2. Production Methods Quality Assurance & Production Planning Costs, Revenues, & Break-Even Analysis Quality Assurance & Production Planning LocationPotpourri 100 200 300 400 500 100 200 300 400 500 200 300 400 500 200 300 400 500 200 300 400 200 300 400 500

3. Answer: This is an example of job production. ? Knitting a hand-made afghan for a customer is an example of what type of production?

4. ? With this type of production, changes in color, size, or ingredients can easily be made. Answer: This is an example of batch production.

5. ? When production is carried out in a continuous sequence, this is an example of _____ production. Answer: This is mass (line, flow) production.

6. ? When more people are employed in production than machines, this is known as a(n) _____ intensive process. Answer: This is a labor intensive process.

7. ? Name one advantage of mass (line, flow) production. Answer: Economies of scale are utilized since large quantities are produced—buy materials in bulk Automation may be employed—robots— reduce labor costs (more capital intensive (machinery) than labor intensive (people)) Production line can be stopped and started according to demand—efficient

8. Answer: This is Just-in-Time manufacturing. ? Obtaining supplies just as they are needed is known as JIT manufacturing which stands for _____ _____ _____.

9. Answer: This is cellular manufacturing. ? When workers are broken up into small teams to complete the production of a product from start to finish, this is known as _____ manufacturing.

10. Answer: This is Six Sigma. ? The theory that there should be no more than 3.4 defects per million is known as _____ _____.

11. Answer: Sort--Get rid of clutter Set in order/Stabilize--Organize work area Shine--Clean work area Standardize--Use method throughout factory to be consistent Sustain--Maintain system week after week, month after month ? A method of setting up and maintaining a productive work environment is known as 5S. List 2 of the 5.

12. Answer: Lean production is used heavily in Japan. ? Most of the concepts for lean production were developed in this country. What is it?

13. ? Costs of production that vary directly with the level of output are known as _____ costs. Answer: These are variable costs.

14. ? Another name for indirect costs: _____. Answer: Overheads are also known as indirect costs. Examples include heating, air conditioning, etc.

15. ? When total costs are exactly the same as total revenue, this is known as the _____-_____ _____. Answer: This is the break- even point.

16. ? The difference between current sales and the break- even point is called the _____ of _____. Answer: This is the margin of safety.

17. ? Fixed costs that increase in the long run such as a purchase of new machinery or equipment are known as _____ fixed costs. Answer: These are stepped fixed costs.

18. ? Mistake-proofing a product or process is known as _____ - _____. Answer: This is Poka-Yoke.

19. ? When employees get together to solve problems and work as a team, this is known as _____ circles. Answer: These are quality circles.

20. ? TQM is about building in quality rather than inspecting for quality after production. What does TQM stand for? Answer: Total Quality Management

21. ? List one problem of using the old method of quality control. Answer: Costly to correct errors after the fact Products with errors will still go out since every product is not being tested Customers may do business with other companies if they are dissatisfied with product

23. ? What does the diagram below represent? Answer: It represents the Japanese way of approaching improvement in production—Kaizen (dotted line) and the Western way of approaching improvement in production (stair steps). Output per worker (productivity) Time

24. ? A business that has production facilities in more than one country is known as a(n) _____ company. Answer: This is a multinational company.

25. ? Is payback a quantitative or qualitative factor when determining the location of a business? Answer: Payback is a quantitative factor—it can be measured.

26. ? Name one benefit and one problem of locating a company internationally. Answer: Helps to protect company in event of poor economic conditions Gain new markets in new locations Economies of scale—reduce unit costs by buying in bulk for several locations Allows a firm to stay competitive Cheaper labor costs Cheaper land and transportation costs Fewer legal restrictions Overcome trade barriers by locating in other countries and produce “domestically” Minimize exchange rate fluctuations by locating in other countries Language barriers Cultural differences Political instability (possible outbreak of war) Public image (outsourcing could damage reputation)

27. ? Moving a business function such as cleaning services from internal departments to external firms is an example of _____. Answer: This is outsourcing.

28. ? Bridges, cable connections, railways, and electricity grids are all examples of a country’s _____. Answer: These are examples of infrastructure.

29. ? Which of the following production methods (job, batch, or mass) does this quote best describe: "The Customer Can Have Any Color He Wants So Long As It's Black". -- Henry Ford Answer: This is an example of mass production—Henry Ford was an automobile pioneer.

30. ? Complete the following equation: Total costs = _____ costs + _____ costs. Answer: Total costs = fixed costs + variable costs.

31. Answer: This is Kaizen— continuous improvement. ? What is the term that the following quote describes: “... A day should not pass without some kind of improvement being made somewhere in the business.”

32. Answer: This is an example of a quality circle. ? Look at the graphic below. In reference to production, this is an example of a(n) _____ _____.

33. ? A tax on an item coming into a country (imported item) is also called a(n) _____. Answer: This is a tariff.

34. ? Look at the following seal. What type of products does it “guarantee” to be safe? Answer: The UL seal stands for Underwriters Laboratory and is for electrical products.