Chapter 8 SmartBook

Which of the following describes a manufacturer?

A firm that makes tangible products

An assembly line is referred to as a (__________)(_____________) organization.

Blank 1: continuous Blank 2: manufacturing

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

Blank 1: supply Blank 2: chain

What is the acronym used for the system of production that uses computers instead of paper to design components, products, and processes?

CAD Reason: Computer-assisted design (CAD) helps engineers design components, products, and processes on the computer instead of on paper.

Standardization, modular design, and ( ) are the three types of manufacturing processes used by organizations.

Customization

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

Employee benefits

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

False

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

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 Organizations normally inspect purchased, work-in-process, and finished items.

Match the following facility layout terms to its brief description.

Fixed-position layout: Central location for production Process layout: Organized into departments that group related processes Continuous manufacturing organization: Often use assembly lines

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

Inspection

Which statement is true about control over variability of resources between manufacturers and service organizations?

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

_____ 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

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

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

Quality

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

Routing

_____ is appropriate for an organization when it is infeasible to inspect every part manufactured by a company.

Sampling

Match the design process with its brief description.

Standardization: Making identical, interchangeable components or products Modular: Making an item in self-contained units that can be combined or interchanged to create different products Customization: Making products to meet a particular customer's needs or wants

Which statement regarding the transformation process is true?

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

Which three are examples that would employ a fixed-position layout?

a bridge construction an office building a new home build

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

When does routing take place for operations managers?

after all materials have been purchased and their use determined

To obtain ISO 9001 certification, an independent _____ must verify that a business's factory, laboratory, or office meets quality standards.

auditor

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

Using computers in place of paper to design components, products, and processes is referred to as ______.

computer-assisted design

In order to maintain quality, an organization must _____.

consistently produce what the customer wants

Companies with a product layout and use assembly lines are usually known as _____ manufacturing organizations.

continuous

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

design the product to satisfy wants determine what consumers want

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

facility location

A layout that brings all resources required to create the product to a central location is known as ______.

fixed-position layout

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

high customization

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

ideas services goods

Services are characterized by which of the following? (Select all that apply.)

intangibility customization perishability inseparability

Doctors, makers of custom jewelry, and commercial printers are all (____________) organizations; they create products to customers' specifications and produce relatively few units of each product.

intermittent

Firms that use a process layout are sometimes referred to as _____ organizations, which deal with products of a lesser magnitude than do project organizations, and their products are not necessarily unique but possess a significant number of differences.

intermittent

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

inventory

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

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 (_________) control.

inventory

Joleen works in a warehouse. Among her duties, she must keep track of how many supplies and goods are on hand in the warehouse as well as a listing of where each item is located and who is responsible for each item. Joleen is responsible for ______.

inventory control

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

The term "_____" implies a firm that makes tangible products.

manufacturer

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

marketing research

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

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

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

outputs or output

Many companies elect to _____ some aspect of their operations to companies that can provide these products more efficiently, at a lower cost, and with greater customer satisfaction.

outsource

A layout that organizes the transformation process into departments that group related processes is known as a ______.

process layout

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

sampling

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 organizations

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

Sustainability issues include ______. (Select all that apply.)

urban sprawl climate change pollution of land and air

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

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

ISO 9000 is designed, in part, to ______.

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

Trying to obtain quality items in the right quantities at the lowest possible cost is the aim of ______.

purchasing

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

purchasing