ch 1.

Question 1

major business functions?

Answer 1

1. operations
2. marketing
3. finance

Question 2

What does a production system do?

Answer 2

Converts inputs to outputs to great GOODS and/or SERVICES

Question 3

how many value added activities are included in the conversion process?

Answer 3

one or more

Question 4

Managing activities include?

Answer 4

1. Planning
2. designing
3. executing
4. controlling

Question 5

Types of Outputs?

Answer 5

Goods: car, book, food, furniture
service: repairs, education, sales person

Question 6

can outputs include a combination of goods and services?

Answer 6

Yes

Question 7

Input examples?

Answer 7

land, labor, capital, materials, components, equipment, facilities, technology!

Question 8

conversion process involves? (5)

Answer 8

1. inputs
2. outputs
3. flow units
4. network of activities
5. Information structure

Question 9

Flow units?

Answer 9

a unit of input, output, or intermediate product

-examples: automobile, customer, data, crude oil, fruits and veggies

Question 10

Intermediate product

Answer 10

as assembled component or purchased part

Question 11

what do flow units influence?(4)

Answer 11

1. process type
2. process layout
3. resource type
4. process technology

Question 12

Activities?

Answer 12

1. building blocks of process
2. constitute the transformation process
3. add value to products and services
4. influence productivity and process performance
5. who, what order, when, how, how long, etc
6. examples: installing wheels, monitoring refining process, advising students, designing product or service, entering or analyzing data

Question 13

information structure>

Answer 13

1. to perform activities
2. to make managerial decisions
3. it triggers control mechanism
4. to measure process performance
5. sources

Question 14

information structure to make managerial decisions regarding?

Answer 14

1. process choice
2. input choices
3. activity choices

Question 15

What process performances are measured with information structure?

Answer 15

Financial and operationl

Question 16

What are the sources of information structure?

Answer 16

internal and external

Question 17

what is a transformation or conversion process?

Answer 17

a network of activities performed on flow units by resources using an appropriate information system

Question 18

what is the purpose of the transformation or conversion process?

Answer 18

to convert inputs to outputs!

Question 19

nature (or focus) of conversion systems: physical

Answer 19

manufacturing

Question 20

nature (or focus) of conversion systems: locational

Answer 20

transportation

Question 21

nature (or focus) of conversion systems: storage

Answer 21

warehousing

Question 22

nature (or focus) of conversion systems: distributional

Answer 22

retailing and wholesaling

Question 23

nature (or focus) of conversion systems: physiological

Answer 23

health care

Question 24

nature (or focus) of conversion systems: informational

Answer 24

service organizations

Question 25

production operations functions?

Answer 25

``` Product/Service Design Process Design Capacity Planning  Location Selection Facilities Layout Human Resources Work Systems Design Inventory Management Quality Management Demand Forecasting Production Planning, Scheduling, and Control Maintenance Decisions etc. ```

Question 26

Supply chain management functions include? (4)

Answer 26

1. marketing 2. operations 3. logistics 4. information technology

Question 27

characteristics of goods?

Answer 27

1. tangible 2. consumed 3. can be stored 4. can be resold 5. selling is seperate form production 6. quality is objective and easy to measure 7. customer interaction: low or absent 8. capital intensive 9. easy to automate 10 input and output: uniform and standard 11. productivity: usually high and easy to measure

Question 28

Characterisitics of services?

Answer 28

1. intangible 2. experiential 3. difficult to store 4. difficult to resell 5. production and consumption are simultaneous 6. selling is often part of the service 7. quality: subjective difficult to measure 8. customers interaction is usually very high 9. labor intensive 10. difficult ot automate 11. input and output varies 12. productivity is usually low and difficult to measure

Question 29

productivity?

Answer 29

measure of how well a country, industry or business unit is using its resources, inputs, or factors of production

Question 30

How is productivity computed?

Answer 30

as a ratio if output to input

Question 31

What are the three factors for productivity?

Answer 31

1. single-factor productivity 2. multi-factor productivity 3. total productivity

Question 32

single-factor

Answer 32

=output/labor

Question 33

multifactor

Answer 33

=output/(labor+machine)

Question 34

total productivity

Answer 34

=goods or services produced/all inputs used to produce them

Question 35

Productivity growth

Answer 35

=current period productivity-previous period productivity/ previous productivity (new-old)/(old)

Question 36

labor productivity

Answer 36

=total number of units produced/total labor hours used

Question 37

Delivery Productivity

Answer 37

= number of delivery (shipment) on time/total number of delivery (shipment)

Question 38

invenotry turnover

Answer 38

=cogs/average inventory value

Question 39

quality index

Answer 39

=(total units produced- rejected units)/ total units produced

Question 40

facility utilization

Answer 40

=facility used (hours)/ facility available (hours)

Question 41

When does productivity increase?

Answer 41

When firms; 1. Become more efficient 2. downsize 3. expand 4. retrench 5. achieve breakthrough

Question 42

Become more efficient?

Answer 42

output increases with little or no increase in input

Question 43

downsize?

Answer 43

output remains the same with reduced inputs

Question 44

Expand?

Answer 44

both output and input grow with output growing more rapidly

Question 45

acheive breathough

Answer 45

output increases while input decrease