Chapter 21

Question 1

Operations Management

Answer 1

The set of managerial activities used by an organization to transform resource inputs into products, services, or both.

Question 2

The Importance of Operations

Answer 2

Efficient and effective management of operations is necessary for competitiveness and overall organization performance.

Question 3

Manufacturing and Production

Answer 3

A form of business that combines and transforms resource inputs into tangible outcomes that are then sold to others.

Question 4

Service Organization

Answer 4

Organization that transforms resources into an intangible output and creates time and place utility for its customers

Question 5

The Role of Operations in Organizational Strategy

Answer 5

Operations management has a direct impact on competitiveness, quality, productivity, and effectiveness.
Operations management and organizational strategy have reciprocal effects on each other.
Strategic goals cannot be met if there are deficiencies and insufficiencies in operations resources

Question 6

Designing Operations Systems

Answer 6

Determining Product-Service Mix
Capacity Decisions
Facilities Decisions

Question 7

Determining Product-Service Mix

Answer 7

Involves deciding how many and what kinds of products to offer in the marketplace.

Question 8

Capacity Decisions

Answer 8

Involve choosing the amount of products, services, or both that can be produced by an organization.
High-risk decisions due to uncertainty about future product demand and the significant costs of additional, possibly excess, capacity.

Question 9

Facilities Decisions

Answer 9

Facilities

Layout

Question 10

Facilities

Answer 10

The physical locations where products or services are created, stored, and distributed.
Location

Question 11

Layout

Answer 11

The physical configuration of facilities, the arrangement of equipment within facilities, or both.
Product Layout
Process Layout
Fixed Position Layout
Cellular Layout

Question 12

Product Layout

Answer 12

Facilities arranged around the product; used when large quantities of a single product are needed.

Question 13

Process Layout

Answer 13

Facilities arranged around the process; used in facilities that create a variety or products.

Question 14

Fixed Position Layout

Answer 14

Facilities arranged around a single work area; used for the manufacture of large and complex products.

Question 15

Cellular Layout

Answer 15

A configuration of facilities used when families of products can follow similar paths.

Question 16

Manufacturing Technology

Answer 16

Technology
Automation
Robot
Robotics

Question 17

Technology

Answer 17

The set of processes and systems used by organizations to convert resources into products or services.

Question 18

Automation

Answer 18

The process of designing work so that it can be completely or almost completely performed by machines.

Question 19

Robot

Answer 19

Artificial device

Question 20

Robotics

Answer 20

The science and technology of the construction, maintenance, and use of robots.

Question 21

Service Technology

Answer 21

Services are rapidly moving toward automated systems and procedures.

Question 22

Implementing Operations Systems Through Supply Chain Management

Answer 22

Supply Chain Management
Operations Management as Control
Purchasing Management
Inventory Management

Question 23

Supply Chain Management

Answer 23

The process of managing operations control, resource and inventory acquisition and purchasing, and thus improving overall efficiency and effectiveness.

Question 24

Operations Management and Control

Answer 24

Operations management can be used as a control by coordinating it with other organizational functions to insure that the system focuses on the elements that are most crucial to goal attainment.

Question 25

Purchasing Management

Answer 25

Controlling the buying of the materials and resources is at the heart of effective supply chain managemnte

Question 26

Inventory Management

Answer 26

Inventory control | Just-in-time method

Question 27

Inventory Control

Answer 27

X

Question 28

Just-in-time Method

Answer 28

As inventory system that has necessary materials arriving as soon as they are needed so that the production process is not interrupted.

Question 29

The meaning of Quality

Answer 29

The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. Quality is both a relative and absolute concept. Quality is relevant to both products and services.

Question 30

The Importance of Quality

Answer 30

Malcolm Bridge Award Competition Productivity Costs

Question 31

The Importance of Quality: Competition

Answer 31

Quality has become one of the most important competitive points in business today

Question 32

The Importance of Quality: Productivity

Answer 32

Quality enhancement programs decrease the number of defects, reduce resources dedicated to rework, and reduces the need for inspectors as employees become responsible for quality.

Question 33

The Importance of Quality: Costs

Answer 33

Improved quality reduces costs from customer returns, warranty, and lawsuits for faulty products, and lost sales to future customers.

Question 34

Total Quality Management

Answer 34

TQM A strategic commitment by top management to change its whole approach to business and to make quality a guiding factor in everything the organization does.

Question 35

Eight Dimensions of Quality

Answer 35

``` Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived Quality ```

Question 36

TQM Tools and Techniques

Answer 36

Value Bench marking Outsourcing Statistical Quality Control

Question 37

Guidelines for increasing speed of operation

Answer 37

Start from scratch. Minimize the number of approvals to get things done. Use work teams as a basis for organizations. Develop and adhere to a schedule. Don't ignore distribution. Integrate speed into the organization's culture.

Question 38

Productivity

Answer 38

An economic measure of efficiency that summarizes the value of outputs relative to the value of the resources used to produce them.

Question 39

Levels of Productivity

Answer 39

``` The unit of analysis used to calculate or define productivity. Aggregate Productivity Industry Productivity Company Productivity Unit Productivity Individual Productivity ```

Question 40

Aggregate Productivity

Answer 40

The total level of productivity for a country.

Question 41

Industry Productivity

Answer 41

The total productivity of all the firms in an industry.

Question 42

Company Productivity

Answer 42

The level of productivity of a single company.

Question 43

Unit Productivity

Answer 43

The productivity level of a unit or department.

Question 44

Individual Productivity

Answer 44

The productivity attained by a single person.

Question 45

Improving Productivity

Answer 45

Improving Operations | Increasing Employee Involvment

Question 46

Improving Operations

Answer 46

Spending more resources on research and development helps identify new products, new uses for existing products, and new methods for making products. Reworking transformation process and facilities can boost productivity.

Question 47

Increasing Employee Involvment

Answer 47

Increased employee participation can increase quality and productivity. Cross-training of employees allow the firm to function with fewer workers. Rewards are essential to success in improving productivity.