Business 101 - Midterm 2 Exam Questions and Answers Fully Solved
Production Management - Answers All the activities managers engage in to help firms create goods
Production - Answers The creation of goods using land, labor, materials, capital, entrepreneurship, and
knowledge (factors of production)
Operations Management - Answers A specialized area in management that converts or transforms
resources into goods and services
Includes:
Inventory management
Quality control
Production scheduling
Follow-up services
The Production Process - Answers Inputs --> Production Control --> Outputs
Process Manufacturing - Answers The part of production that physically or chemically changes materials
Assembly Process - Answers The part of production that puts together components
Continuous Processes - Answers Long production runs turn out finished goods over time
Intermittent Processes - Answers Production runs are short and the producer adjusts machines
frequently to make different products
Key Product Processes - Answers Production processes are either continuous or intermittent
What is the objective of Operations Management? - Answers Provide high quality goods and services in
response to customer demand
Computer-Aided Design (CAD) - Answers The use of computers in the design of products
Computer-Aided Manufacturing (CAM) - Answers The use of computers in the manufacturing of
products
Computer-Integrated Manufacturing (CIM) - Answers Uniting of computer-aided design with computer-
aided manufacturing
(Factors: CAD & CAM united, Expensive!, Cuts up to 80% of time to program machines to make parts)
, Mass Customization - Answers Tailoring products to meet the needs of a large number of individual
customers
What is the "Internet's" role? - Answers 1. Outsource engineering, design, and manufacturing
2. Relationships often managed through internet
3. Firms are developing internet-focused strategies
Remote Work - Answers Working from home (via computer)
Facility Layout - Answers Physical arrangement of resources, including people, to most efficiently
produce goods and provide services
Layout depends on processes performed:
Service: Help customers find products
Manufacturing: Improve efficiency
Assembly Line Layout - Answers Workers do only a few tasks at a time
Modular Layout - Answers Teams produce more complex units of final product
Fixed-Position Layout - Answers Allows workers to congregate around product
Purchasing - Answers Function that:
1. searches for high-quality material resources
2. finds the best suppliers
3. negotiates best price for goods and services
Just-in-Time (JiT) Inventory Control - Answers Production process in which a minimum of inventory is
kept and parts, supplies, and other needs are delivered just in time to go on the assembly line.
Quality - Answers Consistently producing what the customer wants while reducing errors before and
after delivery
Production Management - Answers All the activities managers engage in to help firms create goods
Production - Answers The creation of goods using land, labor, materials, capital, entrepreneurship, and
knowledge (factors of production)
Operations Management - Answers A specialized area in management that converts or transforms
resources into goods and services
Includes:
Inventory management
Quality control
Production scheduling
Follow-up services
The Production Process - Answers Inputs --> Production Control --> Outputs
Process Manufacturing - Answers The part of production that physically or chemically changes materials
Assembly Process - Answers The part of production that puts together components
Continuous Processes - Answers Long production runs turn out finished goods over time
Intermittent Processes - Answers Production runs are short and the producer adjusts machines
frequently to make different products
Key Product Processes - Answers Production processes are either continuous or intermittent
What is the objective of Operations Management? - Answers Provide high quality goods and services in
response to customer demand
Computer-Aided Design (CAD) - Answers The use of computers in the design of products
Computer-Aided Manufacturing (CAM) - Answers The use of computers in the manufacturing of
products
Computer-Integrated Manufacturing (CIM) - Answers Uniting of computer-aided design with computer-
aided manufacturing
(Factors: CAD & CAM united, Expensive!, Cuts up to 80% of time to program machines to make parts)
, Mass Customization - Answers Tailoring products to meet the needs of a large number of individual
customers
What is the "Internet's" role? - Answers 1. Outsource engineering, design, and manufacturing
2. Relationships often managed through internet
3. Firms are developing internet-focused strategies
Remote Work - Answers Working from home (via computer)
Facility Layout - Answers Physical arrangement of resources, including people, to most efficiently
produce goods and provide services
Layout depends on processes performed:
Service: Help customers find products
Manufacturing: Improve efficiency
Assembly Line Layout - Answers Workers do only a few tasks at a time
Modular Layout - Answers Teams produce more complex units of final product
Fixed-Position Layout - Answers Allows workers to congregate around product
Purchasing - Answers Function that:
1. searches for high-quality material resources
2. finds the best suppliers
3. negotiates best price for goods and services
Just-in-Time (JiT) Inventory Control - Answers Production process in which a minimum of inventory is
kept and parts, supplies, and other needs are delivered just in time to go on the assembly line.
Quality - Answers Consistently producing what the customer wants while reducing errors before and
after delivery
