Exam 18: Managing Service and Manufacturing Operations

Roger is comparing battery life from several battery suppliers.What is Roger evaluating?

Which ticket-based system indicates when to reorder inventory?

List and briefly identify the three basic measures of inventory that managers use to keep inventory costs from becoming too large.

Inventory is defined as the number of finished products that a company has in its possession either in the factory,in warehouses,or on delivery vehicles.

Two common measures of productivity are extrinsic productivity and intrinsic productivity.

Narrative 18-1 In recent years, Japanese companies such as Mitsubishi, NEC, Fujitsu, and Sony began turning to North America to manufacture Japanese products. While Sony, Panasonic, and other Japanese giants still excel at cranking out high-quality consumer electronics products-such as camcorders and TVs-by the millions, it's a different story in industries with short product cycles and factories that must build what customers order instead of churning out products in anticipation of demand. Japan's great strength-repetitive manufacturing-is becoming its greatest weakness. This production-on-demand form of management cannot depend on JIT. Instead, the North American companies rely on raw-in-process inventory, or RIP. RIP calls for keeping a reasonable quantity of varied raw materials or components on hand to meet changing customer demand. -Refer to the Narrative 18-1.What is the unique characteristic of the JIT system?

In TQM,customer focus and satisfaction,continuous improvement,and teamwork mutually reinforce each other to improve quality throughout a company.

What is the correct relationship among productivity,outputs,and inputs?

Which type of productivity was the manager of a sign manufacturer interested in when determining how much glass tubing was needed to produce a neon sign for a casino?

The four kinds of costs incurred with inventory maintenance are ordering costs,setup costs,transaction costs,and stockout costs.

Which type of productivity is a measure of performance that indicates how much of a particular kind of input it takes to produce an output?

Which of the following is a well-known technique for managing inventory?

What types of public recognition are given to companies that demonstrate the highest probability that they are consistent producers of high-quality goods or services,and what is the process of receiving and maintaining that recognition?

Total quality management (TQM)saved Xerox from bankruptcy when it was badly beleaguered by its Japanese rivals.What would TQM have brought to Xerox to save it from bankruptcy?

Why is productivity so important?

What determines a product's quality?

Xerox is a firm believer in total quality management (TQM).Anne Mulcahy,the president of Xerox,was quoted as saying,"TQM may help employees figure out how to solve a specific problem.But the really big payoff comes when they share that solution with others." Which characteristic of TQM was Mulcahy promoting in her statement?

Describe the changes that many service organizations are making to enhance the process of service recovery.Give an example of such a change that could enhance service recovery for dissatisfied students at your college or university.

Mackenzie is the new operations manager of an auto specialty company.Mackenzie reflects on how production is different at this company vs where he last worked.In his previous company,the production schedule was steady and predictable as large quantities of a few products were produced.At this new company,each client has a different requirement and work doesn't begin until the client's needs are defined.What type of operation does Mackenzie now manage?

What is total quality management (TQM)?