Exam 17: Om: Putting It All Together Endnotes

A value chain is a network of relationships that channels the flow of inputs, information, and financial resources through all of the processes directly or indirectly involved in producing goods and services and distributing them to customers.

Back in the early 1980s, TipeRite typewriters were popular among students because they were reliable, yet inexpensive. TipeRite was able to make a profit despite its low prices because it kept its costs low. But in the late 1980s and 1990s, more and more students abandoned typewriters and began using personal computers and word processing software. Though the new technology was more expensive than typewriters, it was versatile and powerful. Soon TipeRite couldn't find anyone to buy its products despite its low prices. The company's trouble illustrates that:

_____ is concerned with all of the activities involved in creating value by producing goods and services and distributing them to the customers.

Given the nature of their products, service firms base their facility location decisions primarily on:

Which of the following statements best describes a difference between Six Sigma and total quality management (TQM)?

Every day during lunch, the Tran Asian restaurant is packed with customers. Tran cannot afford to build a larger facility. To spread out demand, Tran should consider:

Goods are produced independently of the consumer.

JIT is a production system that emphasizes the production of goods to meet actual current demand, thus minimizing the need to hold inventories of finished goods and work in process at each stage of the supply chain.

Foreign outsourcing typically solves coordination problems.

Computer­aided manufacturing takes an electronic design for a product and creates the programmed instructions that robots must follow to produce that product as efficiently as possible.

A(n) _____ is a set of related activities that transform inputs into outputs, thus adding value.

When a company utilizes _____, it arranges for other organizations to perform value chain functions that were previously performed internally.

The selection of the best type of process for a given type of production is influenced by the volume of production and the degree of standardization of a product.

Goods are considered tangible, while services are considered intangible.

As Nick walks into Mesa Cycles, a local bike shop, he feels at ease owing to the decent lighting and soothing background music of the store. He is also impressed with the layout of the store and the easy navigation it provides as he shops. From the given information, it can be concluded that Mesa Cycles has a well­designed:

One of the hallmarks of lean systems is lesser control on inventories.

Ron and Dave are business partners in a small manufacturing firm that makes special types of containers for fragile products. Ron is mainly concerned with product development and works directly with customers to design high­quality containers that meet their specific needs. Dave is more concerned with finding ways to produce the company's products at the lowest possible cost. In this partnership, Ron focuses on effectiveness, while Dave focuses on efficiency.

Which of the following statements is true of services?

An organization's activities and processes that involve the physical flow of goods from the raw materials stage to the final consumer is known as:

In the context of project scheduling, what is the critical path? Discuss its importance with respect to operations managers.