Operations Management CH 1

__________ is defined as machinery that has sensing devices and control devices and is able to operate automatically.

Automation

The inputs of a process can include __________, raw materials, equipment, labor, or information.

Capital

When feedback indicates that the transformation process is not meeting established standards, corrective action is taken. This is referred to as __________.

Control

Job __________ involves specifying the contents and methods of a job. It includes determining what will be done in the job, what skills are needed to do the job, and how specialized the job will be.

Design

Core capabilities refer to the specific skills, abilities, or attributes that __________ an organization from its competitors.

Differentiate

ATM machines, automated mail sorters, and __________ banking are examples of automated services.

Online

__________ refers to completing a process for the lowest possible cost.

Efficiency

Job __________ involves the horizontal expansion of a job. This means that employees are given a larger range of tasks to complete, but these are all at the same level.

Enlargement

Job __________ involves a vertical expansion of a job, where the job is expanded to include more responsibility and control for planning and coordination.

Enrichment

As new technology changes quickly, investing in __________ technology can be a risk. The major risk is that the technology will become obsolete before the organization has time to earn a return on its investment.

Expensive

Resource __________ refers to the ability of employees and equipment to adjust to changes in products, output levels, and functions.

Flexibility

A __________ manufacturing system is a group of machines with re-programmable controllers. The reprogramming of the machines allows the group to produce a number of different products.

Flexible

A strategy is defined as a plan for achieving organizational __________.

Goals

The systems approach recognizes that all the subsystems function together as part of the whole and emphasizes that the whole is __________ than the sum of its individual parts.

Greater

In a __________ organization, there are no boundaries between functions. Instead, the organization operates via multidisciplinary teams.

Horizontal

The __________ of technology is an important process. It almost always leads to some disruptions. The disruptions need to be managed effectively for the organization to gain benefits from the technology.

Implementation

Process __________ is an alternative to process re-engineering. Rather than drastically changing processes, it involves studying the processes that are occurring.

Improvement

A team-based incentive plan is based on rewarding the performance of the team overall, rather than __________ performance.

Individual

The main difference between the production of goods and services is that services are __________.

Intangible

Operations management is considered an __________ concern, since it intersects with all the other functions of the organization.

Interfunctional

Customer __________ refers to the extent that customers interact with the processes that occur.

Involvement

A __________-based pay system is one where employees are rewarded based on the knowledge and skills they have.

Knowledge

The introduction of technology can reduce __________ costs because technology can either replace employees or reduce the number of employees required.

Labor

A quality-based strategy is one that is based on the organization __________ or improving the quality of products and services.

Maintaining

Computer-integrated __________ (CIM) uses an integrated computer system to link a number of manufacturing activities.

Manufacturing

Technology can reduce __________ costs by allowing materials to be used more efficiently.

Material

Process management refers to the selection of inputs, operations, work flows, and __________ to produce the organization's goods or services.

Methods

Order qualifiers are characteristics that customers perceive as __________ standards that must be met before considering purchasing a product.

Minimum

One risk of implementing technology related to labor is that the technology will automate processes to the point that employees lose job satisfaction and employee __________ suffers.

Morale

__________ management refers to the control of the processes that convert inputs into finished goods and services.

Operations

Process choice involves determining whether resources will be __________ based around the product or the process.

Organized

An __________-based pay system ties pay directly to performance by providing compensation based on the work completed. This type of pay system is also known as an incentive system.

Output

The goods or services that an organization produces via its processes are known as __________.

Outputs

The __________ phenomenon refers to the way that a few factors are important to achieving an objective, while many other factors are not.

Pareto The Pareto phenomenon refers to the idea that all things are not equal. Understanding the factors that are important helps ensure that priorities are set.

A ________ rate incentive plan is one where the individual's compensation is directly linked to his or her output. The higher the output of the employee, the greater the compensation received.

Piece

The value of a product or service is its quality divided by its __________.

Price

In a horizontal organization, the organization is based on the __________ that are crucial to the company, such as product development, customer support, and sales.

Processes

__________ is calculated by dividing the value of outputs by the value of inputs.

Productivity

__________ sharing is an incentive plan where employees are rewarded based on the profitability levels of the company as a whole.

Profit

The use of technology can provide reduced __________ costs. This occurs either by using technology to reduce defects or by using technology to inspect outputs and identify defects.

Quality

Process re-engineering refers to the __________ redesign of business processes, which typically occurs to improve cost, quality, service or speed.

Radical

A time-based strategy is one that is based on __________ the time it takes to complete tasks.

Reducing

Job __________ describes a work system where employees changes jobs at regular periods. For example, retail staff may switch between cashier, customer complaints, and sales.

Rotation

Gain sharing is an incentive plan where employees are rewarded based on __________ made in the cost of outputs.

Savings

Environmental __________ is the process of analyzing the environment to determine events or trends that are threats to the company as well as events or trends that are opportunities for the company.

Scanning For example, a fast food company may analyze the environment and identify that consumers are becoming health conscious. This is a threat if the company offers unhealthy foods. It could also be an opportunity, as the company could adapt to the change by offering healthy fast food options.

An organization that __________ its workforce into functional departments is a vertical organization.

Separates

Competitiveness refers to an organization's ability to meet the needs of customers relative to other organizations offering __________ products and services.

Similar

Capital intensity refers to the mix of equipment and human __________ required for a process.

Skills

Jobs with a high degree of __________ have a narrow scope. The range of tasks is narrow and there is a high degree of repetition.

Specialization

The transformation processes that occur in a system are grouped into six categories. They are physical, location, exchange, __________, physiological, and informational.

Storage

Industrial robots are a type of technology which are often used as a __________ for employees, completing repetitive manual tasks.

Substitute

A _________ is defined as a set of interrelated parts that function together to perform a certain function. An __________ is a system made up of different departments or subsystems, which in turn can contain subsystems.

System / Organization

A __________ pay system is a pay system where employees are compensated based on the number of hours they worked.

Time-based

__________ refers to the way that an organization cannot simultaneously excel in all areas. Instead, excelling in one area often means that another area is compromised.

Trade-off

As inputs are being converted to outputs, measurements are taken during the __________ process. This is referred to as feedback.

Transformation

In a production system, __________ processes convert inputs into outputs.

Transformation

Effectiveness refers to completing a process to provide the most __________ for the company.

Value

____________ integration refers to the degree to which the organization manages the entire chain of processes from raw materials to sales.

Vertical

Order __________ are characteristics of a product or service that customers perceive as making it better than products or services offered by competitors.

Winners

A _______ _______ team is a team that is empowered to make decisions related to the areas under their control . This includes making changes to improve the processes under the team's control.

self-directed