Exam 17: Om: Putting It All Together Endnotes

Which of the following is a similarity between total quality management and six sigma?

A servicescape's ambience factor refers to the atmosphere a service provider creates for its customers.

Items in inventory don't generate revenue until they're sold.

When determining the type of process that works the best, and how these processes should be organized, one of the key considerations is the type of material used in that production.

The Handy Cotton Candy store has a hard time estimating how much cotton candy to make each day. Lately, people have been buying a lot of cotton candy, and the store has run out of stock. Gerald, the owner, must consider making larger quantities of the product and holding the excess inventory to meet the surges in demand.

Operations managers at Dragon Industries Inc. agree that the company is trying to handle too many supply chain functions on its own resulting in an inefficient use of resources. This suggests that the company may soon adopt the strategy of:

CPM focuses on controlling inventory levels during the production process to ensure that enough parts and materials are available to support production.

To participate in the Baldrige National Quality Program, firms are required to incorporate the Six Sigma quality program

The use of robots in the manufacturing process has been slow since robots are inflexible and cannot be reprogrammed.

From an operations management perspective, explain the differences between goods and services.

In the long run, a firm must choose to either be effective or efficient, because it is impossible to achieve both objectives consistently within the same organization .

Anne Miles owns a small business that produces gourmet candies that are popular with local households during the holiday party season­from Halloween through New Years. Although it is only mid­September, Anne's storage pantries are beginning to fill with boxes of her special candies. Given the nature of her business, the most likely explanation for Anne's large inventory of sweets is that she:

Vertical integration means outsourcing all activities in the value chain with the exception of the very basic things a firm wants to do itself.

A present­day example of the poka­yoke procedure would be:

_____ are experienced and not consumed.

The goal of a(n)_____ approach is to integrate the information flows of all aspects of a business's operations.

A vehicle wheel manufacturing company headquartered in Chicago is opening a new branch. If it decides to locate the branch overseas, _____ is most likely to be the location factor that influenced this decision.

"Poka­yoke" is a Japanese term that refers to simple procedures built into the production process that prevent workers from making mistakes or allow them to catch and correct mistakes quickly if they do occur.

Vertical integration occurs when a firm attempts to gain more control over its value chain by either developing the ability to perform processes previously performed by other organizations in the chain or by acquiring those organizations.

Fifty years ago, a common production strategy was to produce small quantities of customized goods that met the needs of specific customers.