12 Questions
What is the goal of reducing defects set by the company?
3.4 parts per million
What is the purpose of the new machinery and software to be installed?
To produce custom-designed products
What type of planning system is being referred to in the passage?
Materials requirement planning (MRP)
What is an interfirm process in contemporary operations management planning?
A process where several firms work closely together to design, produce, and ship products
What is Jeremy's role in Graphite Works?
Production and inventory management
What award is given to firms that achieve an outstanding level of overall quality?
Malcolm Baldrige National Quality Award
What type of factors of production are land and labor?
Factors of production
What is Eveline's job function?
Purchasing
What is Sparky Weyer's title at Minimotors Inc.?
CEO
What is the purpose of Sparky Weyer's meeting with potential investors?
To obtain funding for new machinery
What is one way Minimotors Inc. has reduced its inventory costs?
By implementing a just-in-time inventory system
What is another way Minimotors Inc. has improved its operations?
By reducing the number of defective motors produced
Study Notes
Factors of Production
- Land and labor are examples of factors of production.
Eveline's Job
- Eveline's job is to locate the highest quality materials from the best suppliers and negotiate for the best price, which is purchasing.
Minimotors Inc.
- Minimotors Inc. is a growing manufacturer of small electric motors used in power tools and appliances.
- The company has made changes to improve operations and lower costs, and is now ready to expand into new markets.
- Minimotors aims to reduce inventory costs by developing a new arrangement with suppliers, who will make more frequent deliveries tied to its production schedules.
- The company has set a goal of reducing defects to 3.4 parts per million by carefully keeping tabs on manufacturing processes.
- Minimotors wants to install new machinery and software to quickly design and produce motors to the exact specifications of customers.
Planning System
- Minimotors will use a computer application that links its operation to sales forecasts to ensure needed parts and supplies are available at the right time to meet customer demands.
- This planning system is known as materials requirement planning (MRP).
Operations Management
- Contemporary operations management planning is an interfirm process, which means several firms work closely together to design, produce, and ship products to customers.
Jeremy's Responsibilities
- Jeremy is a manager at Graphite Works, responsible for production scheduling and keeping tabs on the company's inventory.
- Jeremy's duties are not related to promotions management.
National Quality Award
- The National Quality Award is given to firms that achieve an outstanding level of overall quality based on performance in seven key areas.
Test your understanding of business concepts, including factors of production, procurement, and management roles. Identify the correct answers to these business-related questions.
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