Chapter 10

Question 1

Goods production

Answer 1

Making tangible products

Question 2

Service operations

Answer 2

Providing intangible services

Question 3

Types of utility (want satisfied)

Answer 3

Time utility: providing customers WHEN they want it
Place utility: providing customers WHERE they want it
Ownership utility: providing customers that they take pleasure in owning
Form utility: increasing sanctification by turning raw materials into finished goods

Question 4

Why are service operations more complicated than goods production?

Answer 4

1. Customer interactions
2. Intangible/unstorable nature of services
3. Customer’s presence in the production process
4. Service quality varies from customer by customer.

Question 5

General classification of goods producing process

Answer 5

Make-to-order (custom) or Make-to-stock (standard orders in large quantity)

Question 6

Specific classification of goods producing process (transformation tech)

Answer 6

Chemical: raw materials are chemically altered
Fabrication: mechanically alter the basic shape/form of a product
Assembly: put together various components to make a product
Transport: goods acquire place utility by being moved from one placed to another
Clerical: transforming information

Question 7

Classification of service producing process

Answer 7

High-contact system: customer is a big part of the production (public transport)
Low-contact system: customers are not physically present (auto repair shops)

Question 8

Operations/Production capability

Answer 8

Activity or process that production must do especially well, with high proficiency

Question 9

Capacity

Answer 9

Amount of a product a company can produce under normal working conditions

Question 10

Capacity planning

Answer 10

Goods producing: slightly exceed normal demand
Low-contact service: set at average demand
High-contact service: meet peak demand

Question 11

Location planning

Answer 11

Goods producing: depends on proximity to raw materials/markets, availability of labor, energy/transportation costs, local regulations/taxes, and community living conditions
Low-contact service: important to locate near supplies, labor, or transportation outlets
High-contact service: must be located near customers

Question 12

Layout planning

Answer 12

Process layout: equipment/people grouped according to function
Product layout: provide one type of service/product in a fixed sequence
Fixed position layout: taking labor, equipment, materials, and other resources to the place where work needs to be done

Question 13

Flexible manufacturing system (FMS)

Answer 13

enables a single factory to produce a wide variety of products

Question 14

Soft manufacturing

Answer 14

reducing huge FMS to smaller groups of machines. Automation relegated to roles they do best, while human employees are in charge of decision making

Question 15

Movable factory

Answer 15

Developing countries can’t afford FMS, purchases used equipment from industrialized countries and produces their own goods

Question 16

Methods planning

Answer 16

Identify all steps in production, to reduce waste, inefficiency, and poor performance.

Question 17

Master operations schedule

Answer 17

The game plan of operations. Determines which products will be made, when it will be made, and what resources are to be used

Question 18

Detailed schedule

Answer 18

Daily assignments with start and stop times for assigned jobs at each workstation

Question 19

Staff schedules

Answer 19

Specify assigned working times in upcoming days, considering staff’s needs, company’s efficiency and costs.

Question 20

Project scheduling

Answer 20

Gantt chart: Illustrates steps to be performed and specifies the time required to complete each step.
Program evaluation and review technique (PERT) chart: similar to gantt charts, but also shows the critical path for meeting the project goals

Question 21

Operations control (Materials management) 5 components of materials management?

Answer 21

Standardization: use of the same components whenever possible, rather that new ones.
Transportation: both resources to company and finished goods to customers
Warehousing: storing materials and finished goods
Inventory control: Receiving, handling, and counting all raw, partially finished, and finished goods
Supplier selection: Finding and choosing suppliers to buy materials from
Purchasing: Acquiring all the raw materials and services needed

Question 22

Lean production systems

Answer 22

Designed to avoid inefficiencies, eliminate unnecessary inventories, and continually improve production.

Question 23

Just-in-time (JIT) production systems

Answer 23

Type of lean production, bringing in all needed materials at the exact moment they are required for production, not before.

Question 24

Operations control (Production process control)

Answer 24

Training workers
Materials requirements planning (MRP): basic “recipe” for a finished product
Manufacturing resource planning (MRP II): ties the production processes to the different parts of the organization
Quality control: making sure goods or services meet specific quality standards.