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1. Currently, manufacturing accounts for only around 70% of U.S. GDP.
2. The recent recession greatly affected the state of manufacturing in the U.S., resulting in a
slowdown in production and the loss of jobs.
3. Today, manufacturers in the U.S. have become so efficient, they require fewer workers to
produce the same amount of output.
4. One key to the resurgence of U.S. firms as world-class competitors has been the
implementation of a focus on quality.
5. Evidence suggests that U.S. manufacturing firms can no longer compete against the best
firms in the rest of the world.
6. American manufacturers have emphasized continuous improvement as one strategy for
regaining a competitive advantage in the manufacturing sector.
7. In order to be more competitive globally, production techniques such as enterprise
resource planning and lean manufacturing are being used by American manufacturers.
8. To strengthen its manufacturing base, the U.S. will need to continue to innovate.
9. The U.S. is still manufacturing intensive. Only 25% of U.S. jobs come from the service
sector.
10. The
Seeking Sustainability
box states that there is no way to redesign the global food
system for locally grown food to be available year-round.
11. The
Reaching Across Our Borders
box asserts that Germany is the most powerful and
respected economy in the European Union.
12. Since U.S. manufacturing competes on price throughout the world, innovation plays a
very small part in the U.S. economy.
13. U.S. businesses are known for their creativity and their ability to implement change.
14. The main reason for the recent resurgence of American manufacturing firms has been the
quotas and tariffs imposed by the U.S. government in an attempt to protect domestic firms from
cheap imports.
15. As the service industries became a larger part of U.S. GDP, companies have become
more concerned about measuring productivity in the service sector.
16. U.S. manufacturers are focusing on quality as a way to become more competitive
globally, assuming that cost is not an issue.
17. Companies such as IBM prefer to stay the course and continue to compete by selling
products instead of services.
18. In the past,
production management
was about using the factors of production to create
finished goods.
19. Operations management converts resources into goods and services.
20. In the process of operations management, a firm transforms resources such as raw
materials, supplies, and even human resources into goods and services.
21. Firms that specialize in accounting, finance, and management consulting are all part of the
service sector.
22. Operations management involves inventory management, quality control, and production
scheduling.
23. Manufacturing firms focus exclusively on the production of goods and allow other firms to
provide services.
24. In recent years, operations management has become more focused on providing services,
because that is where the growth and profit potential is greatest.
25. Operations management in service industries is about creating a good experience for the
customer.
26. Operations management moves from knowing the needs of consumers to actually
satisfying those needs.
27. In service industries such as hotels, quality management training is important to ensure
that all employees are
certified
in their positions.
28. Education and training are less important to workers in the service sector than to workers
who have jobs in the manufacturing sector.
29. The quality standard for service industries such as luxury hotels is meeting the customers'
requests.
30. Service businesses know that in order to delight customers they must be able to anticipate
their needs.
31. One important issue with respect to managing the operation of a business is to make
certain that customers leave feeling as though they had a good experience with your service and
with your company in general.
32. Manufacturing companies are concerned with production management, while service
companies are concerned with operations management.
33. An important strategy in operations management is using technology to anticipate
customer needs. In the hotel industry, this is known as guest-recognition services.
34. 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.
35. Jason recently graduated with a degree in operations management from a respected
university. The knowledge he gained and skills he developed while obtaining this degree could
make him an attractive employee for either a manufacturing firm or a service firm.
36. Justin Tyme is a manager at Elastic Plastic, Inc. His duties include production scheduling
and keeping tabs on the company's inventory. These activities suggest that Justin is involved in
promotions management.
37. While going through the line at the local grocery store, the clerk asks you if you found
everything you needed, as she continues to scan the goods you are planning to purchase. At the
end of the scan, a coupon emerges that you can use on future purchases of a product you have
just purchased. In reviewing the key concepts from Chapter 9, you would consider this action to
be the store's management of its labor.
38. Marci Costas is majoring in operations management at Brunau University. Unfortunately,
the evolution of the U.S. from a manufacturing-oriented to a service-oriented economy means
that Marci will probably find few job openings in her field of study.
39. When firms successfully produce products, they create form utility.
40. Only firms in the manufacturing sector can create true form utility.
41. The three basic requirements of production are: (1) creating a finished good, (2) making
sure you created it at the lowest cost possible, and (3) selling it.
42. The value added by the creation of finished goods and services from inputs is called
ownership utility.
43. Process manufacturing refers to combining components and raw materials to make a
product.
44. Process manufacturing physically or chemically alters materials to create finished goods.
45. An assembly process involves physically or chemically manipulating raw materials to
create a product.
46. A continuous production process is characterized by long production runs that turn out
finished goods over time.
47. Intermittent production processes are characterized by short production runs and frequent
changes of machinery in order to produce different products like customized furniture.
48. Contemporary manufacturers in the U.S. lack the flexibility to use intermittent production
processes.
49. One drawback of intermittent production processes is that they tend to be much slower
than continuous processes.
50. The production process requires inputs, controls, and outputs.
51. Mass production techniques allowed firms to respond quickly to the individual needs of
consumers.
52. One of the reasons mass production techniques lost favor is that, despite their ability to
keep costs relatively low, mass production lacks flexibility.
