Exam 1 Flashcards by John Bonato

What is the US business strategy

Short term profit maximization

How well did you know this?

Not at all

Perfectly

USA financial results

Focus on bottom line directly

How well did you know this?

Not at all

Perfectly

Japanese business strategy

Maximize market share through quality products

How well did you know this?

Not at all

Perfectly

Japanese financial results

The financial results are the results of a business strategy and the operation to back it up

How well did you know this?

Not at all

Perfectly

What are 2 things Arnold Feigenbum is known for?

Concept of internal and external customers

Began total quality management (TQM)

How well did you know this?

Not at all

Perfectly

What are 2 things Fredrick Taylor is known for?

To take up a task, divide it up into its simplest elements , and assign a person to each element

Incentive system: incremental profits
1/3 to the worker
2/3 to the owners

How well did you know this?

Not at all

Perfectly

What is Good-will

Cost of warranty
administration
shipping
repairing or replacement

How well did you know this?

Not at all

Perfectly

What is ill-will

Loss of future sales

How well did you know this?

Not at all

Perfectly

What is a hidden factory

A factory within a factory where a group of workers correct the defects made by other workers

How well did you know this?

Not at all

Perfectly

what are elements to the costs of a hidden factory

inspectors
rework
scraping 
good-will
ill-will

How well did you know this?

Not at all

Perfectly

according to who dose hidden factories cost 30-50%

Arnold Feigenbaum

How well did you know this?

Not at all

Perfectly

what was Edward Deming’s view on quality control

Remove cause of defects, not the defects alone

How well did you know this?

Not at all

Perfectly

Founder of small group dynamics

Edward Deming

How well did you know this?

Not at all

Perfectly

What is small group dynamics

The thought that creating a small group would improve productivity

How well did you know this?

Not at all

Perfectly

What are factors the contribute to small group dynamics

perception of being special
social bonding: extended family
Teaching: each other easier ways of performing a task
Discovering: a new way of performing a task

How well did you know this?

Not at all

Perfectly

what is the concept of Edward Deming chain reaction

continues improvement

How well did you know this?

Not at all

Perfectly

Edward Deming’s chain reaction

Make a better product 
more satisfied customers 
positive word of mouth advertising 
more repeat business 
greater market share 
greater profits 
greater job security 
good for god and country 
repeat cycle 
.......quality is free.......

How well did you know this?

Not at all

Perfectly

what was Matsushita concept

Ideas out of the hands of bosses into the hands of the laborers, pulling together the intellectual resources of all employees in the service of the firm

How well did you know this?

Not at all

Perfectly

What was Adam smiths biggest contribution

Free enterprise system

How well did you know this?

Not at all

Perfectly

what is free market

Customers determine if the company will stay in business

How well did you know this?

Not at all

Perfectly

what is Laissez Faire economics

no interference of the government “hands off”

How well did you know this?

Not at all

Perfectly

What is Mercantilism

State intervention to encourage domestic trade
tariffs
quotas

How well did you know this?

Not at all

Perfectly

What is Free trade

Introduced by Adam Smith was the removal of trade barriers between countries

How well did you know this?

Not at all

Perfectly

What is Specialization

Focus on what he knows best

How well did you know this?

Not at all

Perfectly

What was Adam Smiths thoughts about the barter system

Disagreed, thought money was meant to be the medium of exchange

According to Adam Smith, What will price tell us and what will it not tell us

Price will tell us when to produce | won't tell us when to stop until its too late

What is the business cycle

Boom and bust times

What has to be done to be able to recover from depression according to he business cycle

Excess inventory has to be liquidated

Privatization

Taking a nationalized company and giving it back to business people

Nationalized company

Company that is controlled by the government

Eli Whitney was known as a?

Mechanical genius

What was Eli Whitney's greater contributions

Interchangeable parts | the first factory

what is Reverse engineering

Dismantling a competitors product or examining a competitors service with intent to discover improvements for a product or service

Benchmarking

The process of continuously comparing and measuring the business processes of an organization with business leaders

Reengineering

The fundamental rethinking and radical redesign of a business process

What was Isaac Singer known for?

Advertising

What 5 acts contributed to singers success

Advertising; Let public know the product Demonstration:let people see the product in action Training: those trained in the product are more likely to buy the product Hire purchase: start of consumer credit First global company: saw world as market

What was Cyrus McCormack's greatest contribution?

Annual model change

What helped Ford become successful

``` Adam smiths enterprise system Eli Whitney's interchangeable parts US gov't for insisting interchangeable parts singer for assembly operations Bicycle for stamping parts early examples of the conveyor belt gasoline engines and pneumatic tires ```

What is Economies of scale

Cost will decrease while production increases as long as you change the technology

Ford cycle

Build a car with low profit margin Improve economies of scale pass savings to the customers with lower prices more volume allows greater economy of scale pass savings to customers again stay on the cycle until factory is at full capacity build new factory with greater economies of scale and around the cycle again

What was the River Rouge plant known for

Vertically integrated | The whole process under one roof

What was fords operating philosophy

Examine every step in the process, every step has a cost, dose the step add value to the process, if not eliminate the step

according to Ohno, what was responsible for Toyotas success?

Updating ford and adopting his philosophy

What is push manufacturing

The process of producing a product and pushing it to a warehouse for others to draw upon

What is pull manufacturing

Immediate consumption of a product, if it can't be consumed it can't be produced

What are the savings in going from a push to pull manufacturing?

- elimination of work process inventory - Immediate discovery of defective pars - no unimportant workers, improvement of worker moral and productivity

According to Arnold Feignbum unter Total quality management who should determine standard of performance

Customers | managers

Undoing of the assembly line

Volvo developed a concept of building the car in one spot with highly educated workers

What is quantitative solution

decision based on price

What is quantitative solution

decision which takes reliability into account

Productivity equation

Output / input

What is the global political system

Democratic process

What is the Global economic system

Adam smiths free enterprise system

What is the Global language

English

What is the Global culture

American

What is the Global Currency

The dollar

What is Global banking

Done through foreign offices of domestic banks

Global communication

Ability to speed dial anyone throughout the world

Global Telecommunication

To keep track of shipments

What is global logistics

Movement of goods around the world

What is containerization

Load goods in a 8x8x40 box and move it

What is intermodalism

The thought that a individuals is indifferent about the mode of transport, the choice will depend on whichever delivers best in terms of cost and time

Exam 1 Flashcards

(63 cards)