BA chapter 8

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

-Determine what consumers want -Design the product to satisfy wants

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

-Intangibility -Inseparability -Perishability -Customization

Which three characterize the process of standardization?

-Reduced production costs -Quicker production times -Faster quality control checks

Which of the following characteristics are essential for a JIT system to function properly? (Select three answers)

-Suppliers must be located relatively near the production facility. -Suppliers must be extremely reliable. -An almost continuous flow of items from suppliers must be managed.

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

-fixed-position -process -product

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

-good -service -idea

Primarily because of the view that it was limited to the manufacture of physical goods, operation management has historically been called ______. (Select all that apply)

-production -manufacturing

Which of the following describes a manufacturer?

A firm that makes tangible products

When does routing take place for operations managers?

After materials have been purchased and their use determined

Fixed-position layout

Central location for production

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

EOQ

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

Facility location

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

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

High customization

For _____ to be effective, suppliers must be extremely reliable and relatively close to the production facility.

JIT

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

A planning system that schedules the precise quantity of materials needed to make the product is the definition of ______.

MRP

Modular

Making an item in self-contained units that can be combined or interchanged to create different products

Standardization

Making identical, interchangeable components or products

Customization

Making products to meet a particular customer's needs or wants

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.

Which inventory management technique utilizes a master production schedule, a bill of materials, and an inventory status file?

Material-requirements planning

Continuous manufacturing organization

Often use assembly lines

Process layout

Organized into departments that group related processes

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

Purchasing

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

Quality

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

Routing

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.

Because it is typically involved in large, complex projects, a fixed-position layout is also called ______.

a project organization

Scheduling takes place ______.

after a routing sequence has been determined

A state or municipality may offer an established corporation a tax incentive to move to the area in anticipation that the lost tax revenue will be offset by ______.

an increase in job growth

Julie just invested in a new, high-quality elevator for her apartment construction project. She chose an elevator that could carry a maximum load of 1,400 pounds per trip. This measurement refers to the elevator's ______.

capacity

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

capacity

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

capital

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

consistently produce what the customer wants

If a company wanted to make a unique product or provide a specific service to specific individuals, it would use which manufacturing process?

customization

If a product is unique--like a piece of artwork or jewelry--and was made to satisfy a particular customer's needs, it most likely was made using _______.

customization

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

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

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

false

Examples of ______ services include healthcare, real estate, tax preparation, and food service.

high-contact

Examples of ___________ -contact services include health care, real estate, and tax preparation; examples of ______________ -contact services include such things as online auctions services like eBay which often have a strong high-tech component.

high; low

Standardization focuses on producing ______.

identical, interchangeable components or complete products

State governments offer businesses ______ in exchange for the businesses locating operations in their states.

inducements and tax reductions

All raw materials, components, completed or partially completed products, and pieces of equipment a firm uses is the definition of ______.

inventory

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

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

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 _______.

inventory control

The produce department in a grocery store must have the correct amount of fresh fruits and vegetables on hand to satisfy customer needs without overstocking produce that will become rotten. A grocery store most likely employs a(n) ______ inventory method.

just-in-time

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.

manufacturer

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

manufacturers

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

marketing research

A & M Manufactured Home Styles, Inc. builds prefabricated modules that can be combined to build homes quickly and efficiently. In this way, A & M is using a(n) _____ design production process that allows the company to build a home for approximately 25 percent less than the cost of a traditional home.

modular

Producing different components that can later be installed into a wide array of configurations is a description of _____ production.

modular design

The creation of an item in self-contained units, or modules, that can be combined or interchanged to create different products is the definition of which manufacturing process?

modular design

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

The broad term _____ represents an interest in viewing the operations function as a whole rather than simply as an analysis of inputs and outputs.

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 ____________.

outputs

Determining quality can be difficult because it depends on customers' _________ of how well the product meets or exceeds their expectations.

perception

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

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

purchasing

Improving ________ means reducing defects before delivery of the product to the customer.

quality

The assignment of required tasks to departments or even specific machines, workers, or teams is the definition of ______.

scheduling

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

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

service providers

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

supply chain

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

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: 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