OPERATIONS MANAGEMENT - HANDOUT

THE PRODUCTION/OPERATIONS FUNCTION IN BUSINESS

A. TRUE/FALSE
1. Production/operations Management refers to creation of goods whereas production refers to the creation of services. 2. All organisations, including service organizations such as banks and educational institutions, have a production function. 3. Production is a creation of goods and services. 4. W. Edwards Deming is known as the Father of Scientific Management. 5. Lillian Gilbreth is credited for the early popularization of interchangeable parts. 6. The person most responsible for initiating use of interchangeable parts in manufacturing was Whitney Houston. 7. The origins of the scientific management movement are generally credited to James Taylor. 8. Operations Management is the set of the activities that create goods and services by transforming inputs into outputs. 9. Operations Management only applies to the creation of tangible goods. 10. An example of a hidden production function is money transfers at banks. 11. Operations management has benefited from advances in other fields of study. 12. In order to have a career in operations management, one must have a degree in statistics or quantitative methods. 13. The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the POM function. 14. Should we make or buy this item? is within the Human Resources and Job Design critical decision area. 15. Marketing is one of the three functions critical to an organizations survival. 16. Students wanting to pursue a career in operations management will find multi-disciplinary knowledge beneficial. 17. The quality of a product is more difficult to measure than that of a service. 18. Consumer interaction is often high during the manufacturing process. 19. A company is considered excellent only if it is the best in its business. 20. The three primary functions in a business organization are operations/production, finance, and marketing. 21. Business functions are autonomous, thus each function can set objectives without much coordination. 22. In batch manufacturing, a few or several products share the same production resources. 23. Productivity and quality are easier to measure in manufacturing operations than in service operations. 24. Since customers are present in all service operations, service operations can provide only custom services. 25. Batch manufacturing must be capable of performing a wider variety of tasks as compared to job shop manufacturing. 26. A project for a service organization might be development of a computer software package. 27. There is a clear dividing line between manufacturing operations and service operations. 28. Specialization means each component of a product is fashioned to fit that particular item and should not fit any other item. 29. Because of the use of specialization, the industrial revolution brought about the need for a less formal procedure and a less sophisticated method of management. 30. Management Science (because of its use of mathematical theory) is the same as scientific management. 31. The primary difference between Taylors study of management and Fayols is that Fayols was a top-down approach, with emphasis on overall administration, whereas Taylors study was a bottomup approach, with an emphasis on shop management. 32. The Industrial Revolution began in Japan. 33. According to Adam Smith, specialization was more likely to lead to the development of mechanical devices to assist operations.

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34. Sergio Farmersons success is attributable to the use of specialization and interchangeable parts. 35. In using F. Taylors scientific management, a duty of management was to select the best worker for a job, so that not much time or money need be spent on training. 36. Quality is easier to measure in a service organization. 37. An organizations mission statement is its broad statement of purpose. 38. Once an organizations mission has been decided upon, each functional area within the firm determines its own supporting mission. 39. Operations strategies are implemented in the same way in all types of organizations. 40. An organizations behaviour will be optimized if each of its departments optimizes their behaviours independently. 41. Top-level managers usually define the missions of each functional area, and then merge these missions to define the mission of the organization. 42. Strategies are mostly the same from one manufacturing company to another. 43. An organizations mission and its strategy are basically the same thing. 44. An organizations mission statement provides a plan of action. 45. An organizations strategy provides the purpose of the organization. 46. Differentiation, cost, and response are the three strategies for achieving competitive advantage. 47. An organizations ability to generate unique advantages over competitors is central to a successful strategy implementation. 48. Errors made within the location decision area may overwhelm efficiencies in other areas. 49. Decisions regarding quality are among the core decisions of POM. 50. Decisions regarding the location are among the core decisions of POM. 51. In order to maintain focus, an organizations strategy must not change during the products life cycle. 52. Opportunities and threats are classified as internal factors of strategy development. 53. Strategies change because an organizations internal strengths and weaknesses may change. 54. The operations function is most likely to be successful when the operations strategy is integrated with other functional areas. 55. For the greatest chance of success, an organizations POM strategy must support the companys strategy. 56. Taylors shop system was directed principally at improving the performance of top managers. 57. Time study, motion study and work sampling were all important techniques in scientific management. 58. Most of the techniques and approaches of scientific management eventually were developed into the modern field of industrial engineering. 59. New P/O Management computer applications today are in the areas of payrolls, billings, cost reports and inventory transactions. 60. Production functions are usually called manufacturing departments in manufacturing firms and operations departments in retailing and tracking firms.

B. MULTIPLE CHOICES
1. Which of the following is NOT a major activity of operations in supporting company success?

a. provide products/services suited to the companys capabilities.

b. produce product with consistent quality level. c. minimize cost. d. provide a product/service which has sufficient market. 2. Operations are concerned with ___________while marketing is concerned with____________. a. demand, quality b. efficiency, cost c. supply, demand d. demand, supply 3. Job shops are a. the same as batch. b. do not relate to service operations.

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c. often have large percentages of their inventory as work in process. d. are generally set up for repeat business. 4. Common characteristics of operations do NOT include a. fixed output capacity b. continuous improvement c. feedback from the pool of customers and potential customers d. the need to obtain inputs 5. The achievement of high quality is most closely related to ________________. a. repetitive operations. b. design specifications c. service operations d. customer needs. 6. The transformation of a set of inputs into a set of outputs is a characteristic of a. universities. b. prisons c. automobile assembly plants d. all of the above 7. Services such as a chartering a bus or repairing an automobile are similar to the following a. project operations b. batch operations c. job shop operations d. productivity 8. All of the following are differences between manufacturing and service operations EXCEPT a. quality is more easily measured in service operations. b. productivity is easier to measure in manufacturing operations c. contact with customers is more prevalent with persons working in service operations. d. accumulation or decrease in inventory of finished products is more applicable to manufacturing operations. 9. According to Adam Smith, which of the following was NOT an advantage of specialisation of labour? a. rapid development of dexterity b. saving time in task shifts c. division of work between management and workers d. development of mechanical devices 10. Who of the following is NOT associated with scientific management a. Frederick W. Taylor b. Henry L. Gantt c. Elton Mayo d. Henry R. Towne 11. Lillian and Frank Gilbreth are responsible for principles of a. sociotechnical systems b. zero inventory c. motion study d. interchangeable parts 12. The principles of scientific Management included a. the rise of the service sector. b. increased motivation through additional employee fringe benefits c. the implementation of the 44 hrs. work week d. development of cooperation between management and production workers.

13. Which of the following is least related to the management science era a. efficiency experts b. operational research

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c. optimum solution d. statistical theory 14. POM is applicable a. mostly to the service sector b. mostly to the manufacturing sector c. to manufacturing and service sectors d. to services exclusively e. to the manufacturing sector exclusively 15. The person most responsible for popularizing interchangeable parts in manufacturing was a. Eli Whitney b. Whitney Houston c. Sergio Farmerson d. Lillian Gilbreth e. Frederick Winslow Taylor 16. The Father of Scientific Management is a. Frank Gilbreth b. Frederick W. Taylor c. W. Edwards Deming d. Walther Shewhart e. Just a figure of speech, not a reference to a person 17. Walter Shewhart is listed among the most important people of POM because of his contributions to a. assembly line production b. measuring productivity in the service sector c. statistical quality control d. Just-in-Time inventory methods e. Lean production and MRP I and MRP II 18. Henry Ford is noted for his contributions to a. quality control b. assembly line operations c. scientific management d. standardization of parts e. time and motion studies 19. Taylor and Deming would have both agreed that a. EMU is one of the best universities in the world b. Management must do more to improve the work environment and its processes so that quality can be improved c. Eli Whitney was an important contributor to statistical theory d. Productivity is more important than quality e. The era of POM will be succeeded by the era of scientific management 20. Which one of the following statements is TRUE? a. The person most responsible for initiating use of interchangeable parts in manufacturing was Eli Whitney b. The person most responsible for initiating use of interchangeable parts in manufacturing was Whitney Houston c. The origins of management by exception are generally credited to Enrique Iglesias d. The origins of the scientific management are generally credited to James Taylor e. All of the above statements are TRUE 21. The field of POM is shaped by advances in which of the following fields? a. industrial engineering and management science b. biology and anatomy c. information sciences d. chemistry and physics e. ecology and zoology 22. The responsibilities of Production and operations manager include a. planning, organizing, staffing, procuring, and reviewing b. planning, organizing, staffing, leading and controlling

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c. forecasting, designing, accounting and financing d. marketing, selling, advising and auditing e. none of the above 23.Which of the following is not an element of the management process? a. staffing b. planning c. controlling d. leading e. pricing 24. Which of the following is TRUE about business strategies? a. All firms within an industry will adopt the same strategy. b. Well defined missions make strategic development much easier. c. Strategies are formulated independently of SWOT analysis. d. An organization should stick with its strategy for the life of the business. e. Organizational strategies depend on the knowledge given in EMU. 25. Which of the following statements about organizational missions is FALSE? a. They reflect a companys purpose. b. They indicate what a company intends to contribute to society. c. They define a companys reason for existence. d. They provide guidance for functional area missions. e. They are formulated after strategies are known. 26. Which of the following activities takes place once the mission has been developed? a. The firm develops alternative or back-up missions in case the original mission fails. b. The functional areas develop their functional area strategies. c. The functional areas develop their supporting missions. d. The ten POM decision areas are prioritized. e. None of the above. 27. The fundamental purpose for the existence of any organization is described by its a. Policies b. Strategy c. Bylaws d. Procedures e. Mission 28. Which of the following is true? The impact of strategies on the general direction and basic character of a company is a. long range b. Short ranged c. Minimal d. medium range e. Temporal 29. Which of the following is true? a. corporate strategy is shaped by functional strategies b. corporate mission is shaped by corporate strategy c. functional strategies are shaped by corporate strategy d. external conditions are shaped by corporate mission e. corporate mission is shaped by functional strategies 30. The fundamental purpose of an organizations mission statement is to a. define the organizations purpose in the society b. define the operational structure of the organization c. generate good public relations for the organization d. define the functional areas required by the organization e. create a good human relations climate in the organization 31. Which of the following is not a key way in which business organizations compete with one another? a. production cost b. Product duplication c. Flexibility d. quality e. Time to perform certain activities 32. A strategy is a. a broad statement of purpose b. a simulation model used in TT classes c. a plan for cost reduction

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d. an action plan to achieve the mission e. to persuade parents for a new car. 33. Which of the following is not an operations strategy? a. Response b. Low cost c. Differentiation d. Technology e. all the above are operations strategies 34. Henry Ford is noted for his contributions to a. Prof.Demirs POM courses and TTs MIS presentations b. Quality control c. Assembly line operations d. Interchangeable parts e. Time and motion studies 35. Which one of the following is not typical question dealt with operations managers? a. how much capacity will be needed in months ahead? b. What is s satisfactory location for a new facility? c. Which products/services should be offered? d. How to motivate employees? e. All are typical of operations management. 36. Which one does not use operations management? a. a CPA firm b. a bank c. a hospital d. a supermarket e. they all use. 37. Which one is not generally considered to be an advantage of using models for decision making? a. Providing a systematic approach to problem solving b. Emphasizing quantitative information c. Providing an exact representation of reality d. Enabling managers to answer what if questions e. Requiring users to be specific about objectives 38. Which came last in the development of manufacturing techniques? a. Lean production b. Division of labour c. Mass production d. Craft production e. Interchangeable parts 39. If inputs decrease while output remains constant, what will happen to productivity? a. It will increase b. It will decrease c. It will remain the same d. It is impossible to tell e. It depends on which inputs decreases 40. The foremost pioneers in scientific management are a. Ikujiro Monako, Hitotaka Takeuchi, Yotaro Kobayashi, Yuhua Cui b. M. Hulusi Demir, Tayfun Turgay, Serhan Ciftcioglu, Ilhan Dalci c. Chris Argyris, K. Imai, Elton Mayo, F.J. Roethlisberger, Herbert Simon d. Jay Heizer, Barry Render, Hamdy Taha, Richard Levin, Howard J. Weiss e. Frederick W. Taylor, Frank B. Gilbreth, Henry L. Gantt, Carl G. Barth, Henry Ford. 41. The scientific study of work a. applies the scientific method of the management of work b. has in some cases been misapplied by management. c. can be reconciled with a modern socio-technical approach. d. all of these. 42. The differences between the actual demand for a period and the demand forecast for that period is called: a. Forecast error b. weighted arithmetic mean c. Decision process. d. Mean square error e. Bias 43. All of the following decisions fall within the scope of operations management EXCEPT for a. Financial analysis b. Design of products and processes c. Location of facilities

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d. Quality management e. Facility Management 44. Which is not a discipline used by the production/operations function? a. Economics b. General management principles c. Quantitative analysis d. None of these 45. The industrial revolution: a. fostered the domination of manufacturing over service organizations b. substituted manpower for machine power c. came about through the efforts of F.W.Taylor d. has continued application in the service industries. 46. Harris EOQ, Shewharts quality control approach, and Dantzigs simplex method are examples of; a. mathematical decision making models b. linear programming c. computer systems d. accurate analysis 47. Computers serve Production/Operations Management by; a. eliminating clerical processing b. reducing need for the middle managers c. allowing use of sophisticated mathematical models d. all of these e. none of these 48. A productive systems approach; a. views production/operations as a separate organizational function b. must provide feedback information for control of process inputs and technology c. is of limited use in service organizations d. disregards human and social concerns 49. A service organization; a. is relieved of workforce decisions by marketing function b. falls at the extreme end of the goods-services continuum c. is faced with a highly perishable product that cant be stored in inventory d. all of these 50. Which of the following is not a characteristic of most service system? a. product is tangible b. quality of output can be highly variable c. production and consumption occur simultaneously d. no finished goods inventory is accumulated e. mark this answer if all the above are service system characteristics 51. The scientific management era spanned approximately what time period? a. 1945-present b. 1640-1840 c. 1875-1925 d. 1776-1865 e. none of the above 52. Frederick Winslow Taylor is called; a. father of operations research b. father of scientific management c. father of industrial engineering d. b and c e. none of the above. 53. P/O managers closed view of their external environments provide their organizations with a. adaptability b. growth c. efficiency d. all of the above e. none of the above

54. P/O managers rely heavily on computers in their decision making because a. short planning horizon b. optimal goals c. a and b d. open view of external environment e. all of the above. 55. Which phrase best describes the term Production Management?

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a. has evolved from terms like manufacturing management b. is concerned primarily with marketing and public relations c. is restricted to activities in profit making organizations d. does not extend to service activities. 56. Which of the following are not inputs into the production process? a. time b. energy c. labour d. materials e. finished goods 57. Which of the following are ways of classify services? a. labour intensity b. customer contact c. vendor relationship d. extent of customisation e. vertical integration. 58. Which of the following is not a way of organising a production process? a. continuous flow b. job shop c. repetitive flow d factory e. batch process 59. High-contact services: a. usually involve the customer in the execution of the process b. have limited uncertainty in customer arrival rates c. require extensive technical training for service personnel d. have high variability in customer requirements e. lend themselves to appointment system. 60. During the mass-production era of operations: a. standardisation of production was possible b. high-volume production was possible c. high-volume, standardised production was possible d. work was largely based on multi-skilled artisans e. intensive training was required. 61. Operations management is concerned with production and distribution of: a. products and services b. products and goods c. components and products d. goods and services e. components and services f. none of the above. 62. The person who developed the economic order quantity model was: a. Walter Shewhart b. George Dantzig c. Frederick W. Taylor d. Henry Gantt e. Ford Harris f. Henry Fayol 63. The founder of the scientific management movement was: a. Frank Gilbreth b. Walter Shewhart c. Frederick W.Taylor d. Ford Harris e. Henry Gantt f. Lillian Gilbreth 64. The Hawthorne Studies stimulated the development of: a. the scientific management movement b. the human relations movement c. the socio-technical movement d. the lean production movement. 65. Walter Shewhart developed: a. the economic order quantity model b. the human factors engineering field c. linear programming models d. statistical quality control techniques e. operations sequencing charts. 66. The moving assembly line was developed by: a. Elton Mayo b. Frederick W. Taylor c. Clark Gable c. Eli Whitney d. Henry Ford e. Ray Charles

C. FILL IN THE BLANKS AND CROSS-MATCH QUESTIONS

1. _____________________is the set of activities that transforms inputs into goods and services

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2. Operations is concerned with ______________ while marketing is concerned with______________________. 3. The achievement of high quality is most closely related to _____________ ____________. 4. Lillian and Frank Gilbreth are responsible for principles of _________ _________. 5. Adam Smiths idea to increase productivity a system of specialisation or a division of labour included: i. ii. iii. 6. Henry Fords focus was largely on manufacturing efficiency. a. b. c. 7. Match this list of contributions with the originator a. father of scientific management 1. Henry Ford b. motion study principles 2. Henry Gantt c. human relations movement 3. Frank Gilbreth d. division of labour 4. Adam Smith e. a few factors are important 5. Elisabeth Taylor f. charts for planning and scheduling 6. Vilfred Pareto g. Total Quality Management 7. Whitney Houston 8. Match each pioneer with appropriate description a. Henry Gannt i. mass production and the moving assembly line b. F.W. Taylor ii. interchangeable parts c. Frank Gilbreth iii. father of scientific management d. Henry Ford iv. Motion study principles e. Eli Whitney v. Charts used for scheduling 9. Match each pioneer with the appropriate description a. Richard Trevitchick i. Total Quality management b. Henry Gantt ii. First train c. F.W. Taylor iii. Mass production and moving assembly line d. Frank &Lillian Gilbreth iv. Motion study principles e. Henry Ford v. Charts used for scheduling f. Sergio Bauersohn vi. First Quantitative Approach formulas 10. Match this list of contributions with the originator a. father of scientific management 1. Henry Ford b. motion study principles 2. Henry Gantt c. human relations movement 3. Frank Gilbreth d. division of labour 4. Adam Smith e. a few factors are important 5. Frederick W. Taylor f. charts for planning and scheduling 6. Vilfred Pareto g. Total Quality Management 7. Yuhua Cui 8. Sergei Bauersohn

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D. SHORT ANSWER
1. List three primary functions of a business 2. State five reasons for the claim that service sector productivity is difficult to improve. 3. How do services differ from goods? List five ways. 4. List five elements of the management process. 5. According to the textbook, why should you study POM?

E. ESSAY TYPE QUESTIONS

1. What are the four major improvements in management history? Briefly describe the emphasis or concerns of each.. 2. Discuss four conditions or changes that will continue to affect operations managers. 3. Discuss three major changes in organizations caused by the information age and reduced trade barriers. 4. Discuss the differences between manufacturing and service operations. 5. Identify the duties of management and indicate what management tries to do in performing these duties. 6. Briefly state the relative importance of technical competence and behavioural competence of managers. 7. Distinguish between repetitive production and batch production 8. Diagram the operations function or production system (transformation process.) 9. Explain the advantages of the division of labour, as noted by Adam Smith in Wealth of Nations. 10. According to Frederick Winslow Taylor, what are the four major duties of management? 11. Describe how an organizations mission and strategy have different purposes 12. What are the THREE conceptual ways to compete advantage proposed by the authors of your textbook Heizer and Render? 13. Classify the problems of management in the POM function. 14. Prepare a table showing the continuum of characteristics (differences between) services producer and goods producer. 15. Classify and explain briefly the types of production in two traditional ways? (If possible support your explanation with a diagram) 16. What examples of pure service can you identify? What is being transformed in each of these service processes? 17. What are the differences among Pure Service, Quasi Service and Manufacturing operations from a customers point of view? From the operations point of view? 18. Why was scientific management in the early 1900s aimed at the shop level? 19. Who were the foremost pioneers in scientific management, and what were their contributions? 20. In what ways is management of production/operations different from executive management? 21. Which event at about 1776 was especially significant in the development of industry? 22. Describe how the concept of division of labour applies to the following situations: a. university teaching b. accounting c. the construction trades d. a fast-food restaurant 23. Using the history of production management, what approaches have been used to improve productivity over the last century? Can these same approaches be used to improve productivity in todays world and in the future? 24. For the organizations listed below, describe the inputs, the transformation process, and outputs of the productive system. a. a high school/university library b. hotel c. a small manufacturing firm 25. Explain how production activities fit into the cultural pattern of a society, that is where they belong and what they accomplish. 26. Which aspect, or principle, of Taylors philosophy of scientific management corresponds most closely with some firms efforts to improve the quality of work life today? 27. Identify different approaches to management and then define what you mean by the term management.

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28. Briefly describe the following terms: a. Production/Operations b. Production/Operations Management c. System d. Pareto Phenomenon e. Division of Labour 29. Identify the three major functional areas of business organizations and briefly describe how they interrelate. 30. List the important differences between goods production and service operations. 31. Briefly discuss each of these terms related to the historical evolution of POM. a. Industrial revolution b. Scientific Management c. Interchangeable parts d. Division of labour 32. Is McDonalds a service operation, a manufacturing organisation, or both? 33. Briefly describe the term Production/Operations Management. Describe also the production/operations function and the nature of production/operations managers job? 34. List the key ways that organisations compete.

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ANSWERS TO SELECTED QUESTIONS A. TRUE OR FALSE
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. F T T F F F F T F T T F T F T 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. T F F F T F T T F F F F F F F 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. T F T T F F T T F F F F F F F 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. T T T T T F F T T T T T T F T

B. MULTIPLE CHOICES
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. c c c. a d d c a c c c d a c 57. 58. 59. 60. 61. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. b and d d c and d c d a b c b b a all true b e b c c e a 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. c a b d d c e e c a a e d a 62. 63. 64. 65. 66. e c b d d 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. a d d a c b c a c d c c a a

C. FILL IN THE BLANKS AND CROSS-MATCH QUESTIONS

1. Production/Operations Management 2. supply, demand 3. customer needs 4. motion study

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5. i. skill development on the part of the workers, ii. avoidance of lost time due to changing jobs, iii. the use of specialised machines. 6. a. by adopting fix work-stations, b. increasing task specialisation, c. moving work to the worker.

D. SHORT ANSWERS
1. i. Marketing, ii. Production/Operations iii. Finance/Accounting 2. i. Typically labour intensive ii. Frequently individually processed iii. Often an intellectual task performed by professionals iv. Often difficult to mechanise and automate v. Often difficult to evaluate for quantity. 3. Pick the following: * A service is tangible * It is often produced and consumed simultaneously * Often unique * It involves high customer interaction * Product definition is inconsistent * Often knowledge-based * Frequently dispersed. 4. Planning, organising, staffing, leading, and controlling. 5. a. POM is one of the three major functions of any organisations, and it is integrally related to all the other business functions. Therefore, we study how people organise themselves for productive enterprise. b. We want to know how goods and services are produced. c. We want to understand what production/operations managers do. This will help us explore the numerous and lucrative career opportunities in POM. d. It is such a costly part of an organisation. It provides a major opportunity for an organisation to improve its profitability and enhance its service to society.

E. ESSAY TYPE QUESTIONS

16. Examples of pure services include university lectures, many physical examinations, and legal opinions. Information is being transformed, primarily into usable knowledge. There may be some consumption of physical materials during the service process, but that is not transformation. 17. In pure services the customer is usually involved in the service operation; pure service might therefore be synonymous with the high contact service. The customer therefore has a direct say in the type and quality of the service, and the time required to perform the service. Quasi Manufacturing, or low contact, services do not involve the customer in the performance of the service itself, although the customer may be at a service desk close to the actual operation. In a manufacturing operation the customer is likely to be close to the operation at all. The further removed the customer, the less the ability to influence the performance of the operation at the time at which it is being performed and, therefore, the need to more clearly and comprehensively state needs and expectations before the operation starts. From the operators point of view, the more influence the customer has in the process the greater the degree of uncertainty that needs to be accommodated. The closer to the customer, therefore, the greater the need for appropriate surplus resources, the more complicated the resource scheduling and the higher the likely cost to the customer.

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18. Taylor and his associates concentrated on the problems of foremen, superintendents, and lower middle managers in factories because it was here that most of managements problems of the day were found. What was needed most was mass production and efficiency in the factories to respond to the great western markets. 19. Frederick W. Taylor Father of Scientific Management Frank B. Gilbreth Motion Study, methods, therbligs Lillian M. Gilbreth Fatique Studies, human factor in work Henry L. Gantt Gantt Charts Henry Ford Inaugurated assembly-line mass production for autos 20. a. Production/operations managers are usually inseparately related to the productive system. b. P/O managers are usually strive toward optimal short run goals, their daily routine is relatively more predictable, their view of the external environment is relatively closed, and their decisions are principally based upon computations. c. Executives, on the other hand, strive toward sufficient long-run goals, have their daily routines that are unpredictable, their view of the external environment is relatively open and they deal principally with people and ideas in their daily jobs. 21. a. James Watts steam engine b. Adam Smiths Wealth of Nations. 22. a.University teaching duties are divided according to academic specialisation: among faculties/schools within the university among departments within the faculties/schools and among instructors within a department. b. Accounting is divided into several disciplines for instructional purposes: financial, cost, tax accounting, and auditing. Certification of accountants is accomplished through separate examinations and licences for CPA`s and CMA`s. Accounting departments within organisations hire accountants with these distinct specialisations. c. In the construction industry, labour is divided among trades according to skills and materials required. Carpentry work, for example, is supplied by carpentry contractors. d. A fast-food restaurant produces services and facilitating goods by assigning food preparation, cooking, assembly and customer services tasks to specifically trained workers. 25. Production activities are a major part of technology and economics. Their purpose is to deliver goods and services that enhance the level of existence of society. 26. Taylors principle (3) of striving for a spirit of cooperation between management and the workers was also aimed at fostering higher productivity. 30. More Like A Goods Producer More Like A Serices Producer___ * Physical, durable products * Intangible, perishable products * Product can be resold * Reselling a service is unusual * Output can be inventoried * Many outputs cannot be inventoried * Low customer contact * High customer contact * Long response time to demand * Short response time to demand * Regional, national, or international * Local markets markets * Large facilities with economies * Small facilities (often difficult to automate of scale * Capital intensive * Labour intensive * Quality easily measured * Quality not easily measured * Site of the facility is important * Site of the facility is important for customer for cost contact

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* Selling is distinct from production * Selling is often a part of the service * Product is transportable * Provider, not product, is often transportable 31. a.The industrial revolution began in the 1770s in England, and spread to the rest of Europe and to the US in the late eighteenth century and the early nineteenth century. A number of inventions such as steam engine, the spinning Jenny, and the power loom helped to bring about to bring this change. There also were ample supplies of coal and iron ore to provide the necessary materials for generating the power to operate and build the machines which were much stronger and more durable than the simple wooden ones they replaced. b. Frederick W. Taylor, who is often referred as the father of scientific management, spearheaded the scientific management movement. The science of management was based on observation, measurement, analysis, improvement of work methods and economic incentives. Management should be responsible for planning, carefully selecting and training workers, finding the best way to perform each job, achieving cooperation between management and workers, and separating management activities from work activities. c. Parts of a product made to such precision that each part would fit any of the identical items being produced. It meant that individual parts would not have to be custom made because they were standardised. d. Breaking up a production process into a series of tasks, each performed by a different worker. It enabled workers to learn jobs and become proficient at the more quickly; avoiding the delays of workers shifting from one activity to another. 32. McDonalds is either, or, or both, depending on the unit of analysis. At the counter McDonalds is a service; in the back of restaurant operations McDonalds is very much a manufacturing. This points out the need to carefully identify the aspect of the firms operations that is being analysed.

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