Production/Operations Management Chapter 4
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Questions and Answers

What is the primary characteristic of a Fixed Position Layout?

  • Assembly lines are arranged in a straight line.
  • Operations are conducted in separate departments.
  • Production activities are organized by product type.
  • Equipment and people are all assembled in one location. (correct)

    • Which of the following best describes when a Fixed Position Layout is typically used?

  • When products are small and easily movable.
  • When equipment needs to be frequently relocated.
  • When products are too large to be moved. (correct)
  • When production requires minimal labor involvement.

    • What is a key aspect of Location Planning?

  • Organizing equipment within a single work area.
  • Arranging storage facilities close to assembly lines.
  • Determining the ideal site for an operations unit. (correct)
  • Scheduling maintenance for manufacturing equipment.

    • In which type of environments is departmental organization most commonly found?

    <p>Hospitals and universities.</p> Signup and view all the answers

    What is a typical consideration in Layout Planning?

    <p>The placement of the administrative building relative to the production area.</p> Signup and view all the answers

    What is the main goal of facility planning?

    <p>To ensure capacity meets or exceeds demand.</p> Signup and view all the answers

    Which layout is characterized by resources moving through the same fixed sequence of steps?

    <p>Product layout</p> Signup and view all the answers

    In which type of layout are machines arranged according to the type of process being performed?

    <p>Process layout</p> Signup and view all the answers

    Which of the following is NOT typically considered when planning facility layouts?

    <p>Design of marketing strategies</p> Signup and view all the answers

    Which type of facility layout is often used in cafeterias?

    <p>Product layout</p> Signup and view all the answers

    What aspect of capacity planning is emphasized during facility planning?

    <p>Balancing between excess capacity and sufficient supply</p> Signup and view all the answers

    Which layout would most likely be used in an automobile manufacturing plant?

    <p>Product layout</p> Signup and view all the answers

    What is a common characteristic of fixed position layout?

    <p>Workers and equipment are stationary.</p> Signup and view all the answers

    What is the consequence of having excess inventory?

    <p>It results in wastage of money.</p> Signup and view all the answers

    What is the role of materials managers in supply chain operations?

    <p>They plan, organize, and control the flow of materials.</p> Signup and view all the answers

    What factor is NOT typically considered in location planning?

    <p>Consumer preferences</p> Signup and view all the answers

    Which of the following is an example of product redesign?

    <p>Upgrading from Pentium III to Pentium IV</p> Signup and view all the answers

    Which of these scenarios represents a project that might require operations control?

    <p>Building a shopping complex.</p> Signup and view all the answers

    What is the primary goal of operations control in system operation management?

    <p>To monitor results and ensure performance.</p> Signup and view all the answers

    What is an important aspect of work system design?

    <p>Establishing employee satisfaction</p> Signup and view all the answers

    Which of the following is NOT a component of Material Requirement Planning (MRP)?

    <p>Raw material procurement</p> Signup and view all the answers

    What happens when there is too little inventory?

    <p>It leads to a shortage for production or sale.</p> Signup and view all the answers

    What is a primary reason for pressure on design changes within an organization?

    <p>Market competition</p> Signup and view all the answers

    What does work measurement help determine in a work system?

    <p>Evaluation criteria for work performance</p> Signup and view all the answers

    Which of the following is an example of a compensation strategy intended to motivate employees?

    <p>Performance-based bonuses</p> Signup and view all the answers

    During which planning phase are forecasts primarily utilized?

    <p>Aggregate Planning</p> Signup and view all the answers

    Which task is typically included in job design?

    <p>Specifying necessary qualifications</p> Signup and view all the answers

    What is the primary goal of community living conditions consideration in location planning?

    <p>Maintain a satisfied workforce</p> Signup and view all the answers

    What is a primary characteristic of manufacturing operations?

    <p>Standardized output</p> Signup and view all the answers

    In which of the following scenarios is mechanization most advantageous?

    <p>Repetitive and predictable tasks</p> Signup and view all the answers

    Which statement best describes automation?

    <p>It involves total replacement of human labor with machines.</p> Signup and view all the answers

    What is a disadvantage of mechanization?

    <p>Increased need for skilled personnel</p> Signup and view all the answers

    What role do robots primarily serve in operations?

    <p>Performing a variety of tasks under computer control</p> Signup and view all the answers

    Which factor is NOT a focus of service operations?

    <p>Standardized output</p> Signup and view all the answers

    How is 'capacity' defined in operations management?

    <p>The maximum output an operating unit can handle</p> Signup and view all the answers

    What is a common advantage of using computers and robotics in operations?

    <p>They can perform jobs with high accuracy.</p> Signup and view all the answers

    Which of these is NOT a disadvantage of using robots in operations?

    <p>Inconsistency in task performance</p> Signup and view all the answers

    What is one of the basic questions in system design regarding capacity planning?

    <p>What kind of capacity is needed?</p> Signup and view all the answers

    Which of these operations would most likely be labor intensive?

    <p>Personalized customer service</p> Signup and view all the answers

    What is a characteristic of service operations compared to manufacturing?

    <p>Higher variability in process</p> Signup and view all the answers

    Why is mechanization advantageous for businesses?

    <p>It lowers overall production costs.</p> Signup and view all the answers

    Which statement about robots is true regarding their design?

    <p>Some are designed for specialized purposes only.</p> Signup and view all the answers

    What is the primary goal of the master schedule in operations planning?

    <p>To utilize resources effectively to meet demand</p> Signup and view all the answers

    What is included in the bill of materials file?

    <p>A listing of all parts and raw materials for one unit production</p> Signup and view all the answers

    Which file records the status of raw materials over time?

    <p>Inventory record file</p> Signup and view all the answers

    What is NOT a component of daily operations scheduling?

    <p>Creating marketing plans</p> Signup and view all the answers

    What tool is commonly used to visualize workloads in scheduling?

    <p>Gantt chart</p> Signup and view all the answers

    What triggers the need for a waiting line in service operations?

    <p>Insufficient supply to meet demand</p> Signup and view all the answers

    What is the purpose of inventory management?

    <p>To avoid shortages of raw materials and finished products</p> Signup and view all the answers

    Which statement best describes project management?

    <p>It deals with large, one-off set of activities.</p> Signup and view all the answers

    What action is part of initiating work performance in operations scheduling?

    <p>Starting the production process</p> Signup and view all the answers

    Why is it important to update the status of work in operations scheduling?

    <p>To make adjustments based on real-time data.</p> Signup and view all the answers

    Study Notes

    Chapter 4: Understanding Production/Operations

    • Productions and Operations Management: Effective management lowers costs, improves goods/service quality, responds to customer demand, and allows for growth while creating new value.

    • Production: Activities and processes used to create tangible products (raw materials converted to finished goods).

    • Operations: Activities and processes used in making both tangible and intangible products.

    Defining Operations

    • Service Operations: Produce both tangible and intangible services.
    • Goods Production: Produces tangible products.

    Differences Between Manufacturing & Service Operations

    • Manufacturing: Doesn't directly interact with customers, produces tangible, storable products, and often allows for quality inspection before reaching consumers.
    • Service Operations: Directly interacts with customers, produces intangible products, and delivers quality instantly to the consumer.

    Mechanization & Automation

    • Mechanization: Work done by machines or mechanical forces (e.g., washing machine, blender).
    • Automation: An extension of mechanization, totally replacing human labor with machines. Mechanization makes work easier or faster for humans.

    Computers & Robotics

    • Robots: Programmable machines controlled by computer systems, used for various tasks, such as assembly line production and loading/unloading. They are often used for repetitive or dangerous tasks.
    • Advantages of Mechanization and Automation: Suitable for repetitive tasks, high quality, avoid human conflicts, improve productivity.
    • Disadvantages of Mechanization and Automation: Costs a lot, causes unemployment and requires highly skilled personnel

    Scope of Operation Management

    • System Design: Includes planning for capacity, layout, location (e.g., where to place the machines, work stations, etc), products and services.
    • System Operation: Includes planning, scheduling (e.g. Gantt charts) for goods operations, and service operations. It also covers inventory management, quality assurance, and waiting time management.

    System Design: Capacity Planning

    • Capacity: The maximum load/upper limit an operating unit can handle. (e.g., a printer, factory, or lorry).
    • Basic Questions in Capacity Planning: What kind of capacity is needed? How much? When?
    • Good Capacity Planning: Firm's capacity matches demand requirements or exceeds normal demand

    System Design: Layout Planning

    • Facility Planning: Deciding the location of work areas. (e.g, machines, work stations, storage, restrooms).

    System Design: Product Layout

    • Product Layout: A method where resources are processed sequentially to become finished goods. Equipment and personnel are arranged per the production requirement, often using assembly lines.
    • Examples: Automobile plants, food processing plants, and cafeterias.

    System Design: Process Layout

    • Process Layout: Equipment and people grouped according to their function, for example, all assembly in one department, and all machining in another. Common in non-manufacturing environments (Hospitals, universities).

    System Design: Fixed Position Layout

    • Fixed Position Layout: A method where the equipment and personnel are assembled in one place for the product (e.g. construction of ships, planes, homes, dams).

    System Design: Location Planning

    • Location Planning: Planning of operations unit (factory) location, e.g., factoring in many factors such as supply of raw materials & markets, availability of labor, energy, transportation, regulations, taxes, community conditions & potential markets.

    System Design: Product & Service Design and Selection

    • Product/Service Design: Designing products/services with the intention of satisfying specific customers or competition. Specifications include the raw materials needed, in-depth design, and selecting the most suitable type.

    System Design: Work System Design

    • Job Design: Designing tasks to be performed by an employee. It involves specifying tasks, outlining how best to perform tasks, and grouping tasks into an individual job responsibilities while specifying needed skills, qualifications and experience.

    System Operation: Planning (Aggregate Planning)

    • Aggregate Plans: Production plans based on forecasts (predictions).
    • Goal: Effective utilization of resources to satisfy expected demand. (e.g., How many cars to produce this year?)

    System Operation Planning: Material Requirement Planning (MRP)

    • MRP: computer-based system for managing resource planning & provides immediate information on demand for raw materials.
    • Three Components: Master schedule, bill of materials file, inventory record file.

    System Operation Planning: Scheduling

    • Daily Basis: Setting production quantities, allocation of equipment/workers to work centers, sequences of work, schedule development, initiating, updating status, and revising schedule.

    System Operation Planning: Waiting Lines

    • Waiting lines: Occurs when demand for a service or product exceeds the supply/capacity. Customers may take numbers, stand in line, etc until served.
    • Examples: Checkouts at supermarkets, fast-food restaurants, immigration offices, & banks.

    System Operation Management: Inventory Management

    • Goal: Avoid raw material shortages/abundance and having products/services not meet expected demand.
    • Waste: Excess inventory can lead to higher costs.

    System Operation Management: Quality Assurance

    • Strategies: Quickly correct mistakes in operations.
    • Correction Time: Correcting earlier in operations is more economical than doing so later..
    • Monitoring: Continuously monitoring performance to spot and correct unexpected issues.

    System Operation Management: Project Management

    • Large, One-Time Activities: Deals with unique, large projects (e.g, building, rescue operations and organizing events like the Commonwealth Games).

    Quality Management

    • Quality Control: Measuring and adjusting processes and products.
    • Worker Training: Ensuring workers know how to maintain high-quality standards.
    • Just-in-Time Production Systems (JIT): Optimizing processes to produce items at the correct time, on demand (minimizing waste of raw materials).

    Total Quality Management

    • Aims: Planning, organizing, directing, and controlling quality to ensure products and services meet customer needs.

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    C4 - Operation & Production PDF

    Description

    This quiz covers key concepts from Chapter 4 on Production and Operations Management. Learn how effective management can reduce costs, improve quality, and meet customer demand while differentiating between manufacturing and service operations. Test your understanding of production activities and their impact on business success.

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