MGMT 476 Watson CH1

What is wealth and how is it created?

Wealth is measured by the amount of goods and services produced.

What is value added, and how is it achieved?

Value added refers to the increase in worth of a product at each stage of its production.

Name and describe five major factors affecting operations management.

1. Government Regulation

2. Economy

3. Competition

4. Customer Expectations

5. Quality

What must manufacturing management do to manage a process or operation? What is the major way in which management plans and controls?

-planning and controlling the resources involved, such as labor, capital, and materials.

-through the flow of materials

What are the four objectives of a firm wishing to maximize profit?

Provide Best Customer Service:

Provide Lowest Production Costs:

Provide Lowest Inventory Investment:

Provide Lowest Distribution Costs:

What is the objective of marketing? What three ways will help it achieve this objective?

-maintain and increase revenue by providing the best customer service possible.

Maintain High Inventories

Interrupt Production Runs

Create an Extensive Distribution System

What are the objectives of finance? How can these objectives be met?

-managing the financial resources of a firm to ensure its profitability and sustainability.

Low Investment and Costs

Efficient Use of Resources

Production Efficiency

What are the objectives of production? How can these objectives be met?

-efficiently managing manufacturing activities to align with the company's strategic goals

Low Production Cost

High-Level Production

Long Production Runs

What is the purpose of materials management?

To efficiently manage the flow of materials from suppliers through production to consumers

Name and describe the three primary activities of manufacturing planning and control.

1. Production Planning: This activity ensures that production meets market demand efficiently.

   • Forecasting:

   • Master Planning

   • Material Requirements Planning

   • Capacity Planning

2. Implementation and Control: This involves executing the production plans

   • Production Activity Control:

   • Purchasing

3. Inventory Management: This activity manages materials and supplies to support production and sales.

Name and describe the inputs to a manufacturing planning and control system

1. Business Plan

2. Financial Plan

3. Marketing Plan

4. Capacity

5. Production Plan

What are the five activities involved in the physical supply/distribution system?

1. Transportation

2. Distribution Inventory

3. Warehouses or Distribution Centers

4. Material Handling

5. Protective Packaging

Why can materials management be considered a balancing act?

because it involves managing trade-offs between customer service levels and the costs of providing that service

What are metrics? What are their uses?

verifiable measures expressed in quantitative or qualitative terms

Which manufacturing strategies are used in a fast-food business? How does this affect the lead time from the customers’ point of view?

1. Make-to-Stock (immediate availability)

2. Assemble-to-Order (quick assembly)

Give an example of a postponement activity.

Delaying a metric to the latest possible time in the process

Engineer to order

• Description: Products are designed and built to customer specifications.

• Delivery Lead Time: Longest: design, purchase, manufacture, assemble, and shipping

Make-to-Order

• Description: Production begins only after receiving a customer order

• Delivery Lead Time: Manufacture, assemble, ship

Configure-to-Order (CTO):

• Description: Products are assembled from pre-existing components based on customer specifications.

• Delivery Lead Time: Manufacture, assemble, ship

Assemble-to-Order

• Description: Products are assembled from pre-manufactured components once an order is received.

• Delivery Lead Time: Assemble, Ship

Make-to-Stock

• Description: Products are manufactured and stocked in anticipation of customer demand.

• Delivery Lead Time: Shortest: only ship