Operations Management and TQM - Introduction to Production and Operations Management

A set of 40 fill-in-the-blank practice flashcards covering fundamental concepts, history, organizational functions, utilities, and objectives in Production and Operations Management.

Production/Operations Management combines and transforms various resources used in the production/operations subsystem into __________ product/services in a controlled manner.

value added

The set of interrelated management activities involved in manufacturing certain products is called __________ management.

production

When management activities are extended to services management, the corresponding set of activities is called __________ management.

operations

The view that sees any organization as an arrangement of interrelated parts interacting in predictable ways is known as the __________ concept of production.

systems

A __________ is defined as a set of interconnected parts that work together to achieve a common purpose or function.

system

The basic organizational function that generates demand or takes customers' orders for a product or service is __________.

Marketing

The basic organizational function that keeps track of performance and takes care of cash inflow and outflow is __________.

Finance/Accounting

The basic organizational function that creates the product (goods or services) is __________.

Production/Operations

An inter-organizational relationship exists between the production/operations department and __________.

suppliers

Intra-organizational relationships call for __________ coordination among different functions within the organization.

cross-functional

In the organization chart for an Automobile Manufacturing Firm, Quality control and assurance falls under the department of __________.

Production/Operations

In the organization chart for a Commercial Bank, Teller scheduling and check clearing fall under the department of __________.

Operations

The core of a production system where workers, materials, machines, and equipment convert inputs into outputs is the __________ subsystem.

conversion or transformation

Any conversion process consists of several small activities referred to as __________, which are steps in the overall process leading to the final output.

operations

Production is defined as the process of adding to the value of outputs or the process of creating __________ in outputs.

utility

Utility is defined as satisfying __________ needs.

human

The type of utility created by changing the size, shape, form, weight, color, or smell of inputs is __________ utility.

Form

The type of utility created by transporting inputs from their source of availability to the place where they are converted into outputs is __________ utility.

Place

The type of utility created by the storage or preservation of raw materials or finished goods that are in abundance for later use is __________ utility.

Time

The type of utility created by transferring ownership or possession of an item from one person to another is __________ utility.

Possession

The type of utility created by rendering service directly to a client or customer, such as by a doctor or lawyer, is __________ utility.

Service

The type of utility created by imparting knowledge to a person through sales presentations or advertisements is __________ utility.

Knowledge

In production management, __________ quality is not necessarily the best quality, but is determined by the cost and technical characteristics suited to specific requirements.

Right

If products are produced in excess of demand, capital will block up in the form of __________, whereas short production leads to shortages.

inventory

To reduce variation between actual cost and standard cost, products should be manufactured at a pre-established cost known as the right __________ cost.

manufacturing

The objective of operations management focused on providing agreed levels of customer satisfaction is the __________ objective.

Customer Service

The objective of operations management focused on achieving agreed levels of utilization of materials, machines, and labor is the __________ objective.

Resource Utilization

Goods are characterized as __________ because they can be seen and touched, unlike intangible services.

tangible

Unlike goods, services are produced and consumed __________ and cannot be stored.

simultaneously

Production managers are responsible for the amalgamation of five Ps: Product, Plant, Processes, Programs, and __________.

People

In the 5 Ps of production management, __________ consist of schedules or timetables that set times for delivery of products or services.

Programs

In 1776, Adam Smith wrote __________ in which he described the division of labor.

The Wealth of Nations

Henry Ford increased efficiency in production by introducing __________ line production.

assembly

Frederick Winslow Taylor is known as 'The Father of __________ Management'.

Scientific

Post-World War II technological developments in __________ technology allowed firms to analyze a greater degree of data.

computational

Two notable quality management systems used by top modern firms are ISO systems and __________.

Six Sigma

In modern operations management, __________ management starts with identifying risks, assessing vulnerability and potential damage, and taking steps to reduce or share risks.

Risk

The ethical principle stating that actions should respect and protect the moral rights of others is the __________ Principle.

Rights

The ethical principle stating that equals should be held to, or evaluated by, the same standards is the __________ Principle.

Fairness

The ethical principle stating that actions should contribute to the common good of the community is the __________ Principle.

Common Good