Operations in the service and manufacturing sectors operate independently from each other in creating a value chain that ultimately brings products to
... [Show More] customers.
False. The service sector depends on the manufacturing sector in many ways and their value chain is tightly linked.
Service providers do not produce products because they are not part of the manufacturing sector
False. The final output for both producers of goods and producers of services represent a good or service, both of which are considered products.
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Service providers and provider of goods have many similarities because
Some of their final products can be considered both a good and service.
The management of inventory is important to producers of goods and producers of services but
a service is intangible and thus involves no finished products
A business process has which of the following unique characteristics that make it key in any organization?
It is cross-functional.
What type of decision making can result in more cross-functional teams?
Decentralized
Functional silos that do not allow for sharing of information exist in what type of organization?
Traditional (Traditional organizations have been organized by function, which can lead to inefficiencies)
GATT
General Agreement on Tariffs and Trade
Relative advantage
the difference between the lowest cost producer and the next-lowest cost producer
A quality improvement team is trying to illustrate to upper management how a process is varying over time as measurements are collected.
Which two statistical process control (SPC) tools should the team use?
Run charts, Control charts
A company sells garage doors through a national retailer and contracts with local installers to complete the installations. The operations manager is responsible for completing the installations in a 14-day period after the sale. The company will be penalized financially if it fails to achieve these objectives. The operations manager's daily responsibilities include contacting installers to expedite orders and ensure deadlines are met.
Which two tools that should be used to measure installer performance?
Control charts to measure the time elapsed to completion, Run charts to chart output around the 14-day central tendency
Which two company practices reflect the guiding principles of Six Sigma?
A company tries to reduce variation in the quality of products it offers, A company emphasizes the quality of suppliers because the quality of outputs are determined by the quality of inputs.
Six Sigma is adopted by a manufacturing company.
How can the company use Six Sigma to establish quality improvement?
There should be no more than 3.4 defects per million products from a manufacturing company statistically.
A company makes rulers that are designed to be 20 cm in length with allowance ±0.1 cm.
If the actual length of a ruler is 20.2 cm, which factor will the company use to judge the quality of the length of the rulers?
Conformance
Which quality management philosophy uses cause-and-effect fishbone diagrams for root-cause analysis, emphasizes a bottom-up approach to quality, and considers standardization and quality control to move together in improvement?
Ishikawa's quality circle
Which quality management philosophy assigns cost to quality, defines quality by how well a product can be used for its intended purpose, and uses Pareto charts?
Juran Institute's management theory
A manager is planning staffing needs for a seasonal ice cream stand. The manager expects to have the following number of customers per day each month:
January: 20
February: 23
March: 30
April: 60
May: 90
Jun: 120
July: 130
August: 150
September: 100
October: 80
November: 60
December: 30
Which capacity planning strategy should the manager use to achieve this customer demand?
Match
A company makes garage door tracks for residential and commercial customers. The production manager prefers to run all the footage for residential requirements first each day and then change over for the commercial size after the residential orders are completed. The tooling is changed back to the residential size before the end of business each day.
Which process strategy is this company using?
Batch processing with some product variety on moderately flexible equipment
An oil refinery receives crude oil on a regular basis, which must be refined into five different octane-rated gasoline formulas and diesel. Demand for these fuels is easy to predict. The cost to refine the oil decreases rapidly depending on the size of the refinery that refines the oil.
Based on this information, which process strategy should the oil refinery use in its refining process?
Continuous flow
What is the time horizon for medium-range forecasting?
6 to 18 months
A computer company receives an order for 100 computers from a customer inside of its lead time. The production planner agrees to support the order.
Which two outputs will the MRP system issue?
Planned order receipts, Expedite notice
A bicycle company receives an order to deliver 200 bicycles by the end of the month.
Which planning process will help this company to decide the required quantity of bicycle tires to meet the order?
MRP
A large retail chain is developing an aggregate plan for its "holiday tree" product line. It does not specify Douglas fir, pine, spruce tree, or artificial tree variations, just overall quantity of trees to be offered throughout the holiday season.
What is the appropriate time fence for the aggregate plan?
6 to 18 months before the holiday season begins
A computer company needs to order 50 computer screens from a vendor so they can assemble 100 computers by the end of the month.
What does the computer company need to know to ensure the parts arrive when they are needed?
Lead time
In order to optimize a just-in-time production system, what should companies strive to do?
Reduce setup times of machinery.
A company has a repetitive manufacturing situation where the master schedule does not vary from day to day and is level loaded.
Under these circumstances, which manufacturing system should be employed?
Batch processing
What type of supply chain structure focuses on getting products quickly to market?
Agile supply chain structure
Strategic planning is based on a firm's strengths and weaknesses, as well as the threats and opportunities in the external environment.
Regarding strategic planning, what is JIT?
A strength
What can be used in a company with a just-in-time (JIT) environment to reduce inventory?
A pull system
Which two elements in a lean production system can simplify a company's operations?
Standard parts, Modular design
Which competitive advantage would a company gain from having suppliers managing inventory within the company's facilities?
A decrease in overhead costs [Show Less]