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. (A)</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. (A)</p> Signup and view all the answers

What is the main goal of facility planning?

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

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

<p>Product layout (A)</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 (C)</p> Signup and view all the answers

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

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

Which type of facility layout is often used in cafeterias?

<p>Product layout (A)</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 (C)</p> Signup and view all the answers

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

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

What is a common characteristic of fixed position layout?

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

What is the consequence of having excess inventory?

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

What factor is NOT typically considered in location planning?

<p>Consumer preferences (D)</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 (B)</p> Signup and view all the answers

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

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

What is an important aspect of work system design?

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

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

<p>Raw material procurement (C)</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. (C)</p> Signup and view all the answers

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

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

What does work measurement help determine in a work system?

<p>Evaluation criteria for work performance (B)</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 (A)</p> Signup and view all the answers

During which planning phase are forecasts primarily utilized?

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

Which task is typically included in job design?

<p>Specifying necessary qualifications (C)</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 (A)</p> Signup and view all the answers

What is a primary characteristic of manufacturing operations?

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

In which of the following scenarios is mechanization most advantageous?

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

Which statement best describes automation?

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

What is a disadvantage of mechanization?

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

What role do robots primarily serve in operations?

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

Which factor is NOT a focus of service operations?

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

How is 'capacity' defined in operations management?

<p>The maximum output an operating unit can handle (A)</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. (D)</p> Signup and view all the answers

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

<p>Inconsistency in task performance (C)</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? (B)</p> Signup and view all the answers

Which of these operations would most likely be labor intensive?

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

What is a characteristic of service operations compared to manufacturing?

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

Why is mechanization advantageous for businesses?

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

Which statement about robots is true regarding their design?

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

Which file records the status of raw materials over time?

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

What is NOT a component of daily operations scheduling?

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

What tool is commonly used to visualize workloads in scheduling?

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

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

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

What is the purpose of inventory management?

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

Which statement best describes project management?

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

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

<p>Starting the production process (A)</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. (A)</p> Signup and view all the answers

Flashcards

Facility Planning

Deciding the location and size of work areas.

Capacity Planning

Matching a company's production ability to meet customer demand.

Product Layout

Resources arranged in a fixed sequence for continuous/repetitive production.

Process Layout

Grouping equipment and people based on their functions.

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Fixed Position Layout

Materials remain in a fixed position for production.

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Assembly line

A type of product layout where products move sequentially through various steps of production

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Cafeteria layout

An example of a product layout designed for serving food.

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Capacity

The maximum amount or potential available.

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Location planning

Planning the physical placement of departments.

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Location planning (operations unit)

Planning the location of a whole factory or facility.

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System Design

Organizing production activities (layout).

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Manufacturing vs. Service Operations

Manufacturing focuses on standardized, consistent products, while service operations deal with variable, customized offerings.

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Mechanization

Using machines or mechanical forces to perform work.

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Automation

Replacing human labor with machines, an extension of mechanization.

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Mechanization & Automation Advantages

Repetitive work, consistent quality, higher productivity, and conflict avoidance.

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Mechanization & Automation Disadvantages

High cost, unemployment, and the need for skilled maintenance personnel.

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Robots

Programmable machines for various complex tasks controlled by computers.

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Robot tasks

Welding, assembly line production, and loading/unloading, among others.

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Computer & Robotics Advantages

Replacing humans in repetitive and dangerous jobs; greater precision.

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Computer & Robotics Disadvantages

Requires maintenance engineers, and special-purpose design limits versatility.

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Scope of Operations Management

System design, planning, capacity planning, layout planning, inventory management, quality assurance, project management.

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Layout Planning

Determining the arrangement of resources for efficient operations.

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Service Operations Focus

Performance, process and outcome, service characteristics, customer-service links, and service quality.

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Service quality

Meeting or exceeding customer expectations in terms of service provided.

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Inventory Wastage

Having more inventory than needed leads to wasted money.

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Inventory Shortage

Insufficient inventory can result in production delays or inability to meet sales demand.

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Operations Control

Monitoring the performance of an operation to ensure desired outcomes.

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Operations Management Strategy

A plan to manage all aspects of an operation, aiming for rapid correction of errors.

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Materials Management

Planning, organizing, and controlling the movement of materials from design to distribution.

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Master Schedule

A plan that outlines what products will be produced, their quantities, and when production is needed. It serves as the foundation for overall production planning.

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Bill of Materials

A detailed list of all components, parts, and raw materials needed to manufacture one unit of a finished product.

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Inventory Record File

A record that tracks the status of each material in the inventory, including available quantities, scheduled deliveries, and expected usage.

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System Operation Planning: Scheduling

The process of determining what items to produce daily, how and where to produce them, and allocating resources like equipment and workers.

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What are Gantt charts used for?

Gantt charts help visualize and manage the schedule of tasks in a project, showing their start and end dates.

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System Operation Planning: Waiting Lines

Managing customer queues when demand exceeds production capacity. Goal is to minimize waiting time for customers.

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System Operation Planning: Inventory Management

Controlling the flow of raw materials and finished goods to balance supply and demand, minimizing stockouts and excess inventory.

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When is the demand for inventory management critical?

Inventory management is critical when there are potential shortages of raw materials for production or finished goods for customers.

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System Operation Management: Project Management

Planning, organizing, and overseeing large, one-time projects with specific objectives and deadlines.

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What is a key aspect of Project Management?

Project management involves identifying and managing the resources, timelines, and tasks involved in completing a project successfully.

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Product & Service Design

The process of creating and refining goods or services to meet customer needs and stay competitive. It involves researching and developing new ideas, improving existing ones, and adapting to evolving market demands.

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Research & Development (R&D)

The systematic investigation and experimentation to create new products or processes and improve existing ones. It's fueled by customer feedback, competitor analysis, and internal innovation.

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Job Design

Specifying the tasks, methods, and responsibilities of a particular job. It aims to create a fulfilling and productive work experience for employees.

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Work Measurement

The process of objectively evaluating work performance and determining how to improve it. It helps to set standards, measure productivity, and identify areas for optimization.

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Benefits and Compensation

Ways of rewarding employees for their contributions to a company, including pay, insurance, paid time off, and incentives. It aims to retain top talent and foster employee motivation.

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Aggregate Planning

A process of creating a broad-level production plan based on forecasted demand. It determines annual manpower needs, production rates, and inventory levels.

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Material Requirement Planning (MRP)

A computerized system that manages the demand for raw materials and components needed for production. It provides real-time information on inventory levels and ensures timely procurement.

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MRP Components

Material Requirement Planning (MRP) consists of three key components: 1. Master Production Schedule (MPS): The plan for assembling final products. 2. Bill of Materials (BOM): A list of raw materials and components needed for each product. 3. Inventory Records: Data on available inventory and historical demand.

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What are the key considerations for choosing a business location?

Key considerations for location planning include: proximity to raw materials, labor availability, transportation costs, regulations (local and state), community living conditions (climate), and potential markets.

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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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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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