized as a(n) __________ economy.

service

The goal of basic research is to ________

uncover new knowledge without regard for its potential use.

If a good or service satisfies a human need, it has _________

utility.