Chapter 10

Question 1

This refers to any process that accepts inputs and uses resources to change those inputs in useful ways.

Answer 1

Operations

Question 2

Examples of final goods and services
are as follows:

Answer 2

1. Industrial chemicals like methylene chloride, borax powder, phosphoric acid, etc., which are produced by chemical manufacturing firms;
2. Services like those for the construction of
   ports, high-rise buildings, roads, bridges, etc., which are produced by constructions firms;
3. Electrical products like transformers, circuit breakers, switch gears, power capacitors, etc., which are produced by electrical manufacturing firms;
4. Electronic products like oscilloscope,
   microwave tests systems, transistors, cable
   testers, etc., which are produced by electronics manufacturing firms;
5. Mechanical devices like forklifts, trucks,
   loaders, etc., which are produced by manufacturing firms;
6. Engineering consultancy services like those for construction management and supervision project management services, etc., which are produced by engineering consultancy firms.

Question 3

This is an activity that needs to be managed by competent persons.

Answer 3

Operations

Question 4

_________ and _________ accurately defined operations management as the process of
planning, organizing, and controlling operations to reach objectives efficiently and effectively.

Answer 4

Aldag and Stearns

Question 5

This is the process of planning, organizing, and controlling operations to reach objectives efficiently and effectively.

Answer 5

Operations Management

Question 6

This is related to the cost of doing something, or the resource utilization involved. This is when a person performs a job at lesser cost than when another person performs the same job.

Answer 6

Efficiency

Question 7

This refers to goal accomplishment. This is when one is able to reach their objectives.

Answer 7

Effectiveness

Question 8

Its function is to determine and define the equipment, tools, and processes required to convert the design of the desired product into reality in an efficient manner.

Answer 8

manufacturing engineer

Question 9

The engineer manager must have some knowledge of the various types of transformation process. They are
as follows:

Answer 9

1. Manufacturing processes
   a) Job shop
   b) Batch flow
   c) Worker-paced line flow
   d) Machine-paced line flow
   e) Batch/continuous flow hybrid
   f) Continuous flow
2. Service processes
   a) Service factory
   b) Service shop
   c) Mass service
   d) Professional service

Question 10

These are those that refer to the making of products by hand or with machinery.

Answer 10

Manufacturing processes

Question 11

A ______________ is one whose production
is based on sales orders for a variety of small lots.

Answer 11

job shop

Question 12

These are very useful components of the entire production effort, since they manufacture products in small lots that are
needed by, but cannot be produced
economically by many companies.

Answer 12

Job shops

Question 13

Depending upon the customer’s needs, a job shop may produce a lot consisting of _________________ similar parts.

Answer 13

20 to 200 or more

Question 14

Job shops produce ______________, in
general. Products may be manufactured within a short notice.

Answer 14

custom products

Question 15

The equipment used in jobs shops are of the ___________________.

Answer 15

general purpose type

Question 16

The type of layout used by job shops is the
_______________, where similar machines are
grouped together.

Answer 16

process layout

Question 17

Process Flow for a Job Shop

Answer 17

1. Preparation and Grouping of Materials
2. Lathe Work
3. Milling
4. Grinding
5. Inspection and Shipping

Question 18

This process is where lots of generally own designed products are manufactured.

Answer 18

batch flow

Question 19

Batch flow is further characterized by
the following:

Answer 19

1. There is flexibility to produce either low or high volumes.
2. Not all procedures are performed on all
   products.
3. The type of equipment used are mostly for general purpose.
4. The process layout is used.
5. The operation is labor intensive, although there is less machine idleness.
6. The size of operation is generally medium-sized.

Question 20

Examples of factories using the large batch flow are ____________, __________, and _____________.

Answer 20

wineries, scrap-metal reduction
plants, and road-repair contractors

Question 21

This refers to a production layout arranged in a sequence to accommodate processing of large volumes of standardized products or services.

Answer 21

assembly line/worker-paced assembly line

Question 22

The worker-paced assembly line is
characterized by the following:

Answer 22

1. The products manufactured are mostly
   standardized.
2. There is a clear process pattern.
3. Specialized equipment is used.
4. The size of operation is variable.
5. The process is worker-paced.
6. The type of layout used is the line flow.
7. Labor is still a big cost item.

Question 23

This type of production process produces mostly standard products with machines playing a significant role.

Answer 23

Machine-Paced Assembly Line

Question 24

Among the other features of machine-paced assembly line are as follows:

Answer 24

1. The process is of clear, rigid pattern.
2. Specialized type of equipment is used.
3. The line flow layout is used.
4. Capital equipment is a bigger cost item
   than labor.
5. Operation is large.
6. The process is machine-paced.

Question 25

This processing is characterized by the rapid rate at which items move through the system.

Answer 25

continuous flow

Question 26

This processing method is very appropriate for producing highly standardized products like calculators, typewriters, automobiles, televisions, cellular phones, etc.

Answer 26

continuous flow

Question 27

The other characteristics of continuous flow are as follows:

Answer 27

1. There is economy of scale in production, resulting to low per unit cost of production. 2. The process is clear and very rigid 3. Specialized equipment are used. 4. The line flow layout is used. 5. Operations are highly capital intensive. 6. The size of operations is very large. 7. Processing is fast.

Question 28

This method of processing is a combination of the batch and the continuous flow.

Answer 28

Batch/Continuous Flow Hybrid

Question 29

This is where two distinct layouts are used, one for batch and one for the continuous flow. The typical size of operation is also very large giving opportunities for economies of scale.

Answer 29

Batch/Continuous Flow Hybrid

Question 30

These are those that refer to the provision of services to persons by hand or with machinery.

Answer 30

Service processes

Question 31

This offers a limited mix of services which results to some economies of scale in operations.

Answer 31

service factory

Question 32

This affords the company to compete in terms of price and speed of producing the service.

Answer 32

service factory

Question 33

The process layout preferred by the service factory is the ________________. McDonalds and Shakeys are also examples of service factories

Answer 33

rigid pattern of line flow processing

Question 34

This provides a diverse mix of services. The layout used are those for job shops or fixed position and are adaptable to various requirements.

Answer 34

service shop

Question 35

Examples of these are Servitek and Megashell.

Answer 35

service shops

Question 36

This provides services to a large number of people simultaneously.

Answer 36

mass service

Question 37

The process layout for this service process is typically fixed position where customers move through the layout.

Answer 37

mass service

Question 38

These are companies that provide specialized services to other firms or individuals.

Answer 38

professional services

Question 39

Examples of professional service firms are as follows.

Answer 39

1. Engineering or management consulting services 2. Design services 3. Advertising agencies 4. Accounting services 5. Legal services 6. Data processing services 7. Health services

Question 40

They help in improving the plant layout or the efficiency of a company.

Answer 40

Engineering or management consulting services

Question 41

They supply designs for a physical plant, products, and promotion materials.

Answer 41

Design services

Question 42

They help promote a firm's products.

Answer 42

Advertising agencies

Question 43

_______________ firms offer a diverse mix of services. There is a lower utilization of capital equipment compared to the service factory and the service shop. The process pattern used is very loose. The process layout used is identical to the job shop.

Answer 43

Professional service

Question 44

Professional service firms are, oftentimes, faced with delivery problems brought about by nonuniform demand. Strategies that may be used depending on the situation are as follows:

Answer 44

1. The use of staggered work-shift schedules. 2. The hiring of part-time staff. 3. Providing the customer with opportunity to select the level of service. 4. Installing auxiliary capacity or hiring subcontractors. 5. Using multi-skilled floating staff. 6. Installing customer self-service.

Question 45

Productive systems consist of six important activities as follows:

Answer 45

1. product design 2. production planning and scheduling 3. purchasing and materials management 4. inventory control 5. work flow layout 6. quality control

Question 46

This refers to the process of creating a set of product specifications appropriate to the demands of the situation.

Answer 46

Product design

Question 47

Companies wanting to maintain or improve its market share keeps a product design team composed of __________, ___________, and ___________.

Answer 47

engineers, manufacturing, and marketing specialists

Question 48

This may be defined as forecasting the future sales of a given product, translating this forecast into the demand it generates for various production facilities, and arranging for the procurement of these facilities.

Answer 48

Production planning

Question 49

This is a very important activity because it helps management to make decisions regarding capacity. When the right decisions are made, there will be less opportunities for wastages.

Answer 49

Production planning

Question 50

This is the phase of production control involved in developing timetables that specify how long each operation in the production process takes.

Answer 50

Scheduling

Question 51

This refers to the approach that seeks efficiency of operation through integration of all material acquisition, movement, and storage activities in the firm.

Answer 51

Materials management

Question 52

This is the process of establishing and maintaining appropriate levels of reserve stocks of goods.

Answer 52

Inventory control

Question 53

There are ways of achieving proper inventory control. They are as follows:

Answer 53

1. determining reorder point and reorder quantity 2. determining economic order quantity 3. the use of just-in-time (JIT) method of inventory control 4. the use of the material requirement planning (MRP) method of planning and controlling inventories

Question 54

This is the process of determining the physical arrangement of the production system. In the transformation process, the flow of work may be done either haphazardly or orderly.

Answer 54

Work-flow layout

Question 55

A good work- flow layout will have the following benefits:

Answer 55

1. Minimize investment in equipment. 2. Minimize overall production time. 3. Use existing space most effectively. 4. Provide for employee convenience, safety, and comfort. 5. Maintain flexibility of arrangement and operation. 6. Minimize material handling cost. 7. Minimize variation in types of material-handling equipment. 8. Facilitate the manufacturing (or service) process. 9. Facilitate the organizational structure.

Question 56

This refers to the measurement of products or services against standards set by the company.

Answer 56

Quality control