Final Examination 2 of 2:
Chapter 1 / Question #2: Identify four people who have contributed to the theory and techniques of operations management.
They are Eli Whitney, Frederick Taylor, Henry Ford and Walter Shewhart.
Chapter 2 / Question #2: List six reasons to internationalize operations.
1. Improve the supply chain.
2. Reduce costs (labor, taxes, tariffs, etc.).
3. Improve operations.
4. Understand markets.
5. Improve products.
6. Attract and retain global talent.
Chapter 3 / Question #2: Explain the purpose of project organization.
Projects that take months or years to complete are usually developed outside the normal production system. Project organizations within the firm may be set up to handle such jobs and are often disbanded when the project is complete. On other occasions, managers find projects just a part of their job.
Chapter 4 / Question #2: Identify and briefly describe the two general forecasting approaches.
• Qualitative Approach:
Used when situation is vague and little data exist
Involves intuition, experience
New products
New technology
e.g., forecasting sales on Internet
• Quantitative Methods:
Current technology
Used when situation is ‘stable’ and historical data exist
Existing products
Involves mathematical techniques
e.g., forecasting sales of color televisions
Chapter 5 / Question #2: What techniques do we use to define a product?
A lot of manufactured products and their components are usually defined by way of a drawing, which in this case is called an engineering drawing. An engineering drawing usually portrays the dimensions, materials, and tolerances as well as the materials and finishes needed for a specific component. The engineering drawing is an item needed in the bill of material, which is a specified list of components as well as their descriptions and quantity needed to create one product unit. For products with added complexity, bill of materials are referenced on other BOMs wherein they are also a part of. Meanwhile, in the food industry, BOMs are manifested via portion-control standards. In BOMs, sub-units are part of another higher unit or the parent BOM, which is ultimately part of the finished product. There are also other ways of product definition which can be used. Examples are proportions or formulas for products such as paints, chemicals, and petroleum.
Chapter 6 / Question #2: As an Internet exercise, determine the Baldrige Award criteria. See the Web site www.nist.gov/baldrige/.
Here are the criteria for Baldridge Award:
Leadership: How upper management leads the organization, and how the organization leads within the community.
Strategy: How the organization establishes and plans to implement strategic directions.
Customers: How the organization builds and maintains strong, lasting relationships with customers.
Measurement, analysis, and knowledge management: How the organization uses data to support key processes and manage performance.
Workforce: How the organization empowers and involves its workforce.
Operations: How the organization designs, manages and improves key processes.
Results: How the organization performs in terms of customer satisfaction, finances, human resources, supplier and partner performance, operations, governance and social responsibility, and how the organization compares to its competitors.
Chapter 7 / Question #2: What type of process is used for making each of the following products? (a) beer (b) wedding invitations (c) automobiles (d) paper (e) Big Macs (f ) custom homes (g) motorcycles
a) beer – Product focus
(b) wedding invitations – Process focus
(c) automobiles – Repetitive focus
(d) paper – Product focus
(e) Big Macs – Repetitive focus
(f ) custom homes – Process focus
(g) motorcycles – Repetitive focus
Chapter 8 / Question #2: Why do so many U.S. firms build facilities in other countries?
Globalization has occurred in light of the advancement of (1) advertise financial aspects; (2) better worldwide correspondences; (3) quicker, dependable travel and transporting; (4) simplicity of capital stream amongst nations; and (5) high contrasts in labor costs.
Chapter 9 / Question #2: What are the three factors that complicate a fixed-position layout?
1. There is limited space at virtually all sites.
2. At different stages of a project, different materials are needed; therefore, different items become critical as the project develops.
3. The volume of materials needed is dynamic.
Chapter 10 / Question #2: What are some of the worst jobs you know about? Why are they bad jobs? Why do people want these jobs?
Jobs in foundries are bad because they are dirty and dangerous. Those jobs don’t usually require professional qualifications in order to get hired.
Chapter 11 / Question #2: What are the objectives of supply chain management?
Chapter 12 / Question #2: With the advent of low-cost computing, do you see alterna- tives to the popular ABC classifications?
The nearness of low-cost computing ought not to be viewed as preventing the essence for the ABC inventory classification scheme.
Chapter 13 / Question #2: Why are S&OP teams typically cross-functional?
S&OP teams are typically cross-functional because all the resources – internal and external – must be integrated for an efficient aggregate plan.
Chapter 14 / Question #2: Once a material requirements plan (MRP) has been estab- lished, what other managerial applications might be found for the technique?
The other managerial applications might be found for the technique are expected receipts, master production schedule, and bill-of-material.
Chapter 15 / Question #2: List the four criteria for determining the effectiveness of a scheduling decision. How do these criteria relate to the four criteria for sequencing decisions?
a. Minimize completion time – evaluated by determining the average completion time.
b. Maximize utilization – evaluated by determining the percent of the time the facility is utilized.
c. Minimize work-in-process (WIP) inventory – evaluated by determining the average number of jobs in the system.
d. Minimize customer waiting time – evaluated by determining the average number of late periods (e.g., days or hours).
Chapter 16 / Question #2: What is JIT?
JIT is a viewpoint of nonstop and required problem solving, and changes a series of vogue programs.
Chapter 17 / Question #2: How does one identify a candidate for preventive maintenance?
To identify a candidate for preventive maintenance, a person must understand the connection of consequences of failure, the cost of preventive maintenance and the MTBF distribution,