ch 1: introduction to production and operations management Flashcards
1
Q
is the process, which combines and transforms various resources used in the production/operations subsystem of the organization into value added product/services in a controlled manner as per the policies of the organization.
A
Production/Operations Management
2
Q
it is the part of an organization, which is concerned with the transformation of a range of inputs into the required (product/service) having the requisite quality level.
A
Production/Operations Management
3
Q
The set of interrelated management activities, which are involved in manufacturing certain products, is called as?
A
production management
4
Q
The set of interrelated management activities, which are involved in services management, is called as?
A
operations management
5
Q
The nature of production or operations can be better understood by viewing the manufacturing function as: (four distinct views)
(enumerate)
A
a) Production/operations as a system,
b) Production/operations as an organisational function,
c) Production/operations as a conversion or transformation process and
d) Production/operations as a means of creating utility.
6
Q
The view, “Production/operations as a system” is also known as?
A
“systems concept of production”
Production/operations as a system
7
Q
is defined as the collection of interrelated entities.
A
system
Production/operations as a system
8
Q
views any organisation or entity as an arrangement of interrelated parts that interact in ways that can be specified and to some extent predicted.
A
The systems approach
Production/operations as a system
9
Q
Production is viewed as a________which converts a set of inputs into a set of desired outputs.
A
system
Production/operations as a system
10
Q
A production system has the following elements or parts:
A
- Inputs,
- Conversion process or transformation process,
- Outputs
- Transportation subsystem,
- Communication subsystem and
- Control or decision-making subsystem.
Production/operations as a system
11
Q
To create goods and services, all organisations, whether manufacturing goods or providing services, perform?
A
three basic functions
Production/operations as an organisational function
12
Q
which function generates the demand or takes customers’ orders for a product or service?
A
Marketing
Production/operations as an organisational function — three basic functions
13
Q
which function creates the product (goods or services)?
A
Production/Operations
Production/operations as an organisational function — three basic functions
14
Q
which function keeps track of how well the organisation is performing, and takes care of cash inflow and cash outflow?
A
Finance/Accounting
Production/operations as an organisational function — three basic functions
15
Q
Production/operations managers need to build and maintain strong relationships both?
A
intra-organizational and inter-organizational
Production/operations as an organisational function
16
Q
Inter-organisational relationship exists between?
A
production/ operations department and suppliers.
Production/operations as an organisational function
17
Q
intra-organisational relationship calls for?
A
cross-functional coordination
Production/operations as an organisational function
18
Q
is essential for effective production/operations management. For example, marketing function determines the need for new products and services and the demand for existing ones and operations managers must bring together human and capital resources to meet these demands effectively.
A
Cross functional coordination
Production/operations as an organisational function
19
Q
It is the core of a production system because it consists of processes or activities wherein workers, materials, machines and equipment are used to convert inputs into outputs, i.e.,
A
The conversion or transformation sub-system
Production/operations as a conversion or transformation process
20
Q
The conversion process may include manufacturing processes such as?
A
cutting, drilling, machining, welding, painting, etc., and other processes such as packing, selling, etc.
Production/operations as a conversion or transformation process
21
Q
Any conversion process consists of several small activities referred to as?
A
“operations”
Production/operations as a conversion or transformation process
22
Q
are some steps in the overall process of producing a product or service that leads to the final output.
A
“operations”
Production/operations as a conversion or transformation process
23
Q
Production is defined as?
A
the process of adding to the value of outputs or the process of creating utility in outputs.
Production/operations as a conversion or transformation process
24
Q
is the power of satisfying human needs.
A
“Utility”
Production/operations as a conversion or transformation process
25
During this process, various types of utilities are created while adding value to the outputs.
During the process of converting the raw materials into finished goods (**PRODUCTION**)
## Footnote
Production/operations as a conversion or transformation process
26
types of utilities
## Footnote
(enumerate)
1. Form utility
2. Place utility
3. Time utility
4. Possesion utility
5. Service utility
6. Knowledge utility
## Footnote
Production/operations as a conversion or transformation process
27
which is created by changing the size, shape, form, weight, color, smell of inputs in order to make the outputs more useful to the customers.
Form utility
## Footnote
For example, iron ore is changed to steel, wood is changed to furniture, etc. — (Production/operations as a conversion or transformation process)
28
which is created by changing the places of inputs or transporting the inputs from the source of their availability to the place of their use to be converted into outputs.
Place utility
## Footnote
For example, the iron ore and coal are transported from the mines to the steel plant to be used in the conversion process. — (Production/operations as a conversion or transformation process)
29
which is created by storage or preservation of raw materials or finished goods which are in abundance sometime, so that the same can be used at a later time when they become scarce due to higher demand exceeding the quantity available.
Time utility
## Footnote
(Production/operations as a conversion or transformation process)
30
which is created by transferring the possession or ownership of an item from one person to another person.
Possession utility
## Footnote
For example, when a firm purchase materials from suppliers, the possession utility of the materials will increase when they are delivered to the buying firm. — (Production/operations as a conversion or transformation process)
31
which is the utility created by rendering some service to the customer.
Service utility
## Footnote
For example, a doctor or a lawyer or an engineer creates service utility to a client/customer by rendering service directly to the client/customer. — (Production/operations as a conversion or transformation process)
32
which is created by imparting knowledge to a person
Knowledge utility
## Footnote
For example, a sales presentation or an advertisement about some product communicates some information about the product to the customer, thereby imparting knowledge. — (Production/operations as a conversion or transformation process)
33
refers to the application of management principles to the production function in a productive system such as a factory or a manufacturing plant.
Production Management
## Footnote
(e.g., steel plant, cement plant, etc.)
34
It involves application of **planning, organising, directing and controlling the production processes** employed for the conversion of inputs into outputs in a productive system.
Production Management
35
The objective of production management is to?
produce goods services of right quality and quantity at the right time and at the right manufacturing cost.
36
the quality of product is established based upon the?
customers’ needs
## Footnote
Objectives of Production Management—right quality
37
The right quality is the same as the best quality.
## Footnote
(true or false)
false
## Footnote
"The right quality is not necessarily best quality." It is determined by the **cost of the product** and the **technical characteristic**s as suited to the **specific requirements**—(Objectives of Production Management—right quality)
38
the objective of production that stated the manufacturing organization should produce the products in right number.
Right Quantity
## Footnote
Objectives of Production Managemet
39
What happens when the manufacturing organization produce in excess of demand and when they produce in short demand
* If they produced in ***excess*** of demand—the *capital will block* up in the form of *inventory.*
* if the quantity is produced in ***short*** demand— leads to *shortage of products.*
## Footnote
Objectives of Production Managemet—right quantity
40
This is one of the important parameters to judge the effectiveness of production department.
timeliness of delivery
## Footnote
Objectives of Production Managemet—right time
41
So, the production department has to make the **optimal utilization** of input resources to achieve its objective.
Right Time
## Footnote
Objectives of Production Managemet—right time
42
these costs are established **before** the product is actually manufactured.
manufacturing costs
## Footnote
Objectives of Production Managemet—right Manufacturing Cost
43
All attempts (should be) made to produce the products are?
pre-established cost
## Footnote
so as to reduce the variation between **actual** and the standard (pre-established) cost.—(Objectives of Production Managemet—right Manufacturing Cost)
44
Operations Management refers to a set of activities that?
Operations Management refers to a **set of activities that creates value** in the form of goods and/ or services by transforming inputs into outputs.
45
**designs and operates productive systems** or **operating systems** such as banks, hospitals, hotels, government agencies and manufacturing plants.
Operations management
46
includes activities such as organising work, selecting processes, arranging layouts, locating facilities, designing jobs, measuring performance, controlling quality, scheduling work, managing inventory and planning production.
Operations management
47
Objectives of Operations Management
* The Customer Service Objective
* The Resource Utilization Objective
48
To provide agreed/adequate levels of customer service (and hence **customer satisfaction**) by providing goods or services with the right specification, at the right cost at the right time.
The Customer Service Objective
## Footnote
Objectives of Operations Management
49
To achieve **adequate levels of resource utilization (or productivity)**
## Footnote
[e.g., to achieve agreed levels of utilization of materials, machines and labour.]
The Resource Utilization Objective
## Footnote
Objectives of Operations Management
50
there is a lot of difference between the two terms: production management and operations management.
## Footnote
(true or false)
false
## Footnote
there is **hardly any** difference between the two terms: production management and operations management
51
The two apparent differences between production management and operations management are:
a. The **term** “production management” is mainly used for a productive system where tangible goods are produced; whereas the term “operations management” is more frequently used where various inputs are transformed into intangible services.
b. Operations management is the more recent term used to activities involved in the **process** of transforming inputs into outputs (goods and/or services) in a productive system, whereas the term “production management” (or manufacturing management) was used earlier to refer to activities related to the process of transforming inputs into outputs (mainly tangible goods).
## Footnote
idk
52
This term is mainly used for a productive system where tangible goods are produced
production management
53
This term is more frequently used where various inputs are transformed into intangible services.
operations management
54
is the more recent term used to activities involved in the process of transforming inputs into outputs (goods and/or services) in a productive system.
Operations management
55
This term was used earlier to refer to activities related to the process of transforming inputs into outputs (mainly tangible goods).
“production management” (or manufacturing management)
56
Although goods and services often go hand in hand, there are some very basic differences
between the two, differences that impact the management of the goods portion versus managemen of the service portion.
## Footnote
(true or flase)
true
57
What are the difference of goods and services in terms of the product they offer?
- Services are usually **intangible** whereas;
- Goods are **tangible** (i.e., can be touched and seen)
## Footnote
DIFFERENCE BETWEEN GOODS AND SERVICES
58
What are the difference of goods and services in terms of their process/production and consumption?
- Services are often **produced and consumed simultaneously,** services **cannot be stored** whereas;
- Goods can be **produced and inventoried** before consumption or use
## Footnote
DIFFERENCE BETWEEN GOODS AND SERVICES
59
What are the difference of goods and services in terms of their uniqueness?
- Services are often **unique,** for example insurance policies, medical treatment procedures, haircut styles, etc.
- Goods are usually similar to one another(?)
## Footnote
DIFFERENCE BETWEEN GOODS AND SERVICES
60
What are the difference of goods and services in terms of customer relationship?
- Services have **high customer interaction**; services are often **difficult to standardize and automate** because customer interaction demands **uniqueness.** The service product may have to be customized in most of the service offerings.
- Goods offer little to no direct interactions with the customers.
## Footnote
DIFFERENCE BETWEEN GOODS AND SERVICES
61
Services are often ________________ based.
knowledge
## Footnote
example: educational, health-care, legal and consultancy services and, therefore, difficult to standardize and automate.—(DIFFERENCE BETWEEN GOODS AND SERVICES)
62
Services are ________________________ because services may have to delivered to the client/customer at his/her place or office, a retail outlet or even at the residence of the customer/client.
frequently dispersed
## Footnote
DIFFERENCE BETWEEN GOODS AND SERVICES
63
What are the difference of goods and services in terms of reselling?
- Goods can be inventoried and can be resold whereas
- Services cannot be inventoried and reselling of services is unusual
## Footnote
DIFFERENCE BETWEEN GOODS AND SERVICES
64
What are the difference of goods and services in terms of measurability?
- **Some aspects** of quality of *goods* are **measurable** whereas
- **Many aspects** of quantity of *services* are **difficult to measure.**
## Footnote
DIFFERENCE BETWEEN GOODS AND SERVICES
65
What are the difference of goods and services in terms of selling and production?
- Selling and production are **distinct** in case of goods whereas
- in case of services selling is often a **part of the service.**
## Footnote
DIFFERENCE BETWEEN GOODS AND SERVICES
66
What are the difference of goods and services in terms of transportation.
- Goods **can be transported** whereas
- Service **cannot be transported**but the **service provider** can be transported.
## Footnote
DIFFERENCE BETWEEN GOODS AND SERVICES
67
What are the difference of goods and services in terms of location?
- Location of facility to manufacture goods, **affects costs** whereas
- location of service facility affects **customer contact.**
## Footnote
DIFFERENCE BETWEEN GOODS AND SERVICES
68
What are the difference of goods and services in terms of automation?
- Manufacturing of goods can be **easily automated** whereas
- service is often **difficult to automate.**
## Footnote
DIFFERENCE BETWEEN GOODS AND SERVICES
69
RESPONSIBILTIES OF PTODUCTION/OPERATIONS MANAGER
## Footnote
(enumerate)
a. Meeting requirements of quality demanded by customers.
b. Establishing realistic delivery or completion dates.
c. Producing the required volume of products to meet the demand.
d. Selection and application of most economic methods or processes.
e. Controlling the cost of inputs and conversion process and thereby keeping the cost of
outputs within the desired limits.
70
Production managers are responsible for the amalgamation of?
5Ps
* Product
* Plant
* Processes
* Programs
* People
71
is the most obvious interface between production and marketing.
product
## Footnote
5Ps
72
products include characteristics such as?
* performance,
* aesthetics,
* quality,
* reliability,
* selling price,
* delivery dates and/ or
* lead times.
## Footnote
5Ps
73
includes **buildings, equipment and machinery** required to produce the product.
plant
## Footnote
5Ps
74
include the **transformation or conversion processes** which convert the inputs into outputs.
processes
## Footnote
5Ps
75
consist of **schedules or timetables** which set times for delivery of products or services to customers.
programs
## Footnote
5Ps
76
These delivery schedules in turn decide the time schedules for various activities such as?
design, purchase, manufacture, assembly, packing and despatch etc.
## Footnote
programs — 5Ps
77
The aspect of production management includes the **skills, knowledge, intelligence,** etc., *of labour and managerial personnel* which is crucial for the efficient and effective utilisation of resources for the production of outputs.
people
## Footnote
5Ps
78
Operations management came to prominence in the ________ century, but its roots can be traced back to the ________ and ________ centuries.
Operations management came to prominence in the 20th century, but its roots can be traced back to the 18th and 19th centuries.
79
One of the first people to address the issues of operations management was?
the Scottish philosopher -- and **father of modern economics** -- **Adam Smith.**
## Footnote
Pre-Industrial Revolution
80
In ________ Smith wrote "________________________," in which he described the **division of labor**.
In **1776** Smith wrote "**The Wealth of Nations**," in which he described the division of labor.
## Footnote
Pre-Industrial Revolution
81
According to Smith, if workers divided their tasks, then they could produce their products more efficiently than if the same number of workers each build products from start to finish. This concept would later be used by **Henry Ford** with the introduction of the **assembly line.**
division of labor
## Footnote
Pre-Industrial Revolution
82
During the industrial revolution, what allowed factories to grow in capacity and greatly increased their output?
machinery
## Footnote
Post-Industrial Revolution
83
With the help of machineries, factories to grew in capacity and greatly increased their output, as a result, there was no longer inefficiency in production.
## Footnote
(true or false)
false
## Footnote
(During the industrial revolution, machinery allowed factories to grow in capacity and greatly increased their output. Despite this growth, there was considerable inefficiency in production.) — Post-Industrial Revolution
84
Two individuals helped to overcome inefficiencies in production in the **early 20th century**, they are?
Frederick Winslow Taylor and Henry Ford
## Footnote
Post-Industrial Revolution
85
**Taylor** developed a ____________ approach for operations management.
scientific
## Footnote
(collecting data about production, analyzing this data and using it to make improvements to operations.) — Post-Industrial Revolution
86
Henry Ford increased efficiency in production by introducing ________________________________ and improved the supply chain through________________________________.
Henry Ford increased efficiency in production by introducing **assembly line production** and improved the supply chain through **just-in-time delivery.**
## Footnote
Post-Industrial Revolution
87
Technological developments during the________________________ created new possibilities for managers looking to improve their operations. Specifically, the development of ____________________________ allowed for a greater degree of data to be analyzed by firms.
Technological developments during the ***second world war*** created new possibilities for managers looking to improve their operations. Specifically, the development of ***computational technology*** allowed for a greater degree of data to be analyzed by firms.
## Footnote
Post-World War II
88
During this time, the abilities of computers have continued to increase exponentially, allowing for a high degree of data analysis and communication. Modern producers are now able to track their inventory from raw materials, through production and delivery.
Post-World War II
89
is a system for **mapping, improving and monitoring** operations processes.
Quality management
(Quality management systems are popular in today's operations managemen)
## Footnote
Modern Day
90
A variety of quality management systems are in use among top firms, the most notable systems being the?
ISO systems and Six Sigma
## Footnote
Modern Day
91
Although operations management has typically dealt with the manufacturing process, the growth of the ____________ industry has created a field of ________________________________________________.
Although operations management has typically dealt with the manufacturing process, the growth of the **service** industry has created a field of **service operations management**.
## Footnote
Modern Day
92
what is the aim of quality management systems such as ISO systems and Six Sigma?
to increase the efficiency of business processes
## Footnote
Modern Day
93
Key Issues for Todays’ Business Operations
1. Economic conditions
2. Innovating
3. Quality problems
4. Risk management
5. Competing in a global economy
94
The lingering recession and slow recovery in various sectors of the economy has made managers cautious about investment and rehiring workers who had been laid off during the recession.
Economic conditions
## Footnote
Key Issues for Todays’ Business Operations
95
Finding new or improved products or services are only two of the many possibilities that can provide value to an organization.
Innovating
## Footnote
Key Issues for Todays’ Business Operations
96
can be made in processes, the use of the Internet, or the supply chain that reduce costs, increase productivity, expand markets, or improve customer service.
Innovating
## Footnote
Key Issues for Todays’ Business Operations
97
Managing risks starts with identifying risks, assessing vulnerability and potential damage (liability costs, reputation, demand), and taking steps to reduce or share risks.
Risk management
## Footnote
Key Issues for Todays’ Business Operations
98
Companies must carefully weigh their options, which include outsourcing some or all of their operations to low-wage areas, reducing costs internally, changing designs, and working to improve productivity.
Competing in a global economy
## Footnote
Key Issues for Todays’ Business Operations
99
The need for logical conduct in business is becoming increasingly obvious, given numerous examples of questionable actions in recent history.
## Footnote
(true or false)
false
## Footnote
The need for **ethical** conduct in business is becoming increasingly obvious, given numerous examples of questionable actions in recent history.
100
In making decisions, managers must consider how their decisions will affect internal and external benefactors, the community at large, and the environment.
## Footnote
(true or false)
true
## Footnote
In making decisions, managers must consider how their decisions will affect **shareholders, management, employees, customers**, the **community** at large, and the **environment.**
101
is that the good done by an action or inaction should outweigh any harm it causes or might cause. An example is not allowing a person who has had too much to drink to drive.
Utilitarian Principle
102
is that actions should respect and protect the moral rights of others. An example is not taking advantage of a vulnerable person.
Rights Principle
## Footnote
Ethical Conduct
103
is that equals should be held to, or evaluated by, the same standards. An example is equal pay for equal work.
Fairness Principle
## Footnote
Ethical Conduct
104
is that actions should contribute to the common good of the community. An example is an ordinance on **noise abatement.**
Common Good Principle
## Footnote
Ethical Conduct
105
is that actions should be consistent with certain ideal virtues. Examples include honesty, compassion, generosity, tolerance, fidelity, integrity, and self- control,
Virtue Principle
## Footnote
Ethical Conduct
106
taiichi ohno is the father of
father of the toyota production system
