Chapter 8-Managing Service and Manufacturing Operations

Question 1

Operations Management (OM)

Answer 1

the development and administration of the activities involved in transforming resources into goods and services

Question 2

Manufacturing

Answer 2

the activities and processes used in making tangible products; also called production

Question 3

Production

Answer 3

the activities and processes used in making tangible products; also called manufacturing

Question 4

Operations

Answer 4

the activities and processes used in making both tangible and intangible products

Question 5

Inputs

Answer 5

the resources - such as labor, money, materials, and energy - that are converted into outputs

Question 6

Outputs

Answer 6

the goods, services, and ideas that result from the conversion of inputs

Question 7

Standardization

Answer 7

the making of identical interchangeable components or products

Question 8

Modular Design

Answer 8

the creation of an item in self-contained units, or modules, that can be combines or interchanged to create different products

Question 9

Customization

Answer 9

making products to meet a particular customer’s needs or wants

Question 10

Capacity

Answer 10

the maximum load that an organizational unit can carry or operate

Question 11

Fixed-Position Layout

Answer 11

a layout that brings all resources required to create the product to a central location

Question 12

Project Organization

Answer 12

a company using a fixed-position layout because it is typically involved in large, complex projects such as construction or exploration

Question 13

Process Layout

Answer 13

a layout that organizes the transformation process into departments that group related processes

Question 14

Intermittent Organizations

Answer 14

organizations that deal with products of a lesser magnitude than do project organizations; their products are not necessarily unique but possess a significant number of differences

Question 15

Product Layout

Answer 15

a layout requiring that production be broken down into relatively simple tasks assigned to workers, who are usually positioned along an assembly line

Question 16

Continuous Manufacturing Organizations

Answer 16

companies that use continuously running assembly lines, creating products with many similar characteristics

Question 17

Computer-Assisted Design (CAD)

Answer 17

the design of components, products, and processes on computers instead of on paper

Question 18

Computer-Assisted Manufacturing (CAM)

Answer 18

manufacturing that employs specialized computer systems to actually guide and control the transformation processes

Question 19

Flexible Manufacturing

Answer 19

the direction of machinery by computers to adapt to different versions of similar operations

Question 20

Computer-Integrated Manufacturing (CIM)

Answer 20

a complete system that designs products, mages machines and materials, and controls the operations function

Question 21

Supply Chain Management

Answer 21

connecting and integrating all parties or members of the distribution system in order to satisfy customers

Question 22

Purchasing

Answer 22

the buying of all the materials needed by the organization; also called procurement

Question 23

Inventory

Answer 23

all raw materials components, or partially completed products, and pieces of equipment a firm uses

Question 24

Inventory Control

Answer 24

the process of determining how many supplies and goods are needed and keeping track of quantities on hand, where each item is, and who is responsible for it

Question 25

Economic Order Quantity (EOQ) Model

Answer 25

a model that identifies the optimum number of items to order to minimize the costs of managing (ordering, storing, and using) them

Question 26

Just-In-time (JIT) Inventory Management

Answer 26

a technique using smaller quantities of materials that arrive “just in time” for use in the transformation process and therefore require less storage space and other inventory management expense

Question 27

Material-Requirements Planning (MRP)

Answer 27

a planning system that schedules the precise quantity of materials needed to make the product

Question 28

Routing

Answer 28

the sequence of operations through which the product must pass

Question 29

Scheduling

Answer 29

the assignment of required tasks to departments or even specific machines, workers, or teams

Question 30

Quality Control

Answer 30

the processes an organization uses to maintain its established quality standards

Question 31

total Quality Management (TQM)

Answer 31

a philosophy that uniform commitment to quality in all areas of an organization will promote a culture that meets customers’ perceptions of quality

Question 32

Statistical Process Control

Answer 32

a system in which management collects and analyzes information about the production process to pinpoint quality problems in the production system

Question 33

ISO 9000

Answer 33

a series of quality assurance standards designed by the International Organization for Standardization (ISO) to ensure consistent product quality under many conditions

Question 34

ISO 14000

Answer 34

a comprehensive set of environmental standards that encourages companies to conduct business in a cleaner, safer, and less wasteful way; ISO 14000 provides a uniform set of standards globally