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Chapter 10
Achieving World-Class Operations Management
| Question | Answer |
|---|---|
| What is production? | The creation of products and services by turning inputs into outputs |
| What are examples of inputs in production? | Natural resources, raw materials, human resources, and capital |
| What are outputs in production? | Finished products and services |
| What do operations managers do? | They manage and supervise the production process |
| What are the 3 main operations management decisions? | Production planning, production control, and improving operations |
| What is mass production? | Producing many identical products at once |
| What is the goal of mass production? | Keeping manufacturing costs low |
| What is mass customization? | Producing standardized products that are customized later for customers |
| What is process manufacturing? | Breaking down inputs into outputs |
| What is the assembly process? | Combining or transforming inputs into outputs |
| Why is the facility location important? | Labors costs, transportation, taxes, customers, and suppliers |
| What is a process layout? | A layout where workers and equipment are grouped by similar tasks |
| What businesses use process layouts? | Businesses producing small amounts of many products |
| What is a product (assembly-line) layout? | A layout where products move station to station in sequence |
| What type of production uses of product layouts? | Continuous or repetitive production |
| What is a fixed-position layout? | The product stays in one place while workers and equipment move around it |
| What products commonly use fixed-position layouts? | Ships, airplanes, and construction projects |
| What is cellular manufacturing? | Small self-contained production units arranged for efficiency. |
| What is a bill of materials (BOM)? | A list of all items and quantities needed to make a product |
| What is outsourcing? | Buying parts or services from outside suppliers |
| What do companies outsource? | To reduce costs and improve efficiency |
| What is perpetual inventory? | A continuously updated inventory tracking system |
| What does MRP stand for? | Materials Requirement Plannings |
| What does MRP do? | Ensures materials, labor, and equipment are available at the right time |
| What is MRPII? | An expanded MRP system integrating multiple departments |
| What does ERP stand for? | Enterprise Resource Planning |
| What does ERP do? | Connects and manages information across all departments |
| What is supply-chain management? | Managing the flow of products from suppliers to customers |
| What is e-procurement? | Purchasing supplies and materials online |
| What is EDI? | Electronic Data Interchange between companies |
| What is production control? | Coordinating materials, equipment, and workers for efficiency |
| What is routing? | Determining the path and sequence of production work |
| What is value-stream mapping? | Mapping production flow to find waste and improve efficiency |
| What are Gantt charts? | Bar graphs showing schedules and production timelines |
| What is CPM? | Critical Path Method |
| What is the critical path? | The longest sequence of activities in a project |
| Why is the critical path important? | Delays on the critical path delay the entire project |
| What is PERT? | Program Evaluation and Review Technique |
| How is PERT different for CPM? | PERT uses optimistic, probable, and pessimistic time estimates |
| When is PERT most useful? | For projects with uncertain completion times |
| What is quality control? | Setting standards and measuring products against them |
| Who promoted company-wide quality control? | Dr.W.Edwards Deming |
| What is TQM? | Total Quality Management |
| What does TQM focus on? | Continuous company-wide quality improvement |
| What is Six Sigma? | A quality system focused on reducing defects |
| What is ISO 9000? | International quality standards for businesses |
| What is lean manufacturing? | Eliminating waste from production processes |
| What is JIT? | Just-in-time inventory management |
| What is the goal of JIT? | Receiving materials exactly when needed |
| What is CAD? | Computer-Aided Design |
| What does CAD do? | Helps engineers digitally design products |
| What is CAM? | Computer-Aided Manufacturing |
| What are CAD/CAM systems? | Linked systems combing design and manufacturing |
| What is additive manufacturing? | 3D printing |
| What is robotics? | Technology involving computer-controlled machines |
| What is FMS? | Flexible Manufacturing System |
| What does FMS combine? | Computers, robots, machine tools, and materials handling systems |
| What is BPM? | Business Process Management |
| What does BPM do? | Improves and automates business processes |
| What major trends affect operations management today? | Technology, automation, worker shortages, and global competition |
| Difference between mass production and customization? | Mass production makes identical products; customization makes products for individual customers |
| Difference between process layout and product layout? | Process layout groups similar tasks; product layout follows assembly-line flow |
| Difference between CPM and PERT? | CPM uses one time estimate; PERT uses three estimates |
| Difference between lean manufacturing and JIT? | Lean removes waste; JIT reduces inventory by timing deliveries exactly when needed |
| Difference between CAD and CAM? | CAD designs products; CAM controls manufacturing |
| What is quality control important? | It reduces defects and improves customer satisfaction |
| Why is supply-chain management important? | It helps businesses reduce costs and improve efficiency |
| Main goal of operations management? | Producing quality goods/services efficiently and profitably |
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