all the activities required to produce goods and services Show What two key factors account for increases in US productivity in the production sector? Innovation (better way to produce products) and highly skilled workers a situation in which US manufacturers bring manufacturing jobs back to the US a manufacturing process that lowers the cost required to produce a large number of identical or similar products over a long period of time. a process in operations management in which raw material are broken into different component parts a process in operations management in which raw materials or components are combined to create a finished product the ability of a good or service to satisfy a human need What are the 4 types of utility? form, place, time and posession utility created by people converting raw materials, finances and information into finished products. Focus of Conversion Process the resource or resources that make up the major or most important imput What is the magnitude of a conversion process? The degree to which the resources are physically changed What three steps are involved in the conversion process focus (resource), magnitude, (how much resources are changed), and number of production processes. an economy in which more effort is devoted to the production of services than to the production of goods What are three major activities involved in operations management? research and development, planning for production, and operations control.
research and development (R&D) a set of activities intended to identify new ideas that have the potential to result in new goods and services What are the three general types of R&D activities? Basic Research, Applied Research and Development and implementation. activities aimed at uncovering new knowledge without regard for its potential use in the development of goods and services Development and implementation research activities undertaken specifically to put new or existing knowledge to use in producing goods and services. activities geared toward discovering new knowledge with some potential use. What are the three phases of planning for production? design planning, facilities planning and operational planning the development of a plan for converting an idea into an actual product or service What three major decisions are involved in design planning? product line, required capacity and use of technology a group of similar products that differ only in relatively minor characteristics. the process of creating a set of specifications from which a product can be produced. the amount of products of services that an organization can produce in a given time. labor intensive technology a process in which people must do most of the work. capital intensive technology a process in which machines and equipment do most of the work. the arrangement of machinery, equipment, and personnel within a production facility What are the three general types of plant layout? process layout, product layout, and fixed position layout used when different operations are required for creating small batches of different products or working on different parts of a product. Each operation is performed in its own area. sometimes referred to as assembly line, is used when all products undergo the same operations in the same sequence. Workstations are arranged to match sequence of operation and work flows from station to station. used when a very large product is produced. Product remains stationary and people and machines are moved as needed to assemble the product. What is the objective of operational planning? to decide on the amount of products or services each facility will produce during a specific period of time. What are the 4 steps in operational planning? Selecting a Planning horizon, estimating market demand, comparing market demand with capacity, and adjusting products or services to meed demand. the period during which an operational plan will be in effect. What is a common planning horizon? the quantity that customers will purchase at the going price. What are the three possible outcomes when comparing market demand with capacity? demand exceeds capacity, capacity exceeds demand, or capacity and demand are equal. What is the biggest reason for changes to a firm's production schedule? changes in the amount of products or services that a company sells to its customers. What are 4 important areas of operations control? purchasing, inventory control, scheduling and quality control. all activities involved in obtaining required materials, supplies, components and parts from other firms What 5 factors should be considered when choosing suppliers? price, quality, reliability, credit terms, and shipping costs. What three types of inventory are operations managers concerned with? raw materials inventory, work in process inventory, and finished goods inventory. materials that will become part of the product during the production process. work in process inventory partially completed products cost of running out of inventory the process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock out costs. Materials Requirements Planning (MRP) a computerized system that integrates production planning and inventory control just in time inventory system a system designed to ensure that materials or supplies arrive at a facility just when they are needed so that storage and holding costs are minimized the process of ensuring that materials and other resources are at the right place at the right time the sequence of workstations that the materials will follow specifies when the materials will arrive at each station and how long they remain there ensures that the work flows according to the schedule Malcolm Baldrige National Quality Award an award given by the president of the US to organizations judged to be outstanding in specific managerial tasks that lead to improved quality for both products and services. the process of ensuring that goods and services are produced in accordance with design specifications. What is one of the first steps needed to improve quality? a team of employees who meet on company time to solve problems of product quality the examination of the quality of work in process a disciplined approach that relies on statistical data and improved methods to eliminate defects for a firm's products and services. International Organization for Standardization (ISO) a network of national standards institutes and similar organizations from over different countries that is charged with developing standards for quality products and services that are traded throughout the globe sets the guidelines for quality management procedures that manufacturers and service providers must use to receive certificaion. A family of international standards for incorporating environmental concerns into operations and product standards. a concept built on the idea of eliminating waste from all of the activities required to produce a product or service. What are 4 benefits of lean manufacturing? reduction in the amount of resources required to produce a product or service, more efficient use of employee time, improved quality, and increased profits. the total or near total use of machines to do work the use of programmable machines to perform a variety of tasks by manipulating materials and tools. Computer aided design (CAD) the use of computers to aid in the development of products computer aided manufacturing (CAM) the use of computers to plan and control manufacturing processes COmputer integrated manufacturing a computer system that not only helps to design products but also controls the machinery needed to produce the finished product a manufacturing process in which a firm produces the same products over a long period of time. flexible manufacturing system (FMS) a single production system that combines electronic machines and CIM a manufacturing process in which a firm's manufacturing machines and equipment are changed to produce different products a plan for converting a product idea into an actual product or service raw materials are broken into different components its focus is minimizing holding costs and potential stock out costs it is created by people converting materials, finances, and information into finished goods A manufacturing process in which a firm's manufacturing machines and equipment are changed to produce different products work is accomplished mostly by equipment capital intensive technology input from workers is used to improve the workplace the average level of output per worker per hour computers are the main tool used in the development of products computer aided design (CAD) the time period during which an operational plan will be in effect T/F Capacity is the degree to which input resources are physically changed by the conversion process. False - magnitude is the degree to which input resources are physically changed by the conversion process. Capacity is the amount of products or services that an organization can produce in a given time. T/F Reshoring is sometimes referred to as onshoring or insourcing. T/F Operations management is the process of creating a set of specifications from which the product can be produced False - product design is creating a set of specifications from which a product can be produced. Operations management is all the activities required to produce goods and services. T/F A purchasing agent need not worry about a tiny difference in price when a large quantity is being bought. False - even though small, it will add up quickly in large quantities. T/F A purchasing agent need not worry about a tiny difference in price when a large quantity is being bought. T/F When work stations are arranged to match the sequence of operations, a process layout is being used. False - workstations are arranged to match the sequence of operations in a product layout. Process layout is when each operation is performed in its own area. T/F Work-in-process inventories are raw materials and supplies waiting to be processed. False - work in process inventories are partially completed products. raw materials inventory are raw materials and supplies waiting to be processed. T/F The purpose of research and development is to identify new ideas that have the potential to result in new goods and services. T/F - or a food-processing plant such as Kraft Foods, capacity refers to the number of employees working on an assembly line. False - capacity refers to the amount of products or services that an organization can produce in a given time. T/F - Labor-intensive technology is accompanied by low initial costs and high operating costs. One worker in Department A produces of work per day on a computer, whereas a co-worker produces only of work per day on a computer. Since the first worker produces more units, that worker has a Services differ from the production of manufactured goods in all ways except that services aren’t as important as manufactured products to the U.S. economy. The goal of basic research is to uncover new knowledge without regard for its potential use. Two important components of scheduling are A common planning horizon for production activities is A _______manufacturing system combines electronic machines and computer-integrated manufacturing in a single-production system. The process of acquiring materials, supplies, components, and parts from other firms is known as Procter & Gamble uses ______ production to produce household products. If a good or service satisfies a human need, it has The american economy is now characterized as a(n) _____economy. When a firm decides to develop and market a new line of products, it must consider the required capacity, use of technology, and the scope of the new line. Making decisions about these items is part of JBSC is very environmentally aware. When it enters the global marketplace, JBSC will be prepared, as it has already begun the process of having its procedures documented by independent auditors. JBSC is working on its ___ certification. The conversion of resources into products and services can be described by its focus, magnitude, and number of production processes What do you call the process of converting raw materials?Manufacturing is the process of turning raw materials or parts into finished goods through the use of tools, human labor, machinery, and chemical processing. Manufacturing is integral to the economy. Most products were handmade using human labor and basic tools before the Industrial Revolution.
Is a raw material?Raw materials are the input goods or inventory that a company needs to manufacture its products. Examples of raw materials include steel, oil, corn, grain, gasoline, lumber, forest resources, plastic, natural gas, coal, and minerals.
What are the raw materials and their finished products?animal: wool,silk, hides. vegetal: cotton, wood, cork, linen. mineral: copper, marble, clay, iron.
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Raw materials, technical materials and their manufactured goods.. What are the 4 types of raw materials?Types of raw materials. Plant/tree-based – materials like vegetables, fruits, flowers, wood, resin, latex are obtained from plants and trees.. Animal-based– materials like leather, meat, bones, milk, wool, silk are all obtained from animals.. Mining-based– materials like minerals, metals, crude oil, coal, etc.. |
Materials that will become part of a product during the conversion process are called raw materials.
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