Exam 8: Operations Management in Manufacturing and Service Industries

Make-to-order production strategy is used by companies that produce similar goods in large volumes

Quality Checked Tax Service has expanded to eight offices in different parts of a major U.S. city. The owners began 30 years ago, when income tax forms and returns were processed manually and clients waited for weeks or even months for refunds to arrive. By using the latest available software and taking advantage of computerized capabilities, Quality Checked has stayed one step ahead of the national chains and other independent tax services in its market area. In fact, it’s become so successful that management has taken out a state license for selling insurance and investment products to clients, who will pay for these financial products out of their tax returns. -Much like a manufacturing firm,Quality Checked,though a service business,must constantly deal with intangibility,customized products,and frequent customer contact.

A(n)______team consists of individuals from different functional areas assigned to work together throughout the product development process.

Burger King was the first fast-food restaurant to have customers fill their soda cups.This resulted in a cutback of one employee per day at every one of its restaurants.

Which tool is best for diagramming complex schedules?

In many companies,employees who perform similar jobs work in _____ to identify efficiency and to propose solutions.

Bob Montgomery,CEO of PowerSki,uses a computer-aided design (CAD)software package to operate the industrial robots used in the production of the jetboards.

Quality Checked Tax Service has expanded to eight offices in different parts of a major U.S. city. The owners began 30 years ago, when income tax forms and returns were processed manually and clients waited for weeks or even months for refunds to arrive. By using the latest available software and taking advantage of computerized capabilities, Quality Checked has stayed one step ahead of the national chains and other independent tax services in its market area. In fact, it’s become so successful that management has taken out a state license for selling insurance and investment products to clients, who will pay for these financial products out of their tax returns. -Location and site selection is less important to a service provider like Quality Checked than to a goods producer or seller.

For complex schedules,operations managers may use PERT charts to diagram the activities required to produce a good.

E-procurement (or e-purchasing)involves the use of the Internet to enable senior management to interact with employees in the purchasing department.

Estimating capacity needs of a service business is much the same as estimating those of a manufacturer.

Companies that are committed to total quality management (TQM)strive to satisfy the needs of customers while generating a reasonable profit.

The make-to-order process is the practice of producing high volumes of identical goods.

An operations manager is a mid-level manager who directs the transformation process by which resources are converted into products.

Estimating capacity needs (goods/services to provide)for a service business is more difficult than for a manufacturer because:

Materials management includes these activities: product development,purchasing,inventory control and work scheduling.

Once you've forecasted the demand for a product,you can calculate the _____ requirements of your production facility.

Welding can be dangerous and result in injuries to employees.As an alternative to having human welders,some companies use industrial robots.

Completing an activity on the critical path of a PERT chart early will delay the project.

Mass customization combines the advantages of customized products with the advantages of mass production.