MGMT 1 Chapter 9 Operations Management – Flashcards
Unlock all answers in this set
Unlock answersquestion
True or False: The US economy is no longer primarily manufacturing based
answer
True. Over 70% of US GDP and over 80% of US jobs are now in the service sector
question
production
answer
creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge
question
operations management
answer
specialized area in management that converts or transforms resources, including human resources like technical skills and innovation into goods and services includes inventory management, quality control, production scheduling, follow up services
question
form utility
answer
value producers add to materials in the creation of finished goods and services
question
process manufacturing
answer
that part of the production process that physically or chemically changes materials
question
continuous process
answer
production process in which long production runs turn out finished goods over time; i.e. chemical plant
question
intermittent process
answer
production process in which the production run is short and the machines are changed frequently to make different products; many manufacturers use this to churn out computers, robots in custom-made fashion
question
What is the ultimate goal of operations management?
answer
provide high quality goods and services instantaneously in response to customer demand; traditional organizations designed to make goods efficiently (inxexpensively
question
computer aided design (CAD)
answer
use of computers in design of products; doubled productivity in many firms
question
computer aided manufacturing (CAM)
answer
use of computers in manufacturing of products
question
computer integrated manufacturing (CIM)
answer
uniting of CAD with CAM; cuts as much as 80% of time needed to program machines to make parts
question
flexible manufacturing
answer
designing machines to do multiple tasks so that they can produce a variety of products
question
lean manufacturing
answer
production of goods using less of everything than in mass production: take half the human effort, half the defects in the finished product or service, 1/3 engineering effort, 1/2 floor space for same output, 90% less inventory
question
mass customization
answer
tailoring products to meet the needs of large number individual customers
question
facility location
answer
process of selecting a geographic location for a company's operations considering labor costs, availability of resources, labor, access to transportation that can reduce time to market, proximity to suppliers and customers, crime rates, quality of life for employees, cost of living
question
telecommuting
answer
working from home via computer that is a major trend in business
question
facility layout
answer
physical arrangement of resources (including people) in the production process to most efficiently produce goods and provide services for customers
question
materials requirement planning (MRP)
answer
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
assembly line layout
answer
workers only do a few tasks at a time
question
modular ayout
answer
teams of workers combine to produce more complex units of final product; dozen or more workstations on assembly line to complete automobile engine but all the work might be done in one module today
question
fixed position layout
answer
allows workers to congregate around the product to be completed i.e. bridge, airplane
question
process layout
answer
one in which similar equipment and functions are grouped together. the order in which the products visits a function depends on the design of the item, allowing for flexibility
question
enterprise resource planning (ERP)
answer
newer version of MRP that combines 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; the result is shorter time between orders and payment, less staff needed to do ordering and order processing, reduced inventories, and better customer service
question
purchasing
answer
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
just in time inventory control (JIT)
answer
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; helps cut storage costs
question
Six Sigma quality
answer
a quality measure that allows only 3.4 defects per million opportunities
question
statistical quality control (SQC)
answer
process some managers use to continually monitor all phases of the production process and ensure quality is being built into the product from the beginning
question
ISO 9000
answer
common name given to quality management and assurance standards; EU companies and some major US companies must follow these standards; require that a company determine what customer needs are, including regulatory and legal requirements, and make communication arrangements to handle issues such as complaints
question
ISO 14000
answer
collection of the best practices for managing an organization's impact on the environment, requirements for certification include having an environmental policy, having specific improvement targets, conducting audits of environmental programs, and maintaining top management review of the processes
question
PERT - program evaluation and review technique
answer
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
critical path
answer
in a PERT network, THE SEQUENCE OF TASKS THAT TAKES THE LONGEST TIME TO COMPLETE
question
Gantt chart
answer
bar graph showing production managers what projects are being worked on wand what stage they are in at any given time
question
True or False: Since U.S. manufacturing competes on price throughout the world, innovation plays a very small part in the U.S. economy.
answer
False. The U.S. continues to be a world leader in innovation, including innovations in nanotechnology and biotechnology.
question
True or False: Operations management transforms resources into goods and services, such as a landscape company that utilizes equipment, labor, and materials to develop a landscape. Managing this operation may also involve maintenance services.
answer
True. Operations management transforms resources of all kinds into finished products and services. They utilize raw materials, equipment, and labor, but they are also concerned with anticipating customer needs and managing the entire operation including the customer's needs beyond the point of sale.
question
True or False: The main difference between process manufacturing and an assembly process is that process manufacturing uses sophisticated robots and automated machinery to produce a good or service, while an assembly process uses labor and simple tools to make a product.
answer
False. Process manufacturing involves physically or chemically changing materials. An assembly process combines components to make a product.
question
True or False: Featured Furnishings is a company that specializes in producing custom-made furniture. A continuous production process would be the most efficient way for Featured Furnishings to produce its products.
answer
False. Since its products are made to order rather than mass produced, Featured Furnishings would be more likely to use an intermittent process that would allow it to respond more flexibly to specific customer preferences.
question
True or False: The decreased use of enterprise resource planning (ERP) reflects the fact that firms are not interested in combining the computerized functions of all divisions and subsidiaries of a firm.
answer
False. ERP (Enterprise Resource Planning system) enables firms to manage all of their operations on the basis of a single, integrated set of corporate data.
question
True or False: Solarsys Aeronautics was awarded a contract to build a large lab module that will be attached to a new space station. The module is approximately 48 feet long, 17 feet in diameter, and weighs over 60 tons. Solarsys should use an assembly-line plant layout to produce this module.
answer
False. Firms are moving away from assembly-line layouts. Moreover, a product as large as this module would be awkward and difficult to move along an assembly line. When producing a large, bulky, one-of-a-kind item such as a bridge or ship (or a large space station module), firms normally use a fixed-position layout.
question
True or False: The PERT network provides a project manager with a plan that puts all the activities of a project in the correct order that they must be accomplished, shows which activities can be accomplished simultaneously, and, also gives the manager a good estimate of how long each activity will take to complete.
answer
True. A PERT Chart shows the sequence of activities or events that must occur in order for a project to be successfully completed. It also provides an indication of which activities can be accomplished simultaneously and provides an estimate of the time it will take to accomplish each activity.
question
The basic reason the term production management has been replaced by the term operations management is that: A) the U.S. economy has moved toward a more socialist approach with government controlling a greater share of the production process. B) a much larger share of total output is being produced by nonprofit organizations. C) the United States is now a service economy. D) the United States now exports more than it imports.
answer
C) the United States is now a service economy. Production management has been the term used to refer to the creation of goods (tangible products). In recent years, the service sector has become the dominant area of the economy. This has led to the use of the term operations management in order to reflect the production of both goods and services.
question
The Ritz-Carlton hotel offers restaurants with the finest service, elevators that run smoothly, and a front desk that processes people quickly. Many times fresh-cut flowers are in the lobbies and dishes of fruit are in each room. __________ is responsible for implementing these customer benefits. A) Human resources management B) The management staff C) Operations management D) Production management
answer
C) Operations management Operations management is the implementation phase of management.
question
The main objective of lean manufacturing is to: A) keep labor costs as low as possible by expanding the use of other resources. B) produce products that have fewer frills and options in order to simplify the production process and keep costs as low as possible. C) produce goods using less of all types of resources. D) get state and local governments to handle many of the tasks currently performed by the firm.
answer
C) produce goods using less of all types of resources. Lean manufacturing refers to efforts to produce goods by using less of everything, including materials, labor, and production.
question
To create their Deluxe Beef Sandwiches, Robbie's Roast Beef finely slices prime roast beef, stacks it on a sesame bun, adds special seasonings, cheese, onions, and mushrooms. The value added by Robbie's when it combines these ingredients to make a sandwich is known as: A) consumer surplus. B) the analytic function. C) marginal utility. D) form utility.
answer
D) form utility. Form utility is the value added by the creation of finished goods and services.
question
You can now put your own photo on a credit card. You can design your own jeans online and have them sent to you in a few days. Dr. Scholl's now features kiosks where you can create your own orthotics to fit inside your shoes. These are examples of the trend toward ______. A) continuous processes. B) intermittent processes. C) mass customization. D) lean manufacturing.
answer
C) mass customization. Mass customization is the tailoring of products to meet the needs of a large number of individual customers. More and more manufacturers and retailers are learning to customize their products.
question
Which of the following is an important part of operations management? A) Determining the best means of financing the firm's operations B) Developing the best advertising strategy to promote a firm's products C) Deciding whether to pay a dividend to the firm's stockholders D) Choosing the best location for a firm's facilities
answer
D) Choosing the best location for a firm's facilities Operations management includes such responsibilities as facilities location, facilities layout, and quality control.
question
Enterprise resource planning (ERP) goes beyond the capabilities of MRP because it: A) gives much more precise cost estimates. B) finds the critical path and computes its length. C) monitors the computerized functions of all the divisions and subsidiaries of the firm in a single software program. D) handles research data about more than one product at the same time.
answer
C) monitors the computerized functions of all the divisions and subsidiaries of the firm in a single software program. Enterprise resource planning is a computer application that enables a firm to combine all of 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. MRP is used within one firm to plan production requirements.
question
Which of the following would be most helpful to a production manager who wanted to determine the minimum time required to complete a proposed project? A) TQM B) CAD/CAM C) ERP D) PERT
answer
D) PERT PERT, which stands for program evaluation and review technique, is a method of 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.
