Chapter 7

Question 1

service operations (service production)

Answer 1

activities producing intangible and tangible products, such as entertainment, transportation, and education

Question 2

goods operations (goods production)

Answer 2

activities producing tangible products, such as radios, newspapers, buses, and textbooks

Question 3

operations (production)

Answer 3

activities involved in making products - goods and services - for customers

Question 4

utility

Answer 4

product’s ability to satisfy a human want or need

Question 5

operations (production) management

Answer 5

systematic direction and control of the processes that transform resources into finished products that create value for an provide benefits to customers

Question 6

operations (production) managers

Answer 6

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

Question 7

operations process

Answer 7

set of methods and technologies used to produce a good or a service

Question 8

make-to-order operations

Answer 8

activities for one-of-a-kind or custom-made production

Question 9

made-to-stock operations

Answer 9

activities for producing standardized products for mass consumption

Question 10

low-contact system

Answer 10

level of customer contact in which the customer need not be part of the system to receive the service

Question 11

high-contact system

Answer 11

level of customer contact in which the customer is part of the system during service delivery

Question 12

operations capability (production capability)

Answer 12

special ability that production does especially well to outperform the competition

Question 13

capacity

Answer 13

amount of a product that a company can produce under normal conditions

Question 14

custom-products layout

Answer 14

physical arrangement of production activities that groups equipment and people according to function

Question 15

same-steps layout

Answer 15

physical arrangement of production steps designed to make one type of product in a fixed sequence of activities according to its production requirements

Question 16

assembly line

Answer 16

a same-steps layout in which a product moves step by step through a plant on conveyor belts or other equipment until it is completed

Question 17

quality

Answer 17

combination of “characteristics of a product or service that bear on its ability to satisfy stated or implied needs”

Question 18

performance

Answer 18

dimension of quality that refers to how well a product does what it is supposed to do

Question 19

consistency

Answer 19

dimension of quality that refers to sameness of product quality from unit to unit

Question 20

master production schedule

Answer 20

schedule showing which products will be produced and when, in upcoming time periods

Question 21

detailed schedule

Answer 21

schedule showing daily work assignments with start and stop times for assigned jobs

Question 22

staff schedule

Answer 22

assigned working times in upcoming days for each employee on each work shift

Question 23

Gantt chart

Answer 23

production schedule that breaks down large projects into steps to be performed and specifies the time required to perform each step

Question 24

operations control

Answer 24

process of monitoring production performance by comparing results with plans and taking corrective action when needed

Question 25

follow-up

Answer 25

operations control activity for ensuring that production decisions are being implemented

Question 26

materials management

Answer 26

process of planning, organizing, and controlling the flow of materials from sources of supply through distribution of finished goods

Question 27

supplier selection

Answer 27

process of finding and choosing suppliers from whom to buy

Question 28

lean production system

Answer 28

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

Question 29

just-in-time (JIT) production

Answer 29

type of lean production system that brings together all materials at the precise time they are required at each production stage

Question 30

purchasing

Answer 30

acquisition of the materials and services that a firm needs to product its products

Question 31

transportation

Answer 31

activities in transporting resources to the producer and finished goods to customers

Question 32

warehousing

Answer 32

storage of incoming materials for production and finished goods for distribution to customers

Question 33

inventory control

Answer 33

process of receiving, storing, handling, and counting of all raw materials, partly finished goods, and finished goods

Question 34

quality control

Answer 34

action of ensuring that operations produce products that meet specific quality standards

Question 35

total quality management (TQM)

Answer 35

sum of all activities involved in getting high-quality goods and services into the marketplace

Question 36

quality ownership

Answer 36

principle of total quality management that holds that quality belongs to each person who creates it while performing a job

Question 37

competitive product analysis

Answer 37

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

Question 38

value-added analysis

Answer 38

process of evaluating all work activities, materials flows, and paperwork to determine that value that they add for customers

Question 39

quality improvement team

Answer 39

TQM tool in which collaborative groups of employees from various work areas work together to improve quality by solving common shared production problems

Question 40

ISO 9000

Answer 40

program certifying that a factory, laboratory, or office has met the quality management standards set by the international Organization for Standardization

Question 41

ISO 14000

Answer 41

certification program attesting to the fact that a factory, laboratory, or office has improved its environmental performance

Question 42

business process reengineering

Answer 42

rethinking and radical redesign of business processes to improve performance, quality, and productivity

Question 43

supply chain (value chain)

Answer 43

flow of information, materials, and services that starts with raw-materials suppliers and continues adding value through other stages in the network of firms until the product reaches the end customer

Question 44

supply chain management (SCM)

Answer 44

principle of looking at the supply chain as a whole to improve the overall flow through the system