Intro to Business Chapter 8

Technology/Computer-integrated manufacturing (CIM)

A complete system that designs products, manages machines materials, and controls the operations function.

Economic order quantity model (EOQ)

A model that identifies the optimum number of items to order to minimize the costs for managing them ( ordering, storing, and using)

Manufacturing/production

Activities and processes used in making tangible products

Inventory

All raw materials, components, completed or partially completed products, and pieces of equipment that a firm uses.

Purchasing

Buying of all materials needed by the organization - desired quality - correct quantities - lowest cost. Otherwise known as procurement

Supply Chain Management

Connecting and integrating all parties or members of the distribution system in order to satisfy customers

Product layout

Continuous manufacturing organization - companies that use continuously running assembly lines, creating products with many similar characteristics.

Modular design

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

Quality

Degree to which a good or service meets the demands and requirements of customers. - a critical element of operations management.

Planning the product

Develop the product - can be a long and expensive process

Just-In time inventory management (JIT)

Eliminates waste by using smaller quantities arriving "just in time" for use in the transformation process.

Planning facilities

Facility location /where to locate - high costs involved. Pay attention to - proximity to market. Climate influences - community characteristics- taxes and inducements.

A manager who thinks that workers dislike and avoid work has what Douglas McGregor labelled Theory Y assumptions about people.

False

Behaviour that is punished will tend to be repeated

False

Herzberg's two-factor theory can be divided into hygiene factors and monetary factors.

False

Hygiene factors include achievement, recognition, the work itself, responsibility, and advancement.

False

It is not necessary for a product to satisfy a need or a want.

False

Job enlargement involves incorporating motivational factors, such as achievement, recognition, and so on, into a job.

False

Job sharing occurs when a company shortens the workweek of all employees by a few hours to avoid layoffs.

False

Outputs include labour, materials, energy, and money.

False

Service businesses cannot incorporate quality standards.

False

Service providers are generally less labour-intensive because of the high degree of customization.

False

Work-in-process inventory consists of those products that are completed but waiting in warehouses for distribution.

False

Facilities layout

Fixed position layout - project organization - process layout - product layout

Sampling

How many items should be inspected. Depends on potential costs of product flaws in terms of human lives and safety

Program Evaluation and Review Technique (PERT)

Identifies major activities required to complete a project, determines the critical path, and estimates time needed to finish

Obtaining ISO 9000

Independent auditor verifies that a business meets quality standards. May require significant investment but may be essential to compete

Service

Intangible - customized inputs - customized outputs - more labour intensive - more difficult to measure productivity

Process layout

Intermittent organizations - deal with products of a lesser magnitude than project organizations. Their products are not necessarily unique but possess a significant number of difference

ISO 9000

International organization for standardization system of quality management standards designed to ensure the customers quality standards are met

Customization

Making products to meet a particular customers needs or wants

Mass customization

Making products to meet needs or wants of a large number of individual customers

Technology/computer assisted manufacturing (CAM)

Manufacturing that employs specialized computer systems to actually guide and control the transformation processess

Capacity

Maximum load that an organizational unit can carry or operate

Total Quality Management (TQM)

Philosophy that uniform commitment to quality will promote a culture that meets customers perceptions of quality

Material-Requirements Planning

Planning system that schedules the precise quantity of materials needed to make the product.

Inventory control

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

Quality Control

Processes an organization uses to maintain its established quality standards.

Inspection

Reveals whether a product meets quality standards

Routing

Sequence of operations through which the product must pass.

Statistical Process Control

System to collect and analyze information about production processed to pinpoint quality problems in the system

Manufacturing

Tangible - uniform inputs - uniform outputs - less labour intensive - easy to measure productivity

Operations

The activities and processes used in making both tangible and intangible products

Scheduling

The assignment of required tasks to departments or specific machines, workers, or teams.

Outsourcing

The contracting of manufacturing or other tasks to independent companies, often overseas. Increasingly a part of supply chain management in operations. Outsource aspects of operations to companies that provide products more efficiently, at lower cost, greater customer satisfaction.

Technology/Computer-assisted design (CAD)

The design of components, products, and processes on computers instead of on paper

Technology/flexible manufacturing

The direction of machinery by computers to adapt to different versions of similar operations

Outputs

The goods, services, and ideas that result from the conversation of inputs

Standardization

The making of identical interchangeable components or products. Faster, reduces production costs

Inputs

The resources (labour, material, energy, etc.) that are converted into outputs

Equity theory relates a person's willingness to contribute to the organization to the perceived fairness of the rewards received.

True

Human relations is the study of individual and group behaviour in organizational settings.

True

Operations management refers to those processes used in making both tangible and intangible products.

True

Purchasing is the buying of all materials needed by the organization.

True

Since boredom can sometimes result from job specialization, job rotation can be used as a strategy to relieve that boredom by giving employees the opportunity to move into another job.

True

TQM requires continuous quality improvement and employee empowerment.

True

The term routing is used in operations management to describe the sequence of operations through which the product must pass.

True

Theory Y managers maintain less control and supervision, do not use fear as the primary motivator, and are more democratic in decision making.

True

There is usually an assembly line used in the product layout.

True

Planning the product

Turn product ideas into workable design - the job of engineers and research and development departments