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102. Internet-focused strategies don't affect operations managers since it is not progressive for
operations managers to negotiate in an interfirm environment.
103. For many firms, operations management has become an
interfirm
process.
104. Facility layout is the function of operations management that considers the physical
arrangement of resources (including people) in the production process.
105. For service-intensive businesses, facility layout is usually designed to centralize the
decision-making process.
106. Telecommuting has diminished in popularity as a strategy for linking employees with
work.
107. The production of a bridge, ship, or large airplane usually involves a variable-position
facility layout.
108. The process layout simplifies production by using the same sequence of processes
regardless of the design of the item being produced.
109. In an assembly-line manufacturing layout workers do only a few tasks at a time.
110. In a modular manufacturing layout teams of workers combine to produce more complex
units.
111. A process manufacturing layout is frequently used in operations that serve different
customers' different needs.
112. Facilities layout will depend upon the processes that are to be accomplished in the firm's
operation.
113. Materials requirement planning (MRP) enables a firm to make sure that the right amount
of each material or component is available at the right time to satisfy its production needs.
114. Materials requirement planning relies on the firm's balance sheet to make sure that the
right quantities of finished goods are produced.
115. One limitation of materials requirement planning (MRP) is that it is not a computer-based
approach.
116. Enterprise resource planning (ERP) is simpler and less sophisticated than manufacturing
resource planning (MRP).
117. Enterprise resource planning (ERP) software combines all functional units of a firm into
the production of goods and services, and may even include subsidiaries and other firms.
118. ERP software enables multiple firms to manage all of their operations on the basis of a
single, integrated set of corporate data.
119. The purchasing function involves searching for quality resources and finding the best
suppliers as well as negotiating the best price for the needed items.
120. Over the past few years, Internet-based companies have emerged to help businesses find
the best supplies at the best prices.
121. Modern companies tend to deal with many different suppliers in order to avoid problems
that can arise when one supplier is unable to provide needed parts or materials.
122. Today, rather than purchase goods and services from a large number of firms,
manufacturers often try to develop a close relationship with one or two key suppliers.
123. The purchasing function of operations management seldom uses the Internet to make
purchasing decisions.
124. The primary characteristic of a just-in-time inventory system is that suppliers deliver parts
and materials right at the time that the buyer is going to use them in the production process.
125. The concept "Just-In-Time" (JIT) works well if a company works with lots of suppliers. It
also helps avoid the breakdowns that occur when operating with an enterprise resource planning
system.
126. In a just-in-time inventory system, the producer holds large quantities of the materials and
components used in the production process in its inventory to ensure that it always has enough
on hand.
127. Overall, American firms that have tried to use just-in-time inventory systems generally
report disappointment with the results.
128. In JIT inventory systems a manufacturer normally communicates its production plans to
suppliers so that they can deliver needed parts and materials just in time for the manufacturer to
use them.
129. Quality control is a continual process of checking to make certain that there is consistency
in the quality of products being produced.
130.
Six Sigma
is a benchmark of quality standards that many product and service industries
try to achieve.
131. Under the Six Sigma quality standard the idea is to detect potential problems, in order to
prevent their occurrence.
132. Six Sigma is a quality measure that allows only 3.4 defects per million opportunities.
133. A key element of the statistical quality control (SQC) process is the reliance on quality
control experts to inspect at the end of the production line to make sure that no defective
products are shipped to final customers.
134. Statistical quality control (SQC) is the process some managers use to continually monitor
all phases of the production process to assure that quality is being built into the product from the
beginning of the production process.
135. Statistical process control (SPC) is the process of taking statistical samples of product
components at each stage of the production process and plotting those results on a graph. Any
variances from quality standards are recognized and can be corrected if beyond the set
standards.
136. The Deming Cycle is designed to catch errors before they happen.
137. The Deming Cycle approach to quality control consists of: Plan, Do, Check, Act.
138. Service organizations find it difficult to provide outstanding service every time because the
process is so labor intensive.
139. If a company achieves Six Sigma quality standards, they automatically win the Malcolm
Baldrige award.
140. The Baldrige standards measure a firm's quality in several key areas including planning,
leadership, and customer and market focus.
141. ISO is a worldwide, nongovernmental federation that sets global measures of quality.
142. The International Organization for Standardization continually updates acceptable
international requirements in the areas of process control, product testing, storage, and delivery.
143. ISO 9000 refers to a set of international standards for quality management and
assurance.
144. ISO 14000 is a new set of product quality standards that has replaced the old ISO 9000
standards.
145. The European Union demands that all firms that want to do business with its member
nations must satisfy ISO 9000 standards.
146. ISO 14000 is a collection of the best practices for managing an organization's impact on
the environment.
147. Firms that satisfy the ISO 9000 and ISO 14000 standards have demonstrated a world-class
management system in both quality and environmental standards.
148. One valid criticism of modern production planning methods such as ERP and MRP is that
there is no way to use recent advances in information technology (IT) with these systems.
149. Recent developments in information technology will discourage companies from allowing
employees to telecommute.
150. Areas with higher than average labor costs are almost always at a major disadvantage
when trying to attract new businesses.
151. Retailing is one area where technology is unlikely to make a big difference in how
services are provided.
152. 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.
153. A major advantage of a just-in-time inventory system is that it reduces costs and the
effort for both the producer and its suppliers.
154. Recent research suggests that the best way to maintain consistently high quality in the
production process is to give a group of specialists in a separate quality control department the
authority to inspect each product at the end of the production process.
155. Operations managers have learned that quality control is not a never-ending process. Just
before you add packaging to the finished product, official company inspectors do a random spot-
check. All inspections have to occur at the end of a production run because only then can the
inspector see the total finished product in order to determine if quality is jeopardized.
156. Jamal, an operations manager for a product manufacturer, accepted an operations
position with a company that produces a service. Jamal will find that operations management at
the new job is significantly different from operations management at the old firm.
