Exam 8: Producing Quality Goods and Services

A business will usually choose to produce a new product in an existing facility if the cost is less than the cost of building a new one and the

All the activities managers engage in to produce goods and services are called operations management.

A situation in which people do most of the work is called

The examination of work in process for the purpose of controlling quality is called

Capacity to a service business means something completely different from capacity to a production business.

A common planning horizon for operational plans is one year.

​_____ programs are used to develop products.

Gia is a manager in a circuit manufacturing plant.A portion of the production process is extremely tedious and repetitive,and employees tend to become bored and careless when performing this task.What alternative could make this repetitive task quicker and less susceptible to error?

The process of creating a set of specifications from which the product can be produced is called

Oil companies use a synthetic process when they refine crude oil.

The American economy is now characterized as a(n)____ economy.

Product extension and refinement

The Acme Toy Company introduced a new electric train,the Silver Bullet,in its Christmas catalog last year.Within four days of the catalog's mailing date,Acme had received phone orders for its entire inventory of trains.Paul Murrah,the sales manager responsible for the Silver Bullet,was delighted with the product's success.However,his excitement was overshadowed by the ____ cost resulting from lost sales that his division would suffer.

Operations managers refer to the development of a plan for converting a product idea into an actual product as design planning.

The process of managing inventories to minimize both holding costs and potential stock-out costs is called inventory control.

The executives and operations specialists for Hyster,an industrial equipment manufacturer,meet and determine the operational plan for the next two years.Two years is Hyster's

Scientists at R&E Labs worked for two years on a project to eventually add more knowledge to the science of photography.But in a meeting with the board of directors last week,they had nothing new to report.This is always a risk with

The ____ function specifies when the materials will arrive at each station and how long they will remain there.

Jeremy Johnson is the owner of a small firm that manufactures customized oil-drilling equipment.The company's manufacturing facility is organized into a fabrication section,a heat treatment section,a welding section,and a quality control section.This type of plant layout is referred to as a(n)____ layout.

In deciding on a product line,managers should balance ____ and product requirements.