Ch. 9 Productions & Operations

The goal of operations management is to:

- keep operations running efficiently - create a good experience for the customer

Examples of a problem solved by operations management planning as it relates to manufacturing include:

- time to market - inventory control - facility location

Form utility is created when:

-components such as computer chips, cases, and wires are assembled into a computer -a baker combines ingredients to make a cake -a butcher cuts a roast from a side of beef

Fixed position layout

Bridge construction

The computerized production methods that have made the United States more competitive both domestically and globally include:

CAM Mass customization CAD

Which of the following are quality of life issues that must be considered by companies when choosing a facility location?

Climate Crime Schools

True or false: Designing machines to do multiple tasks so they can produce a variety of products is called computer-aided design.

False, Flexible manufacturing uses machines that are capable of doing multiple tasks and be reprogrammed quickly to produce a variety of products in varying quantities.

True or false: In a production process inputs include entrepreneurship, knowledge, labor and services.

False, : Services are considered an output along with goods and ideas.

Which is a benefit of telecommuting?

Firms may choose less expensive locations Employees are in touch with company and customers right from home Less dependence on locating near sources of labor

What international standard focuses on managing a company's impact on the environment?

ISO 14001

What are two characteristics of lean manufacturing?

It uses less resources. It takes less time.

Which of the following are factors of production?

Knowledge Labor Entrepreneurship

Production methods that use computer technology to make the United States more competitive globally include:

Lean manufacturing CAD CAM

How will technological improvements in production-oriented companies affect the number of workers required?

Lower the number of workers required

Which production system tailors products to meet the needs of large numbers of individual customers?

Mass customization

Process layout

Metal products for frequently changing customer needs

___ ____ planning helps to solve issues related to facility layout, facility location, and inventory control.

Operations Management

When project managers analyze tasks involved in completing a project, estimate time needed for each task, and estimate the minimum time needed to complete the project, they are applying what tool to operations management?

PERT

A manager can use a ______ chart to plan projects and a ____ chart to track their progress real-time which can all be done today using a computer.

PERT GANTT

_____ is the creation of finished goods and services using land, labor, capital, entrepreneurship, and knowledge.

Production

PERT meaning

Program Evaluation and Review Technique

A quality control standard that allows for 3.4 defects per one million opportunities is called:

Six Sigma Quality

___ affords a company less dependence on choosing a location that is close to labor sources and may allow it to keep employees who would otherwise refuse to move.

Telecommuting

Product (assembly) layout

Vehicle Manufacturing

Cellular or modular layout

Woodworking requiring differing designs of a product

Reasons why a company might relocate to where a resource is plentiful is to enjoy:

a lower cost of shipping a lower cost of buying

fixed position layout

a major feature of planning is scheduling work operations

The main idea behind mass production is to produce a large number of a limited variety of products

at a very low cost

cellular or module layout

can accommodate changes in design or customer demand

In order to be a quality organization, a firm must:

consistently produce what the customer wants

Tracking schedules using monitoring methods such as PERT or Gantt charts during the production process is an example of applying production

control

Industrial productivity gains will ___ the number of workers companies require.

decrease

The goal of the International Organization for Standardization is to:

facilitate the international exchange of goods and services

Quality of life issues for employees should be considered by a company when choosing a proper location for its _____

facility

A type of problem that operations management planning helps to solve as it relates to manufacturing is:

facility layout

A baker making a specific type of cake from basic ingredients is an example of ___ utility.

form

Production management has, historically, meant the activities managers do to help their firms produce ____ , whereas operations management has evolved into a specialized management area that converts resources, including human resources, to produce goods and ___.

goods services

Taxation and ____ support affect a business's choice of location.

government

Which of the following affect a business's choice of location?

higher taxes lower taxes government support

In a production process raw materials are considered ___ whereas the finished products are considered ____ .

inputs outputs

Product Assembly Layout

is used to produce large quantities of a few types of products

The _____-_____-_____ inventory method is designed to keep a minimum of parts, supplies, and other materials on hand just in time to go on the assembly line.

just-in-time

The factors of production are ,___ ,____ ,____ entrepreneurship and ___.

land labor capital knowledge

Using less human effort, less manufacturing space, less investment in tools, and less engineering time is the basic premise of

lean manufacturing

A company that has a gain in productivity will:

likely require fewer workers

The U.S. economy is no longer based on:

manufacturing

Which sector has lost more jobs due to technological changes?

manufacturing

Technological changes have had such a great impact on the ______ that this segment of the American economy will likely never employ as many people as it did in the 1950s.

manufacturing industry

The type of production that does not concern itself with customer preferences, but instead focuses on making a large number of a few products is called ___ production.

mass

Catering to a large number of individuals through product design that meets specific customer needs is the goal of ____ _____

mass customization

Ensuring that products are manufactured and delivered on time, on budget, and to specifications is the role of which manager in an organization?

operations

A specialized area in management that converts or transforms resources into goods and services is:

operations management

The creation of finished goods and services using the factors land, labor, capital, entrepreneurship, and knowledge is:

production

When a firm reduces errors before and after delivery to the customer and thus delivers what the customer wants, the firm is said to exemplify the definition of _____

quality

A company may choose to move its facility to be where a(n)____ is plentiful in order to enjoy a lower purchase cost or reduced shipping costs associated with it.

resource

There has been a shift in employment in the United States until about 80 percent of U.S. jobs come from the ____ sector

service

The U.S. economy today is based on consumer spending and about 80% of the jobs are in the:

service sector

Process Layout

serving different customers with different needs

___ ____ quality detects potential problems to prevent their occurrence in order to control quality through the use of benchmarking standards.

six sigma

World _____ for international exchange of goods and services is the primary goal of ISO.

standards

Government support and ____ incentives affect a business's choice of location.

tax

What is the goal of operations management in service industries?

to provide good experiences for those who use the service

The difference between PERT and Gantt is that Gantt provides project ______ while PERT estimates ______ required for project completion.

tracking time