AFM 131 exam 2023 with complete solutions

Research and Development defined as work directed towards the innovation, introduction, and improvement of produce and processes. Innovation 1. Improve product quality 2. Increase production capacity 3. Extend product range Production the creation of goods and services using the factors of production, labour, land, capital and entrepreneurship and knowledge Production Management the historical definition of production, describing management activities that helped firms create goods Operations Management specialized area in management that converts or transforms resources into goods and services including inventory management, quality control, production scheduling, and follow-up services Activity based Management reduced non-value added processes Form Utility the value produces add to materials in the creation of finished goods and services Production Lines allow the efficient and speedy production of goods that are consistent in size, weight, colour, and other measures of quality Process Manufacturing physically or chemically changing materials Assembly Process Putting together components Continuous Process In which long term production runs turn out finished goods over time Intermittent Process where the production is run short and the producer adjusts machines frequently to make different products Flexible manufacturing Designing machines to do multiple tasks so that they can produce a variety of products 3 Stages of production 1. Build and produce products which customers demand 2. Good quality 3. Sell at lowest price Outsourcing Buying products that another company produces at a comparative advantage which is a cheaper alternative for many companies Material Requirement Planning uses sales forecasts to ensure needed products are available at the right time and place Enterprise Resource Planning a system that allows resources to be shared between various functions across a company to manage operations Just-in-time inventory Systems products are available at the right time to be assembled Logistics getting the right amount of goods and services at the right place, right time, and at the lowest possible cost