BUS 101: Chapter 8

What is the definition of 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

Select from the following four key reasons why producers relocate their plants or open a facility at a new location.

Availability of transportation Proximity to market Availability of labor Availability of raw materials

What are two reasons why a company would adopt CIM in their organization?

Boost productivity and quality Reduce costs

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

The acronym for a complete system that designs products, manages machines and materials, and controls the operations function is ______.

CIM

___________ is the maximum load that an organizational unit can carry or operate.

Capacity

Retail store

Customer Contact

A hair cut or legal services

Customization

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

Determine what consumers want Design the product to satisfy wants

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

EOQ

What is the least likely sustainability-related issue for businesses?

Employee benefits

What are two things companies should do to manage the risks associated with global operations?

Encourage procurement employees to work together to find suppliers at a reasonable cost Make sure supply chains are diverse

Which four items are considered inputs to the transformation process?

Energy Labor Materials Money

In a manufacturing process, capacity is always measured in outputs, never in inputs.

False

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

False

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

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

False

What are three examples of the resulting outputs in the transformation process?

Goods Ideas Services

Why would a business want to make sure that its supply chain is diverse?

Having only a few suppliers could disrupt operations in the event of a disaster.

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

Inspection

Refer to Table 8.1 Services are characterized by which five things?

Intangibility Perishability Inseparability Customization Customer Contact

Going to a concert or sporting event

Intangible

How did the COVID-19 pandemic reflect a disadvantage of a JIT system?

It showed that in some industries, the supply chain was too lean.

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

JIT

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

MRP

Which statement is accurate regarding 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

Which statement is false about outsourcing?

Outsourcing is one of three inventory management systems.

Seats at a speaker's presentation

Perishable

What are three sustainability issues in relationship to manufacturing?

Pollution of land and air Urban sprawl Climate change

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 term is described as 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

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

Quality control

Standardization is characterized by what three things?

Reduced production costs Faster quality control checks Quicker production times

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

Routing

_____ is appropriate for an organization when it is not feasible to inspect every part it manufactures.

Sampling

_______________ 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

Which three characteristics are essential for a JIT system to function properly?

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

What acronym represents a philosophy of uniform commitment to quality in all areas within an organization?

TQM

Which statement regarding the transformation process is accurate?

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

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

True

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

True

Because it is typically involved in large, complex projects, a company using a fixed-position layout may be called ______.

a project organization

Scheduling takes place ______.

after a routing sequence has been determined

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

auditor

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

capital

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 that use assembly lines are usually known as _____ manufacturing organizations.

continuous

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

economic, order

Automobiles that come off the assembly line and are ready to ship to dealers are examples of _____ inventory.

finished-goods

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

fixed-position layout

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

high-contact

In the transformation process, ___________are the resources---such as labor, money, materials, and energy---that are converted into goods, services, or ideas.

inputs

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.

intermittent

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

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

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

Which type of business is most likely to be a continuous manufacturing organization?

lawnmower production facility

Many hand sanitizer manufacturers quickly ran out of product during the COVID-19 pandemic. This shows how their supply chain was too ______.

lean

A manager in supply chain would work with other managers in which three areas?

logistics procurement operations

Ebay, the online auction site, is an example of a(n) ______ service.

low-contact

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

manufacturer

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 1/4 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

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

operations management

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

outputs

The contracting of manufacturing or other tasks to independent companies outside of the firm is referred to as ______.

outsourcing

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

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

process layout.

Purchasing is also known as ______.

procurement

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

ISO 9000 is designed in part to ______.

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

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

quality

Wood, nails, bricks, and concrete would be considered ______ inventory for the construction of a house.

raw materials

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

sampling

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

standardization

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

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

operations

the activities and processes used in making both tangible and intangible products.

production

the activities and processes used in making tangible products; also called manufacturing.

TQM stands for _________________.

total quality management

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

uniformity of output

Computer-assisted manufacturing ______.

uses computer systems to guide and control the transformation process