Exam 18: Managing Service and Manufacturing Operations

Which type of productivity shows how much labour,capital,materials,and energy it takes to create an output?

Dylan wishes to purchase an electric keyboard to take with him to college residence when he lives away from home.He is reading reviews of several brands.A key factor in his decision is which company will be able to help the fastest should his keyboard require repair.What feature of the keyboard is important to Dylan?

What is quality? List and define three characteristics of quality for goods and for services.Explain why these characteristics are different for goods and services; then,identify the one dimension that is common in both lists.Finally,specify a good or service that you were very dissatisfied with during the past year,and explain which of these quality dimensions the good or service was deficient on.

What is the term for the number of times per year that a company sells or replaces its average inventory?

In which type of operations classification are manufacturing operations classified in terms of the amount of assembly that occurs after a customer order is received?

There are two ways to define quality.Describe both of them.

Two basic measures of inventory are inventory turnover and average aggregate inventory.What is the third?

In TQM terms,which of the following is an organizational goal to provide products or deliver services that meet or exceed customers' expectations?

The ISO 9000 and 14000 standards publications are specific and are used for manufacturing firms of high knowledge products and services only.

Donna runs a printing company and has called her press supplier.The supplier is having difficulty locating a repair company for the press.What problem exists with the press?

Pamela makes cloth dolls,which she sells to friends and relatives.She currently has more than 200 m of fabric,100 m of ribbon,a box of 500 eyes,stuffing,20 dolls in various stages of completion,and 15 completed dolls.How many items are in Pamela's work-in-process inventory?

Which of the following is the key concept behind the service-profit chain?

The easier it is to maintain a working product or fix a broken product,the more reliable that product is.

A purchasing manager chooses to procure 95 percent of the main raw material the company needs from one supplier.The supplier knows the company's products extremely well,is always friendly and professional to deal with,and if anything goes wrong,takes care of the problem right away.What does the purchasing manager value most in the supplier?

Durability is a quality characteristic that applies to products that can't be repaired,only replaced.

ISO 14000 is a series of international standards for managing,monitoring,and minimizing an organization's harmful effects on the environment.

Which of the following is one of the principles that characterize TQM?

Narrative 18-2 Because of the poor quality of its cars, Hyundai watched its U.S. sales drop from 264,000 cars to 90,000 cars in just two years. Hyundai cars ranked 26th out of 35 car brands in terms of initial car quality as measured by the influential J.D. Power initial car quality survey. With $6.6 billion in debt, a $1 billion investment for a new manufacturing plant in Alabama, and the company's first-ever loss, Hyundai's new chairman, Chung Mong Koo, declared that improving quality was the only way to fix the company. The challenge for Chung was to get his managers to put quality, not costs, first. So he sent a visible, meaningful message that poor quality would no longer be tolerated. During one plant visit, Chung demanded to see under the hood of a car on the production line. He was furious when he saw loose wires, tangled hoses, bolts painted four different colours-a tremendous deviation from what the engine compartment was supposed to look like. On the spot, he instructed the plant chief to paint all bolts and screws black and ordered workers not to release any car unless all was orderly under the hood. He then publicly declared that Hyundai would produce higher-quality cars than Toyota by 2008, and that Hyundai would produce the best quality cars in the auto industry. Today, each workweek starts with a demanding three-hour meeting attended by managers, engineers, designers, and suppliers. In his large boardroom, Chung displays Hyundai cars on rotating turntables or mechanical lifts-whatever is required for those in attendance to see up close what problems need to be fixed. Hyundai managers now measure everything. Hundreds of charts on the walls of every Hyundai factory measure the number of times and the degree to which a process has produced parts that differ meaningfully from the quality standards for those parts. The quality department at Hyundai has grown from 100 to 1,000 people, who now report directly to CEO Chung. All employees share their ideas about how to improve quality because Chung communicated to workers that their ideas were critical and welcomed. To prove it, he rewarded them with bonuses averaging $150 per employee. At one Hyundai factory, workers have suggested 25,000 ideas for improving quality, 30 percent of which have been implemented in the factory. For instance, a worker noticed that the Hyundai Sonata and SG 350 sedans had identically sized spare tires, but different-sized spare tire covers. Though it may sound trivial, using the same spare tire cover for both cars saves Hyundai $100,000 a year. Hyundai addresses customer complaints as quickly as possible, and these quick responses to customer complaints have had dramatic results, such as reducing Hyundai Santa Fe's score in J.D. Power's initial car quality survey from 149 problems per 100 cars to 93 problems per 100 cars in just one year. Finally, if the greatly improved quality isn't enough to convince prospective buyers to buy a Hyundai, the company believes that its 5-year/100,000 km warranty may be enough. The longest, most comprehensive warranty in the auto industry shows the confidence the company has in its cars. And those extensive warranties probably won't cost Hyundai much either, as the improved quality of its cars has cut the cost of warranty repairs, which are paid for by headquarters, by 35 percent over the last three years. -Refer to the Narrative 18-2.Which of the following terms can be used to describe a company that builds what clients order rather than what it thinks clients should buy?

The three basic measures of inventory are average aggregate inventory,weeks of supply,and inventory turnover.

Brake Parts Inc.,manufacturer of Raybestos brand brakes,is at the forefront of the replacement brake industry as a result of its ongoing commitment to continuous product improvement and its uncompromising dedication to providing customers with the most advanced,premium quality product technology through teamwork.In other words,which of the following is Brake Parts committed to?