Page 544 - Business Principles and Management

C HAPTER 19 A SSESSMENT
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CHAPTER CONCEPTS

• Businesses are continually looking for new product ideas that meet
consumer needs and ways to improve their current products. Product
development is based on consumer and product research.
• During product design, models are tested to make sure they meet con-
sumer needs and will be safe and durable. The company then determines
the resources and facilities needed and if a product will be profitable.
• Products are manufactured in several different ways: mass production,
continuous processing, repetitive production, intermittent processing,
and custom manufacturing.
• Decisions about where to locate a business are based on the location
and availability of raw materials, transportation methods, supplies of
energy and water, the costs of land and buildings, the labor supply,
the location of customers, and any economic and legal factors that
may affect the business.
• Production planning involves inventory management, human resource
planning, and production scheduling. Quality management sets stan-
dards for products and operations and ways to measure results.
• Service businesses are the fastest-growing segment of the U.S. economy.
Services are different from products in form, availability, quality, and
timing.

REVIEW TERMS AND CONCEPTS

Write the letter of the term that matches each definition. Some terms will
not be used.
1. Process of creating or improving a product or service
2. Research that studies existing product problems or possible design
improvements for current products
3. Planning the quantities of materials, supplies, and finished products
required to meet customer orders a. applied research
4. Computer application engineers use to design and test products b. computer-aided design
before they are built (CAD)
5. Group of people who offer opinions about a product or service c. computer-integrated
6. Form of production in which raw and semifinished materials are manufacturing
processed, assembled, or converted into finished products d. consumer panel
7. Process in which all manufacturing systems are designed and man- e. continuous processing
aged using computers f. custom manufacturing
8. Assuring product quality by developing standards and measuring g. intermittent processing
results against those standards h. inventory management
9. Identifying the steps required in a manufacturing process, the time i. manufacturing
required to complete each step, and the sequence of the steps j. product development
10. Manufacturing process that uses short production runs to make k. production scheduling
l. pure research
predetermined quantities of different products m. quality management
11. Research done without a specific product in mind n. repetitive production
12. Process used to design and build a unique product to meet the
specific needs of the purchaser

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