Chapter 9. Production and Operations Management

Question 1

production

Answer 1

the creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge

Question 2

production management

Answer 2

describes all the activities managers do to help firms create goods

Question 3

operations management

Answer 3

a specialized area in management that converts or transforms resources (including human resources) into goods and services

Question 4

form utility

Answer 4

the value producers add to materials in the creation of finished goods and services

Question 5

process manufacturing

Answer 5

the part of the production process that physically or chemically changes materials

Question 6

assembly process

Answer 6

the part of the production process that puts together component

Question 7

continuous process

Answer 7

long production runs turn out finished goods over time

Question 8

intermittent process

Answer 8

the production run is short and the machines are changed frequently to make different products

Question 9

computer aided design (CAD)

Answer 9

the use of computers in the design of products

Question 10

computer-aided manufacturing (CAM)

Answer 10

the use of computers in the manufacturing of products

Question 11

computer-integrated manufacturing (CIM)

Answer 11

the uniting of computer-aided design with computer aided manufacturing

Question 12

flexible manufacturing

Answer 12

designing machines to do multiple tasks so that they can produce a variety of products

Question 13

lean manufacturing

Answer 13

the production of goods using less of everything compared to mass production

Question 14

mass consumption

Answer 14

tailoring products to meet the individual needs of customers

Question 15

facility location

Answer 15

the process of selecting a geographic location for a company’s operations

Question 16

telecommuting

Answer 16

working from home via computer and modem

Question 17

facility layout

Answer 17

the physical arrangement of resources (including people) in the production process

Question 18

product layout (assembly line layout)

Answer 18

used to produce large quantities of a few types of products

Question 19

cellular or module layout

Answer 19

can accommodate changes in design or customer demand

Question 20

fixed-position layout

Answer 20

a major feature of planning is scheduling work operations

Question 21

materials requirement planning (MRP)

Answer 21

a computer-based operations management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place

Question 22

enterprise resource planning (ERP)

Answer 22

a newer version of MRP that combines the computerized functions of all the divisions and subsidiaries of the firm – such as finance, human resources, and order of fulfillment – into a single integrated software program that uses a single database

Question 23

purchasing

Answer 23

the function in a firm that searches for quality material sources, finds the best suppliers, and negotiates the best price for goods and services

Question 24

just-in-time (JIT) inventory control

Answer 24

a production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line

Question 25

quality

Answer 25

consistently producing what the customer wants while reducing errors before and after delivery to the customer

Question 26

six sigma quality

Answer 26

a quality measure that allows only 3.4 defects per million opportunities

Question 27

statistical quality control (SQC)

Answer 27

the process some managers use to continually monitor all phases of the production process to assure that quality is being built into the product from the beginning

Question 28

statistical process control (SPC)

Answer 28

the process of taking statistical samples of product components at each stage of the production process and plotting those results on a graph

Question 29

ISO 9001

Answer 29

the common name given to quality management and assurance standards

Question 30

ISO 14001

Answer 30

a collection of the best practices for managing an organization’s impact on the environment

Question 31

program evaluation and review technique

Answer 31

a method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project

Question 32

critical path

Answer 32

the sequence of tasks that it takes the longest time to complete

Question 33

gantt chart

Answer 33

bar graph showing production managers what projects are being worked on and what stage they are in at any given time