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Business 11th Edition Pride Solutions
Manual
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CHAPTER 8
Producing Quality
Goods and Services
INSTRUCTOR MANUAL RESOURCES

8.1 A Word from the Authors ..................................................................................................... 427
8.2 Transition Guide ................................................................................................................... 427
8.3 Quick Reference Guide ......................................................................................................... 429
8.4 Learning Objectives .............................................................................................................. 430
8.5 Brief Chapter Outline ............................................................................................................ 430
8.6 Guide for Using PowerPoint Slides ...................................................................................... 432
8.7 General Chapter Teaching Tips ............................................................................................ 433
8.8 Comprehensive Lecture Outline ........................................................................................... 434
8.9 PowerPoint Slides ................................................................................................................. 464
8.10 Textbook Answer Keys......................................................................................................... 468
8.10a Return to Inside Business.................................................................................... 468
8.10b Review Questions ............................................................................................... 468
8.10c Discussion Questions .......................................................................................... 472
8.10d Video Case 8.1: Burton Snowboards’ High-Quality Standards.......................... 473
8.10e Case 8.2: Toyota’s Quality Crisis ....................................................................... 474
8.10f Building Skills for Career Success ..................................................................... 475
8.11 Quizzes I and II ..................................................................................................................... 478
8.12 Answer Key for Quizzes I and II and Premium PowerPoint Exercise and Quiz .................. 481
8.13 Classroom Exercises ............................................................................................................. 482
8.13a Homework Activities .......................................................................................... 482
8.13b Classroom Activities ........................................................................................... 482
8.13c Exercise Handouts .............................................................................................. 483
8.13d Crossword Puzzle................................................................................................ 489
Running a Business—Part 3 ................................................................................................. 492
426 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 8 Producing Quality Goods and Services 427
8.1 A WORD FROM THE AUTHORS

This chapter—the last of three chapters devoted to management and organization—focuses on the
management responsibilities associated with operations management (or simply production). We
define operations management as all the activities managers engage in to produce goods and ser-
vices. We discuss global competition and show how U.S. firms are attempting to regain a competi-
tive edge on foreign manufacturers. We also introduce careers in operational management and ex-
plain how a student, as an operations manager, can fit into the production process.
We describe the conversion of resources into products and services through the focus of the conver-
sion, its magnitude, and the number of production processes used by a business. We also note the
relationship of operations management to the growing role of services in our economy. Then we ex-
amine more closely three important aspects of operations management: the need for new-product
development, planning for production, and operations control, which includes purchasing, inventory
control, scheduling, and quality control.
We conclude with a discussion of two contemporary issues in operations management: the factors
involved in recent productivity trends, and the impact of robotics, computer manufacturing systems,
and flexible manufacturing systems.
8.2 TRANSITION GUIDE
New in Chapter 8: Producing Quality Goods and Services

• A new Inside Business case describes how Nestlé manufactures quality products around the
globe.
• Additional information about Nestlé’s manufacturing processes is provided in the introductory
paragraph for this chapter.
• New information about the status of manufacturing in the United States is provided in the section
“How American Manufacturers Compete in the Global Marketplace.”
• A new Sustaining the Planet feature describes the type of information contained on the Sustaina-
ble Manufacturing Clearing-House Web site.
• A new Ethical Challenges & Successful Solutions feature outlines the problems associated with
ecotourism and solutions that minimize damage to environmentally sensitive areas.
• A description of how Maggiano’s Little Italy restaurants improve customer service is provided in
the section “The Increasing Importance of Services.”
• Apple’s iPad and Amazon’s Kindle have been added as examples of new products in the section
“Where Do New Products and Services Come From?”
• The Business of Green feature has been deleted.
• Updated information for the 3M Company includes the current number of researchers and the
amount of money the company invested in research and development over the last five years.
• A new Spotlight feature provides a bar chart showing the percentage of the U.S. workforce em-
ployed in manufacturing industries.
• The Ethics Matters feature has been deleted.
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
428 Chapter 8 Producing Quality Goods and Services
• Additional examples of companies (Honeywell Federal Manufacturing & Technologies and Car-
gill Corn Milling North America) that have won the Malcolm Baldrige National Quality Award
are included in the section “Quality Control.”
• The Entrepreneurial Challenge feature has been deleted.
• The section “World Quality Standards: ISO 9000 and ISO 14000” has been revised to provide
more information about the importance of standardization.
• The Entrepreneurial Success feature describes how small manufactures achieve big productivity
gains.
• The section “Productivity Trends” has been heavily revised with updated statistics.
• While many executives, managers, and business owners often cite government regulations as a
reason for poor productivity, a new example suggests that more regulation of off-shore drilling
and BP might have prevented or at least reduced the effects of the oil spill in the gulf.
• A new Return to Inside Business about Nestlé is provided at the end of the chapter.
• A new video case has been added about Burton Snowboards’ focus on production quality.
• Case 8.2, “Toyota’s Quality Crisis”, has been updated to reflect the automaker’s recent quality
issues and its efforts to correct serious safety problems.
8.3 QUICK REFERENCE GUIDE

Instructor Resource Location
Transition Guide IM, pp. 427–428
Learning Objectives Textbook, p. 215; IM, p. 430; PowerPoint Slide 8-2 to 8-3
Brief Chapter Outline IM, pp. 430–431
Guide for Using PowerPoint Slides IM, p. 432
Reproduced in Print IM
General Chapter Teaching Tips IM, p. 433
Comprehensive Lecture Outline IM, pp. 434–463
Sustaining the Planet Sustainable Manufacturing Textbook p. 221
Clearing-House
Ethical Challenges & Successful Solutions Ecotourism Textbook, p. 222
Services Questions and Suggested Answers, IM, p. 440
Entrepreneurial Success Small Manufacturers Achieve Textbook, p. 235
Big Productivity Gains Questions and Suggested Answers, IM, p. 458
At Issue: Who is more to blame for the lower productiv- IM, p. 463
ity growth rate—management or labor?
Inside Business: Nestlé Plans Ahead for Quality Pro- Textbook, p. 216
duction
Return to Inside Business Textbook, p. 238
Questions and Suggested Answers, IM, p. 468
Marginal Key Terms List Textbook, p. 240
Review Questions Textbook, pp. 240–241
Questions and Suggested Answers, IM, pp. 468–472
Discussion Questions Textbook, p. 241
Questions and Suggested Answers, IM, pp. 472–473
Video Case 8.1 (Burton Snowboards’ High-Quality Textbook, pp. 241–242
Standards) and Questions Questions and Suggested Answers, IM, pp. 473–474
Case 8.2 (Toyota’s Quality Crisis) and Questions Textbook, p. 242
Questions and Suggested Answers, IM, p. 474
Building Skills for Career Success Textbook, p. 243
Suggested Answers, IM, pp. 475–477
IM Quiz I & Quiz II IM, pp. 478–480
Answers, IM, p. 481
Class Exercise: Paper clip product development Premium PowerPoint Slide 8-38
Suggested Answers, IM, p. 481
Additional Class Exercises IM, pp. 482–483
Debate Issue: Should the just-in-time inventory system Premium PowerPoint Slide 8-31
be used to reduce inventory costs?
Chapter Quiz (in PowerPoints) Premium PowerPoint Slides 8-47 to 8-49
Answers, IM, p. 481; Premium Slides 8-50 to 8-52
8.4 LEARNING OBJECTIVES

After studying this chapter, students should be able to:
1. Explain the nature of production.
2. Outline how the conversion process transforms raw materials, labor, and other resources into
finished products or services.
3. Describe how research and development lead to new products and services.
4. Discuss the components involved in planning the production process.
5. Explain how purchasing, inventory control, scheduling, and quality control affect production.
6. Summarize how productivity and technology are related.
8.5 BRIEF CHAPTER OUTLINE

I. What Is Production?
A. How American Manufacturers Compete in the Global Marketplace
B. Careers in Operations Management
II. The Conversion Process

A. Manufacturing Using a Conversion Process
1. Focus
2. Magnitude of Change
3. Number of Production Processes
B. The Increasing Importance of Services
III. Where Do New Products and Services Come From?

A. Research and Development
B. Product Extension and Refinement
IV. How Do Managers Plan Production?

A. Design Planning
1. Product Line
2. Required Production Capacity
3. Use of Technology
B. Facilities Planning
1. Human Resources
2. Plant Layout
C. Operational Planning
1. Step 1: Selecting a Planning Horizon
2. Step 2: Estimating Market Demand
3. Step 3: Comparing Market Demand with Capacity
4. Step 4: Adjusting Products or Services to Meet Demand
V. Operations Control
A. Purchasing
B. Inventory Control
C. Scheduling
1. Scheduling Through Gantt Charts
2. Scheduling via PERT
D. Quality Control
1. Inspection
2. Improving Quality Through Employee Participation
3. World Quality Standards: ISO 9000 and ISO 14000
VI. Improving Productivity with Technology

A. Productivity Trends
B. Improving Productivity Growth Rates
C. The Impact of Computers and Robotics on Productivity
1. Robotics
2. Computer Manufacturing Systems
3. Flexible Manufacturing Systems
4. Technological Displacement
8.6 GUIDE FOR USING POWERPOINT SLIDES

Basic Premium
PPT Slide PPT Slide
Number(s) Number(s) Title/Description
1 1 Chapter Opener
2–3 2–3 Learning Objectives
4–5 4–5 Chapter Outline begins
6 6 Figure: Manufacturing Employment
7* Figure: Number of Jobs Shipped Overseas by U.S. Multinational Compa-
nies
7–8 8–9 Chapter Outline continues
9 10 Figure 8.1 The Conversion Process
12 13 Figure 8.2 Service Industries
16 17 Figure 8.3 Planning for Production
21–23 22–24 Figure 8.4 Facilities Planning
24 25 Chapter Outline continues
25 26 Figure 8.5 Four Aspects of Operations Control
28* Three Types of Control
31* Debate Issue: Should the just-in-time inventory system be used to reduce
inventory costs?
30 33 Figure 8.6 A Gantt Chart
31 34 Figure 8.7 Simplified PERT Diagram for Producing this Book
37* Using the Internet
38* Class Exercise
40* Output per Hour in Manufacturing
35–39 41–45 Chapter Outline concludes
46* Average Percent Changes in Productivity, 1999–2010
47–49* Chapter Quiz
50–52* Answers to Chapter Quiz
*Indicates Premium Slide (provides coverage that supplements text content)
8.7 GENERAL CHAPTER TEACHING TIPS

• Use the supplemental lecture on sweatshops to start a debate on whether or not Americans
should try to influence the production practices of other nations.
• Point out to students that whether a company is a manufacturing or service firm is sometimes not
very clear cut. For example, is Red Lobster selling food (a product) or a service? What about a
hair salon that cuts hair and then sells the customer a bottle of shampoo? Clearly, the concepts of
“manufacturing” and “service” are not two mutually exclusive categories, but they exist on the
two extreme ends of a scale, and many organizations fall somewhere between the two extremes.
• This chapter contains a number of class activities. There are several short ones integrated into the
body of the lecture outline and five longer ones that can be done in groups or in pairs. You may
also choose to use them as homework assignments.
• The first activity, “Just How Good Is It?”, allows students to evaluate service quality and enables
them to better understand Learning Objectives 1, 2, and 5.
• The second exercise, “Let’s Improve That Product!”, asks students to brainstorm potential im-
provements for familiar products and works with Learning Objective 3.
• The third activity, “The Crayon Factory,” can take 30 minutes or more and enables students to
get up and move around while demonstrating factory layouts. This activity is particularly suited
to Learning Objective 4.
• The fourth activity, “How Can You Improve Your Productivity?”, is a group brainstorming exer-
cise to help students identify barriers to efficiency in their own lives and develop solutions.
• A fifth activity is a crossword puzzle, which is very useful for group review.
8.8 COMPREHENSIVE LECTURE OUTLINE

Inside Business: Nestlé Plans Ahead for
Quality Production
I. WHAT IS PRODUCTION? In Chapter 6, we described an “operations
manager” as a person who manages the systems that convert resources in-
to goods and services. This area of management is usually referred to as
operations management; it consists of all the activities managers engage
in to produce goods and services. To produce a product or service success-
fully, a business must perform a number of specific activities. We discuss
each of these activities later in this chapter.
A. How American Manufacturers Compete in the Global Market-
place. After World War II, the United States became the most produc-
tive country in the world.
1. For almost 30 years, until the late 1970s, U.S. manufacturing lead-
ership was never threatened.
2. By then, however, manufacturers in Japan, Germany, Great Brit-
ain, Italy, Korea, Sweden, and other industrialized nations were
increasingly competing U.S. firms.
3. Now the Chinese are manufacturing everything from sophisticated
electronic equipment and automobiles to less-expensive everyday
items—often for a lower cost than the same goods can be manu-
factured in other countries.
4. The bad news is that the number of Americans employed in manu-
facturing jobs has decreased from just over 19 million in 1979 to
approximately 12 million currently. Many of the manufacturing

jobs that were lost were outsourced to low-wage workers in na-
tions where there are few labor and environmental regulations.
5. The good news is that the United States remains the largest manu-
facturing country in the world—producing approximately 20 per-
cent of total global manufacturing output.
6. While the number of manufacturing jobs has declined, productivi-
ty has increased. Two factors account for this increased productiv-
ity.
a) Innovation—finding a better way to produce products—is the
key factor that has enabled American manufacturers to com-
pete in the global marketplace.
b) Workers in the manufacturing sector are highly skilled and are
making more goods with fewer employees.
7. While the global marketplace has never been more competitive,
the most successful U.S. firms have focused on the following:
a) Motivating employees to cooperate with management and im-
prove productivity.
b) Reducing costs by selecting suppliers that offer higher quality
raw materials and components at reasonable prices.
Discussion Starter: Go to the Inside Quality Insider Web site (http://www.quality

digest.com/inside/quality-insider-column/ten-simple-principles-treating-employees-
assets.html#) for Ten Simple Principles for Treating Employees as Assets (July 2010).
Ask students if they have ever been treated as an asset by an employer. If not, what
could have their employer(s) done to promote such an environment?
c) Using computer-aided and flexible manufacturing systems that

allow a higher degree of customization.
d) Improving control procedures to help ensure lower manufac-
turing costs.
e) Using green manufacturing to conserve natural resources and
sustain the planet.
B. Careers in Operations Management. Although it is hard to provide
information about specific career opportunities in operations manage-
ment, some generalizations do apply to this management area.
1. First, you must appreciate the manufacturing process and the steps
required to produce a product. Understanding the difference be-
tween an analytic process and a synthetic process is essential.
a) Mass production is a manufacturing process that lowers the
cost required to produce a large number of identical or similar
products over a long period of time.
b) An analytic process breaks raw materials into different com-
ponent parts.
c) A synthetic process is just the opposite of the analytic
one; it combines raw materials or components to create a fin-
ished product.
2. Once you understand that operations managers are responsible for
producing tangible products or services that customers want, you
must determine how you fit into the production process. Today’s
successful operations managers must do the following:
a) Be able to motivate and lead people.
b) Understand how technology can make a manufacturer more

productive and efficient.
c) Appreciate the control processes that help lower production
costs and improve product quality.
d) Understand the relationship between the customer, the market-
ing of a product, and the production of a product.
II. THE CONVERSION PROCESS. The purpose of manufacturing is to

provide utility to customers. Utility is the ability of a good or service to
satisfy a human need. There Figure 8.1
are four types of utility—

form, place, time, and posses-
sion. Operations management
focuses primarily on form
utility. Form utility is created
by converting raw materials,
people, finances, and infor-
mation into finished products.
A. Manufacturing Using a
Conversion Process. The
conversion of resources
into products and services
can be described in at
least three ways. (See
Figure 8.1.)
Discussion Starter: Ask your students how professors use technology to make the
learning process more efficient. Follow up with a question regarding the application
of technology and especially computers to the control process (making sure students
are on track).
1. Focus. The focus of a conversion process refers to the resource or

resources that comprise the major or most important input. The re-
sources are financial, material, information, and people.
2. Magnitude of Change. The magnitude of a conversion process is
the degree to which the resources are physically changed.
3. Number of Production Processes. A single firm may employ one
production process or many. In general, larger firms that make a
variety of products use multiple production processes.
B. The Increasing Importance of Services. The application of the basic
principles of operations management to the production of services has
coincided with a dramatic growth in the number and diversity of ser-
vice businesses.
1. In 1900, only 28 percent of American workers were employed in
service firms.
2. By 1950, this figure had grown to 40 percent, and by 2010, it had
risen to 86 percent.
3. The American economy is now characterized as a service econo-
my.
4. A service Figure 8.2
economy is
one in
which
more effort
is devoted
to the pro-
duction of
services
than to the production of goods. (See Figure 8.2.)
5. The production of services is very different from the production of
manufactured goods in the following four ways:
a) Services are consumed immediately and, unlike manufactured
goods, cannot be stored.
b) Services are provided when and where the customer desires
the service.
c) Services are usually labor intensive because the human re-
source is often the most important resource used in the pro-
duction of services.
d) Services are intangible, and it is therefore more difficult to
evaluate customer satisfaction.
6. Today’s successful service firms work hard at providing the ser-
vices that customers want. They often listen more carefully to cus-
tomers and respond more quickly to the market’s changing needs.
Using the Boxed Inserts

Ethical Challenges & Successful Solutions
Ecotourism Services
Suggested Question 1. What steps should be taken by those in charge of opera-
tional planning for Karisia, the safari firm in Kenya?
As indicated in the text, the first step should be to establish a planning horizon. In
Karisia’s case, they may look at weather trends to determine how many tours they
could reasonably schedule over the next year. In addition, the operational planner
may assess the effect of competition on their business over the next year. The
second step would be to estimate market demand. Is it trending upward or down-
ward and at what rate? The third step would be to compare market demand with
capacity. How many mangers and guides does Karisia need to hire based on its
capacity estimates? The final step would be to adjust services to meet demand. If
market demand exceeds capacity, how should Karisia meet the higher demand? If
market demand is lower than expected, how should Karisia eliminate excess ca-
pacity?
Suggested Question 2. How might Karisia measure its productivity?
Karisia might measure productivity by determining total sales revenues per num-
ber of employees. Other measures might include the percentage of repeat custom-
ers, the number of complaints per tour, survey ratings of members who have been
on a safari, lack of mishaps per tour, and/or the number of tourists per tour. Stu-
dents will have additional suggestions.
CLASS ACTIVITY
Teaching Tip: Use the “Just How Good Is It?” exercise here. This is a 20-minute
group exercise that requires students to quantify service performance of local eateries.
III. WHERE DO NEW PRODUCTS AND SERVICES COME FROM?

A. Research and Development. For our purposes, research and devel-
opment (R&D) is a set of activities intended to identify new ideas that
have the potential to result in goods and services. Today, business

firms use three general types of R&D activities.
1. Basic research consists of activities aimed at uncovering new
knowledge, without regard for its potential use in the development
of goods and services.
2. Applied research consists of activities geared to discovering new
knowledge with some potential use.
3. Development and implementation are research activities undertak-
en specifically to put new or existing knowledge to use in produc-
ing goods and services.
B. Product Extension and Refinement. When a new product is first
marketed, its sales are zero and they slowly increase. If the product is
successful, annual sales increase more and more rapidly until they
reach some peak. Then, as time passes, annual sales begin to decline,
and they continue to decline until it is no longer profitable to manufac-
ture the product.
1. If a firm sells only one product, when that product reaches the end
of its life cycle, the firm will die, too. To stay in business, the firm
must at least find ways to extend or refine the want-satisfying ca-
pability of its product.
2. For most firms, extension and refinement are expected results of
their research, development, and implementation activities.
3. Each refinement or extension results in an essentially “new” prod-
uct whose sales make up for the declining sales of a product that
was introduced earlier.
CLASS ACTIVITY
Teaching Tip: Use the “Let’s Improve That Product!” exercise here. This is a group
exercise that requires approximately 15 minutes of brainstorming.
IV. HOW DO MANAGERS PLAN PRODUCTION? Only a few of the

many ideas for new products, refinements, and extensions ever reach the
production stage. For those ideas that do, the next step is planning
for production, Figure 8.3
which involves
three different
phases: design
planning, facili-
ties planning,
and operational
planning. (See
Figure 8.3.)
A. Design Planning. Design planning is the development of a plan for
converting a product idea into an actual product or service. The major
decisions involved in design planning deal with product line, required
production capacity, and use of technology.
1. Product Line. A product line is a group of similar products that
differ only in relatively minor characteristics.
a) An important issue in deciding on the product line is to bal-
ance customer preferences and production requirements. Mar-
keting managers play an important role in making product-line

decisions.
b) Each distinct product within the product line must be de-
signed. Product design is the process of creating a set of speci-
fications from which the product can be produced.
2. Required Production Capacity. Capacity is the amount of prod-
ucts or services that an organization can produce in a given period
of time.
a) Operations managers, working with the firm’s marketing
managers, must determine the required capacity. This deter-
mines the size of the production facility.
b) If the facility is built with too much capacity, valuable re-
sources will lie idle.
c) If the facility offers insufficient capacity, additional capacity
may have to be added later, when it is much more expensive
than in the initial building stage.
d) The capacity of a service business is the number of customers
it can serve at one time.
Discussion Starter: Most people often spend quite a bit of time waiting in the waiting
rooms of various medical providers, from dentists to emergency rooms. In the case of
physicians, clearly there is over-scheduling and double-booking to make certain that
all the expensive capacity is used. Ask students to work together to come up with
strategies to both use the capacity and reduce waits. For example, text messages
could be sent to cell phones if a provider is running late.
3. Use of Technology. Management must determine the degree to

which automation will be used to produce a product or service.
There is a tradeoff between high initial costs and low operating
costs (for automation) and low initial costs and high operating
costs (for human labor).
a) A labor-intensive technology is a process in which people do
most of the work.
b) A capital-intensive technology is a process in which machines
and equipment do most of the work.
B. Facilities Planning. Initially, managers must decide whether they will
build a new plant or refurbish an existing factory. Generally, a busi-
ness will choose to produce a new product in an existing factory as
long as (1) the existing factory has enough capacity to handle custom-
er demand for both the new product and established products, and (2)
the cost of refurbishing an existing factory is less than the cost of
building a new one. After exploring the capacity of existing factories,
management may decide to build a new production facility. In deter-
mining where to locate production facilities, management must con-
sider a number of variables, including the following:
• Locations of major customers and suppliers.
• Availability and cost of skilled and unskilled labor.
• Quality of life for employees and management in the proposed lo-
cation.
• The cost of land and construction to build a new facility.
• Local and state taxes, environmental regulations, and zoning laws.
• The amount of financial support and subsidies, if any, offered by

local and state governments.
• Special requirements, such as great amounts of energy or water
used in the production process.
1. Human Resources. At this stage, human resources and operations
managers work closely together. The human resources manager
will have to recruit managers and employees with the appropriate
skills, develop training programs, or do both. It may even be nec-
essary to transfer skilled workers to the new location or to train lo-
cal workers.
CLASS ACTIVITY
Teaching Tip: Use “The Crayon Factory” exercise here. This is a two-part exercise
that can take 30 minutes or more depending on the size of the class. The purpose of
the exercise is to demonstrate plant layout efficacy.
2. Plant Layout. Plant layout is the arrangement of machinery,

equipment, and personnel within the production facility. Three
general types of plant layout are used.
a) The process layout (shown in Figure 8.4a) is used when
different operations are required for creating small batches of
different Figure 8.4a
products
or work-
ing on
different
parts of a product. The plant is arranged so that each operation

is performed in its own particular area.
b) The prod- Figure 8.4b
uct layout
(some-
times referred to as an assembly line) is used when all prod-
ucts undergo the same operations in the same sequence. Work
flows from station to station. (See Figure 8.4b.)
c) A fixed- Figure 8.4c
position
layout
(shown in
Figure
8.4c) is
used
when a very large product is produced. The product remains
stationary while people and machines are moved as needed to
assemble the product.
C. Operational Planning. The objective of operational planning is to de-
cide on the amount of products or services each facility will produce
during a specific period of time. Four steps are required.
1. Step 1: Selecting a Planning Horizon. A planning horizon is the
time period during which a plan will be in effect.
a) A common planning horizon for operational plans is one year.
b) A planning horizon of one year is generally long enough to

average out seasonal increases and decreases in sales.
c) A planning horizon of one year is also short enough for plan-
ners to adjust production to accommodate long-range sales
trends.
d) Firms that operate in a rapidly changing business environment
with many competitors may find it best to select a shorter
planning horizon to keep their production planning current.
2. Step 2: Estimating Market Demand. The market demand for
a product is the quantity that customers will purchase at the
going price.
3. Step 3: Comparing Market Demand with Capacity. The third
step in operational planning is to compare the estimated market
demand with the facility’s capacity to satisfy that demand. One of
three outcomes may result.
a) Demand may exceed capacity.
b) Capacity may exceed demand.
c) Capacity and demand may be equal.
d) If market demand and capacity are equal, the facility should be
operated at full capacity. If they are not equal, adjustments
may be necessary.
4. Step 4: Adjusting Products or Services to Meet Demand. The
biggest reason for changes to a firm’s production schedule is
changes in the amount of products or services that a company sells
to its customers.
a) When market demand exceeds capacity, several options are

available.
(1) Output may be increased by operating the facility over-
time with existing personnel or by starting a second or
third work shift.
(2) A portion of the work can be subcontracted.
(3) If the excess demand is likely to be permanent, the firm
may expand the facility.
(4) Some firms occasionally ignore the excess demand and al-
low it to remain unmet.
b) When capacity exceeds market demand, there are several op-
tions.
(1) To reduce output temporarily, workers may be laid off and
part of the facility may be shut down.
(2) The facility may be operated on a shorter-than-normal
work week for as long as the excess capacity exists.
(3) To adjust to a permanently decreased demand, manage-
ment may shift the excess capacity to the production of
other goods or services.
(4) The most radical adjustment is to eliminate the excess ca-
pacity by selling unused facilities.
Discussion Starter: Recent recessions and reduced consumer demand have caused
more than one manufacturer to close manufacturing facilities. Even popular beverages
such as Gatorade have been affected. In January 2010, PepsiCo shut down its largest
Gatorade plant citing lack of consumer sales. Ask your students to think of other exam-
ples where a change in demand has caused corporations to take drastic action.
V. OPERATIONS CONTROL. There are four important areas of opera-

tions control. (See Figure 8.5.)
A. Purchasing. Figure 8.5
Purchasing
consists of
all the activi-
ties involved
in obtaining
required
materials, supplies, and parts from other firms. The objective of pur-
chasing is to ensure that required materials are available when they are
needed, in the proper amounts, and at minimum cost.
1. Purchasing personnel should constantly be on the lookout for new
or backup suppliers, even when their needs are being met by their
present suppliers.
2. The choice of suppliers should result from careful analysis of the
following critical factors:
a) Price—Comparing prices is always an essential part of select-
ing a supplier.
b) Quality—The minimum acceptable quality is usually specified

by product designers.
c) Reliability—Purchasing personnel should check potential sup-
pliers including their ability to meet delivery schedules.
d) Credit terms—Does the supplier demand immediate payment,
extend credit, or offer a cash discount or reduction in price for
prompt payment?
e) Shipping costs—The question of who pays the shipping costs
should be answered before any supplier is chosen.
B. Inventory Control
1. Operations managers realize the disasters that a shortage of
needed materials can cause and are concerned with three types
of inventories.
a) The raw-materials inventory consists of materials that will be-
come part of the product during the production process.
b) The work-in-process inventory consists of partially completed
products.
c) The finished-goods inventory consists of completed goods
awaiting shipment to customers.
CLASS ACTIVITY
Teaching Tip: Working in pairs, ask students to identify three different kinds of or-
ganizations, and then list potential examples of each type of inventory within each or-
ganization.
2. Inventory control is the process of managing inventories to mini-

mize inventory costs, including both holding costs (storage cost)
and potential stock-out costs (the cost of running out of invento-
ry).
a) One of the most sophisticated methods of inventory control
used today is materials requirements planning. Materials re-
quirements planning (MRP) is a computerized system that in-
tegrates production planning and inventory control. A manag-
er using an MRP system can arrange both order and delivery
schedules so that materials, parts, and supplies arrive when
they are needed. Two extensions of MRP are used by firms
today.
(1) The first is known as manufacturing resource planning, or
MRP II. The primary difference between the two systems
is that materials requirements planning involves just pro-
duction and inventory personnel, whereas the manufactur-
ing resource planning system involves the entire organiza-
tion.
(2) Enterprise resource planning, or just ERP, is a second ex-
tension of MRP. This sophisticated software monitors not
only inventory and production, but also quality, customer
satisfaction, and even variables at a supplier’s location.
While MRP and MRP II are used to monitor activities at
one firm, ERP can be used to monitor activities at more
than one firm.
b) A just-in-time inventory system is designed to ensure that ma-

terials or supplies arrive at a facility just when they are needed
so that storage and holding costs are minimized.
C. Scheduling. Scheduling is the process of ensuring that materials and
other resources are at the right place at the right time. These materials
and resources may be raw materials, subassemblies, work in process,
or finished goods. Place and time are important to scheduling for two
reasons. First, the routing of materials is the sequence of workstations
that the materials will follow. Second, the timing function specifies
when the materials will arrive at each station and how long they will
remain there.
1. Scheduling Through Gantt Charts. Developed by Henry L.
Gantt, a Gantt chart is a graphic scheduling device that displays the
tasks to be performed on the vertical axis and the time required for
each task on the horizontal axis. Gantt charts are not particularly
suitable Figure 8.6
for
schedul-
ing ex-
tremely
complex
situa-
tions. (See Figure 8.6.)
2. Scheduling via PERT. PERT (Program Evaluation and Review

Technique) is a technique for scheduling a process or project and
maintaining control of the schedule. (See Figure 8.7.)
Figure 8.7
a) Begin by identifying all the major activities involved in the

project. The completion of each activity is called an “event.”
b) Next, arrange the events in a sequence.
c) Next, arrows are used to connect events that must occur in se-
quence.
d) Then estimate the time required for each activity and mark it
near the corresponding arrow.
e) The sequence of production activities that takes the longest
time from start to finish is called the critical path. These activ-
ities are the ones that must be scheduled and controlled care-
fully.
CLASS ACTIVITY
Teaching Tip: Ask students to work with a partner to develop a Gantt chart for a hy-
pothetical major paper. This activity should take no more than 10 minutes.
D. Quality Control. Quality control is the process of ensuring that goods

and services are produced in accordance with design specifications.
The major objective of quality control is to see that the organization
lives up to the standards it has set for itself on quality. The Malcolm
Baldrige National Quality Award is given to organizations that apply
and are judged to be outstanding in specific managerial tasks that lead
to improved quality in products and services. Using the Baldrige crite-
ria can result in better employee relations, higher productivity, greater
customer satisfaction, increased market share, and improved profita-
bility.
Many U.S. firms use two systems to gather statistical information
about the quality of their products. Statistical process control (SPC) is
a system that uses random sampling to obtain data that are plotted on
control charts and graphs to see if the production process is operating
as it should and to pinpoint problem areas. Statistical quality control
(SQC) is a set of specific statistical techniques used to monitor all as-
pects of the production process to ensure that both work in progress
and finished products meet the firm’s quality standards.
1. Inspection. Increased effort is also being devoted to inspection,
which is the examination of the quality of work in process. Inspec-
tions are performed at various times during production: on pur-
chased materials when they arrive, on subassemblies before they

become part of a finished product, and on finished goods.
Discussion Starter: Ask students how they “control” for quality on their papers. Is it
mostly inspection, such as using a spell checker and/or proofing, or do they use some
other methods?
2. Improving Quality Through Employee Participation. Over the

years, more and more managers have realized that quality is an es-
sential “ingredient” of the good or service being provided. Viewed
in this light, quality becomes an overall approach to doing busi-
ness and is the concern of all members of the organization.
a) Because of increased global competition, American manufac-
turers have adopted a goal that calls for better quality in their
products. As mentioned in Chapter 6, a total quality manage-
ment (TQM) program coordinates the efforts directed at im-
proving customer satisfaction, increasing employee participa-
tion, strengthening supplier partnerships, and facilitating an
organizational atmosphere of continuous quality improvement.
b) Another technique to improve quality and overall performance
is Six Sigma, which is a disciplined approach that relies on sta-
tistical data and improved methods to eliminate defects for a
firm’s products and services.
c) The use of a quality circle, a group of employees who meet on
company time to solve problems of product quality, is another
way manufacturers are achieving better quality at the opera-

tions level.
Extra Example: With an ever-increasing amount of information created and stored

only in electronic form, there is a growing need to make certain that data can be
transferred and retained as systems and software are upgraded. With computer-
assisted design and manufacturing systems at the very heart of a company’s funda-
mental internal infrastructure, and a determining factor in its ability to communicate
and work with others, a new international standard for data quality (ISO 8000) has
been developed.
Source: “ISO 8000—A New International Standard for Data Quality,” http://www
.dataqualitypro.com/data-quality-home/iso-8000-a-new-international-standard-for-
data-quality.html, accessed November 9, 2010.
3. World Quality Standards: ISO 9000 and ISO 14000. Without a

common standard of quality, customers may be at the mercy of
manufacturers and vendors. As the number of companies compet-
ing in the world marketplace has increased, so has the seriousness
of this problem. The International Organization for Standardiza-
tion (ISO) is a nonprofit organization in Geneva, Switzerland, with
a membership of 161 countries. It has brought together a panel of
quality experts to define what methods a company must use to
produce a quality product.
a) This certification, issued by independent auditors and labora-
tory testing services serves as evidence that a company meets
the standards for quality control procedures in manufacturing
design, production processes, product testing, training of em-
ployees, recordkeeping, and correction of defects.
b) Although certification is not a legal requirement to do business

globally, the organization’s 161 member countries have ap-
proved the ISO standards.
c) In fact, ISO is so prevalent around the globe that many cus-
tomers refuse to do business with noncertified companies.
d) The International Organization for Standardization has also
developed ISO 14000, a series of international standards for
incorporating environmental concerns into operations and
product standards.
VI. IMPROVING PRODUCTIVITY WITH TECHNOLOGY. Productivi-

ty is defined as the average level of output per worker per hour.
A. Productivity Trends. Overall productivity growth for the U.S. busi-
ness sector averaged 3.9 percent for the period 1979–2008. Productivi-
ty in 2008 decreased in 12 of the 17 countries that the U.S. Bureau of
Labor Statistics tracks each year. Only five of the 17 countries had
productivity increases, and the United States and the Republic of Ko-
rea had the largest productivity increases at 1.2 percent for each na-
tion.
Several factors have been cited as possible causes for the small in-
crease in America’s productivity growth rate.
1. First, the economic crisis that accompanied the downturn in the
home construction and automobile industries and the crisis in
banking and finance have caused many businesses to reduce the
rate of investment in new equipment and technology.
Using the Boxed Inserts

Entrepreneurial Success
Small Manufacturers Achieve Big Productivity Gains
Suggested Question 1. As discussed in the text, Ingrained Style Furniture made
a substantial investment in computer-assisted design (CAD) equipment to help
it develop products more efficiently. What other computer manufacturing sys-
tems might improve the efficiency of its operations?
Several other computer manufacturing systems could improve the productivity of
its operations if proven to be affordable and worth the investment. Computer-
aided manufacturing (CAM) could help the firm plan and control its manufactur-
ing processes more efficiently. As well, computer-integrated manufacturing
(CIM), which is a computer system that not only helps to design products but also
controls the machinery needed to produce the finished product, could significant-
ly improve Ingrained’s productivity. It is important that Ingrained have the poten-
tial volume and resources to justify the investment in these systems.
Suggested Question 2. Beyond adopting new computer manufacturing systems,
what other actions might Ingrained Style Furniture consider to improve
productivity?
As discussed in the text, Ingrained might consider several strategies to improve
productivity: developing plans to increase cooperation between labor and man-
agement; increasing employee motivation and participation in productivity goals;
changing the reward system so that employee pay is linked to productivity goals;
investing more money in facilities, equipment, and employee training; and possi-
bly looking at federal and state regulations that are limiting its productivity
growth. Students may offer additional thoughts.
2. Another factor is the tremendous growth of the service sector in

the United States. While this sector grew in economic importance,
its productivity levels did not grow as fast. Experts agree that im-
proving service-sector productivity can lead to higher overall
productivity growth for the nation.
3. Increased government regulation is frequently cited as a factor af-

fecting productivity. Federal agencies such as OSHA, the EPA,
and the FDA are increasingly regulating business practices. Even
though executives, managers, and business owners often cite in-
creased regulation from all levels of government as a reason for
low productivity, the general public believes there is a need for ef-
fective government regulations that improve working conditions,
product safety, and the environment. While there are two sides to
the regulatory argument, what may be needed is a new look at ex-
isting and proposed regulations that ensures regulations are needed
and compliance is no more time consuming and expensive than
absolutely necessary.
Teaching Tip: Use the “How Can You Improve Your Productivity?” brainstorming
exercise here.
B. Improving Productivity Growth Rates. Several techniques and

strategies have been suggested to improve current productivity trends.
1. Government policies that may be hindering productivity could be
eliminated or at least modified.
2. Increased cooperation between management and labor could be
fostered to improve productivity.
3. Increased employee motivation and participation could enhance
productivity.
4. Investing more money in facilities, equipment, technology and au-
tomation, and employee training could improve productivity.
Teaching Tip: Go to the U.S. Department of Labor OSHA Web site, http://www.osha
.gov/SLTC/ergonomics/success_stories.html, which contains a list of companies re-
porting success stories from their ergonomics programs. By clicking on the company
links, students will be able to read real-world accounts of companies that have im-
proved productivity and reduced costs through their ergonomics programs.
C. The Impact of Computers and Robotics on Productivity. Automa-

tion is the total or near-total use of machines to do work.
1. Robotics. Robotics is the use of programmable machines to per-
form a variety of tasks by manipulating materials and tools.
a) Robots work quickly, accurately, and steadily.
b) They are especially effective in tedious repetitive assembly-
line jobs as well as in handling hazardous materials.
Teaching Tip: Go to the Tech Museum Web site on robotics to see some fun class ac-
tivities that can be done to familiarize students with robotics. The site is www.the
tech.org/robotics/.
2. Computer Manufacturing Systems. People are quick to point

out how computers have changed their everyday life, but most in-
dividuals do not realize the impact that computers have had on
manufacturing.
a) In simple terms, the factory of the future has already arrived.
b) For most manufacturers, the changeover began with the use of
computer-aided design and computer-aided manufacturing.
(1) Computer-aided design (CAD) is the use of computers to
aid in the development of products.
(2) Computer-aided manufacturing (CAM) is the use of com-

puters to plan and control manufacturing processes.
(3) Computer-integrated manufacturing (CIM) is a computer
system that not only helps to design products but also con-
trols the machinery needed to produce the finished prod-
uct.
Extra Example: Procter & Gamble once used a supercomputer to model the aero-
dynamics of a Pringles potato chip when it found that too many were flying off the as-
sembly line!
3. Flexible Manufacturing Systems. The flexible manufacturing

system (FMS) combines electronic machines and computer-
integrated manufacturing in a single production system.
a) Assembly lines turn out large numbers of identical products
economically, but they require expensive, time-consuming re-
tooling of equipment when new products are to be manufac-
tured. This type of manufacturing is referred to as a continu-
ous process, in which the same products are produced over a
long period of time.
b) In contrast, FMSs are rearranged by reprogramming electronic
machines, so that smaller batches of a variety of products can
be made without raising the production cost.
c) Flexible manufacturing, also referred to as an intermittent pro-
cess, is a manufacturing process in which a firm’s manufactur-
ing machines and equipment are changed to produce different

products.
d) Customer-driven production describes a manufacturing system
that is driven by customer needs and wants.
4. Technological Displacement. Automation is increasing produc-
tivity by cutting manufacturing time, reducing error, and simplify-
ing retooling procedures.
a) Robots can work with employees to make their jobs safer and
easier and help to prevent accidents.
b) In the future, most experts agree that because U.S. manufac-
turers will continue to innovate, workers who have manufac-
turing jobs will be highly skilled and can work with the auto-
mated and computer-assisted manufacturing systems.
c) Those that don’t possess high-tech skills will be dispensable
and unemployed.
WHAT PEOPLE ARE SAYING

It is not the employer who pays wages—he only handles the money. It is the product
that pays wages.
—Henry Ford
At Issue
The productivity for American workers only grew 1.2 percent in 2008. While this
can primarily be attributed to the poor global economy, there are also manage-
ment and labor issues that contribute. Who is more to blame for the lower
productivity growth rate—management or labor?
Management Labor
1. Management has reduced the 1. Major changes in the composition
amount of investment in facili- of the workforce have kept work-
ties, equipment, and employee ers from settling into a more pro-
training. ductive pattern.
2. Management has been unable to 2. Labor has made demands on man-
make necessary and favorable agement that are so unrealistic and
decisions because of increased costly that management no longer
government regulation. has the resources to support ef-
forts to increase productivity.
3. Management’s productivity 3. Labor has lost all pride in work
growth plans stress shorter-term quality, and declines in worker
rewards at the expense of long- productivity are merely an indica-
er-term productivity. tor of this trend.
8.9 POWERPOINT SLIDES
8.10 TEXTBOOK ANSWER KEYS
8.10a Return to Inside Business
Nestlé
1. How does the purchasing function affect the quality of a product like Nestlé’s Kit Kat
chocolate bars?
Nestlé’s purchasing function must acquire ingredients such as chocolate (or raw materials such
as cocoa beans) at prices that allow for the planned profit margin and in quantities that will
meet planned production levels. However, the ingredients also have to be of a quality that will
meet Kit Kat buyers’ expectations. If the finished product doesn’t have the taste or the texture
that buyers like, Nestlé will lose sales and profits. Therefore, its purchasing specialists must pay
as much attention to ingredient quality as to price and other factors.
2. What benefits would a global corporation such as Nestlé be likely to gain by having all its
U.S. plants qualify for ISO certification?
One benefit of having all of Nestlé’s U.S. plants qualify for ISO certification is that the
company can standardize its quality measurements and procedures across the country,
following ISO guidelines. Another is that Nestlé will be able to achieve a high minimum level
of quality at all its U.S. plants. Also, the company will have independent auditors certifying the
plants as a double check on quality procedures. Finally, Nestlé is likely to learn new, more
efficient ways of maintaining quality.
8.10b Review Questions

1. List all the activities involved in operations management.
The activities involved in operations management are product development, planning for
production, and operations control.
2. What is the difference between an analytical and a synthetic manufacturing process? Give
an example of each type of process.
The analytical process breaks raw materials into different component parts. The example that
was used in this chapter was a barrel of crude oil. Another example of an analytical process is a
meat processing plant. The synthetic process is just the opposite of the analytical process; it
combines raw materials or components to create a finished product. The example used in this
chapter was a Black & Decker cordless drill. Another example of the synthetic process is the
manufacture of a Hewlett-Packard DeskJet printer.
3. In terms of focus, magnitude, and number, characterize the production processes used by
a local pizza parlor, a dry-cleaning establishment, and an auto repair shop.
The focus of the pizza parlor is all of the ingredients that go into a pizza. The magnitude is
fairly small, because most of the ingredients are fairly recognizable. The pizza parlor uses only
one production process, unless it has more than one product.
For the dry cleaner, the focus is dirty clothes and dry-cleaning solvent. The magnitude is small,
and there is only one production process.
In the auto repair shop, there are many focuses, including all the parts used and the automobiles
in need of repair. The magnitude is not very great, but several production processes are
involved because of the numerous operations performed in repairing a car.
4. Describe how research and development leads to new products.
Research and development (R&D) is a set of activities intended to identify new ideas that have
the potential to result in new goods and services. Today, business firms use three general types
of R&D activities. Basic research is aimed at uncovering new knowledge. Applied research
consists of activities geared to discovering new knowledge with some potential use.
Development and implementation are research activities undertaken specifically to put new or
existing knowledge to use in producing goods and services. The last type of research results in
more new products because that is the primary objective of development and implementation.
5. Explain why product extension and refinement are important.
Product extension and refinement are important because they extend a product’s life cycle.
Each refinement or extension results in an essentially “new” product whose sales make up for
the declining sales of a product that was introduced earlier.
6. What are the major elements of design planning?
The major elements of design planning are (1) product line, (2) required production capacity,
and (3) use of technology. When considering the product line, management must determine
how many product variations there will be, and then the product-design process will create the
specifications for each variation. The required capacity will be determined by the operations
managers working with the firm’s marketing managers to make sure resources won’t lie idle or
be insufficient. When management decides the degree to which automation will be used to
produce the product or service, it must choose between labor-intensive technology and a
capital-intensive technology.
7. What factors should be considered when selecting a site for a new manufacturing facility?
The following factors should be considered when selecting a site for a new manufacturing
facility: the location of major customers; transportation costs to deliver finished products to
customers; geographic location of suppliers of parts and raw materials; the cost of both land and
construction required to build a new production facility; local and state taxes and environmental
regulations and zoning laws; the amount of financial support offered by local and state
governments; special requirements for energy, water, and other resources used in the production
process; quality of life for employees and management in the proposed location; and
availability and cost of skilled and unskilled labor.
8. What is the objective of operational planning? What four steps are used to accomplish
this objective?
The objective of operational planning is to decide on the amount of products or services that
each facility will produce during a specific period of time.
The four steps in operational planning are (1) selecting a planning horizon, (2) estimating
market demand, (3) comparing market demand with capacity, and (4) adjusting products or
services to meet demand.
9. If you were an operations manager, what would you do if market demand exceeded the
production capacity of your manufacturing facility? What action would you take if the
production capacity of your manufacturing facility exceeded market demand?
When market demand exceeds capacity, several options are available to the firm, including the
following:
a. Production of products or services may be increased by operating the facility overtime or
starting a second or third work shift.
b. For manufacturers, another response is to subcontract a portion of the work to other
producers.
c. If the excess demand is likely to be permanent, the firm may expand the current facility or
build another facility.
d. Some firms occasionally pursue another option—ignore the excess demand and allow it to
remain unmet.
When capacity exceeds market demand, again several options are available to the firm,
including the following:
a. To reduce output temporarily, workers may be laid off and part of the facility may shut
down.
b. The facility may be operated on a shorter-than-normal work week for as long as the excess
capacity persists.
c. To adjust to a permanently decreased demand, management may shift the excess capacity to
the production of other goods or services.
d. The most radical adjustment is to eliminate the excess capacity by selling unused facilities.
10. Why is selecting a supplier so important?
The objective of purchasing is to ensure that required materials are available when they are
needed at minimum cost. For some products, purchased materials make up more than 50
percent of their wholesale costs. For these reasons, purchasing personnel should constantly be
on the lookout for new or backup suppliers, even when their needs are being met by their
present suppliers. Such problems as strikes and equipment breakdowns may cut off the flow of
purchased materials from a primary supplier. The choice of suppliers should result from careful
analysis of a number of factors. The following are especially critical: price, quality, reliability,
credit terms, and shipping costs.
11. What costs must be balanced and minimized through inventory control?
The costs that must be balanced and minimized through inventory control are holding cost (or
storage cost) and stock-out cost (the cost of running out of inventory).
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and arouses religious feeling. Oratorio was his special gift to the
world and one never hears the name of Handel without thinking of
The Messiah.
Handel seemed to reunite the forms: oratorio and opera, under his
massive will. At first some of his oratorios were given in costume,
showing the influence of opera.
Handel had many enemies in England, but he also had friends.
Although imperious, he had a sweet side, and made friends with
humble folk who loved music, even though he hobnobbed with
royalty. Thomas Britton, a coal heaver, his friend, is sketched by an
artist of the day in a picture where Handel is playing The
Harmonious Blacksmith to Alexander Pope, the Duchess of
Queensbury, Colley Cibber and other famous folk. Yet he stormed at
everyone and even royalty “quaked in their boots” and were forced to
behave themselves at rehearsals and concerts which Handel directed.
Accused of using someone’s melody, he answered, “That pig
couldn’t use such a melody as well as I could!” He helped himself to
so many that he was called the “Great Plagiarist.”
His latter life was spent quietly, with a few intimate friends,
drinking his beer and smoking his beloved pipe. He was always
generous and as he grew older seemed to become kindlier and softer.
He contributed largely to the Foundling Asylum and even played the
organ there.
He wanted to die on Good Friday, “in hopes,” he said, “of meeting
his good God, his sweet Lord and Saviour on the day of his
resurrection,” and on Good Friday, April 6th, 1759, he died.
Christoph Willibald Gluck—Father of Modern Opera
1714–1787
Now we come to the next genius, Christoph Gluck (1714–1787)

born when George Frederick Handel was twenty-nine years old. He
also attacked the frivolous drift of his time, but in another field from
Handel and Bach, and gave the fashionable, aimless Italian opera its
death blow for all time.
Gluck’s life is different from Handel, Bach, Haydn, Mozart and
Beethoven as you will see later when you have read about all of these.
For, until he was almost forty years old, Gluck did nothing to make
him great, whereas these other men showed from their earliest years
that they were unusual.
Gluck belongs to two periods for his life bridges Bach’s and
Haydn’s. You will see how he first belonged to the frivolous fashion-
loving composers like Hasse, Jomelli and Piccinni, and how later he
blossomed into the great renewer and constructor of opera and
escapes into a class of his own! His is the most remarkable instance
of a man who starts with an ordinary talent, and later in life grasps a
vision that never came to him in his early youth and which was not
caught by others in his day.
Furthermore he was able to carry his point and not merely see the
vision and let it go by. But first let us see how his life unfolded, for a
man’s life helps us to understand his works.
Christoph Willibald Gluck, born July 2nd, 1714, at Weidenwang,
near Nüremberg, was the son of a gamekeeper, who moved from
estate to estate in the service of princes and nobles, and at the time of
Christoph’s birth, was ranger to Eugene, Prince of Savoy. So, this
little boy destined to become the great Chevalier von Gluck, was a
child of the people even as was Haydn and others.
Gluck Starts Traveling
When he was three years old he was taken to Bohemia, (now

Czecho-Slovakia), for his father entered the service of Prince
Lobkowitz, a great music lover, of whom you will hear again. His
parents were quite poor, yet it is remarkable that above everything
else they gave Christoph a good education and at twelve he went to a
Jesuit school near Eisenberg, the home of Prince Lobkowitz.
Here he learned to sing and to play the organ, the violin, the ’cello
and the clavier. He was diligent and became most proficient and was
loved and admired by the school fathers. But little did they dream
that some day he was to write classic operas, based not on Christian
stories but the pagan dramas of the Greeks!
When nearly nineteen, he left the seminary and said good-bye to
the Church of St. Ignatius and went to Prague. To support himself
and to carry on his scientific and musical studies he gave lessons,
played for rustic festivals and earned money the best way he could,
until Prince Lobkowitz became interested in him and introduced him
to the musical circle at court. Here he met Count Melzi who took him
to Milan, where he was taught by Giovanni Battista Sammartini, a
celebrated organist and teacher of counterpoint. After four years of
study he completed his musical education.
In Milan, he wrote his first opera, Artaserse which was performed
in 1741. Metastasio, the popular librettist, wrote the words to
Artaserse, as he did for many of Gluck’s works written in the loose
style of the Italian opera. He was now twenty-eight and in the five
years spent here, he composed eight operas, through which he
gained great popularity. But not yet had it come to him to
revolutionize opera; he simply used the old pattern which was really
nothing but groups of songs, recitatives and choruses having very
little connection except to give the performers the chance to do
musical feats to amaze the audience with their skill. The story of
these operas, meagre as it was, stopped short, for some long and
elaborate cadenza, and then it went on again with no thought of the
meaning of the drama but rather to tickle the taste of the audience
and the performer. The orchestra, too, was a step-child, for no one
cared where it came in as long as it was politely subdued, keeping the
singers on the key, and doing its best to be heard only when bidden.
So, Gluck followed these ideas in the beginning and perhaps it was
better that he did, otherwise he might never have realized how far
opera had strayed from the ideals of Monteverde.
Having eight operas to his credit, he began to get commissions
from other cities and countries, and next accepted an invitation, in
1745, to go to London as composer of opera at the Haymarket
Theatre. In 1746 he wrote La Caduta de Giganti (The Fall of the
Giants), with no doubt a libretto of Metastasio’s, then he gave his
Artamene and was assisted in their production by Handel, who is
supposed to have treated the works with contempt. He is said to have
exclaimed, “Even my shoe-black can write better counterpoint than
Gluck.” But we must remember that Gluck had not yet become the
great Gluck. His visit to England was fruitful, for Gluck heard and
digested the great oratorios of Handel, and realized that the voice
and orchestra might be handled the same way in opera. No doubt his
mission was beginning to dawn on him; it came, not as a great
revelation, but gradually.
He Makes Success of Failure
Another thing that gave him a push forward and shows how great
people can make a success of failure: he was asked to write a
pasticcio (Italian word meaning a meat-pie), or a string of melodies,
very fashionable in his day. He strung together his best airs from his
Italian operas, and called it Pyramus and Thisbe, but it was a dismal
failure. “Ah, ha!” he must have thought, “why shouldn’t this musical
drivel fail, for it is naught but trash, and with nothing that is needed
to make a good literary drama.” So this was one of the experiences
that led him to reform opera, making the words fit the music and not
stopping a performance, so that a popular soloist could sing a
meaningless trill and then start again with the other part of the word,
—the way that opera was being written at that time.
After his London ups and downs he went to Paris and heard the
operas of Rameau. He realized now the value of musical declamation
and recitative to the meaning and action of opera if used with
thought, and he was not slow in taking suggestions.
Gluck was probably the most all round man of his day, for he knew
literature and science as did few musicians. He knew all the
influential people in the arts, sciences, and music in London,
Hamburg, Dresden and Vienna, and his home was a center of
learned and delightful people. When in Vienna but a short time, he
was commissioned to write an opera and he produced, with success,
La Semiramide, after which he went to Copenhagen. His next opera
Telemacco in which he began to work out his new ideas was well
received, in Rome and Naples.
In 1750 after many disappointments, he was married to a lady he
had long adored. They lived happily together, for Marriane Pergin
not only brought him money which was a great joy, but was always
his devoted and understanding help-mate. She was an accomplished
woman, and a companion that many might envy. But, sad to say,
they had no children, so they adopted a niece of Christoph’s, a lovely
little girl with great musical talent. The three lived lovingly together
until the poor little child sickened and died, making the Glucks most
unhappy, for they adored her, as is often the case, even more than if
she had been their own child.
In 1751 Gluck journeyed to Naples. Didn’t he travel a lot in the
days of the stage coach and brigands! In the same year he became
conductor to Prince Frederick at Vienna and in 1754 was officially
attached to the opera, and Maria Theresa made him court chapel
master.
Soon after, the Pope, pleased with what he had done in Rome,
made him Chevalier of the Golden Spur and from that time he always
styled himself Ritter (Chevalier) von Gluck.
In Il re pastore (The Shepherd King), we see the dawning of
Gluck’s best period of writing (1756). The overture is better music
than he had written before, and from this time on, Gluck became the
genius in the opera world for which he is known. From 1756 to 1760
he lived apart from the world studying and after this he began to
broadcast his ideas in writing and composing.
When the Archduke Joseph of Austria, afterwards the Emperor,
married Isabella of Bourbon, Gluck wrote Tetede which was
performed with great pomp. After this he wrote the ballet Don
Giovanni, or The Libertine, particularly interesting, for it certainly
gave Mozart an idea for his own great work Don Giovanni.
Again our “wandering minstrel” moved, this time to Bologna
where he conducted a new opera which, strange to say, showed not a
sign of his new ideas!
“Orpheus and Euridice” is Born
Soon he met Calzabigi, another librettist, with whom he wrote his

first epoch-making opera Orpheus and Euridice. Although in some
parts it is written like the older operas, he used many of his new
ideas. The public at first were bewildered but they liked it. The next
opera written with his new librettist was Alceste, so different was it,
and so full of his best thought that the public did not like it. The
pleasure-loving people went to be amused and heard music almost as
serious as oratorio. It was austere, and its climax was not
satisfactory. Yet it and Orpheus and Euridice mark the birth of music
drama which Mozart and Wagner developed further.
In Orpheus and Euridice the chorus was an important part of the
drama as it had been in the old Greek drama from which Gluck took
many of his stories; and was not something dragged in to fill up
space. Instead, too, of the over-embroidered arias they were simple
and expressive, and the characters were real living beings, instead of
figures on which to drape showy melodies. Naturally, the composers
were jealous of him and went so far as to say that the principal singer
had written Orpheus and Euridice.
Gluck said of his Alceste: “I seek to put music to its true purpose;
that is, to support the poem, and thus to strengthen the expression of
the feelings and the interest of the situation without interrupting the
action.... In short, I have striven to abolish all those bad habits which
sound reasoning and true taste have been struggling against now for
so long in vain.” He abolished the unnecessary cadenza, a fancy, trilly
part composed by the soloist himself and used just before the close of
a piece. You will see in a later chapter how Beethoven dealt with it.
Happily Gluck and Calzabigi still continued working together and
in 1770 he wrote Paride and Elena (Paris and Helen) which proved
Gluck to be a writer of beautiful romantic song.
By now Vienna and Paris were enthusiastic about him, yet he was
severely criticized because he dared to write and compose differently
from everyone else. The adventurer into new paths must always
expect trouble from those who have not caught up with him.
Trouble Brews for Gluck
Now our traveler goes to Paris where he presents Iphigenia in

Aulis. The story was taken from a play of the French dramatist
Racine. Although this was the fourth work in Gluck’s new style it was
not as good as the others. His enemies did their utmost to hurt him
as they resented his coming into Paris to reform French opera. And
as the musicians and singers were not good artists, it was almost
impossible to give it well, and probably it would never have reached
the stage had it not been for Marie Antoinette the French Queen who
was later guillotined. She had been a real friend and pupil of Gluck,
when a young princess in Vienna. Nevertheless the opera pleased its
audiences, and it paid well, and Gluck was given a new court office in
Vienna.
In 1776 the trouble that had been brewing with Gluck’s opponents
came to a climax. Piccinni was his great Italian rival and the city of
Paris was torn as to who was the better composer. All the literary
men and the court were divided into factions, one for and one against
Gluck. Some great men, including Jean Jacques Rousseau were
Gluckists, while others of importance were Piccinnists. Never had
there been so great a contention for musical glory or struggle against
new ideas. It was a most extraordinary thing, but it does show that
there was great musical interest or people would never have wasted
so much time in argument and in writing for or against these men.
Finally it came to a head, and it was decided to give them both the
same libretto of Iphigenia in Tauris to see who could write the better
opera. Gluck completed his within the year and after nearly three
years, Piccinni finished his. They were both performed and needless
to say Gluck won the award and even Piccinni said himself that
Gluck’s was the better. It is nice to know that after Gluck’s death,
Piccinni tried to collect funds to raise a memorial as a tribute to him!
So artistic rivalry need not dim admiration.
In Iphigenia in Tauris again the master rises to great heights. His
overture was splendid, his orchestral color was superb. He pictured
the different characteristics of the various groups of people and of
the individuals themselves in word and music as it never had been
done before.
He wrote Armide in 1777. It did not succeed although it was very
lovely and dreamy and in it, he suggested the sounds of babbling
brooks and the song of the nightingales.
Gluck wrote thirty operas, seven of which are in his new style: Don
Giovanni, Orpheus and Euridice, Paris and Helen, Alceste,
Iphigenia in Tauris, Iphigenia in Aulis and Armide.
New Paths
And thus this great path-breaker advanced opera seria (grand

opera).
The old sinfonia in three movements which opened the opera,
disappeared, and instead came the introduction or overture,
suggesting the opera itself. He taught and wrote that composers
could do anything to assist the action of the opera; he elevated the
story to an important place; the characters in the plot were thought
of as people and not as puppets, and they were studied individually
and not as machinery only. The situations in the story governed the
kind of music he used and he tried hard to make the orchestra a
main part of the opera. It seems odd that nobody had thought of this
before. Yet you have seen how much time had been given to the voice
throughout the ages, and how long it had taken instruments to arrive
at their full importance. So we see Gluck improving as he worked
with a better librettist. From now the opera writer had to use thought
in composition, as he would in writing a play.
A Very Cross Conductor!
But Gluck had trouble with the singers on account of his

innovations. He was the crossest conductor of his time, would allow
no one to dictate to him, and scolded the singers as they had never
been scolded before.
He must have looked droll conducting, for he used to take off his
wig during rehearsals, and wrap a cloth about his head to keep the
draughts from fanning him! He would rage if the singers tried to do
what they had been permitted to do in other operas! Some singers
demanded extra pay when Gluck conducted. Sometimes he would
repeat a passage twenty or thirty times and no pianissimo was soft
enough and no fortissimo loud enough! Someone said of him while
he was conducting, “He lives and dies with his heroines, he rages
with Achilles, weeps with Iphigenia and in the dying scene of Alceste
throws himself back in his chair and becomes as a corpse.”
Otherwise he was always the kind soul who attracted everybody
from Marie Antoinette down. She used to receive him in her boudoir
so that they could enjoy conversation without court formalities.
One day two prima donnas refused to obey him when rehearsing
Iphigenia, and he said: “Mesdemoiselles, I have been summoned
here to Paris especially to produce Iphigenia. If you sing, well and
good, but if not, that is your business; only I shall then seek an
audience with the Queen, and inform her that the opera cannot be
performed, and I shall put myself into my carriage and straightway
leave for Vienna.” You may know that the ladies did their best!
In closing let us tell you what Berlioz, a master of orchestration,
said of Gluck’s orchestration in Alceste: “Of its kind I know nothing
more dramatic, nothing more terror-inspiring.” And this was said of
a man who had only the simplest orchestra with which to work. After
much fighting, he was the first to introduce into the orchestra the
kettle-drums and cymbals, which moderns have used with grandeur.
Gluck lived to see his own success, but the Piccinni strife and the
jealousies may have weakened his constitution, for he died rather
suddenly in 1787, a few weeks after the first performance of Mozart’s
Don Giovanni.
There are many memorials in Europe to Gluck, not the least being
his bust which stands beside Lully and Rameau in the Grand Opera
of Paris.
Public Concerts
It is very hard to realize that time was when there were no public
concerts. Music was confined for so many centuries to the churches,
to the public squares, to the King’s Chamber, or to the ball rooms of
wealthy nobles, that it had not become the democratic art that it is
now. Of course the first opera houses in Italy had been steps in the
direction of bringing music to the people. The concerts begun by the
Danish organist, Buxtehude, in Lübeck about 1673, and the
Tonkünstler-societät in Vienna of the same period were the first
public concerts. In England, John Banister started concerts at about
the same time, which were the first to admit an audience by payment
of a fee. Handel’s friend, Thomas Britton, the coal-heaver, gave
concerts at his home for 10 shillings the series!
The 18th century saw a great development in giving public
concerts. In France, the Concerts Spirituels were begun in 1725. The
object of these were to give music to the people on the days of
religious festivals when the opera house was closed. There were
about 24 concerts a year; the political events of 1791 put an end to
the society but it had already given the people a taste for concerts,
and many new societies grew out of it. The festivals of Three Choirs
in West England (see page 190) were founded in 1724, and the
Academy of Ancient Music in 1710. The Musikverein in Leipsic was
founded in 1743 and was later turned into the famous Gewandhaus
concerts in 1781.
This movement for public concerts went hand in hand with the
development of instruments and the perfecting of performers. In fact
the word concert came from “consort—the union or symphony of
various instruments playing in concert to one tune.”
The Mannheim School
The symphony came to life in Germany. Paul Landormy in his

History of Music tells us that it was the time of the “poor scholars”
who were educated free from expense in the schools with the
understanding that they were to learn the “musician’s trade” and
take part in the concerts organized by the cities and the courts. Thus
symphony orchestras grew up all over Germany,—Munich, Stuttgart,
Dresden, Darmstadt, Hamburg where Telemann conducted, in
Leipsic, Berlin and Mannheim.
In Mannheim appeared the most important group of composers,
known as the Mannheim School, and many wrote the early
symphonies which led from the works of Bach to those of Haydn and
Mozart. The best known of these composers are: Johann Stamitz
(1717–1757), Franz Xavier Richter (1709–1789), Anton Filtz,
Christian Cannabich, Ignaz Holzbauer, Ernst Eichner and Giovanni
Battista Toeschi. Under the direct influence of the Mannheim School
were: François Joseph Gossec (1734–1829), a Belgian living in Paris
who wrote many symphonies; Luigi Boccherini (1743–1805) known
as one of the first writers of chamber music in the form used by the
classic writers; Giovanni Battista Sammartini (1701–1775) of Milan;
the sons of Bach, Karl Ditters von Dittersdorf, and Joseph and
Michael Haydn.
From the painting
by J. B. Greuze, in
the Louvre, Paris.
Chevalier Christoph Willibald von Gluck.

Father of Modern Opera.
From a statue by
Barrias, in the
Luxembourg
Gallery, Paris.
The Boy Mozart.

CHAPTER XX
“Papa” Haydn and Mozart—the Genius
Franz Joseph Haydn

1732–1809
About the time in history when Franz Joseph Haydn was born, the
world was very much upset. No one knew what to think or how. It
was a time of battle and struggle as he was born in the midst of the
Seven Years’ War and lived during the French Revolution. Everyone
except for a few great persons felt bitter and discontented and doubt
was everywhere. This seems to be the way wars and conflicts affect
all peoples and it is why wars are so damaging.
Yet out of this mixture of feeling and thinking, the great classic
period of music was created by such men as Bach and Haydn and
Mozart and the finishing touches were put on it by Beethoven, the
colossus.
Franz Joseph Haydn was born in Rohrau (1732), a little town in
Austria near Vienna. His father was a wheelwright and his mother
was a very good cook. Beethoven’s mother, too, was a professional
cook.
These simple parents, his brothers and sisters, measuring not a
baker’s, but a wheelwright’s dozen, had an hour or two of music
every evening after the hard day’s work, and Mathias, the father,
played the harp and sang. It was during these evenings that little
Joseph’s father noticed that at the age of six he was passionately fond
of music.
One time at a festival the drummer failed to appear and there was
no one who could play for the choristers who were to march through
the town. His teacher, Frankh, called Joseph and showed him how to
make the drum stroke and told him to practice it. When he was left
by himself he found a meal tub, over which he stretched a cloth, put
it on a stool and drummed with such vigor that the whole thing
toppled over and he and his drum were covered with meal! But he
learned to drum! And the people laughed when in this solemn church
festival, the little six year old Joseph was seen drumming the big
drum carried by a hunchback in front of him. The drums on which he
played are still at Hainburg. But, we forget, we have not brought him
from Rohrau!
Not long before J. M. Frankh, a relative, came to visit the Haydns,
and it was decided that he should take Joseph to Hainburg to teach
him. The excitement, of course, was great and little Joseph felt very
important with all the hustle and bustle preparing for his departure.
Little did Saperle (his nickname) realize what a hard master he was
getting in Frankh, who only cared for the pay he received from
Joseph’s father. Nevertheless he learned much and showed great
talent while at Hainburg and one day a great thing happened.
Reutter, the organist of St. Stephen’s in Vienna, visited Frankh and
as they talked of music the conversation turned to the choir school
which Reutter directed. Frankh sent for Joseph, a slight, dark haired,
dark eyed little boy, and Reutter asked him to read a piece of music
at sight. Joseph looked at it and said: “How can I, when my teacher
couldn’t?” Yet, Joseph did sing it sweetly and he entered the choir
school. Here his life was a misery, for Reutter was harsh and
unsympathetic, but soon Joseph’s hard life in the choir school was
over, for one very cold winter night, he felt a little frisky, as many a
healthy lad does, and pulled off the wig of a man in the choir.
Reutter, who had wanted an excuse to rid himself of Joseph, because
his voice had begun to break, threw him out into the cold. Poor
Saperle had no other place to go and wandered about all night, until
he met his acquaintance Spangler, a tenor who was very poor and so
had sympathy with Haydn. He took him home to live with him and
his wife and child in his attic,—one small room with no comfort and
no privacy. All this time young Haydn was forced to earn his daily
bread by teaching as much as he could, playing for weddings,
baptisms, funerals, festivals, dances and street serenadings. This
street serenading was a sweet and pretty custom of the time.
One night Haydn and some other youths serenaded Kurz, a
prominent comedian. Kurz, pleased by the music below his window,
called to the lads: “Whose music is that?” “Joseph Haydn’s,” called
back Haydn. “Who is he and where?” asked Kurz. “Down here, I am
Haydn,” said Joseph. Kurz invited him upstairs and Haydn, at the
age of seventeen, received a commission for a comic opera, which
had two special performances.
All this time he mixed with the poor and laboring people, and their
songs became his songs, and his heart was full of their frolics and
their pains. He was of the people and was so filled with their humor
that later he was called the father of humor in music.
Soon, in order to be alone, and to work in peace, he took a room in
another attic, and bade good-bye to his very good friends. His room
was cold in winter and let in the rains and snows, but it did have a
spinet on which Haydn was allowed to play, and fortunately
Metastasio the librettist lived in this house. Here Haydn studied the
works of Karl Philip Emanuel Bach, Fuchs’ Gradus ad Parnassum
(Steps to Parnassus, Parnassus meaning the mountain upon which
the Greek Muses lived and so comes to mean the home of learning).
He practised too, during this time, on any instrument he could find
and learned so much that he became the founder of the modern
orchestra.
When Metastasio discovered that there was a hard working
musician in his house he met him and then introduced him to
Porpora the greatest Italian singing teacher in Vienna. Not long after
meeting him, Porpora entrusted to his care Marianne Van Martines,
his ten year old pupil, the future musical celebrity. At seventeen
Marianne wrote a mass which was used at St. Michael’s Church and
she became the favorite singer and player of Empress Maria Theresa.
You see women even in those days composed and performed!
So began Haydn’s successes. Porpora engaged him as accompanist,
and treated him half way between a valet and a musician, but
Haydn’s sweet nature carried him through all unpleasantnesses and
he was so anxious to learn and to earn his six ducats that he did not
care if he did have to eat with the servants.
In 1751–2, he wrote his first mass, his first string quartet, and his
first comic opera for Kurz, The Crooked Devil, the music of which
has been lost. Soon after he met Gluck at the concerts of the Prince of
Hildburghausen, where Haydn acted as accompanist; at the prince’s
house too, he met Ditter von Dittersdorf, the violinist. The princes
and nobles of these days did much for music for it was usually at
their homes and under their guidance that the composers received
opportunities to work.
Nevertheless, we see Haydn during these days slaving to make his
daily bread, but with the money he made he bought books on music
theory and held himself sternly down to hard work, morning, noon,
and night.
In 1755 Baron von Fürnburg, a music amateur, who gave concerts
at his home, asked him to compose for him, and he wrote eighteen
quartets, six scherzandi for wind instruments (the ancestors of his
own symphonies), four string quartets, to be played by the village
priest, himself, the steward, and the ’cellist Albrechtsberger.
All these pieces show how much happier he was since becoming
part of the Baron’s staff, for they are merry and jolly, and filled with
that humor which Haydn was the first to put into music.
Here, too, he met the cultivated Countess Thun, who was so
interested in his struggle for success, and in the youth himself that
she became his pupil. From this time on he began to earn more and
to live more comfortably.
Everything seemed to be clearing up for him now. The Countess
introduced him to Count Morzin, a Bohemian nobleman of great
wealth, and in 1759 he became his musical director. His orchestra
had eighteen members and here he wrote his first Symphony (the
first of one hundred and twenty-five!)
All this time he kept up his teaching and very soon married the
daughter of a wig-maker, who did not understand him and with
whom he was very unhappy, but he lived with her like the good man
he was until within a few years of his death.

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INSTRUCTOR MANUAL RESOURCES

8.1 A WORD FROM THE AUTHORS

8.2 TRANSITION GUIDE

New in Chapter 8: Producing Quality Goods and Services

8.3 QUICK REFERENCE GUIDE

8.4 LEARNING OBJECTIVES

8.5 BRIEF CHAPTER OUTLINE

II. The Conversion Process

III. Where Do New Products and Services Come From?

IV. How Do Managers Plan Production?

VI. Improving Productivity with Technology

8.6 GUIDE FOR USING POWERPOINT SLIDES

8.7 GENERAL CHAPTER TEACHING TIPS

8.8 COMPREHENSIVE LECTURE OUTLINE

approximately 12 million currently. Many of the manufacturing

Discussion Starter: Go to the Inside Quality Insider Web site (http://www.quality

c) Using computer-aided and flexible manufacturing systems that

b) Understand how technology can make a manufacturer more

II. THE CONVERSION PROCESS. The purpose of manufacturing is to

are four types of utility—

1. Focus. The focus of a conversion process refers to the resource or

4. A service Figure 8.2

Using the Boxed Inserts

III. WHERE DO NEW PRODUCTS AND SERVICES COME FROM?

have the potential to result in goods and services. Today, business

IV. HOW DO MANAGERS PLAN PRODUCTION? Only a few of the

keting managers play an important role in making product-line

3. Use of Technology. Management must determine the degree to

• The amount of financial support and subsidies, if any, offered by

2. Plant Layout. Plant layout is the arrangement of machinery,

parts of a product. The plant is arranged so that each operation

b) A planning horizon of one year is generally long enough to

a) When market demand exceeds capacity, several options are

V. OPERATIONS CONTROL. There are four important areas of opera-

b) Quality—The minimum acceptable quality is usually specified

2. Inventory control is the process of managing inventories to mini-

b) A just-in-time inventory system is designed to ensure that ma-

2. Scheduling via PERT. PERT (Program Evaluation and Review

a) Begin by identifying all the major activities involved in the

D. Quality Control. Quality control is the process of ensuring that goods

chased materials when they arrive, on subassemblies before they

2. Improving Quality Through Employee Participation. Over the

way manufacturers are achieving better quality at the opera-

Extra Example: With an ever-increasing amount of information created and stored

3. World Quality Standards: ISO 9000 and ISO 14000. Without a

b) Although certification is not a legal requirement to do business

VI. IMPROVING PRODUCTIVITY WITH TECHNOLOGY. Productivi-

Using the Boxed Inserts

2. Another factor is the tremendous growth of the service sector in

3. Increased government regulation is frequently cited as a factor af-

B. Improving Productivity Growth Rates. Several techniques and

C. The Impact of Computers and Robotics on Productivity. Automa-

2. Computer Manufacturing Systems. People are quick to point

(2) Computer-aided manufacturing (CAM) is the use of com-

3. Flexible Manufacturing Systems. The flexible manufacturing

ing machines and equipment are changed to produce different

WHAT PEOPLE ARE SAYING