PRACTICE TEST (DISCUSSIONS)

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Manufacturing Organization

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18 Terms

1

Manufacturing Organization

Produces physical products, characterized by low customer contact, capital-intensive operations, and long response times.

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2

Service Organization

Offers intangible products, characterized by high customer contact, labor-intensive operations, and short response times.

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3

High Volume (4 V’s)

Involves high repeatability, specialization, and economies of scale, resulting in low unit costs.

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4

Low Volume (4 V’s)

Features varied roles for staff, less systematization, and higher unit costs.

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5

High Variety (4 V’s)

Requires flexible operations to meet diverse customer needs, leading to higher unit costs.

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6

Low Variety (4 V’s)

Involves standardized processes with routine outputs, resulting in lower costs.

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7

High Variation in Demand (4 V’s)

Necessitates flexible capacity strategies to manage fluctuating demand.

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8

Low Variation in Demand (4 V’s)

Characterized by predictable and stable operations, optimizing resource use and costs.

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9

High Visibility (4 V’s)

Requires skills for effective customer interaction due to high customer contact.

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10

Low Visibility (4 V’s)

Involves centralized, standardized processes with minimal customer interaction.

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11

Top-Down Perspective

Aligns operations strategy with overall business objectives.

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12

Bottom-Up Perspective

Utilizes operational learnings and improvements to inform strategy.

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13

S-Shaped Curve of Innovation

Illustrates the typical lifecycle of an idea, from a slow start to rapid improvement, followed by natural limits.

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14

Design Funnel

A process that narrows design options from concept to final specification.

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15

Disintermediation

The removal of middlemen to facilitate direct interaction between customers and suppliers.

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16

Functional Layout

Groups similar processes or functions in one location, such as in a library or hospital.

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17

Line Layout

Arranges processes in a sequence, ideal for mass production.

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18

Socio-Technical System (STS)

Integrates social and technical aspects within an organization.

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