Chapter 8

Question 1

Operations Management

Answer 1

All activities involved in transforming a product idea into a finished product

Question 2

3 responsibilities of an operations manager

Answer 2

Production planning
Production control
Quality Control

Question 3

Planning the production process

Answer 3

1. Production-method decisions
2. Facilities decisions
3. Capacity planning
4. Facility layouts

Question 4

Production method decisions

Answer 4

Decide which type of production process serves the needs of the company’s customers

Question 5

Production methods

Answer 5

Make-to-order strategy
Mass production (make-to-stock)
Mass customization

Question 6

Make-to-order

Answer 6

Products are made to customer specification

Question 7

Mass production (make-to-stock)

Answer 7

High volumes of products are made at low costs and help in inventory in anticipation of future demand

Question 8

Mass customization

Answer 8

Fairly high volumes of customized products are made at fairly low prices

Question 9

Facility decision factors

Answer 9

Proximity to suppliers and customers
Availability of workers
Quality of life
Business climate

Question 10

Capacity planning

Answer 10

Forecast demand for your product

Question 11

Facility layouts

Answer 11

Process layout
Cellular layout
Fixed-position layout

Question 12

Process layout

Answer 12

Groups together workers or departments that perform similar tasks

Question 13

Cellular layout

Answer 13

Small teams of workers handle all aspects of building a component or even a finished product

Question 14

Fixed-position layout

Answer 14

Workers and equipment move to the product, which stays in one place

Question 15

Materials management activities

Answer 15

Purchasing
Inventory control
Work scheduling

Question 16

Purchasing and supplier selection

Answer 16

Accounts for 50% of all manufacturing costs

Question 17

2 ways technology has improved purchasing process

Answer 17

1. Companies can interact with suppliers through e-purchasing
2. EDI

Question 18

Electronic data interchange (edi)

Answer 18

computerized exchange of business transaction documents

Question 19

Inventory Control approaches

Answer 19

Just in time production
Material requirements planning
Manufacturing resource planning

Question 20

Just in time production

Answer 20

Suppliers must sent materials so they arrive just in time to enter the production process

Question 21

Material requirements planning

Answer 21

Computer program calculates material needs and determines when items should be ordered

Question 22

Manufactoring resource planning

Answer 22

Assists and monitors material planning

Question 23

Master production schedule

Answer 23

Keeps track of which goods will be produced, how many, when ,and the workflow

Question 24

Gantt chart

Answer 24

Graphical tool for determining status of projects

Question 25

Pert charts

Answer 25

Tool for diagramming activities and time required to produce a product and organizing activities in the most efficient sequence

Question 26

Use gantt when

Answer 26

Production is fairly simple Activities are not interrelated

Question 27

Use pert when

Answer 27

Schedule is complex Time lost on critical path could delay entire job

Question 28

Computer - aided design

Answer 28

Creates computer models of products

Question 29

Computer-aided manufacturing

Answer 29

Determines steps needed to produce a component and instructs machine designed to do the work

Question 30

Computer-integrated manufacturing

Answer 30

Integrates various operations W/ various business functions

Question 31

Flexible manufacturing system

Answer 31

Uses a central computer to control equipment that can be adaptat to produce a variety of goods

Question 32

Differences between manufacturers and service providers

Answer 32

Intangibility Customization Customer contact

Question 33

Operations planning

Answer 33

What services/goods to offer How will they provide these services Where will they locate their business and facilities Haw will they forecast demand

Question 34

Site selection

Answer 34

Traffic count Ease at entering and leaving the site Parking availability Cost of land

Question 35

Manufacturers can

Answer 35

Produce a product Store it Ship it

Question 36

Service providers

Answer 36

Cannot inventory their services Must satisfy customers

Question 37

Total quality Management

Answer 37

Includes all steps that a company takes to ensure that its goods or services are of sufficiently high qualify to meet customers needs

Question 38

Statistical process control

Answer 38

Monitors production qualify by testing a sample of output to see whether goods in process are being mace accounting to predetermined specifications

Question 39

Outsourcing

Answer 39

Practice of using outside mentors to manufacture company's actual product