Chapter 17

Question 1

Operations management

Answer 1

Managing all of the activities involved in creating value by producing goods and services and distributing them to customers.

Question 2

Efficiency

Answer 2

Producing output or achieving a goal at the lowest cost.

Question 3

Effectiveness

Answer 3

Using resources to create value by providing customers with goods and services that offer a better relationship between price and perceived benefits.

Question 4

Goods

Answer 4

Tangible products.

Question 5

Services

Answer 5

Intangible products.

Question 6

Inventory

Answer 6

Stocks of goods or other items held by organizations.

Question 7

Total quality management (TQM)

Answer 7

An approach to quality improvement that calls for everyone within an organization to take responsibility for improving quality and emphasizes the need for a long-term commitment to continuous improvement.

Question 8

Value chain

Answer 8

The network of relationship between the price of a good or a service and the benefits that it offers its customers.

Question 9

Outsourcing

Answer 9

Arranging for other organization to perform supply chain functions that were previously performed internally.

Question 10

Automation

Answer 10

Replacing human operation and control of machinery and equipment with some form of programmed control.

Question 11

Robot

Answer 11

A reprogrammable machine that is capable of manipulating materials, tools, parts and specialized devices in order to perform a variety of tasks.

Question 12

Computer-aided design (CAD)

Answer 12

Drawing and drafting software that enables users to create and edit blueprints and design drawing quickly and easily.