Intro to Business Chapter 8
Technology/Computer-integrated manufacturing (CIM)
A complete system that designs products, manages machines materials, and controls the operations function.
Economic order quantity model (EOQ)
A model that identifies the optimum number of items to order to minimize the costs for managing them ( ordering, storing, and using)
Manufacturing/production
Activities and processes used in making tangible products
Inventory
All raw materials, components, completed or partially completed products, and pieces of equipment that a firm uses.
Purchasing
Buying of all materials needed by the organization - desired quality - correct quantities - lowest cost. Otherwise known as procurement
Supply Chain Management
Connecting and integrating all parties or members of the distribution system in order to satisfy customers
Product layout
Continuous manufacturing organization - companies that use continuously running assembly lines, creating products with many similar characteristics.
Modular design
Creation of an item in self-contained units that can be combined or interchanged to create different products
Quality
Degree to which a good or service meets the demands and requirements of customers. - a critical element of operations management.
Planning the product
Develop the product - can be a long and expensive process
Just-In time inventory management (JIT)
Eliminates waste by using smaller quantities arriving "just in time" for use in the transformation process.
Planning facilities
Facility location /where to locate - high costs involved. Pay attention to - proximity to market. Climate influences - community characteristics- taxes and inducements.
A manager who thinks that workers dislike and avoid work has what Douglas McGregor labelled Theory Y assumptions about people.
False
Behaviour that is punished will tend to be repeated
False
Herzberg's two-factor theory can be divided into hygiene factors and monetary factors.
False
Hygiene factors include achievement, recognition, the work itself, responsibility, and advancement.
False
It is not necessary for a product to satisfy a need or a want.
False
Job enlargement involves incorporating motivational factors, such as achievement, recognition, and so on, into a job.
False
Job sharing occurs when a company shortens the workweek of all employees by a few hours to avoid layoffs.
False
Outputs include labour, materials, energy, and money.
False
Service businesses cannot incorporate quality standards.
False
Service providers are generally less labour-intensive because of the high degree of customization.
False
Work-in-process inventory consists of those products that are completed but waiting in warehouses for distribution.
False
Facilities layout
Fixed position layout - project organization - process layout - product layout
Sampling
How many items should be inspected. Depends on potential costs of product flaws in terms of human lives and safety
Program Evaluation and Review Technique (PERT)
Identifies major activities required to complete a project, determines the critical path, and estimates time needed to finish
Obtaining ISO 9000
Independent auditor verifies that a business meets quality standards. May require significant investment but may be essential to compete
Service
Intangible - customized inputs - customized outputs - more labour intensive - more difficult to measure productivity
Process layout
Intermittent organizations - deal with products of a lesser magnitude than project organizations. Their products are not necessarily unique but possess a significant number of difference
ISO 9000
International organization for standardization system of quality management standards designed to ensure the customers quality standards are met
Customization
Making products to meet a particular customers needs or wants
Mass customization
Making products to meet needs or wants of a large number of individual customers
Technology/computer assisted manufacturing (CAM)
Manufacturing that employs specialized computer systems to actually guide and control the transformation processess
Capacity
Maximum load that an organizational unit can carry or operate
Total Quality Management (TQM)
Philosophy that uniform commitment to quality will promote a culture that meets customers perceptions of quality
Material-Requirements Planning
Planning system that schedules the precise quantity of materials needed to make the product.
Inventory control
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
Quality Control
Processes an organization uses to maintain its established quality standards.
Inspection
Reveals whether a product meets quality standards
Routing
Sequence of operations through which the product must pass.
Statistical Process Control
System to collect and analyze information about production processed to pinpoint quality problems in the system
Manufacturing
Tangible - uniform inputs - uniform outputs - less labour intensive - easy to measure productivity
Operations
The activities and processes used in making both tangible and intangible products
Scheduling
The assignment of required tasks to departments or specific machines, workers, or teams.
Outsourcing
The contracting of manufacturing or other tasks to independent companies, often overseas. Increasingly a part of supply chain management in operations. Outsource aspects of operations to companies that provide products more efficiently, at lower cost, greater customer satisfaction.
Technology/Computer-assisted design (CAD)
The design of components, products, and processes on computers instead of on paper
Technology/flexible manufacturing
The direction of machinery by computers to adapt to different versions of similar operations
Outputs
The goods, services, and ideas that result from the conversation of inputs
Standardization
The making of identical interchangeable components or products. Faster, reduces production costs
Inputs
The resources (labour, material, energy, etc.) that are converted into outputs
Equity theory relates a person's willingness to contribute to the organization to the perceived fairness of the rewards received.
True
Human relations is the study of individual and group behaviour in organizational settings.
True
Operations management refers to those processes used in making both tangible and intangible products.
True
Purchasing is the buying of all materials needed by the organization.
True
Since boredom can sometimes result from job specialization, job rotation can be used as a strategy to relieve that boredom by giving employees the opportunity to move into another job.
True
TQM requires continuous quality improvement and employee empowerment.
True
The term routing is used in operations management to describe the sequence of operations through which the product must pass.
True
Theory Y managers maintain less control and supervision, do not use fear as the primary motivator, and are more democratic in decision making.
True
There is usually an assembly line used in the product layout.
True
Planning the product
Turn product ideas into workable design - the job of engineers and research and development departments