Chapter 8 Managing Operations and Supply Chains

In which of the following is measurement of productivity typically more difficult and challenging?

A Service Provider

Which of the following are typical descriptions of the task of purchasing in a business?

Buying desired quality products in the right quantities Buying quality products at the lowest possible cost

Julie just invested in a new, high-quality elevator for her apartment construction project. She chose an elevator that could carry a maximum load of 1,400 pounds per trip. This measurement refers to the elevator's ______.

Capacity

A manufacturer is typically more _____-intensive because of the machinery and technology used in mass production of highly similar goods.

Capital

The route that requires the longest time from start to finish in PERT is called the ------ path because it determines the minimum amount of time in which the process can be completed.

Critical

Making products to meet a particular customer's needs or wants

Customization

Which of the following is least likely a sustainability-related issue for businesses?

Employee benefits

Which of the following is least likely a sustainability-related issue for businesses? Multiple choice question. Employee benefits Pollution Protection of biodiversity Urban sprawl

Employee benefits

True or false: Every organization is specifically and exclusively a manufacturer or a service provider.

False

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

False

Jill Smithers, Operations Manager, takes measurements at various points in the transformation process of producing her company's organic baby food products. This is also known as ______.

Feedback

Those products that are ready for sale

Finished-goods inventory

When a final product is not moveable or transportable such as an office building or bridge, a(n) ------- - -------- layout must be used.

Fixed Position

Central location for production

Fixed-position layout

Which service characteristic is best exemplified by the fact that a stylist gives a different haircut to each customer?

High Customization

Examples of ______ services include healthcare, real estate, tax preparation, and food service.

High-Contact

A service provider's intangible product requires a(n) _____ degree of customer contact than do the majority of tangible products.

Higher

Select from the following the resulting outputs in the transformation process.

Ideas, Services, and Goods

Involves the movement of raw materials, packaging, and information from suppliers to producers

Inbound logistics

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

Inputs

What takes place in the transformation process?

Inputs are converted to outputs.

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

Inspection

Fabulous Fixtures manufactures custom lighting for its clients. Along with finished pieces, the company's warehouse houses tools, electrical components, glass and metal housings, and a wide array of decorative materials. All of these items are part of Fabulous Fixtures' ______.

Inventory

What inventory method is designed to eliminate inventory waste by using smaller quantities of materials that arrive just prior to needing them for the transformation process?

JIT

Service providers are usually more _____-intensive due to the high level of customer contact, perishability of the output (must be consumed immediately), and high degree of variation of inputs and outputs (customization).

Labor

Ebay, the online auction site, is an example of a(n) _____ service.

Low-Contact

Which statement is true about control over variability of resources between manufacturers and service organizations? Manufacturers typically have less control over variability of resources than does a service provider. Manufacturers typically have more control over variability of resources than does a service provider. It is a myth that either manufacturers or service providers have control over variability—the majority do not. Control over variability of resources does not differ between manufacturers and service providers.

Manufacturers typically have more control over variability of resources than does a service provider.

Typically, ______ have more control over the amount of variability of resources they use.

Manufactures

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

Marketing Research

Select from the following the items that are considered inputs to the transformation process. Multiple select question. Materials Energy Labor Goods Schedules

Materials, Energy, and Labor

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

Modular

Although planning was once the sole realm of the _____ department, today's successful companies involve all departments within an organization, particularly marketing and research and development, in these decisions.

Operations

Unlike manufacturing and production, the broad term transformation -------describes those processes used in the making of both tangible and intangible products.

Operations

_____ describe(s) processes used to create both tangible and intangible products.

Operations

A manufacturing business must take resources and transform them into goods and services. The development and administration of the activities involved in this process are 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

Deciding what product a firm will produce, what group of customers it will produce it for, how the product will be made, and what facilities are necessary to produce the product are all decisions that fall under the realm of ______.

Operations Planning

Follows the finished products and information from the business customers and then to the final consumer

Outbound logistics

The goods, services, and ideas that result from the conversion of inputs are called

Outputs

_____ for businesses was once primarily used as a cost-cutting tactic. It is now used, as well, to develop a competitive advantage for a company.

Outsourcing

Services are characterized by which of the following? (Select all that apply.) Multiple select question. perishability intangibility viability customization inseparability quantifiable

Perishability, Intangibility, Customization, and Inseparability

A challenge of service operations is that they are generally intangible and often , thus not allowing the service to be saved, stored, resold, or returned. For example, a seat on an airplane cannot be sold or used at a later date.

Perishable

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

Perishable

A metal fabrication plant may have a cutting department, a drilling department, and a polishing department. A company organized in this way is utilizing a ------- layout.

Process

Organized into departments that group related processes

Process layout

The layout that requires production to be broken down into relatively simple tasks assigned to workers, who are usually positioned along an assembly line is a ______ layout.

Product

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

Quality

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

Quality control

Those items that have been purchased to be used as inputs for making other products

Raw materials inventory

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

Routing

The United States Postal Service priority mail delivery and a Sheraton hotel are examples of providers.

Service

Each customer calling Fidelity Investments is likely to require different services due to differing needs, whereas many of the tasks required to manufacture a Ford Focus are the same across each unit of output. Consequently, the products of _____ tend to be more "customized" for clients or customers.

Service Organization

The uniformity of output (or the final product) is more difficult for ______.

Service Providers

Making identical, interchangeable components or products

Standardization

Three types of manufacturing processes used by organizations.

Standardization, modular design, and Customization

The -------- -------- integrates firms such as raw material suppliers, manufacturers, and retailers to serve customers and generate a competitive advantage.

Supply Chain

Which of the following is a philosophy of uniform commitment to quality in all areas within an organization?

TQM

______ involves coordinating efforts to improve customer satisfaction, increasing employee participation, forming and strengthening supplier partnerships, and facilitating an organizational culture of continuous quality improvement.

TQM

It is the level of _____ of an organization's principal product that tends to classify the company as either a manufacturer or a service provider. Multiple choice question. quality output tangibility production

Tangibility

Which two make measurement of productivity for services more challenging than for manufactured products? Multiple select question. The intangibility of the product Variations in service requirements from job to job The inventory of finished products is scattered The high degree of uniformity

The intangibility of the product Variations in service requirements from job to job

Which statement regarding the transformation process is true? Multiple choice question. The transformation process occurs in organizations that provide goods or services, but does not take place in nonprofit organizations. The transformation process occurs in all organizations regardless of what they produce or their objectives. The transformation process occurs only in businesses that actually produce a good; it does not take place in service or nonprofit organizations.

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

Involves employing outside firms to move goods because they can transport them more efficiently

Third-party logistics

At the heart of operations management is the _____ process through which resources such as labor, money, materials, and energy are converted into goods, services, and ideas.

Transformation

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

True

Those products that are in some stage of the transformation process

Work-in-process inventory

Outsourcing, once used primarily as a cost-cutting tactic, has increasingly been linked with the development of _____ through improved product quality, speeding up the time it takes products to get to the customer, and overall supply-chain efficiencies.

a competitive advantage

Because it is typically involved in large, complex projects, a fixed-position layout is also called ______.

a project organization

Scheduling takes place ______.

after a routing sequence has been determined

When does routing take place for operations managers?

after all materials have been purchased and their use determined

Which three are examples that would employ a fixed-position layout? Multiple select question. an office building television set production a new home build a bridge construction manufacturing an automobile

an office building a new home build a bridge construction

The primary tool of continuous improvement in a company is _____.

benchmarking

Planning the operational processes for an organization involves which two important areas?

capacity planning and facilities planning

In order to maintain quality, an organization must _____.

consistently produce what the customer wants

The idea that not having high-quality goods and services can be very expensive, especially in terms of dissatisfied customers is the premise behind ______.

continuous improvement

The goal of JIT is to ______.

deliver the minimum amount of inventory at the proper time for the transformation process

Which two tasks are most important for a company prior to making any product? Multiple select question. plan inventory control methods determine what consumers want determine where the factory will be located plan the facility layout design the product to satisfy wants

determine what consumers want design the product to satisfy wants

Which term refers to a company deciding where to establish its operations?

facility location

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

inventory

The 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 is referred to as _______.

inventory control

Continuous manufacturing organization

often use assembly lines

Sustainability issues include ______. (Select all that apply.) Multiple select question. pollution of land and air competitor concerns employee benefits climate change urban sprawl

pollution of land and air climate change urban sprawl

Sustainability issues include ______. (Select all that apply.) Multiple select question. pollution of land and air employee benefits competitor concerns climate change urban sprawl

pollution of land and air climate change urban sprawl

In a business, purchasing is also known as _____.

procurement

Which facility layout is characterized by workers remaining in one location as the product moves from one worker to another with each person, in turn, performing required tasks or activities?

product layout

A critical part of operations management is ------- control—the process an organization uses to maintain established standards of quality.

quality

Which three characterize the process of standardization? Multiple select question. highly customized products quicker production times self-contained units or modules faster quality control checks reduced production costs

quicker production times faster quality control checks reduced production costs

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

sampling

The assignment of required tasks to departments or even specific machines, workers, or teams is the definition of ______.

scheduling

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

In terms of the transformation process, feedback is defined as ______.

taking measurements at various points in the transformation process and comparing them to previously established standards

The _____ is typically more challenging for service organizations since the human element is inherent and each service tends to be performed differently.

uniformity of outputs