Chapter 8 - Cengage Notes

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.

What is the name given to determining what a product will look like, what options it will have, where it will be made, and other variables that arise when a company has an idea for a product and moves it into research and development?

Design Planning

What is the first step for a service business to begin planning and provide the services its customers want?

Determine who the customer is and what needs the customer has

What do business people mean when they talk about lean manufacturing?

Eliminating waste from all of the activities required to produce a good or service

_____ 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

The manufacturing process requires the use of a variety of technologies. Which of the following is not one of the technologies used in the manufacturing process?

Flexible production systems

Utility is the ability of a good or service to satisfy a human need. Which type of utility is the concern of operations management?

Form utility

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

Form utility

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

Inventory Control

The _______________ refers to the degree to which resources are physically changed during the conversion process.

Magnitude of Change

Which of the following is least likely to be a role of operations management?

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

A(n) _______________ manages the systems that convert resources into goods and services.

Operations Manager

____________ involves three phases to convert an idea that meets customer needs to an actual good or service.

Planning for production

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

Purchasing

When a company tests products to ensure that the goods and services are produced in accordance with design specifications, it is engaged in _____________

Quality Control

____________ of materials is the sequence of workstations that the materials will follow in the production process.

Routing

What part of operations control involves the process of ensuring that materials and other resources are at the right place at the right time?

Scheduling

_____________ is/are characterized by being consumed immediately, being provided when and where the customer desires them, is/are labor-intensive, and has/have a high degree of customer involvement.

Services

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

Six Sigma

The major resources used in production are financial, material, information, and people. What does the magnitude of change have to do with the conversion process of these resources?

The magnitude of change of a conversion process is the degree to which the resources are physically changed.

Once the production process begins, a company must engage in operations control, which includes purchasing, inventory control, scheduling, and quality control. What is the objective of purchasing?

To ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost

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.

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

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

capacity.

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 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.

The major decisions involved in design planning deal with:

product line, required capacity, and use of technology.

In 1900 only 28 percent of American workers were employed in service firms but by the beginning of 2017 this figure had risen to 88 percent. This increase in service-related business has led to America being said to have a

service economy