Deck 7: Operations Management and Quality

Question 1

Explain time,place,and form utility and provide an example of each.

Answer 1

Time utility is created when a company makes products available when consumers want them.Examples may include seasonal items such as Christmas ornaments,bathing suits,and mosquito repellent.Place utility is created when a company makes a product's location convenient for consumers.An example is the placement of routinely purchased items in convenience stores or conveniently located discount stores.Form utility is created when a company combines materials to create products.A business adds customer value by providing utility.

Question 2

Which of the following is the ability of a product to satisfy a human want or need?

A) Utility
B) Relative advantage
C) Content
D) Satisfaction
E) Quality ownership

Answer 2

A

Question 3

Which term describes services that cannot be produced ahead of time?

A) Transformed
B) Low-contact
C) Unstorable
D) Intangible
E) Consistent

Answer 3

C

Question 4

When a company produces products when consumers want them,it creates which type of utility?

A) Ownership
B) Time
C) Form
D) Place
E) Value

Question 5

Firms that make only tangible products are engaged in goods production.

Question 6

In which type of system must the customer be actively involved in order to receive the good or service?

A) Make-to-stock
B) High-contact
C) Intangible
D) Low contact
E) Operations process

Question 7

Explain what is meant by the term utility.What type of utility is created when a pharmacy changes its evening schedule to remain open for an extra hour in response to customer needs?

Question 8

When a firm produces goods for mass consumption,what type of goods production method is generally used?

A) High-contact systems
B) Make-to-order
C) Layout planning
D) Low-contact systems
E) Make-to-stock

Question 9

In a low-contact system,the customer must be a part of the system to receive the service.

Question 10

In which of the following is the customer part of the system during service delivery?

A) A high-contact system
B) A low-contact system
C) A flexible system
D) A quality system
E) A utility system

Question 11

Which term refers to all the activities involved in making products-goods and services-for customers?

A) Operations
B) Processes
C) Planning
D) Scheduling
E) Performance

Question 12

Differentiate between high- and low-contact processes.Give an example of each.

Question 13

Which of the following is critical to the success or failure of service operations?

A) Provider-customer contact
B) Internet exposure
C) Supply chain
D) Tangible services products
E) Supplier-manufacture contact

Question 14

Which of the following refers to a set of methods and technologies used to produce a good or service?

A) Quality ownership
B) Production
C) Utility
D) Value added analysis
E) Operations process

Question 15

In a business,whose job is it to draw up plans to transform resources into products and bring together basic resources,such as knowledge,physical materials,equipment,and labor?

A) CEO
B) Operations manager
C) Quality manager
D) Floor foreman
E) Supply manager

Question 16

By turning raw materials into finished goods,production creates form utility.

Question 17

Services are more tangible,more customized,and more storable than most products.

Question 18

What goods-producing operations method is designed around specific customer specifications?

A) High-contact systems
B) Make-to-order
C) Layout planning
D) Low-contact systems
E) Make-to-stock

Question 19

Which type of utility is created when a company makes products available where consumers want them?

A) Time
B) Place
C) Possession
D) Form
E) Operations

Question 20

When a company makes products available conveniently for consumers,based on where they are,which type of utility is created?

A) Time
B) Form
C) Place
D) Possession
E) Leisure

Question 21

Operations capability is a special ability that production does especially well to outperform the competition.

Question 22

What is an operations capability?

Question 23

Describe the difference between the make-to-order and make-to-stock production processes.

Question 24

Examining step-by-step procedures to reduce inefficiency most centrally involves which approach?

A) Operations scheduling
B) Performance analysis
C) Value-added analysis
D) Methods improvement
E) Quality ownership

Question 25

Machine,woodworking,and dry cleaning shops typically use which type of layout?

A) Product
B) Custom-products
C) Same-steps
D) Hybrid
E) Make-to-stock

Question 26

Which type of strategy emphasizes low overhead and inventory,and a limited assortment of products to attract customers?

A) Flexibility
B) Quality
C) Low-cost
D) Dependability
E) Consistency

Question 27

Which of the following is an advantage of using a product layout plan?

A) They do not require specialized equipment.
B) They can be easily rearranged for new applications.
C) They can only be used for custom products.
D) They are inflexible in nature.
E) Unskilled labor can be utilized.

Question 28

Which of the following supports a business strategy that incorporates the key operational capability of flexibility?

A) Maintaining excess production capability
B) Reducing labor and shelving costs
C) Having high quality standards for suppliers
D) Utilizing specialized, automated equipment for consistent product buildup
E) Using electronic tools to improve customer communications

Question 29

A company should select the same kind of production used by most of its competitors.

Question 30

What type of service is being given when a product performs reliably,has an appealing fit and consistently meets or exceeds customer expectations?

A) Quality
B) Low cost
C) Flexibility
D) Dependability
E) Exclusivity

Question 31

Why does each company's operations capability match up with its business strategy?

Question 32

Which term is defined as the combination of "characteristics of a product or service that bear on its ability to satisfy stated or implied needs"?

A) Quality
B) Production
C) Quantity
D) Clarification
E) Capacity

Question 33

What type of strategy to attract customers should a firm that promotes quick and on time delivery utilize?

A) Quality
B) Low cost
C) Flexibility
D) Dependability
E) Accessibility

Question 34

Which type of layout is designed to move resources through a smooth,fixed sequence of steps?

A) Same-steps
B) Location
C) Custom-products
D) Quality
E) Make-to-order

Question 35

What type of strategy is a firm using when promoting quick,consistent and on time delivery,for every order?

A) Quality
B) Low cost
C) Flexibility
D) Dependability
E) Accessibility

Question 36

Performance refers to which of the following?

A) The principle that quality belongs to each person who creates it while performing a job
B) The consistency of product quality from unit to unit
C) How well the product does what it is supposed to do
D) The process by which a company analyzes a competitor's products to identify desirable improvement
E) Providing value by making products available when customers want them

Question 37

Consistency refers to which of the following?

A) The principle that quality belongs to each person who creates it while performing a job
B) The sameness of product quality from unit to unit
C) The sum of all activities involved in getting high-quality products into the marketplace
D) The process by which a company analyzes a competitor's products to identify desirable improvements
E) Providing value by making products available where customers want them

Question 38

Differentiate between goods production and service operations.

Question 39

Which of the following helps to determine operations capabilities?

A) Flexibility of activity
B) High-context system
C) Business strategy
D) Extent of customer contact
E) Production capability

Question 40

What term describes a special ability that production does especially well allowing the company to outperform the competition?

A) Supply chain management
B) Total quality management
C) Process engineering
D) Operations capability
E) Value-added analysis

Question 41

A fixed-position layout is most effective when there is a large-volume make-to-stock operation in place.

Question 42

What can be used to identify the sequence of activities,movements of materials and work performed?

A) Operations schedules
B) Process flowcharts
C) Gantt charts
D) PERT charts
E) Project schedules

Question 43

In a same-steps layout,equipment and people are set up to produce one type of good in a fixed sequence of steps and are arranged according to its production requirements.

Question 44

A firm's capacity depends on both how many people it employs and the number and size of its facilities.

Question 45

Equipment and people are grouped according to function in which type of production layout?

A) Fixed position
B) Same-steps
C) Custom-products
D) Supply-chain
E) Service

Question 46

What type of planning has the greatest effect on production costs and flexibility?

A) Capacity
B) Layout
C) Quality
D) Location
E) Process

Question 47

Managers can work to reduce waste,inefficiency,and poor performance by examining procedures on a step-by-step basis.Which term describes this process?

A) Advance planning
B) Materials management
C) Methods improvement
D) Quality planning
E) Quality ownership

Question 48

Which of the following affects how efficiently a company can respond to demand for more or different products and their ability to match competitors speed and convenience?

A) Location planning
B) Quality planning
C) Technology planning
D) Long-range capacity planning
E) Layout planning

Question 49

Which of the following is a scheduling tool that breaks down large projects into steps to be performed and specifies the time required to perform each one?

A) Myers graphic
B) Critical path chart
C) Gantt chart
D) Process analysis graph
E) Master schedule

Question 50

Which of the following tracks which service or products will be produced and when?

A) Master operations schedule
B) Detailed schedule
C) Gantt chart
D) Staff schedule
E) PERT chart

Question 51

Which of the following is the amount of a product that a company can produce under normal working conditions?

A) Capacity
B) Output
C) Efficiency
D) Burden
E) Performance

Question 52

Describe the purpose of an assembly line layout and when a firm would choose to use this format.

Question 53

Which term refers to how well a product does what it is supposed to do?

A) Capacity
B) Consistency
C) Reliability
D) Performance
E) Quality control

Question 54

A process flowchart identifies the sequence of production activities,movements of materials,and work performed at each stage of the process.

Question 55

Describe two alternatives for production facility layouts.

Question 56

Which of the following would be best used when producing make-to-stock operations or mass production of a product?

A) Fixed position layout
B) Process layout
C) Customer-product layout
D) Operations scheduling layout
E) Assembly line layout

Question 57

What is the main advantage of effective process layouts?

A) Flexibility
B) Cost
C) Speed
D) Quality
E) Performance

Question 58

Why do organizations use fixed-position layouts for some goods or services?

A) When the customer requests it
B) When it is more cost effective
C) When it increases the quality level
D) When it is difficult to move the good or service
E) When consistency in production is needed

Question 59

The sameness of product quality from unit to unit is referred to by which term?

A) Utility
B) Reliability
C) Performance
D) Consistency
E) Quality control

Question 60

When planning for quality,two key elements are

A) speed and dependability.
B) consistency and accuracy.
C) flexibility and accuracy.
D) dependability and flexibility.
E) performance and consistency.

Question 61

Which of the following indicates the critical path needed for the completion of large projects?

A) Master schedule
B) Coordination schedule
C) Gantt chart
D) Detailed schedule
E) PERT chart

Question 62

Which of the following refers to the receiving,storing,handling,and counting of all raw materials,partly finished goods,and finished goods?

A) Materials handling
B) Inventory control
C) Quality control
D) Wholesaling
E) Distribution control

Question 63

Which material management process stores incoming materials for production and finished goods for distribution?

A) Warehousing
B) Lean production
C) Transportation
D) Purchasing
E) Supply chain

Question 64

Material management requires the negotiation of terms of service and maintaining the relationship between the buyer and those who sell the firm goods.Which process supports this activity?

A) Supplier selection
B) Purchasing
C) Inventory control
D) Production
E) Materials management

Question 65

In operations control,production managers monitor production performance by which method?

A) Comparing results with detailed plans and schedules
B) Checking on each worker on the production floor
C) Observing activities from a platform above the workers
D) Constantly talking with employees involved
E) Performing spot checks of worker performance

Question 66

Describe how a Gantt chart and a PERT chart are similar,and how they are different.

Question 67

Which of the following breaks large tasks down to a series of smaller steps and includes all activities to successfully perform the task?

A) Master schedule
B) Coordination schedule
C) Gantt chart
D) Detailed schedule
E) PERT chart

Question 68

Which of the following identifies the process of determining which outside firm will provide service and materials for the production process?

A) Materials management
B) Purchasing
C) Inventory control
D) Inventories of information
E) Supplier selection

Question 69

A detailed schedule will consider employees' needs and the company's efficiency and cost,including demand for production.

Question 70

Which scheduling tool shows the necessary sequence of activities in a project and identifies the critical path?

A) Gantt chart
B) Process flowchart
C) Detailed schedule
D) Master production schedule
E) PERT chart

Question 71

If parts A,B,and C must be produced this week,a detailed schedule will indicate the sequence of work.

Question 72

Staff schedules identify which products will be produced and when.

Question 73

What is the main advantage of using a PERT chart on a large scale project?

A) It aids in the ordering of supplies and materials.
B) It shows the most time-consuming path for project completion.
C) It allows managers to plan for delays.
D) It allows managers to monitor performance by comparing results with detailed schedules.
E) It identifies which tasks can be performed at the same time as others.

Question 74

How can managers and employees support quality control efforts within the organization?

A) Identify and correct mistakes and failures
B) Pursue cost savings measures
C) Develop project schedules such as Gantt or PERT charts
D) Identify the critical path for activities of the project
E) Outline the proper sequence of events before the process begins

Question 75

Which type of system is designed for smooth production flow to avoid inefficiencies,eliminate unnecessary inventories,and continuously improve production processes?

A) Quality system
B) Lean system
C) Managed system
D) Production system
E) Flexible system

Question 76

Which department is responsible for ensuring that operations departments produce products that meet specific,predetermined standards?

A) Purchasing
B) Production systems
C) Quality control
D) Productivity
E) Marketing

Question 77

Which material management process describes the movement of finished goods from a business to the customer?

A) Procurement
B) Purchasing
C) Inventory control
D) Transportation
E) Warehousing

Question 78

Which term refers to the acquisition of the raw materials a company needs to produce its products?

A) Development
B) Purchasing
C) Goods control
D) Quality control
E) Wholesaling

Question 79

What is the name for a production system in which all the needed materials and parts arrive at the precise moment they are required for each production stage?

A) Quality control system
B) Process control system
C) Just-in-time production
D) Standardized production
E) Custom-products production

Question 80

Which of the following would be used to provide coordination for completing large-scale projects?

A) Master schedule
B) Detailed schedules
C) Staff schedules
D) Project schedules
E) Coordination schedules