Exam 1 Flashcards
What is the US business strategy
Short term profit maximization
USA financial results
Focus on bottom line directly
Japanese business strategy
Maximize market share through quality products
Japanese financial results
The financial results are the results of a business strategy and the operation to back it up
What are 2 things Arnold Feigenbum is known for?
Concept of internal and external customers
Began total quality management (TQM)
What are 2 things Fredrick Taylor is known for?
To take up a task, divide it up into its simplest elements , and assign a person to each element
Incentive system: incremental profits
1/3 to the worker
2/3 to the owners
What is Good-will
Cost of warranty
administration
shipping
repairing or replacement
What is ill-will
Loss of future sales
What is a hidden factory
A factory within a factory where a group of workers correct the defects made by other workers
what are elements to the costs of a hidden factory
inspectors rework scraping good-will ill-will
according to who dose hidden factories cost 30-50%
Arnold Feigenbaum
what was Edward Deming’s view on quality control
Remove cause of defects, not the defects alone
Founder of small group dynamics
Edward Deming
What is small group dynamics
The thought that creating a small group would improve productivity
What are factors the contribute to small group dynamics
perception of being special
social bonding: extended family
Teaching: each other easier ways of performing a task
Discovering: a new way of performing a task
what is the concept of Edward Deming chain reaction
continues improvement
Edward Deming’s chain reaction
Make a better product more satisfied customers positive word of mouth advertising more repeat business greater market share greater profits greater job security good for god and country repeat cycle .......quality is free.......
what was Matsushita concept
Ideas out of the hands of bosses into the hands of the laborers, pulling together the intellectual resources of all employees in the service of the firm
What was Adam smiths biggest contribution
Free enterprise system
what is free market
Customers determine if the company will stay in business
what is Laissez Faire economics
no interference of the government “hands off”
What is Mercantilism
State intervention to encourage domestic trade
tariffs
quotas
What is Free trade
Introduced by Adam Smith was the removal of trade barriers between countries
What is Specialization
Focus on what he knows best
What was Adam Smiths thoughts about the barter system
Disagreed, thought money was meant to be the medium of exchange
According to Adam Smith, What will price tell us and what will it not tell us
Price will tell us when to produce
won’t tell us when to stop until its too late
What is the business cycle
Boom and bust times
What has to be done to be able to recover from depression according to he business cycle
Excess inventory has to be liquidated
Privatization
Taking a nationalized company and giving it back to business people
Nationalized company
Company that is controlled by the government
Eli Whitney was known as a?
Mechanical genius
What was Eli Whitney’s greater contributions
Interchangeable parts
the first factory
what is Reverse engineering
Dismantling a competitors product or examining a competitors service with intent to discover improvements for a product or service
Benchmarking
The process of continuously comparing and measuring the business processes of an organization with business leaders
Reengineering
The fundamental rethinking and radical redesign of a business process
What was Isaac Singer known for?
Advertising
What 5 acts contributed to singers success
Advertising; Let public know the product
Demonstration:let people see the product in action
Training: those trained in the product are more likely to buy the product
Hire purchase: start of consumer credit
First global company: saw world as market
What was Cyrus McCormack’s greatest contribution?
Annual model change
What helped Ford become successful
Adam smiths enterprise system Eli Whitney's interchangeable parts US gov't for insisting interchangeable parts singer for assembly operations Bicycle for stamping parts early examples of the conveyor belt gasoline engines and pneumatic tires
What is Economies of scale
Cost will decrease while production increases as long as you change the technology
Ford cycle
Build a car with low profit margin
Improve economies of scale
pass savings to the customers with lower prices
more volume allows greater economy of scale
pass savings to customers again
stay on the cycle until factory is at full capacity
build new factory with greater economies of scale and around the cycle again
What was the River Rouge plant known for
Vertically integrated
The whole process under one roof
What was fords operating philosophy
Examine every step in the process, every step has a cost, dose the step add value to the process, if not eliminate the step
according to Ohno, what was responsible for Toyotas success?
Updating ford and adopting his philosophy
What is push manufacturing
The process of producing a product and pushing it to a warehouse for others to draw upon
What is pull manufacturing
Immediate consumption of a product, if it can’t be consumed it can’t be produced
What are the savings in going from a push to pull manufacturing?
- elimination of work process inventory
- Immediate discovery of defective pars
- no unimportant workers, improvement of worker moral and productivity
According to Arnold Feignbum unter Total quality management who should determine standard of performance
Customers
managers
Undoing of the assembly line
Volvo developed a concept of building the car in one spot with highly educated workers
What is quantitative solution
decision based on price
What is quantitative solution
decision which takes reliability into account
Productivity equation
Output / input
What is the global political system
Democratic process
What is the Global economic system
Adam smiths free enterprise system
What is the Global language
English
What is the Global culture
American
What is the Global Currency
The dollar
What is Global banking
Done through foreign offices of domestic banks
Global communication
Ability to speed dial anyone throughout the world
Global Telecommunication
To keep track of shipments
What is global logistics
Movement of goods around the world
What is containerization
Load goods in a 8x8x40 box and move it
What is intermodalism
The thought that a individuals is indifferent about the mode of transport, the choice will depend on whichever delivers best in terms of cost and time
