Business Chapter 11

Front 1

Outline the importantance of production and operations in management

Back 1

production and operations management is a vital business function. Without a quality good or service, a company cannot create profits, and it soon fails. The production process is also crucial in a anot for profit organization becays the good or service it produces justifies the organization's existance. Production and operations management plays an important strategic role by lowering the costs of production, boosting output quality, and allowing the firm to respond flexibly and dependably to customers' demands.

Front 2

What are the advantages and disadvantages of mass production?

Back 2

Mass production leads to high productivity, mechanization, and standardization, all of which make outputs available in large quantities at lower prices than indicidually crafted items would cost. The disadvantages are inefficiency when making small batches of items and specialized tasks leading to boring repetitive jobs.

Front 3

What are the characteristics of flexible production?

Back 3

Flexible production is characterized by cost effective production of small batches, use of information technology to share the details of customer orders, and skilled people to carry out whatever tasks are needed to fill a particular order.

Front 4

Describe a customer-driven production system

Back 4

customer driven production systems directly link what manufacturers make with what customers want to buy. One way to do this is to establish computer links between factories and retailers' scanners. Another is to not make a product until a customer orders it.

Front 5

Explain the roles of computers and related technologies in production.

Back 5

Computer-driven automation allows companies to design, create, and modify products rapidly and produce them in ways that effectively meet customers' changing needs. Important design and production technologies include robots, computer-aided design (CAD), computer aided manufacturing (CAM), and computer integrated manufacturing (CIM).

Front 6

List some of the reasons businesses invest in robots.

Back 6

Businesses use robots to free people from boring, sometimes dangerous assignments and to move heavy items from one place to another in a factory.

Front 7

Distinguish among computer-aided design, computer aided manufacruring, flexible manufacturing, and computer integrated manufacturing.

Back 7

computer aided design (CAD) enables engineers to design parts and buildings on computer screensfaster and with fewer mistakes than they could achieve working with traditional drafting systems. Computer aided manufacturing (CAM) uses the CAD specifications to determine the steps that machines must take to produce products or parts. CAD and CAM are typically used together. Computer integrated manufacturing (CIM) is a system in which companies integrate robots. CAD/CAM, FMS, computers, and other technologies to design products, control machines, handle materials, and control the production function ni an integrated fashion.

Front 8

Identify the factors involved in a plant locating decision.

Back 8

Criteria for choosing the best site for a production facility fall into three categories: transportation, human, and physical factors. Transportation factors include proximity to markets and raw materials, along with availability of transportation alternatives. Physical variables involve such issues as water supply, available energy, and options for disposing of hazardous wastes. Human factors include the area's labor supply, local regulations, and living conditions.

Front 9

What is the purpose of an environmental impact study, and how does it influence the location decision?

Back 9

The purpose is to analyze how a proposed plant would affect the quality of life in the surrounding area, The effects on transportation facilities, energy requirements, water and sewage treatment needs, natural plant life and wildlife, and water, air, and noise pollution are studied.

Front 10

What human factors are relevant to the location decision?

Back 10

Human factors include an area's labor supply, labor costs, local regulations, and living conditions.

Front 11

Explain the major tasks of production and operations managers.

Back 11

Productions and operations managers use people and machinery to convert inputs (materials and resources) into finished goods and services. Four major tasks are involved. First, the managers must plan the overall production process. NExt, they must pick the best layout for their facilities. Then they implement their production plans. Finally, they control the production process and evaluate results to maintain the highest possible quality.

Front 12

What is the key responsibility of production managers?

Back 12

Production managers must oversee the work of people and machinery to convert inputs (materials and resources) into finished goods and services.

Front 13

List the 4 major tasks of production and operations managers.

Back 13

the 4 tasks are planning overall production, laying out the firm's facilities, implementing the production plan, and controlling manufacturing to achieve high quality.

Front 14

Compare alternative layouts for production facilities.

Back 14

Process layouts effectively produce nonstandard products in relatively small batches. Product layouts are appropriate for the production of a large quantity of relatively similar products. Fixed-position layouts are commmon when production involves very large, heavy, or fragile products. Customer-oriented layouts are typical for service facilities where success depends on interaction between customers and service providers.

Front 15

Differentiate between the three most common layout designs: process, product, and fixed position.

Back 15

A process layout groups machinery and equipment according to their functions. The work in process moves around the plant to reach different workstations. A product layout sets up production equipment along a product-flow line, and the work in process moves along this line past workstations. A fixed position layout places the product in one spot, and workers, materials, and equipment come to it.

Front 16

Describe a customer-oriented layout that is typically used by service providers.

Back 16

A customer-oriented layout enhances the interactions between a company and its customers. For example, a hospital can make sure that the nurses' station is close to all of the patients' beds in a hospital wing.

Front 17

LIst the steps in the purchasing process.

Back 17

In the make, buy, or lease decision, production and operations managers determine whether to manufacture needed inputs in houst, purchase them, or lease them from an outside supplier. Managers determine the correct materials to purchase, select appropriate suppliers, and develop an efficient ordering system. The objective is to buy the right materials in the right amounts at the right time and in the right place.

Front 18

What factors affect the make, buy, or lease decision?

Back 18

The costs of leasing or purchasing parts from vendors, versus producing them in house, the availability of dependable, outside suppliers, and the need for confidentiality affect this decision.

Front 19

What factors should firms consider when selectin vendors?

Back 19

Firms should compare quality, prices, speed, warrenties, and the dependability of delivery and services offered by vendors.

Front 20

Outline the advantages and disadvantages of maintaining large inventories

Back 20

the task of inventory control is to balance the need to maintain adequate supplies against the need to minimize funds invested in inventory. Excessive inventory results in unnecessary expenditures for warehousing, taxes, insurance, and maintenance. Inadequate inventory may mean production delays, lost sales, and inefficient operations.

Front 21

What balance must managers seek when controlling inventory.

Back 21

Managers must balance the need to keep stocks on hand to meet demand against the costs of carrying inventory.

Front 22

Explain perpetual inventory and vendor managed inventory.

Back 22

Perpetual inventory systems continuously monioter the amount and location of inventory and automatically generate orders at the appropriate times. Vendor managed inventory is a system in which companies have their suppliers control and manage their inventory.

Front 23

What is a just in time inventory system. and what are some of its advantages?

Back 23

with ajust in time inventory system, component parts arrive from suppliers just as they are needed at each stage of production. By having parts arrive "just in time" the manufacturer keeps little inventory on hand and thus avoids the costs associated with holding inventory.

Front 24

What is MRP used form?

Back 24

Production managers use MRP programs to create schedules that identify the specific parts and materials required to produce an item. These schedules specify the exact quantities required and when to order those quantities from supplier so that needed inventory is delivered at the best time within the production cycle.

Front 25

Identify the steps in the production control process.

Back 25

The production control process consists of five steps: planning, routing, scheduling, dispatching, and follow up. Quality control is an important consideration throughout this process. Coordination of each of these phases should result in high production efficiency and low production costs.

Front 26

What five steps are involved in controlling the production process?

Back 26

the five steps are planning, routing, scheduling, dispatching, and follow-up.

Front 27

What is the difference between a PERT chart and a Gantt chart?

Back 27

PERT charts, which seek to minimize delays by coordinating all aspects of the production process, are used for more complex projects; Gnatt charts, which track projected and actual work progress over time, are used for scheduling relatively simple projects.

Front 28

What is the critical path?

Back 28

In a PERT chart, a red line indicates the critical path, which is the sequence of steps or operations that will take the longest time to complete.

Front 29

Explain the benefits of quality control.

Back 29

Quality control involves evaluating goods and services against estabilshed quality standards. Such checks are necessary to spot defective products and to see that they are not shipped to customers. Devices for monitoring quality levels of the firm's output include visual inspection, electronic sensors, robots, and X rays. COmpanies are increasing the quality of their goods and services by using Six Sigma techniques and by becoming ISO 9000 and 14000 certified.

Front 30

What are some ways in which a company can monitor the quality level of its output?

Back 30

Benchmarking, quality control, Six Sigma, and ISO standards are ways of monitoring quality

Front 31

What does Six Sigma mean?

Back 31

Six Sigma means a company tries to make error-free products 99.9997 percent of the time. Just 3.4 errors per million opportunities.

Front 32

List some of the benefits of acquiring ISO 9000 certification.

Back 32

These standards define how a company should ensure that its products meet customers' requirements. Studies show that customers prefer to buy from companies that are ISO 9000 certified.

Front 33

Production

Back 33

application of resources such as people and machinery to convert materials into finished goods and services.

Front 34

Production and operations management

Back 34

managing people and machinery in converting materials and resources into finished goods and services.

Front 35

Assembly line

Back 35

manufacturing technique that carries the product on a conveyor system past several workstations where workers perofmr specialized tasks

Front 36

robot

Back 36

reprogrammable machine capable of performing numerous tasks that require manipulation of materials and tools

Front 37

Computer aided design (CAD)

Back 37

system for interactions betweena designer and a computer to create a product facility or part that meets predetermined specifications

Front 38

Computer aided manufacturing (CAM)

Back 38

electronic tools to analyze CAD output and determing necessary steps to implement the design, followed by electronic transmission of instructions to guide the activities of production equipment.

Front 39

Just in time (JIT) System

Back 39

management philosophy aimed at improving profits and return on investments by minimizing costs and eliminating waste through cutting inventory on hand.

Front 40

Materials requirement planning (MRP)

Back 40

computer based production planning system by which a firm can ensure that it has needed parts and materials available at the right time and place in the correct amounts.

Front 41

scheduling

Back 41

development of timetables that specify how long each operation in the production process takes and when workers should perform it.

Front 42

benchmaking

Back 42

process of determingin other companies standards and best practices

Front 43

quality control

Back 43

measuring goods and services against established quality standards.

Front 44

International Organization for Standardization (ISO)

Back 44

Organization whose mission is to promote the development of standardized products to facilitate trade and cooperation across national borders.

Front 45

mass production

Back 45

system for manufacturing products in large amounts through effective combinations of employees with specialized skills, mechanization and standardization.

Front 46

flexible manufacturing system

Back 46

production facility that workers can quickly modify to manufacture different products.

Front 47

computer integrated manufacturing (CIM)

Back 47

production system in which computers help workers design products, control machines, handle materials, and control the production function in an integrated fashion.

Front 48

enviornmental impact study

Back 48

analyzes how a proposed plant would affect the quality of life in the surrounding area.

Front 49

make, buy, or lease decision

Back 49

choosing whether to manufacture a needed product or component in house, purchase it from an outside supplier, or lease it.

Front 50

inventory control

Back 50

balance of keeping stock on hand to meet demand against the costs of carrying inventory.

Front 51

perpetual inventory

Back 51

system to continuously moniter the amounts and locations of their stocks. Such inventory control systems typically rely on computers and many automaticallly generate orders at the appropriate times.

Front 52

production control

Back 52

creates a well defined set of procedures for coordinating people, materials, and machinery to provide maximum production efficiency.

Front 53

production planning

Back 53

determines the amount of resources an organization needs to produce a certain output.

Front 54

routing

Back 54

determines the sequence of work throughout the facility and specifies who will perform each aspect of the work at what location.

Front 55

PERT (Program Evaluation and REview Technique)

Back 55

chart which seeks to minimize delays by coordinating all aspects of the production process.

Front 56

Critical path

Back 56

the red line which indicates the sequence of operations that requires the longest time for completion.

Front 57

dispatching

Back 57

the phase of production control in which the manager instructs each department on what work to do and the time allowed for its completion

Front 58

follow up

Back 58

production phase in which employees nd their supervisors spot problems in the production process and determine needed changes.