Chapter 8

When does routing take place for operations managers

After materials have been purchased and their use determined

A process in operations management in which raw materials are broken into different component parts is known as _______; while, a process in which raw materials or components are combined to create a finished product is known as _______.

Analytical process; synthetic process

_____ is a significant question because, once the decision has been made and implemented, the firm must live with it due to the high costs involved.

Facility location

What utility is created by people converting raw materials, finances, and information into finished products

Form utility

What is the concept's name that is built on an idea of eliminating waste from all of the activities required to produce a product or service

Lean manufacturing

The quantity that customers will purchase at the going price is called the

market demand.

The major decisions involved in design planning deal with

product line, required capacity, and use of technology

All of the activities involved in obtaining required materials, supplies, and parts from other firms are called

purchasing

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

purchasing

The process of checking and testing products to ensure that they meet specifications is called

quality Control

In many cases, customers will travel farther to purchase a(n) ____ than they would travel to purchase a(n) ____

good; service

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

utility

How is the production of services similar to the production of manufactured goods?

Both types of businesses must plan, design, execute, evaluate, improve, and redesign their products to satisfy customers

After Ford has recognized a trend that they would like to implement into a vehicle, they engage in _______, the development of a plan for converting an idea into an actual product

Design Planning

the process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs is referred to as

Inventory Control

Which technique do businesses use to improve quality of products and services, as well as overall performance

Six Sigma

A group of similar products that differ only in relatively minor characteristics is called

a product line

A product layout is often referred to as a(n)

assembly line

During the process of operational planning, management must compare market demand with

capacity

The development of a plan for converting a product idea into an actual product is called

design planning

Recognizing that Americans will live longer, and likely want to drive longer, Ford created a "Third Age" suit which simulates conditions older drivers face. This suit helps Ford create features in vehicles that can assist older drivers. This type of R&D is:

development and implementation

A business will usually choose to produce a new product in an existing facility if the cost is less than the cost of building a new one and the

existing factory has enough capacity to handle demand for the new product as well as the existing products

Product extension and refinement

extend the product life cycle

A(n) ______________ combines electronic machines and computer-integrated manufacturing in a single production system

flexible manufacturing system

When a local pizza parlor takes raw ingredients such as tomatoes, cheese, and flour to make a pizza for a customer, the raw ingredients are known as the _______ of the conversion process and the degree to which the resources are physically changed is known as the _______ of the conversion process

focus; magnitude

The type of utility on which production and operations management focuses is ____ utility

form

One primary difference between services and the production of goods is that services are consumed ____ whereas goods can be ____

immediately; stored

The choice of a particular location for production facilities

often involves balancing the variables

All of the managerial activities in which managers engage for the purpose of creating goods and services are known as ____ management

operations

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

research and development (R&D)

Products that have been partially completed but require further processing are known as ____ inventory

work-in-process

How are basic research and applied research different

Basic research just wants to uncover new knowledge; while, applied research wants to discover new knowledge with some potential use

Which of the following is not one of the four types of utilities: Time Form Possession Magnitude Place

Magnitude

Which of the following is least likely to be a role of operations management? Oversee the transformation process Manufacturing productivity Quality control Managing logistics Marketing of products

Marketing of products

A specialized area of management involving all the activities needed to convert or transform resources into goods and services is

Operations management

When looking at plant layout, Ford most likely uses a ____ because automobiles undergo the same operations in the same order

Product layout

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

Quality control

The production of services is different from the production of manufactured goods in all of the following ways, except

When compared to services, customers are much more involved in obtaining the manufactured good they want or need

Ford conducted research that gave them insights into characteristics of Gen Z. Although Ford finds the information important, they aren't currently developing a specific feature in their vehicles to address the Gen Z characteristics. The R&D completed could then be characterized as

applied research

The amount of products or services that an organization can produce in a given time is known as

capacity

All of the following are steps in the operational planning process, except a. selecting a planning horizon. b. adjusting products or services to meet demand. c. comparing market demand with capacity. d. developing a plan to convert the idea into a new good or service. e. estimating market demand.

d

When a very large product that is hard to move is produced, a(n) ____ is used

fixed-position layout

____ include(s) stocks of completed goods, work in process, and raw materials

inventories

The degree to which input resources are physically changed by the conversion is referred to as the

magnitude of change

The period of time over which an operational plan will be in effect is known as a

planning horizon.