MIE 201 Chapter 6

When does routing take place for operations managers?

After materials have been purchased and their use determined

Select from the following four key reasons why producers relocate their plants or open a facility at a new location.

Availability of raw materials, Availability of labor, Availability of transportation, and Proximity to market

Which two tasks are most important for a company prior to making any product?

Determine what consumers want and Design the product to satisfy wants

Which three items are considered inputs to the transformation process?

Energy, labor, and materials

True or false: In a manufacturing process, capacity is always measured in outputs, never in inputs.

False

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

True or false: Quality of life is never a reason for a facility location decision.

False

Why would a business want to make sure that its supply chain is diverse?

Having only a few suppliers could disrupt operations in the event of a disaster.

_____ reveals whether a product meets quality standards in an organization.

Inspection

What are two things companies should do to manage the risks associated with global operations?

Make sure supply chains are diverse and Encourage procurement employees to work together to find suppliers at a reasonable cost

Which term is described as the act of buying of all materials needed by the organization?

Purchasing

______ reflects the degree to which a good or service meets the demands and requirements of customers.

Quality

Standardization is characterized by what three things?

Quicker production times, Faster quality control checks, and Reduced production costs

_____ is the sequencing of operations through which a product must pass.

Routing

_____ is appropriate for an organization when it is not feasible to inspect every part it manufactures.

Sampling

Which statement regarding the transformation process is accurate?

The transformation process occurs in all organizations regardless of what they produce or their objectives.

True or false: Transformation processes occur in all organizations, regardless of what the organization produces.

True

What are three sustainability issues in relationship to manufacturing?

Urban sprawl, Climate change, and Pollution of land and air

To obtain ISO 9000 certification, an independent _____ must verify that a business's factory, laboratory, or office meets quality standards.

auditor

When an intangible service cannot be saved, stored, resold, or returned, it is known to _____.

be perishable

Most people consider the process of procurement to be synonymous with the process of Blank______.

buying

_________ is the maximum load that an organizational unit can carry or operate.

capacity

In order to be a quality organization, a firm must _______.

consistently produce what the customer wants

In the transformation process, __________ are the resources, such as labor, money, materials, and energy, that are converted into goods, services, or ideas.

inputs

All raw materials, components, completed or partially completed products, and pieces of equipment a firm uses is the definition of ______.

inventory

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

marketing research

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

A manager in supply chain would work with other managers in which three areas?

operations, procurement, and logistics

The contracting of manufacturing or other tasks to independent companies outside of the firm is referred to as ______.

outsourcing

Seats on an airplane or attendance at a play are said to be _____ since they cannot be saved, resold, or returned.

perishable

Purchasing is also known as ______.

procurement

Which activity in supply chain management is involved in obtaining the resources required to create value?

procurement

ISO 9000 is designed in part to ______.

provide a framework for documenting how a business tests products and fixes defects

When inspection tests are destructive and/or pointless to use, _____ is likely to be used in an organization.

sampling

The manufacturing process that makes identical interchangeable components or products is called ______.

standardization

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