Chapter 8: Concept Reviews

When does routing take place for operations managers?

After materials have been purchased and their use determined

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.

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.

_____ 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

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

Purchasing

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

Quality control

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

Six Sigma

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

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. developing a plan to convert the idea into a new good or service. d. estimating market demand. e. comparing market demand with capacity.

c. developing a plan to convert the idea into a new good or service.

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

capacity.

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

d. Marketing of products

The production of services is different from the production of manufactured goods in all of the following ways, except: a. Services are intangible, and it is therefore more difficult to evaluate customer satisfaction. b. Services are provided when and where the customer desires the service; in many cases, customers will not travel as far to obtain a service. c. Services are usually labor-intensive. d. When compared to services, customers are much more involved in obtaining the manufactured good they want or need. e. Services are consumed immediately and, unlike manufactured goods, cannot be stored.

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

Which of the following is not one of the four types of utilities? a. Place b. Time c. Possession d. Form e. Magnitude

e. Magnitude

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.

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

operations management.

The major decisions involved in design planning deal with:

product line, required capacity, and use of technology.

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

research and development (R&D)