Question 1

The owner of a small manufacturing plant wants inspectors to check the width and length of a product (within specified tolerances)during the production process.What type of inspection is this?
A) attribute inspection
B) work sampling inspection
C) 100 percent inspection plan
D) variable inspection

Accepted Answer

This is a variable inspection as the dimensions of the product are being measured and checked within specified tolerances, which is a continuous variable. Attribute inspection involves checking for specific characteristics such as the presence or absence of a feature, while work sampling inspection involves taking samples at specific times to measure performance. A 100 percent inspection plan involves checking every unit produced, which may not be feasible or necessary in this case.

Question 2

The owner of a large bicycle factory ensures all departments in the company are coordinated so that the entire firm's performance is maximized.What is this an example of?
A) JIT
B) lean manufacturing
C) synchronous management
D) reengineering

Accepted Answer

This is an example of synchronous management, where all departments in a company work together to ensure maximum overall performance. JIT and lean manufacturing are related concepts focused on minimizing waste and maximizing efficiency in production processes, while reengineering involves redesigning business processes to improve performance. However, neither of these options describes the coordination of departments for maximum overall performance.

Question 3

A small firm's supplier can produce a component part with greater efficiency and volume.What should the firm do?
A) make the component part as needed
B) make a large quantity of the component part and keep it in stock
C) seek other suppliers
D) buy the component part from that supplier

Accepted Answer

Buying the component part from the supplier who can produce it with greater efficiency and volume is the best choice as it will save the small firm time and money in production. Making the component part themselves or keeping a large quantity in stock may result in excess inventory or production inefficiencies. Seeking other suppliers may not guarantee finding one that can produce the component part with better efficiency and volume.

Question 4

A carpenter makes and sells a custom wooden chest armoire for $7,000.It took him 20 hours and the materials cost $2,000.The carpenter values his time as $100 per hour.What is the firm's productivity?
A) 0.57
B) 1.0
C) 1.75
D) 3.5

Accepted Answer

To calculate productivity, we need to divide the total output (in this case, the value of the wooden armoire) by the total input (in this case, the time and material costs). 
Total input = 20 hours + $2000 materials = $4000 
Total output = $7000 
Productivity = Total output / Total input 
Productivity = $7000 / $4000 
Productivity = 1.75
Therefore, the firm's productivity is 1.75. The best choice is C.

Question 5

The owner of a local pub wants to analyze the competition and adopt any competitive practices that create superior customer service.What should the owner use to accomplish this?
A) control charts for his kitchen staff
B) attribute inspection of waiters and waitresses
C) benchmarking successful companies
D) ISO 9000 certification

Accepted Answer

Benchmarking successful companies is the most effective way to analyze the competition and adopt any competitive practices that create superior customer service. It allows the owner to compare their practices to those of successful companies in the industry and identify areas where they can improve. Control charts and attribute inspections are more appropriate for monitoring and improving specific processes within the pub, and ISO 9000 certification is a quality management system that may not necessarily address customer service practices.

Question 6

Louise Garcia is attempting to use the ABC inventory method for her general store.What should she include in category A?
A) high-value items such as hydraulic pumps
B) fragile items such as light bulbs
C) inexpensive items such as paperclips
D) intangible items such as goodwill

Accepted Answer

Category A should include high-value items that represent a large portion of the total inventory value but a small percentage of the total inventory count. This includes items such as hydraulic pumps.

Question 7

A small manufacturer is choosing a supplier for component parts.Unless the manufacturer's circumstances are unusual,what areas should get primary consideration?
A) location and quality
B) credit terms and location
C) price and quality
D) management advice and price

Accepted Answer

Price and quality should be the primary considerations when choosing a supplier for component parts. While location and credit terms may also be important factors, ultimately a manufacturer must prioritize finding a supplier who can provide high quality parts at an affordable price. Management advice is not directly related to the choice of a supplier for component parts.

Question 8

Which statement applies to productivity improvements?
A) They are most likely in service operations.
B) They may be enhanced by quality improvements.
C) They are the result of a firm's doing less with more.
D) They are dependent on the standard of living.

Accepted Answer

Quality improvements can lead to productivity improvements because they can reduce waste and errors, increase efficiency, and enhance customer satisfaction. Option A is incorrect because productivity improvements can occur in both service and manufacturing operations. Option C is incorrect because productivity improvements involve doing more with less resources rather than less with more. Option D is incorrect because productivity improvements are not necessarily dependent on the standard of living.

Question 9

Which of the following generally characterizes manufacturing operations?
A) little customer contact and intangible products
B) measurable productivity and intangible products
C) measurable productivity and little customer contact
D) tangible products and measurable productivity

Accepted Answer

Manufacturing operations generally involve creating tangible products, such as cars or furniture, and measuring productivity based on how many units can be produced in a set amount of time. Customer contact is usually limited in these types of operations.

Question 10

Kareece is working with engineers to set acceptable tolerances in the production of hearing aids.What are Kareece and the engineers setting?
A) design tolerances
B) inspection points
C) reduction of inspection costs
D) inspection standards

Accepted Answer

The answer of Kareece is working with engineers to set...

Question 11

The owner of a chain of pet grooming mobile services is having difficulty with payroll preparation and related human resources activities.How can this problem be resolved?
A) pooled purchases
B) ABC analysis
C) outsourcing
D) reciprocal buying

Accepted Answer

Outsourcing the payroll preparation and human resources activities to a third-party service provider can help the owner of the pet grooming mobile services to focus on their core business activities while ensuring accurate and timely payment of employees. This can save time and reduce the risk of errors or legal issues related to payroll and HR compliance.

Question 12

The owner of a small bakery arranged a schedule for periodic adjustment and lubrication of the bakery equipment.What type of system is the owner establishing?
A) reengineering
B) quality management
C) preventive maintenance
D) benchmarking

Accepted Answer

The owner is establishing a preventive maintenance system, which is a type of maintenance that is performed on equipment to prevent it from breaking down or failing. It involves periodic adjustments and lubrication of the equipment to keep it running smoothly and to prevent problems from occurring. Reengineering, quality management, and benchmarking are not related to this type of maintenance system.

Question 13

What is a type of inventory carrying cost?
A) cost of transporting inventory from suppliers
B) cost of preparing inventory purchase orders
C) interest cost related to inventory
D) cost related to stockouts of inventory

Accepted Answer

Interest cost related to inventory is a type of inventory carrying cost. It includes the cost of financing inventory such as interest on loans, charges on overdrafts or credit lines, and opportunity cost of investing capital in inventory instead of other profitable projects. All the other options (transportation cost, purchase order cost, and stockout cost) are not examples of inventory carrying cost, but rather costs related to inventory management, procurement, and replenishment.

Question 14

The owner of a coin recognition company encourages discussions between departments and sets up tables in common areas for quality circles.Which of the following would best describe a quality circle at this company?
A) small groups of employees who meet periodically to discuss quality problems
B) managers of companies who meet to give prizes for best quality achievement
C) leaders of labour unions who meet monthly to discuss workers' environments
D) whistleblowers within the company who wish to voice complaints

Accepted Answer

A quality circle is a group of employees who meet regularly to discuss and analyze ways to improve the product, process, or service quality in their workplace. The fact that the owner of the coin recognition company sets up tables in common areas for these circles indicates that they are encouraged to discuss quality problems and ideas. Therefore, A is the best choice. B, C, and D do not fit the definition of a quality circle.

Question 15

To ensure the right formulation is used,a production manager creates control charts for the production workers when they mix chemicals.In which activity is the manager using the control charts?
A) statistical process control
B) attribute inspection
C) traditional inspection
D) reengineering

Accepted Answer

The production manager is using control charts for statistical process control, which is a method to monitor a process and its variability to ensure consistent quality output. Control charts help in identifying when a process is going out of control and when action needs to be taken to correct it. Thus, the production manager is using statistical process control to ensure the right formulation is used.

Question 16

A manufacturing company's profits are decreasing,and after a full review the president concludes that his workers are best at managing finished goods inventory and servicing customers extremely well.What should the president have the company do to improve its financial results?
A) make its component parts as needed
B) make its component parts periodically and warehouse them
C) buy its component parts
D) use the economic order quantity formula to decide how many components to make

Accepted Answer

Buying component parts can allow the company to focus on its strengths in managing finished goods inventory and servicing customers, potentially improving financial results by reducing the costs and complexities associated with manufacturing components.

Question 17

A small manufacturer needs to minimize delays and interruptions in the production process.What should be a primary tool in this effort?
A) reengineering
B) reciprocal buying
C) inventory control
D) outsourcing

Accepted Answer

Inventory control is the primary tool for minimizing delays and interruptions in the production process. By maintaining appropriate levels of inventory and monitoring supply chain disruptions, the manufacturer can ensure that the production process can continue uninterrupted. Reengineering, reciprocal buying, and outsourcing may also help improve the production process, but they are not focused specifically on minimizing delays and interruptions.

Question 18

The operation cycle of a fast food restaurant is very short.How might outputs be measured in this situation?
A) the number of cars at the drive-through window per day
B) the number of times cash is exchanged at the cash register
C) the inventory waiting to be used
D) the number of customers served every 15 minutes

Accepted Answer

The number of customers served every 15 minutes is the best choice for measuring outputs in a fast food restaurant, as it directly reflects the efficiency of the operation cycle in serving customers quickly. A high number of customers served every 15 minutes indicates a well-functioning and efficient restaurant, while a low number could suggest bottlenecks or inefficiencies in the processes. The other options listed may provide some indication of output, but they are not as direct or relevant to measuring the effectiveness of the operation cycle.

Question 19

A production manager reduces processing time by adding a catalyst to a resin and hardener mixture without changing the properties of the final product.What has the manager improved?
A) inputs
B) outputs
C) quality
D) productivity

Accepted Answer

By reducing the processing time, the production manager has increased the productivity of the process. This means that the same amount of output can be produced in a shorter amount of time, leading to cost savings and potentially increased output capacity.

Question 20

Tyrell's production department has a very low rejection rate compared to the industry average.Tyrell thinks about what could go wrong and implements corrective features before a rejection occurs.What approach to quality is this called?
A) benchmarking
B) poka-yoke
C) acceptance sampling
D) statistical process control

Accepted Answer

This approach is called poka-yoke, which means mistake-proofing. Tyrell's production department is anticipating potential errors and taking measures to prevent them before they occur, which reduces or eliminates the chances of rejection.

Quiz 12: Operations Management and Control Systems

The owner of a small manufacturing plant wants inspectors to check the width and length of a product (within specified tolerances) during the production process.What type of inspection is this?

The owner of a large bicycle factory ensures all departments in the company are coordinated so that the entire firm's performance is maximized.What is this an example of?

A small firm's supplier can produce a component part with greater efficiency and volume.What should the firm do?

A carpenter makes and sells a custom wooden chest armoire for $7,000.It took him 20 hours and the materials cost $2,000.The carpenter values his time as $100 per hour.What is the firm's productivity?

The owner of a local pub wants to analyze the competition and adopt any competitive practices that create superior customer service.What should the owner use to accomplish this?

Louise Garcia is attempting to use the ABC inventory method for her general store.What should she include in category A?

A small manufacturer is choosing a supplier for component parts.Unless the manufacturer's circumstances are unusual,what areas should get primary consideration?

Which statement applies to productivity improvements?

Which of the following generally characterizes manufacturing operations?

Kareece is working with engineers to set acceptable tolerances in the production of hearing aids.What are Kareece and the engineers setting?

The owner of a chain of pet grooming mobile services is having difficulty with payroll preparation and related human resources activities.How can this problem be resolved?

The owner of a small bakery arranged a schedule for periodic adjustment and lubrication of the bakery equipment.What type of system is the owner establishing?

What is a type of inventory carrying cost?

The owner of a coin recognition company encourages discussions between departments and sets up tables in common areas for quality circles.Which of the following would best describe a quality circle at this company?

To ensure the right formulation is used,a production manager creates control charts for the production workers when they mix chemicals.In which activity is the manager using the control charts?

A manufacturing company's profits are decreasing,and after a full review the president concludes that his workers are best at managing finished goods inventory and servicing customers extremely well.What should the president have the company do to improve its financial results?

A small manufacturer needs to minimize delays and interruptions in the production process.What should be a primary tool in this effort?

The operation cycle of a fast food restaurant is very short.How might outputs be measured in this situation?

A production manager reduces processing time by adding a catalyst to a resin and hardener mixture without changing the properties of the final product.What has the manager improved?

Tyrell's production department has a very low rejection rate compared to the industry average.Tyrell thinks about what could go wrong and implements corrective features before a rejection occurs.What approach to quality is this called?