Chapter 10

Question 1

Production

Answer 1

The use of resources, such as workers and machinery, to convert materials into finished goods and services

Question 2

Production and operations management

Answer 2

the process of overseeing the production process by managing the people and machinery that convert materials and resources into finished goods and services

Question 3

Operations

Answer 3

Refers to the actual step-by-step actions or operations that are carried out in the production process
- Can be an action by a human or a machine
- at the heart of operations decisions is efficient production
Production is a vital business activity, necessary for generating value by transforming inputs

Question 4

The Strategic Importance of Production

Answer 4

• Effective production and operations management can:
  1. Lower a firm’s costs of production
  2. improve the quality of its goods and services
  3. create value by developing new products
• all of which will create distinctive competencies which create the competitive advantage necessary for success
• companies must do something better than other (cost or quality)

Question 5

Mass Production

Answer 5

a system for manufacturing products in large quantities by using effective combinations of employees with specialized skills, mechanization, and standardization

Question 6

Specialization

Answer 6

diving work into its simplest forms so that each other can focus on one task

Question 7

Mechanization

Answer 7

Machines do much of the work previously done by people

Question 8

Standardization

Answer 8

producing identical, interchangeable goods and parts

Question 9

Mass Production Challenges:

Answer 9

• Labour specialization can lead to boring, repetitive jobs
• highly efficient in producing large numbers of similar products but highly inefficient in producing small batches of different items
• companies focus on efficient production methods instead of making what customers want
• it is better to be effective rather than efficient, efficiently making the wrong thins does not mean success

Question 10

Customer-Driven Production

Answer 10

• assess customers demands using data from sales
• make a more direct connection between the products manufactured and the products people want to buy.
• The more direct and faster the connection, the product supply will be more accurate
• Reduces inventory carrying costs and the risk of obsolescence or “stale” inventory.
• Flexible production: usually more cost-effective for producing smaller runs than mass production.
  1. communication within the organization using technology and skilled people

Question 11

Analytic production system

Answer 11

reduces a raw material to its component or individual parts to extract one or more marketable products

Question 12

synthetic production system

Answer 12

combines two or more raw materials or parts, or transforms raw materials, to produce finished products

Question 13

Continuous production process

Answer 13

creates the finished products on a repetitive production line

Question 14

intermittent production process

Answer 14

creates products in short production runs, value is created by the flexibility. Cost is in the production equipment

Question 15

Robots

Answer 15

a machine that can be programmed to perform tasks that require the repeated use of materials and tools
- frees workers from boring, sometimes dangerous jobs
- able to repeat tasks many times without a variation in quality
- flexibility and efficiency

Question 16

computer-aided design (CAD)

Answer 16

process used by engineers to design parts and entire products on the computer

Question 17

Computer-aided manufacturing (CAM)

Answer 17

can analyze the steps a machine must take to produce a needed product or part

Question 18

Computer-integtrated manufacturing (CIM)

Answer 18

An integrated production system that uses computers to design products, control machines, handle materials, and control the production function
- advantages include increased productivity, decreased design costs, increased equipment utilization, and improved quality

Question 19

Green manufacturing processes

Answer 19

• investing resources into developing processes that result in less waste, lower energy use, and little or no pollution

Question 20

LEED (leadership in energy& environmental design)

Answer 20

voluntary certification program offered by the Canada Green Building Council
- aims to promote the most sustainable construction processes available
- energy savings, water efficiency, CO2 emissions reduction, improved indoor environmental quality etc

Question 21

The Job of Production Managers

Answer 21

• oversee the work of people and technology to convert inputs (materials and resources) into finished goods and services.
• Planning the production process
• convert original product ideas into final specifications
• design the most efficient facilities to produce those products

Question 22

Process layouts

Answer 22

groups machinery and equipment according to their functions
- facilitates production of variety of nonstandard items into relatively small batches

Question 23

Product layout

Answer 23

sets up production equipment along a product-flow line, and the work in process moves along this line past workstation
- efficiently produces large numbers of similar items

Question 24

fixed-position layout

Answer 24

places the product in one spot, and workers, materials, and equipment come to it.

Question 25

customer-oriented layout

Answer 25

arranges facilities to enhance the interactions between customers and its services

Question 26

make or buy decision

Answer 26

choosing whether to manufacture product or part-in-house, buy it from an outside supplier
- factors in the decision include cost, availability of reliable outside suppliers, duration of the firm’s supply needs, and the need for confidentiality

Question 27

Selection of suppliers

Answer 27

• production managers compare:
• quality, prices, dependability of delivery, and services offered by competing companies
• past experience with each supplier, speed of delivery, warranties on purchases

Question 28

Inventory Control

Answer 28

a function that balances the costs of carrying inventory with the need to have stock on hands to meet demand

Question 29

Perpetual inventory systems

Answer 29

continually assess the amount of stock and where it is stored

Question 30

Vendor-managed inventory

Answer 30

firm hands over inventory control functions to the suppliers

Question 31

Just-in-time (JIT) system

Answer 31

a broad management philosophy that reaches beyond the narrow activity of inventory control that affects all production and operations management

Question 32

Production control

Answer 32

creates well-defined procedures for coordinating people, materials, and machinery to provide the greatest production efficiency

Question 33

Quality

Answer 33

goods or services being free of deficiencies

Question 34

benchmarking

Answer 34

the process of comparing one firm’s standards and practices with those of other firms

Question 35

quality control

Answer 35

measuring output against quality standards

Question 36

cost of quality

Answer 36

comparing the cost of poor quality with the benefits of high quality

Question 37

international organization for standardization (ISO)

Answer 37

mission and purpose is to develop and promote consistent international standards for products
- aims to improve and encourage global trade and cooperation