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Business Administration > Ch10 > Flashcards

Ch10 Flashcards

1
Q

service operations

A

production activities that yield tangible and intangible service products (entertainment, education, transportation, and food preparation etc)

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2
Q

goods production

A

production activities that yield tangible products (books, electronics, etc)

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3
Q

difference btwn production and operations

A

productions historically associated with manufacturing, operations includes both service and goods production

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4
Q

utility

A

power of a product to satisfy a human want; smthg of value

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5
Q

time utility

A

quality of a product that satisfies a human want because of the time at which it is made available (Christmas ornaments ex.)

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6
Q

place utility

A

quality of a product that satisfies a human want because of where it is made available

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7
Q

ownership (possession) utility

A

quality of a product that satisfies a human want during its consumption or use (consumers take pleasure in owning)

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8
Q

form utility

A

quality of a product that satisfies a human want because of its form; requires raw materials to be transformed into a finished products (ornaments are made from glass, plastic, etc)

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9
Q

operations (or production) management

A

set of methods and technologies used in the production of a good or a service

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10
Q

production managers

A

managers responsible for ensuring that operations processes create value and provide benefits

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11
Q

4 ways service operations are more complicated than goods production

A
  1. interacting with consumers
  2. intangible and unstorable nature of some services
  3. customer’s presence in the process
  4. service quality considerations
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12
Q

operations process

A

set of methods and technologies used in the production of a good or a service

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13
Q

types of transformation technologies

A 
chemical process (chemically altering raw materials)
fabrication ' (mechanically alters the shape or form of a product)
assembly " (puts together various components)
transport " (goods are moved from one location to another)
clerical " (combining data on employee absences and machine breakdowns into a productivity report)
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14
Q

analytic process

A

production process in which resources are broken down into their component parts

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15
Q

synthetic process

A

any production process in which resources are combined

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16
Q

high-contact system

A

system in which the service cannot be provided without the customer being physically in the system (ex. transit)

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17
Q

low-contact system

A

system in which the service can be provided without the customer being physically in the system (ex. shoveling snow)

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18
Q

operations capability (production capability)

A

the activity or process that production must do especially well and with high proficiency

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19
Q

forecast

A

estimate of future demand for both new and existing products

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20
Q

capacity

A

amount of a good that a firm can produce under normal working conditions

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21
Q

five categories of operations planning

A

capacity, location, layout, quality, and methods planning

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22
Q

capacity planning

A

ensuring that a firm’s capacity is just slightly over the normal demand for the product

  • low-contact system: capacity should be at the level of average demand
  • high-contact system: capacity should be set to meet peak demand
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23
Q

location planning

A
  • in goods-producing operations – influenced by proximity to raw materials and markets, availability of labour, energy and transportation costs, local regulations/taxes, and community living conditions
  • low-contact services can be located near resource supplies, labour, or transportation outlets
  • high-contact services must locate near customers
24
Q

layout planning

A
  • layout of machinery, equipment, and supplies
  • in a facility that makes physical goods, layout must be planned for three types of space: actual work stations, storage and maintenance, and support facilities (offices, restrooms, etc)
25
Q

process layout

A

way of organizing production activities such that equipment and ppl are grouped together according to their function

26
Q

cellular layout

A

used to produce goods when families of products can follow similar flow paths

27
Q

product layout

A

way of organizing production activities so that equipment and ppl are set up to produce only one type of good

28
Q

assembly line

A

type of product layout in which a partially finished product moves through a plant on a conveyor belt or other equipment

29
Q

lean manufacturing

A

system designed for smooth production flows that avoid inefficiencies, eliminate unnecessary inventories, and continuosly improve production processes

30
Q

flexible manufacturing system (fms)

A

production system that allows a single factory to produce small batches of different goods on the same production line

31
Q

soft manufacturing

A

emphasizes computer software and computer networks instead of production machines

32
Q

movable factory

A

purchasing relatively modern production equipment and transporting it to another location to create a new manufacturing plant, typically in a developing country

33
Q

methods improvement in goods

A

manager creates diagram called the process flow chart, which identifies the sequence of production activities, mvts of materials, and work performed at each stage
- flow is then analyzed to identify wasteful activities, delays, and inefficiencies

34
Q

improvements in services

A
  • low-contact services, similar to methods improvement in goods
  • high-contact services – steps in the process must be analyzed to see where improvements can be made
35
Q

master production schedule

A

schedule showing which products will be made, when production will take place, and what resources will be used

36
Q

tools for scheduling

A

gantt and PERT charts

37
Q

Gantt chart

A

scheduling tol that diagrams steps to be performed and specifies the time reuired to complete each step

38
Q

PERT chart

A

production schedule specifying the sequence and critical path for performing the steps in a project

39
Q

operations control

A

managers monitor production performance by comparing results with plans and schedules

40
Q

follow-up

A

checking to ensure that decisions are being implemented

41
Q

materials management

A

planning, organizing, and controlling the flow of materials from purchase through distribution of finished goods
- five major areas: transportation (transporting resources to companies and products to buyers), warehousing, (storage of materials and finished goods), inventory control (receiving, storing, handling, and counting of raw materials, partly=finished goods, and finished goods), supplier selection (finding suppliers), purchasing (acquiring raw materials and services)

42
Q

standardization

A

using standard and uniform components in the production process

43
Q

just-in-time (JIT) production systems

A

method of inventory control in which materials are acquired and put into production just as they are needed

44
Q

material requirements planning (mrp)

A

method of inventory control in which a computerized bill of materials is used to estimate production needs, so that resources are acquired and put into production only as needed

45
Q

bill of materials

A

production-control tool that specifies the necessary ingredients of a product, the order in which they should be combined, and how many of each are needed to make one batch

46
Q

quality control

A

management of the production process so as to manufacture gods or supply services that meet specific quality standards

47
Q

quality

A

product’s fitness for use in terms of offering the features that consumers want

48
Q

labour producitivity

A

partial productivity ratio calculated by dividng gross domestic product by total number of workers

49
Q

tools for quality assurance

A

competitive product analysis, value-added analysis, statistical process control, etc

50
Q

competitive product analysis

A

process by which a company analyzes a competitor’s products to identify desirable improvement

51
Q

value-added analysis

A

evaluation of all work activities, material flows, and paperwork to determine the value they add for customers

52
Q

statistical process control

A

statistical analysis techniques that allow managers to analyze variations in production data and to detect when adjustments needed to create products with high-quality reliability

53
Q

process variation

A

any change in employees, materials, work methods, or equipment that affects output quality

54
Q

ISO 9000

A

certification program attesting to the fact that a factory, a lab, or an office has met the quality management requirements set by the International Organization for Standardization

55
Q

business process re-engineering

A

redesigning of business processes to improve perfomrnace, quality, and productivity

56
Q

supply chain

A

flow of info, materials, and services that start with raw materials suppliers and continues thru other stages in the operations process until product reaches customer

Business Administration (14 decks)

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