Ch. 8
Which of the following describes a manufacturer?
A firm that makes tangible products
Which of the following is least likely a sustainability-related issue for businesses?
Employee benefits
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
Match the design process with its brief description. Standardization Modular Customization
Making identical, interchangeable components or products. Making an item in self-contained units that can be combined or interchanged to create different products. Making products to meet a particular customer's needs or wants.
A layout that brings all resources required to create the product to a central location is known as ______.
a fixed-position layout
To obtain ISO 9000 certification, an independent _____ must verify that a business's factory, laboratory, or office meets quality standards.
auditor
The maximum load that an organization unit can carry or operate is its
capacity
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
Directing machinery by computer to adapt to different versions of similar operations takes place in ____ manufacturing.
flexible
Select from the following the resulting outputs in the transformation process.
goods, services, ideas
What service characteristic is best exemplified by the fact that a stylist gives a different haircut to each customer?
high customization
Standardization focuses on producing ______.
identical, interchangeable components or complete products
_____ reveals whether a product meets quality standards in an organization.
inspection
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 ___________ control.
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
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.
manufacturers
Typically, ______ have more control over the amount of variability of resources they use.
manufacturers
ISO 9000 is designed, in part, to ______.
provide a framework for documenting how a business tests products and fixes defects
Trying to obtain quality items in the right quantities at the lowest possible cost is the aim of ______.
purchasing
Which term describes the act of buying of all materials needed by the organization?
purchasing
A critical part of operations management is ________ control--the process an organization uses to maintain established standards of quality.
quality
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
The _____ ________ integrates firms such as raw material suppliers, manufacturers, retailers to serve customers and generate a competitive advantage.
supply chain
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: Flexible manufacturing uses computers to direct machinery to adapt to different versions of similar operations.
true
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
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.
_____ for businesses was once primarily used as a cost-cutting tactic. It is now used, as well, to develop a competitive advantage for a company.
Outsourcing
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 three characterize the process of standardization?
Quicker production times Reduced production costs Faster quality control checks
Which of the following is a philosophy of uniform commitment to quality in all areas within an organization?
TQM
______ involves coordinating efforts to improve customer satisfaction, increasing employee participation, forming and strengthening supplier partnerships, and facilitating an organizational culture of continuous quality improvement.
TQM
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.
Outsourcing, once used primarily as a cost-cutting tactic, has increasingly been linked with the development of _____ through improved product quality, speeding up the time it takes products to get to the customer, and overall supply-chain efficiencies.
a competitive advantage
A manufacturer is typically more _____-intensive because of the machinery and technology used in mass production of highly similar goods.
capital
Sustainability issues include ______. (select all that apply)
climate change pollution of land and air urban sprawl
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 and use assembly lines are usually known as _____ manufacturing organizations.
continuous
An assembly line is referred to as a _____ _______ organization.
continuous manufacturing
An assembly line is referred to as a _____ _________ organization.
continuous manufacturing
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
Which term refers to a company deciding where to establish its operations?
facility locations
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
True or false: Quality of life is never a reason for a facility location decision.
false
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.
intermitted
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
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
Most companies use _____ to determine which goods and services to provide and the features they need to possess.
marketing research
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
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
output
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
Arranging the physical layout of a facility is a complex, highly technical task. Which of the following are the three basic layouts?
process fixed-position product
A layout that organizes the transformation process into departments that group related processes is known as a ______.
process layout
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
____ 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
_____ is the sequencing of operations through which a product must pass.
routing
When inspection tests are destructive and/or pointless to use, _____ is likely to be used in an organization.
sampling
_____ is appropriate for an organization when it is infeasible to inspect every part manufactured by a company.
sampling
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
_______ 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
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
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
Computer-assisted manufacturing ______.
uses computer systems to guide and control the transformation process
Which three are examples that would employ a fixed-position layout?
A bridge construction A new home build an office building
When does routing take place for operations managers?
After materials have been purchased and their use determined
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
Match the following facility layout terms to its brief description. Fixed-position layout Process layout
Central location for production Organized into departments that group related processes
Match the following facility layout terms to its brief description. Fixed-position layout Process layout Continuous manufacturing organization
Central location for production Organized into departments that group related processes Often use assembly lines
Which two tasks are most important for a company prior to making any product?
Design the product to satisfy wants Determine what consumers want
_____ is an inventory approach that identifies the optimum number of items to be ordered to minimize the costs of managing them.
EOQ
Services are characterized by which of the following? (Select all that apply)
Intangibility Customization Perishability Inseparability