SJSU-Operations Management-Midterm
Terms
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- Market analysis categorizes the firm's customer's, identifies their needs, and assesses competitor's strengths.
- True
- A strategic alliance is where two firms agree to jointly produce a product or service, an approach to gain access to foreign markets.
- True
- High performance design, measures the frequency with which the product or service meets design specifications.
- False
- Line flow strategy is used by a firm who produces a wide range of low-volume products or services.
- False
- The assemble to order strategy is an approach to producing products with many options, from relatively few assemblies and components.
- True
- Make to order strategy is where a firm holds items in stock for immediate delivery, thereby minimizing customer delivery time.
- False
- An order qualifier is the ability to accomodate the unique needs of each customer and changing product or service designs; whereas products and services are tailored to individual preferences.
- False
- In determining market segments, two characteristics that can be used are demographic factors, and industry factors.
- True
- Market segment needs can be grouped into a few categories which include delivery system needs, and volume needs.
- True
- Licensing technology is a form of strategic alliance in which one company licenses its production or service methods to another firm.
- True
- Process management is the selection of the inputs, operations, workflows, and methods to transform inputs into outputs.
- True
- Process choice is the ease with which employees and equipment can handle a wide variety of products, output levels, duties and functions.
- False
- Auto assembly and cafeteria line are examples of a batch process.
- False
- Forward integration means that the firm acquires more channels of distribution, such as warehouses, and retail stores.
- True
- One advantage of outsourcing for a firm, is an attractive process choice where volumes are low.
- True
- A flexible workforce is one where workers are capable of performing limited tasks, only at their workstation.
- False
- Flexible automation produces one type of part or product in a fixed sequence of simple operations.
- False
- Customer involvement in manufacturing decisions will increase when production volumes are low.
- True
- Process analysis is a six step systematic procedure.
- True
- A process chart traces the flow of information, customers, employees, equipment, or materials through a process.
- False
- Process technology translates ideas into new products and services for the firm's customers.
- False
- Managers use product technology to acquire, process, and transmit information in order to make effective decisions.
- False
- Information technology is made up of sub-technologies including hardware, software, databases, and telecommunications.
- True
- When people speak of electronic commerce, they are talking about a paperless exchange of business information.
- True
- In research and development environments, basic research is where work is geared toward solving practical problems.
- False
- Product or process development activities move through various phases including: concept development, technical feasibility, and product design.
- True
- Technology fusion refers to the process of combining several existing technologies and scientific disciplines to create a hybrid technology.
- True
- In the first mover considerations, the strategic consideration of dealing with what technology to choose, rather than when to adopt a new technology is the key decision choice.
- False
- In the discussion of distruptive technology is one that has performance attributes that aren't valued by existing customers for current products, amoungst other attributes.
- True
- In acquiring technologies, a good rule of thumb is not to enter into any cooperative agreements with other firms or suppliers.
- False
- Total Quality Management stresses three principles: customer satisfaction, employee involvement, and continuous improvement in quality.
- True
- In the discussion of defining who the customers are for the employee, internal customers are people or firms who buy products or services.
- False
- Employee empowerment moves the responsibility for decision making further down the organization chart, in essence to the level of the employee actually doing the job.
- True
- In problem solving, the logical cycle steps to follow in sequence are: Act-Check-Plan-Do ?
- False
- Internal failure costs typically fall into two major cost categories: yield losses and rework losses.
- True
- The benchmark step for planning, involves the establishing of goals, obtaining support of managers who must provide the resources for accomplishing the goals.
- False
- Functional benchmarking compares areas such as administration, customer service, and sales operations with the leading firms in the industry.
- True
- Tools for improving quality include the use of checklists, histograms, Pareto charts and scatter diagrams.
- True
- To prevent each country from creating its' own set of quality standards, the Malcolm Baldrige National Quality Award was established for companies doing business in the European Community.
- False
- W. Edwards Deming's philosophy is that quality is the responsibility of the worker, not management.
- False
- Capacity is the maximum rate of output for a facility.
- False
- Peak capacity is the maximum output that a process or facility can achieve under ideal conditions.
- True
- The maximum output that a process or firm can economically sustain under normal conditions is rated capacity.
- False
- A bottleneck is an operation that has the lowest effective capacity of any operation in the facility and thus limits the system's output
- False
- Economies of scale is where the average cost per unit increase as the facility's size increase.
- False
- Wait-and-see strategy involves large, infrequent jumps in capacity.
- False
- Expansionist strategy is where a firm expands when others do.
- False
- A capacity gap is any difference (positive or negative) between projected demand and current capacity.
- True
- Setup time is the time required to change a machine from making one product or service to making another.
- True
- Cash flow is the flow of funds into an organization over a period of time, including revenues, and changes in assets and liabilities.
- True
- A layout in which workstations or department are arranged in a linear path.
- Product Layout
- A layout that groups workstations or departments according to function.
- Process layout
- Outside disruptions and crowding can hurt a worker's performance. Studies at several state government departments revealed a strong link between privacy and satisfaction with the supervisor and the job.
- True
- Line balancing is the assignment of work to stations in a line so as to achieve the desired output rate with the smallest number of workstations.
- True
- Groups parts or products with similar characteriestics into families and sets aside groups of machines for their production
- Group Technology