Managing Processes
Advantages of mass production
-Labor costs are usually lower. -Materials can be purchased in large quantities, so they are often cheaper. -Goods are produced in large number, lowering unit costs.
Disadvantages of mass production
-Machinery is very expensive to buy, so production lines are very expensive to set up. -Workers are not very motivated, since their work is very repetitive. -Production lines are not very flexible and are difficult to change. -Production processes are at risk if any one part of the line breaks. The entire production process will have to stop, pending repair which causes expensive delays. -Maintenance costs are very high.
Facility Location key factors
-Proximity to customers, suppliers, and skilled labor -Environmental regulations -Financial incentives offered by state and local development authorities -Quality-of-life considerations -Potential for future expansion
Advantages of project based production
-Unique, high quality products are made. -Workers are often more motivated and take pride in their work. -Products are made according to individual customer needs and improve customer satisfaction. -Production is easy to organize.
Advantages of batch production
-Unit costs are lower since larger numbers are made. -Customers are offered some variety and choice. -Materials can be bought in bulk, so they are less expensive. -Production is flexible since different batches are made. -Workers specialize in one process.
Disadvantages
-Very labor-intensive, so selling prices are usually higher. -Production can take a long time and can have higher production cost, (e.g., if special materials or tools are required).
Disadvantages of batch production
-Workers are often less motivated because the work becomes repetitive. -Set-up costs are initially high. -Products are expensive to move around the workplace. -Storage space will be needed to store raw materials.
Yankee Candles uses ________ to mass customize their candles.
3D printing
________ is a form of computer-aided production that builds a three-dimensional object by adding layers of material, one upon the other until an object is created.
3D printing
Production control
At this stage, the decision-making process focuses on controlling quality and costs, scheduling, and the actual day-to-day operations of running a factory or service facility.
Which method of production describes the process of inputs going through stages of production together in groups?
Batch production
You are an Operations Manager for a medium-size apparel company. The company has received orders for short-sleeve knit polos in assorted sizes and colors. You choose to utilize this production process:
Batch production
Which method of quality control is based on comparative metrics of best practices with industry leaders?
Benchmarking
Just-in-time inventory controls (JIT) compare with MRP systems in this way:
Both are systems focused on reducing inventory costs while making materials available for on-time production
A company can utilize ________ to minimize waste and reduce energy consumption of raw materials during the production process.
CAM
________ is widely used to produce computer animation for special effects in movies, advertising and technical manuals.
Computer Aided Design
The software system that determines the steps needed to produce a component and instructs the machines that do the work is called:
Computer aided manufacturing
The overall role of an operations manager is to:
Convert inputs (raw materials) into outputs (goods or services)
The following would be examples of goods produced by mass production EXCEPT:
Custom cowboy boots made to order
You are the operations manager of a "have it your way" hamburger restaurant. Which statement best describes your job?
Deliver a finished product, customized to specific requests of each customer, efficiently and effectively
Materials-requirement planning systems (MRP) were developed for the following reasons EXCEPT:
Determine appropriate pricing for products based on materials purchased
One of the major benefits of quality standards like ISO and Malcolm Baldrige is:
Ensuring corporate conscientiousness in quality and environmental practices
Swisher cigar factory makes little cigars and big cigars on the same machine. This is an example of using:
FMS
ISO 9000 is a certification used by many companies for:
International quality management
Walmart uses their point-of-sale system to track the sale of items and then replenish the items automatically through:
Just-in-time (JIT) inventory control
A major differentiator between Supply Chain Management and Logistics is:
Logistics is really a component of SCM, concerned with the flow of materials and products to required destinations as determined by the supply chain
To provide encouragement and a consistent quality standard, the U.S. government created the ________ to encourage companies to improve quality.
Malcolm Baldridge National Quality Award
You are the Operations manager for a large auto dealership services department. Which of the following would you be most concerned with?
Mechanic staff availability to ensure most services are complete in one working day
The following are all important criteria in determining a facility location EXCEPT:
Natural resource abundance
In project or job-based production how many different goods are produced?
One
Which of the following best describes project or job-based production?
One type of item is produced in varying quantities
Planning, scheduling and supply chain management for a business is considered:
Operations management
You have assumed a VP Operations position at a medium-sized frozen foods company. Your job would focus on:
Planning adequate production capability to meet the forecasts from sales
You are the Operations Manager for a high-end furniture manufacturer. Your marketing department has introduced a line of custom, made-to-order products that vary in style and will be sold in small quantities due to the high cost of the products. You decide to use this type of facility layout for the production:
Process layout
Which method of production describes the process of one item manufactured at a time?
Product based production
Mass produced products are:
Standardized
Some of the differences between logistics and supply chains are that:
Supply chains involve both manufacturing and procurement with multiple manufacturers, suppliers, and retail companies. Logistics refers to distribution activities in one company
Improving production and operations
The final stage of operations management focuses on developing more efficient methods of producing the firm's goods or services.
Production planning
The first decisions facing operations managers come at the planning stage. At this stage, managers decide where, when, and how production will occur. They determine site locations and obtain the necessary resources.
Gantt Charts
This chart is used to determine how long a project will take, the resources needed, and the order in which tasks need to be completed.
As a consumer, most of us would like to know which companies ensure that their products meet quality specifications. How would you find out whether a company or supplier was meeting these quality standards?
Through ISO
product (or assembly-line) layout
When large quantities of a product must be processed on an ongoing basis, the workstations or departments are arranged in a line with products moving along the line.
Lean manufacturing
Work relentlessly to eliminate waste from the manufacturing process
Six Sigma
a company-wide process that focuses on measuring the number of defects that occur and systematically eliminating them in order to get as close to "zero defects" as possible
Statistical process control
a method of quality control that uses statistical or mathematical methods to monitor and control a process. The goal of SPC is to ensure that production operates at its full potential.
Just in time manufacturing (JIT)
a strategy that companies employ to increase efficiency and decrease waste by receiving goods only when they are needed in the production process, thereby reducing inventory costs
Supply chain management cooridinates:
acquisition, scheduling, and receipt of all components
3D printing
any of various processes used to make a three-dimensional object
Process layout
arranges workflow around the production process. All workers performing similar tasks are grouped together. Products pass from one workstation to another
Cellular layouts
combine some aspects of both product and fixed-position layouts. Work cells are small, self-contained production units that include several machines and workers arranged in a compact, sequential order.
The cost of prevention in the Sigma Six cost-of-quality (COQ) equation includes:
cost to verify quality practices
A PERT chart identifies the ________, which is the sequence of activities that will entail the greatest amount of time.
critical path
Most supply chains have elements in common, such as the following:
customers, planning, purchasing, inventory, production and transportation
Using computer-aided design allows:
designers to view the product from all angles
Six Sigma practices:
emphasize a clear focus on achieving quantifiable financial returns
A material-requirements planning system is intended to meet one of the following objectives:
ensure that materials are available for production
A manager in charge of inbound logistics manages ________ related to the incoming flow of resources that a company needs to produce its goods or services.
everything
Of all the pieces of the planning puzzle, the ________ is the most strategic and critical.
facility location
Walmart is looking to build a new store in the area. The most strategic and critical step of this planning process is the:
facility location
An airplane manufacturer assembles a plane in one location and the workers and equipment go to the airplane when they need to work on it. This is an example of a :
fixed position layout
outbound logistics
focuses on storage and transportation
Mass-produced products generally are:
held in inventory until sold
PERT (Program Evaluation and Review Technique)
helps managers identify critical tasks and assess how delays in certain activities will affect operations or production.
Supply chain decisions are made ________, affecting how products are developed, manufactured, moved and sold.
hundreds of times a day
Benchmarking
involves comparing one's business processes and performance metrics to industry bests and best practices from other companies. Dimensions typically measured are quality, time, and cost.
Computer-integrated manufacturing (CIM)
is a manufacturing approach that uses computers to control the entire production process. This integration allows individual processes to exchange information with one another and initiate actions.
Supply Chain Management
is the process of managing the movement of the raw materials and parts from the beginning of production through delivery to the consumer.
Computer aided manufacturing
is the use of software to control machine tools in the manufacturing of workpieces. Its primary purpose is to speed the production process and produce components and tooling with more precise dimensions and material consistency
Fixed-position layout
lets the product stay in one place while workers and machinery move to it as needed. examples- Products that are impossible to move—ships, airplanes, and construction projects. also common for on-site services such as housecleaning services, pest control, and landscaping.
A flexible manufacturing system is typically built into one of the following:
machine and routing
inbound logistics
manages everything related to the incoming flow of resources that the company needs to produce its goods or services
Mass production
manufacturing many identical goods at once. Examples- canned goods, over the counter drugs, household appliances. keeping manufacturing costs low by producing uniform products using repetitive and standardized processes.
Assembling parts and producing inventoried finished goods describes:
mass production
Batch production
method used to produce similar items in groups, stage by stage. In batch production, the product goes through each stage of the process together before moving on to the next stage. Examples- bakeries, textiles, furniture
How does task switching impact learning?
negatively
flexible manufacturing system (FMS)
offers flexibility in the way the production system reacts to changes, whether planned or unplanned. This flexibility is typically built into one of the following: - Machine flexibility - routing flexibility
Project or job-based production
one-of-a-kind production in which only one type of item is manufactured at a time. Examples- custom homes, haircuts, yachts
As a VP of Product Development you are charged with managing the following components of the business's supply chain:
planning, purchasing, inventory
By definition, Operations is primarily concerned with:
production
Crowd control, vehicle dispatch, and purchase of supplies are necessary in:
service industry operations management
Inbound logistics is concerned with the flow of resources needed by the business to manufacture, while outbound logistics focuses on:
storage and transportation of manufactured products to the customer
Production
the creation of products and services, is an essential function in every firm
The major difference in usage between Gantt, PERT, and CPM is:
the degree of complexity of the projects
Critical path method
the manager identifies all of the activities required to complete the project, the relationships between these activities, and the order in which they need to be completed. Then, the manager develops a diagram that uses arrows to show how the tasks are dependent on each other.
Operations managers
the people charged with managing and supervising the conversion process
Computer aided design (CAD)
the use of computer systems (or workstations) to aid in the creation, modification, analysis, or optimization of a design. CAD software is used to increase the productivity of the designer, improve the quality of design, improve communications through documentation, and to create a database for manufacturing.
Supply-chain activities must be well coordinated in order to achieve the lowest total logistics cost. If only one of the activities is optimized, ________ may increase the total cost.
trade offs
Materials requirement planning (MRP)
uses a master schedule to ensure that the materials, labor and equipment needed for production are at the right amounts at the right times.
Supply chain management involves:
work in process inventory