Chapter 10 Achieving World-Class Operations Management

Question 1

Questions

Answer 1

Answers

Question 2

_____________ is the creation of products and services by turning inputs, such as natural resources, raw materials, human resources, and capital, into outputs, which are products and services.

Answer 2

production

Question 3

Management of the production process is called ________________.

Answer 3

operations management

Question 4

The aspect of operations management in which the firm considers the competitive environment and its own strategic goals in an effort to find the best production methods is called __________.

Answer 4

production planning

Question 5

The ______________ is the way a good or service is created.

Answer 5

production process

Question 6

The manufacture of many identical goods at once is called ________.

Answer 6

mass production

Question 7

A manufacturing process in which goods are mass-produced up to a point and then custom-tailored to the needs or desires of individual customers is called ____________.

Answer 7

mass customization

Question 8

The production of goods or services one at a time according to the specific needs or wants of individual customers is referred to as ______________.

Answer 8

customization

Question 9

A(n) ________ is a manufacturing firm that produces goods in response to customer orders.

Answer 9

job shop

Question 10

A production process in which the basic input is broken down into one or more outputs (products) is ____________________.

Answer 10

process manufacturing

Question 11

The production process in which the basic inputs are either combined to create the output or transformed into the output is called the ________ process.

Answer 11

assembly process

Question 12

The production process that uses long production runs lasting days, weeks, or months without equipment shutdowns is called _____________. It is generally used for high-volume, low-variety products with standardized parts.

Answer 12

continuous process

Question 13

The _____________ process uses short production runs to make batches of different products This process is generally used for low-volume, high-variety products.

Answer 13

intermittent process

Question 14

A facility arrangement in which work flows according to the production process is a(n) __________ layout. All workers performing similar tasks are grouped together, and products pass from one workstation to another.

Answer 14

process layout

Question 15

A facility arrangement in which workstations or departments are arranged in a line with products moving along the line is a(n) _________________ layout.

Answer 15

product (or assembly-line) layout

Question 16

A facility arrangement in which the product stays in one place and workers and machinery move to it as needed is a(n) ________________ layout.

Answer 16

fixed-position layout

Question 17

The production technique that uses small, self-contained production units, each performing all or most of the tasks necessary to complete a manufacturing order is called ___________.

Answer 17

cellular manufacturing

Question 18

A(n) ______________ is a list of the items and the number of each required to make a given product.

Answer 18

bill of material

Question 19

The process of buying production inputs from various sources is called _____________, also called procurement.

Answer 19

purchasing

Question 20

A(n) _______________ is the determination by a firm of whether to make its own production materials or to buy them from outside sources.

Answer 20

make-or-buy decision

Question 21

The purchase of items from an outside source rather than making them internally is known as _________________.

Answer 21

outsourcing

Question 22

__________ is the supply of goods that a firm holds for use in production or for sale to customers.

Answer 22

inventory

Question 23

________________ determines how much of each type of inventory a firm will keep on hand and the ordering, receiving, storing, and tracking of inventory.

Answer 23

inventory management

Question 24

A continuously updated list of inventory levels, orders, sales, and receipts is ______________.

Answer 24

perpetual inventory

Question 25

A computerized system of controlling the flow of resources and inventory used by many companies is __________________. It uses a master schedule to ensure that the materials, labor, and equipment needed for production are at the right places in the right amounts at the right times.

Answer 25

materials requirement planning (MRP)

Question 26

A complex computerized system that integrates data from many departments, called ________________, allows managers to more accurately forecast and assess the impact of production plans on profitability.

Answer 26

manufacturing resource planning II (MRPII)

Question 27

Some large companies use _______________, which is a computerized resource-planning system, to incorporates information about the firm’s suppliers and customers with its internally generated data.

Answer 27

enterprise resource planning (ERP)

Question 28

The entire sequence of securing inputs, producing goods, and delivering goods to customers is the ________________.

Answer 28

supply chain

Question 29

__________________ is the process of smoothing transitions along the supply chain so that the firm can satisfy its customers with quality products and services. It focuses on developing tight bonds with suppliers.

Answer 29

supply-chain management

Question 30

The process of purchasing supplies and materials online using the internet is called ________.

Answer 30

e-procurement

Question 31

The ___________________ is the electronic exchange of information between two trading partners.

Answer 31

electronic data interchange (EDI)

Question 32

___________________ refers to a decentralized “public ledger” of all transactions that have ever been executed. It is constantly expanding, as “completed” blocks are added to the ledger with each new transaction.

Answer 32

blockchain technology

Question 33

________ is the aspect of production control that involves setting out the work flow—the sequence of machines and operations through which the product or service progresses from start to finish.

Answer 33

routing

Question 34

______________ is a routing technique that uses simple icons to visually represent the flow of materials and information from suppliers through the factory to customers.

Answer 34

value-stream mapping

Question 35

________ is the aspect of production control that involves specifying and controlling the time required for each step in the production process.

Answer 35

scheduling

Question 36

Bar graphs plotted on a time line that show the relationship between scheduled and actual production are called _____________.

Answer 36

Gantt charts

Question 37

The _________________ is a scheduling tool that enables a manager to determine the critical path of activities for a project, the activities that will cause the entire project to fall behind schedule if they are not completed on time.

Answer 37

critical path method (CPM)

Question 38

In a critical path method network, the longest path through the linked activities is called the _________________. These are the activities that will cause the entire project to fall behind schedule if they are not completed on time.

Answer 38

critical path

Question 39

The _______________ is a scheduling tool that is similar to the CPM method but assigns three time estimates for each activity (optimistic, most probable, and pessimistic). It allows managers to anticipate delays and potential problems and schedule accordingly.

Answer 39

program evaluation and review technique (PERT)

Question 40

Goods and services that meet customer expectations by providing reliable performance is known as ________________.

Answer 40

quality

Question 41

The process of creating quality standards, producing goods that meet them, and measuring finished goods and services against them is called _________________.

Answer 41

quality control

Question 42

___________________ is the use of quality principles in all aspects of a company’s production and operations.

Answer 42

Total Quality Management (TQM)

Question 43

________________ is a commitment to constantly seek better ways of doing things in order to achieve greater efficiency and improve quality.

Answer 43

continuous improvement

Question 44

A quality-control process that relies on defining what needs to be done to ensure quality, measuring and analyzing production results statistically, and finding ways to improve and control quality is __________________.

Answer 44

Six Sigma

Question 45

Established by Congress in 1987 and named for a former secretary of commerce, the _______________ given to recognize U.S. companies that offer goods and services of world-class quality.

Answer 45

Malcolm Baldrige National Quality Award

Question 46

The __________ is a set of five technical standards of quality management created by the International Organization for Standardization to provide a uniform way of determining whether manufacturing plants and service organizations conform to sound quality procedures.

Answer 46

ISO 9000

Question 47

The ___________ is a set of technical standards designed by the International Organization for Standardization to promote clean production processes to protect the environment.

Answer 47

ISO 14000

Question 48

_______________ streamlines production by eliminating steps in the production process that do not add benefits that customers want.

Answer 48

lean manufacturing

Question 49

A system in which materials arrive exactly when they are needed for production, rather than being stored on-site is called _____________-.

Answer 49

just-in-time (JIT)

Question 50

_____________ uses computers to design and test new products and modify existing ones.

Answer 50

computer-aided design (CAD)

Question 51

_____________ uses computers to develop and control the production process.

Answer 51

computer-aided manufacturing (CAM)

Question 52

Linked computer systems that combine the advantages of computer-aided design and computer-aided manufacturing are called ______________ systems. The system helps design the product, control the flow of resources needed to produce the product, and operate the production process.

Answer 52

CAD/CAM systems

Question 53

______________ is the technology involved in designing, constructing, and operating computer-controlled machines that can perform tasks independently.

Answer 53

robotics

Question 54

A(n) _______________ combines automated workstations with computer-controlled transportation devices, automatic guided vehicles (AGV), that move materials between workstations and into and out of the system.

Answer 54

flexible manufacturing system (FMS)

Question 55

The combination of computerized manufacturing processes (such as robots and flexible manufacturing systems) with other computerized systems that control design, inventory, production, and purchasing is called _____________________.

Answer 55

computer-integrated manufacturing (CIM)

Question 56

A unified system that has the power to integrate and optimize a company’s sprawling functions by automating much of what it does is called ____________.

Answer 56

business process management (BPM)