Operations Management Chapter 3

an idea

All product designs begin with ____________ .

supplier involvement

Involving suppliers early in the design process is called:

materials

Which of the following is not a fixed cost?

the quantity where revenue equals total cost

In break-even analysis, what is the break-even point?

sell above the break even point

In break-even analysis, in order to make a profit the company must

2000

For a company, the fixed cost is $ 40,000 per year, the variable cost for each unit produced to be $50, the selling price per unit of the product is $70, what's the break-even quantity?

conceptual design

Which of the following is not a step in product design?

reverse engineering

When designing the Taurus model, what did Ford Motor Company do with regard to BMW and Toyota?

benchmarking

Studying the practices of companies considered "best in class" and comparing the performance of our company against their performance is

psychological benefits of the product

Service design differs from product design by including _____________ .

the later stages

Maturity and decline are also referred to as:

flexibility and delivery

With respect to competitive priorities, intermittent operations compete more on _____________ compared to repetitive operations.

capital intensive

Which of the following is not characteristic of intermittent operations?

line processes

What type of process is designed to produce a large volume of a standardized product for mass production, such as automobiles?

product screening

Evaluating a product idea to determine its likelihood of success is

deciding how to allocate overhead

For which of the following is break-even analysis not appropriate?

manufacturability

the ease with which a product can be made

product design

the process of defining all of the product's characteristics and features

process selection

the development of the process necessary to produce the designed product

service design

the process of establishing all the characteristics of the service, including physical, sensual, and psychological benefits

benchmarking

the process of studying the practices of companies considered "best in class" and comparing your company's performance against theirs

reverse engineering

the process of disassembling a product to analyze its design features

product screening

evaluating a product after it has been developed to determine its likelihood of success

early supplier involvement

involving suppliers in the early stages of product design

break even

a technique used to compute the amount of goods a company would need to sell to cover its costs

fixed costs

costs a company incurs regardless of how much it produces

variable costs

costs that vary directly with the amount of units produced

design for manufacture (DFM)

a series of guidelines to follow in order to produce a product easily and profitably

design simplification

guideline of DFM; reducing the number of parts and features of the product whenever possible

design standardization

guideline of DFM; the use of common and interchangeable parts

introduction, growth, maturity, decline

the four stages of the product life cycle:

product life cycle

a series of stages that products pass through in their lifetime, characterized by changing product demands over time

concurrent engineering

an approach that brings together multifunction teams in the early phase of product design in order to simultaneously design the product and the process

remanufacturing

the concept of using components of old products in the production of new ones

intermittent and repetitive

the two types of processes

intermittent operations

processed used to produce a variety of products with different processing requirements in lower volumes

repetitive operations

processes used to produce one or a few standardized products in high volume

volume and degree of specialization

two main differences between intermittent and repetitive operations

project processes and batch processes

intermittent operations can be divided into:

line processes and continuous processes

repetitive operations can be divided into:

project process

a type of process used to make a one at a time product exactly to customer specifications

batch process

a type of process used to produce a small quantity of products in groups or batches based on customer orders or specifications

line process

a type of process used to produce a large volume of a standardized product

continuous process

a type of process that operates continually to produce a high volume of a fully standardized product

process flow analysis

a technique used for evaluating a process in terms of the sequence of steps from inputs to outputs with the goal of improving its design

process flowchart

a chart showing the sequence of steps in producing the product or service

bottleneck

longest task in the process

make to stock

produces standard products and services for immediate sale or delivery

assemble to order

produces standard components that can be combined to customer specifications

make to order

produces products to customer specifications after an order has been received

process performance metrics

measurements of different process characteristics that tell how a process is performing

throughput time

average amount of time it takes a product to move through the system

process velocity

ratio of throughput time to value added time

productivity

ratio of outputs over inputs

utilization

ratio of time a resource is used to time it is available for use

efficiency

ratio of actual output to standard output

information technology (IT)

technology that enables storage, processing, and communication of information within and between firms

radio frequency identification (RFID)

a wireless technology that uses memory chips equipped with radio antennas attached to objects used to transmit streams of data

automation

using machinery to perform work without human operators

flexible manufacturing system (FMS)

a type of automated system that combines the flexibility of intermittent operations with the efficiency of continuous operations

numerically controlled (NC)

a machine controlled by a computer that can perform a variety of tasks

computer-aided design (CAD)

a system that uses computer graphics to design new products

computer integrated manufacturing (CIM)

the integration of product design, process planning, and manufacturing using an integrated computer system

physical goods, sensual benefits, psychological benefits

the three elements of the service package; purchased together as part of the service