Chapter 8: Producing Quality Goods and Services

Question 1

primary goals of production is customer satisfaction which is closely linked to

Answer 1

quality

Question 2

the conversion of ideas and resources into goods and services

Answer 2

production

Question 3

the production planning process includes

Answer 3

design planning, facilities planning and operational planning

Question 4

considers the strategic goals and resources of an organization

Answer 4

design planning

Question 5

identifies a site where the good/service can be produced

Answer 5

facilities planning

Question 6

decides on the amount of goods/services that will be produced within a specific time period

Answer 6

operational planning

Question 7

3 differences between production of manufactured goods and the production of services

Answer 7

1. types of resources used 2. timing of product consumption 3. measuring quality

Question 8

a plan for converting an idea into an actual product

Answer 8

design planning

Question 9

involves a set of activities intended to identify new ideas that have the potential to result in new goods/services

Answer 9

research and development (R&D)

Question 10

a group of similar products that differ only relatively

Answer 10

product line

Question 11

_____ play an important role in making product line decisions

Answer 11

marketing managers

Question 12

gives customers more choice

Answer 12

long product line

Question 13

marketing employees want a __________ that offers customers more options

Answer 13

long product line

Question 14

the amount of product an organization can produce in a given period of time

Answer 14

capacity

Question 15

a process used to adjust the amount of goods or services that are produced by a business

Answer 15

operational planning

Question 16

designing a product line, estimating production capacity and evaluating production technology options are included in:

Answer 16

design planning considerations

Question 17

3 general types of facility layout

Answer 17

process layout, product layout, fixed-position layout

Question 18

used when different operations are required for creating small batches of different products or working on different parts of a product

Answer 18

process layout

Question 19

separate stations for distinct tasks, for low-volume customized products and products move through in any sequence

Answer 19

process layout

Question 20

used when all products undergo the same operations in the same sequence

Answer 20

product layout

Question 21

product layout is also called the

Answer 21

assembly line

Question 22

layout used for high-volume, standardized production runs

Answer 22

product layout

Question 23

used when a very large product is produced

Answer 23

fixed-position layout

Question 24

successful production depends on 3 aspects of operational planning and control

Answer 24

supply chain management, scheduling and quality control

Question 25

one solution to material shortages is

Answer 25

to carry large amounts of inventory

Question 26

a computerized system that integrates production planning, inventory control, quality statistics and data

Answer 26

enterprise resource planning (ERP)

Question 27

a computerized system that integrates production planning and inventory control (first innovation to make supply chain management possible)

Answer 27

Materials requirement planning (MRP)

Question 28

the process of specifying and controlling time required for each step in the process

Answer 28

schedule

Question 29

technique for scheduling a complex project and maintaining control of the schedule

Answer 29

PERT (Program Evaluation and Review Technique)

Question 30

graphic scheduling device that displays the task to be performed on the vertical axis and the time required for each task on the horizontal axis

Answer 30

Gantt Chart

Question 31

the sequence of activities that take the longest time from start to finish

Answer 31

critical path

Question 32

a consumer measures quality by

Answer 32

how well a good serves its purpose

Question 33

the process of ensuring that goods/services are produced in accordance with design specifications

Answer 33

quality control

Question 34

coordinated efforts directed at improving customer satisfaction

Answer 34

total quality management (TQM)

Question 35

improving customer satisfaction, increasing employee participation, quality improvement and strengthening supplier partnerships

Answer 35

coordinated efforts of Total Quality Management

Question 36

an approach that relies on statistical data and improved methods to eliminate defects

Answer 36

Six Sigma

Question 37

what certifies that companies meet a set of standards for quality control procedures, production processes and product testing

Answer 37

the ISO certification