Understanding Business Chapter 9

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

The term used to describe all the activities managers do to help their 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 components.

Question 7

Continuous Process

Answer 7

A production process in which long production runs turn out finished goods over time.

Question 8

Intermittent Process

Answer 8

A production process in which 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 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 Customization

Answer 14

Tailoring products to meet the needs of individual 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

Materials Requirement Planning (MRP)

Answer 18

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 19

Enterprise Resource Planning (ERP)

Answer 19

A newer version of Materials Requirement Planning (MRP). that combines the computerized functions of all the divisions and subsidiaries of the firm–such as finance. human resources. and order fulfillment–into a single integrated software program that uses a single database.

Question 20

Purchasing

Answer 20

The function in a firm that searches for high-quality material resources. finds the best suppliers. and negotiates the best price for goods and services.

Question 21

Just-in-Time (JIT) Inventory Control

Answer 21

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 22

Quality

Answer 22

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

Question 23

Six Sigma Quality

Answer 23

A quality measure that allows only 3.4 defects per million opportunities.

Question 24

Statistical Quality Control (SQC)

Answer 24

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 25

Statistical Process Control (SPC)

Answer 25

A process of testing statistical samples of product components at each stage of the production process and plotting those results on a graph. Any variances from quality standards are recognized and can be corrected if beyond the set standards.

Question 26

ISO 9000

Answer 26

The common name given to quality management and assurance standards.

Question 27

ISO 14000

Answer 27

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

Question 28

Program Evaluation and Review Technique (PERT)

Answer 28

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 29

Critical Path

Answer 29

In a PERT network. the sequence of tasks that takes the longest time to complete.

Question 30

Gantt Chart

Answer 30

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