Chapter 11 (Operations)

Question 1

Operations Management

Answer 1

oversee the process of transforming resources into goods and services

Question 2

During production planning, managers determine (3):

Answer 2

1. Production Process
2. Site Selection
3. Layout Planning

Question 3

Three basic manufacturing strategies:

Answer 3

1. Make-to-order
2. Mass Production
3. Mass Customization

Question 4

In choosing site selection, managers look for (5):

Answer 4

1. minimal shipping costs
2. supply of skilled workers
3. favorable community
4. resources at a low cost
5. favorable business climate

Question 5

Service Industry consists of __% of jobs and __GDP

Answer 5

80%; 75%

Question 6

Manufacturing Industry consists of __% of jobs and ___GDP

Answer 6

10%; 23%

Question 7

Process Layout

Answer 7

groups together workers or departments that perform similar tasks

Question 8

Product Layout

Answer 8

high-volume goods are produced in assembly-line fashion—that is, a series of workstations at which already-made parts are assembled

Question 9

Cellular Layout

Answer 9

small teams of workers handle all aspects of building a component, a “family of components,” or even a finished product

Question 10

Fixed-Position Layout

Answer 10

used to make large items (such as ships or buildings) that stay in one place while workers and equipment go to the product

Question 11

Materials Management encompasses (3):

Answer 11

purchasing
inventory control
work scheduling

Question 12

Electronic Data Interchange (EDI)

Answer 12

process transactions and transmit purchasing documents

Question 13

just-in-time production

Answer 13

materials arrive just in time to enter the manufacturing process

Question 14

Material Requirements Planning (MRP)

Answer 14

uses computer programming to determine material needs

Question 15

Gantt Chart

Answer 15

easy-to-use graphical tool that helps operations managers determine the status of projects

Question 16

PERT Chart

Answer 16

used to diagram the activities required to produce a good, specify the time required to perform each activity in the process, and organize activities in the most efficient sequence; highlights critical path, the one that will take the most time

Question 17

Computer-aided Design

Answer 17

used to create models representing the design of a product.

Question 18

Computer-integreated Manufacturing

Answer 18

systems that not only determine the steps needed to produce components but also instruct machines to do the necessary work

Question 19

Total Quality Management (TQM)

Answer 19

focus on customer satisfaction, engage all members of the organization in quality efforts, and strive for continuous improvement in the design, production, and delivery of goods and services

Question 20

Benchmark

Answer 20

examining competitors to find ways to improve their own performance

Question 21

Outsourcing

Answer 21

having outside vendors manufacture components or even entire products or provide services, such as information-technology support or service center operations

Question 22

Flexible Manufacturing Systems (FMS)

Answer 22

computer-controlled equipment can easily be adapted to produce a variety of goods

Question 23

“PDCA”

Answer 23

“Plan-Do-Check-Act”