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Exam (elaborations)

CISM Chapter 10 Study Guide with Complete Solutions

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CISM Chapter 10 Study Guide with Complete Solutions Production Process Overview - Answer️️ -The production process includes the tasks/activities used by an organization to transform inputs (raw materials and/or components) into outputs (products and services) that are valued by customers. I...

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  • August 16, 2024
  • 38
  • 2024/2025
  • Exam (elaborations)
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  • CISM
  • CISM
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©PREP4EXAMS 2024/2025 REAL EXAM DUMPS Tuesday, August 6, 2024 10,57 AM



CISM Chapter 10 Study Guide with Complete Solutions


Production Process Overview - Answer✔️✔️-The production process includes the

tasks/activities used by an organization to transform inputs (raw materials and/or

components) into outputs (products and services) that are valued by customers.

It is more complex than procurement and fulfillment processes and it is integrated

with both procurement and fulfillment in well-run businesses.

Because the production process creates (produces) goods/services that are valued

by customers, it is a core business process.

The production process is best understood within the context of operations in

Porter's Value Chain model.


Manufacturing - Answer✔️✔️-Manufacturing can be defined as the process of

converting raw materials, components, or parts into finished goods that are valued

by customers or meet customer expectations or specifications.




Manufacturing is undertaken to produce goods that customers will buy.




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There are numerous types of manufacturing including assembly, discrete, process,

and repetitive manufacturing.


Assembly - Answer✔️✔️-Assembling involves putting components together to

produce a finished product.

Assembly lines have traditionally been common in automobile manufacturing (see

Figure 10-1).

The components used in assembling are often semi-finished goods produced and

supplied by other organizations.

A semi-finished good is an input used in the production of another good, including

a finished good.

Companies that make semi-finished goods may make them and then use them in

their production process or they may make them and then sell them to other

companies for use in their production processes.

Some companies buy (procure) all the semi-finished goods used to produce their

finished goods from other companies.


Discrete Manufacturing - Answer✔️✔️-Discrete manufacturing involves the

production of distinct, countable items.




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Because individual items are produced by discrete manufacturing, a serial number

or unique identifier can be assigned or affixed to each item that is produced.




Automobiles, televisions, smart phones, appliances, and furniture are examples of

items produced by discrete manufacturing.


Process Manufacturing - Answer✔️✔️-Process manufacturing is the

manufacturing/production of finished goods by combining supplies and ingredients

according to formulas or recipes.




Examples of process manufacturing goods include food, beverages, gasoline,

pharmaceuticals, plastics, and chemicals.




Breweries, chemical plants, and oil refineries are examples of process

manufacturing facilities.


Repetitive Manufacturing - Answer✔️✔️-Repetitive manufacturing is a type of mass

production that makes high numbers of identical units in a continuous flow.

This is used to manufacture products that have a continuous and steady demand,

such as food products and medical supplies.


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A company may use repetitive manufacturing to produce its own products or to

produce products for other companies.

When producers are confident that their products will always be in demand, they

can invest in manufacturing equipment that is very fast and highly efficient.

Figure 10-4 illustrates repetitive manufacturing in a commercial brewery.


Manufacturing Strategy - Answer✔️✔️-An organization's manufacturing strategy

consists of the objectives and action plans implemented by its manufacturing

function to ensure medium- to long-term sustainable advantage its competitors.

Manufacturing strategy is a response to competitive forces in the external

environment, especially the operating and industry components of the external

environment.

The production and fulfillment processes are closely coupled in producer

organizations and their strategies share names.

Four common production/manufacturing strategies are make-to-stock (MTS),

make-to-order (MTO), assemble-to-order (ATO), and engineer-to-order (ETO).


MTS Production - Answer✔️✔️-The make-to-stock (MTS) production strategy is

driven by finished goods inventory levels.




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