Business Exam 2

Question 1

production

Answer 1

The creation of goods using land, labor, capital, entrepreneurship and knowledge (the factors of production).

Question 2

Production Management

Answer 2

All the activities managers do to help firms create goods

Question 3

Operations Management

Answer 3

A specialized area in management that converts or transforms resources into goods and services.

Question 4

Form Utility

Answer 4

The value producers add into a finished good or service.

Ex.Putting services together to create a vacation package

Question 5

Andrew S. Grove’s BASIC PRODUCTION REQUIREMENTS

Answer 5

1. To build and deliver products in response to the demands of the customer at the scheduled delivery time.
2. To provide an acceptable quality level.
3. To provide everything at the lowest possible cost.

Question 6

Process Manufacturing

Answer 6

The part of production that physically or chemically changes materials.
ex. boiling the egg

Question 7

Assembly Process

Answer 7

The part of the production process that puts together components.
ex. eggs, coffee, toast = breakfast

Question 8

Continuous Process

Answer 8

Long production runs turn out finished goods over time.

ex.long conveyor belt with eggs that continuously are dropped into water – continuous stream of 3 minute eggs

Question 9

Intermittent Process

Answer 9

Production runs are short and the producer adjusts machines frequently to make different products
ex.a toaster in a diner or oven in a bakery

Question 10

Computer-Aided Design (CAD)

Answer 10

The use of computers in the design of products.

Question 11

Computer-Aided Manufacturing (CAM)

Answer 11

The use of computers in the manufacturing of products

Question 12

Computer-Integrated Manufacturing (CIM)

Answer 12

The uniting of computer-aided design with computer-aided manufacturing.
SIG. CIM is expensive but it cuts as much as 80% of the time needed to program machines to make parts

Question 13

Flexible Manufacturing

Answer 13

Designing machines to do multiple tasks so they can produce a variety of products.

Question 14

Lean Manufacturing

Answer 14

Using less of everything than in mass production.

Compared to others, lean companies:

• Take half the human effort.
• Have half the defects in finished products.
• Require one-third the engineering effort.
• Use half the floor space.
• Carry 90% less inventory.

Question 15

Mass Customization

Answer 15

Tailoring products to meet the needs of a large number of individual customers
ex.Chocomize

Question 16

Operations management

Answer 16

a specialized area in management that converts or transforms resources into goods and services through Facility location, Facility layout, Materials requirement planning, Purchasing, Inventory control, Quality control

Question 17

Facility Location

Answer 17

The process of selecting a geographic location for a company’s operations

future: Telecommuting – Working from home via computer.

Question 18

Facility Layout

Answer 18

The physical arrangement of resources, including people, to most efficiently produce goods and provide services.

Question 19

Facility Layout Options

Answer 19

1. Assembly Line Layout – Workers do only a few tasks at a time.
2. Modular Layout – Teams of workers produce more complex units of the final product.
3. Fixed-Position Layout – Allows workers to congregate around the product (like bridge or airplane)
4. Process Layout – Similar equipment and functions are grouped together and the order in which the product visits the equipment depends on the design of the product.

Question 20

Materials Requirement Planning (MRP)

Answer 20

A computer-based operations management system that uses sales forecasts to make sure parts and materials are available when needed.

Question 21

Enterprise Resource Planning (ERP)

Answer 21

A newer version of MRP, combines computerized functions into a single integrated software program using a single database.

Question 22

Purchasing

Answer 22

The function that searches for high-quality material resources, finds the best suppliers and negotiates the best price for goods and services.

Question 23

Just-in-Time (JIT) Inventory Control

Answer 23

The production process in which a minimum of inventory is kept and parts, supplies and other needs are delivered just in time to go on the assembly line.

Question 24

Quality

Answer 24

Consistently producing what the customer wants while reducing errors before and after delivery.

Question 25

Six Sigma Quality

Answer 25

A benchmark quality measure that allows only 3.4 defects per million opportunities.

Question 26

Statistical Quality Control

Answer 26

A process used to continually monitor all phases of the production process.

Question 27

Statistical Process Control

Answer 27

A process of testing statistical samples of product components at each stage of production.

Question 28

The International Organization for Standardization (ISO)

Answer 28

ISO 9000 – The common name given to quality management and assurance standards.The standards require that a company determine customer needs and determine how to handle complaints.

ISO 14000 – A collection of the best practices for managing an organization’s impact on the environment.

Certification as ISO 900 and 1400 means that a company had a world-class management system in both quality and environmental standards

Question 29

Program Evaluation and Review Technique (PERT)

Answer 29

Project management technique that shows the time taken by each component of a project, and the total time required for its completion. PERT breaks down the project into events and activities, and lays down their proper sequence, relationships, and duration in the form of a network. Lines connecting the events are called paths, and the longest path resulting from connecting all events is called the critical path. The length (duration) of the critical path is the duration of the project, and any delay occurring along it delays the whole project. PERT is a scheduling tool, and does not help in finding the best or the shortest way to complete a project.

Question 30

Gantt Chart

Answer 30

A type of bar chart that illustrates a project schedule at any given moment. Helpful for Managers to supervise projects every step of the way

Question 31

Intrinsic & Extrensic Rewards

Answer 31

Intrinsic- Personal Satisfaction when achieving a goal

Extrinsic- Rewards from someone else for completing goals

Question 32

Frederick Taylor & The Principles of Scientific Management

Answer 32

One of the first people to study management, the father of scientific management. He conducted time-motion studies to learn the most efficient of doing the job and then trained workers through his results.

Question 33

Principle of motion economy

Answer 33

Theory developed by Frank and Lillian Gilbreth that every job can be broken down into a series of elementary motions.

Question 34

Elton Mayo & the Hawthorne effect

Answer 34

Elton Mayo conducted a scientific management study on the Hawthorne Plant to see if specific conditions to the worker’s atmosphere would make them work differently. Instead, they came to the conclusion that the motivation of being watched made the employees work harder.

Question 35

Human Resource Management

Answer 35

The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating and scheduling employees to achieve organizational goals.