Deck 7: Operations Management and Quality for Producing Goods and Services

Question 1

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

Answer 1

True
Explanation:Detailed schedules show day-to-day activities that will occur in production.

Question 2

An assembly line is an example of a custom-products layout.

Answer 2

False
Explanation:An assembly line is a same-steps layout.

Question 3

ISO 9000 is a certification program attesting that a factory,laboratory,or office has met the rigorous requirements set by the International Organization for Standardization.

Answer 3

True
Explanation:More than 160 countries have adopted ISO 9000 as a national standard.

Question 4

Getting a haircut and having your lawn mowed are both examples of low-contact services.

Question 5

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

Question 6

ISO 9000 is a certification program attesting to the fact that a factory,laboratory,or office has improved its environmental performance.

Question 7

Staff schedules identify which products will be produced and when.

Question 8

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

Question 9

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

Question 10

Materials management involves the flow of materials inside of the production facility,while distribution management involves the flow of finished goods.

Question 11

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

Question 12

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

Question 13

Each stage in the supply chain adds value for the final customer.

Question 14

Japanese companies adapted the concept of quality circles from quality improvement teams used by U.S.companies.

Question 15

When a company turns out ornaments in time for Christmas,it creates time utility.

Question 16

Just-in-time (JIT)production systems normally require large amounts of "safety stock" to be maintained in a firm's warehouse.

Question 17

Quality improvement teams are groups of employees from various work areas who define,analyze,and solve common production problems.

Question 18

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

Question 19

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

Question 20

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 21

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 22

The sales department relies on the engineering department to send samples and quotes to prospective customers on a timely basis; the sales department may be considered the engineering department's internal customer.

Question 23

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 24

The biggest challenge of TQM is motivating employees throughout the company to achieve quality goals.

Question 25

ISO 14000 may result in a recycling program at a company.

Question 26

Even excellent firms focus on one competence at a time.

Question 27

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) capacity

Question 28

Managers of a restaurant eat at a competing restaurant in order to identify desirable improvements in their own operations; this illustrates quality control.

Question 29

The goal of supply chain management is better overall flow in the system.

Question 30

Value-added analysis might focus on both the elimination of waste and cost minimization.

Question 31

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

A) contingency plan
B) production episode
C) reduction
D) methods plan
E) operations process

Question 32

For manufacturing firms,typical materials costs make up 50 to 75 percent of total product costs.

Question 33

Operations control includes materials management and quality control.

Question 34

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

Question 35

Successful companies,such as 3M and FedEx,use the same operations strategy.

Question 36

A detailed schedule will indicate how many employees will be working on a given shift.

Question 37

A value chain includes an entire network of firms,beginning with suppliers and ending when production is complete.

Question 38

Because supply chain strategy is based on the collective effort of a number of firms,no one firm in the chain gains a competitive advantage.

Question 39

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 customer system
D) a quality system
E) a utility system

Question 40

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

A) supply chain management
B) total quality management
C) process engineering
D) operations capability
E) value-added analysis

Question 41

Which term refers to the strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials or services?

A) outsourcing
B) reengineering
C) controlling
D) scheduling
E) warehousing

Question 42

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 43

Which of the following terms includes all activities involved in getting quality products into the marketplace?

A) quality control
B) quality reliability
C) total quality management
D) performance quality
E) quality overview

Question 44

Which term refers to the flow of information,materials,and services from raw-materials suppliers through stages in the operations process until the product reaches the end customer?

A) distribution chain
B) supply chain
C) service channel
D) distribution channel
E) performance channel

Question 45

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 46

Thousands of empty jugs move down a conveyor belt at Colgate-Palmolive before stopping to be filled and moving on to be labeled.What type of layout is utilized?

A) supply-chain
B) custom-products
C) hybrid
D) fixed-position
E) same-steps

Question 47

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

A) cellular
B) same-steps
C) custom-products
D) supply-chain
E) service

Question 48

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 49

When a company turns out costumes in time for Halloween,it creates which type of utility?

A) ownership
B) time
C) form
D) place
E) value

Question 50

Which of the following is NOT a major objective of JIT production?

A) increasing stop-and-go production
B) reducing goods in process
C) complying with schedules
D) eliminating disruptions by continuous improvement
E) reducing inventory levels

Question 51

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 52

Which of the following is another term for the supply chain?

A) the distribution chain
B) the distribution network
C) the value chain
D) the supply network
E) the wholesale network

Question 53

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 54

When a company makes products available where they are convenient for consumers,it creates which type of utility?

A) time
B) form
C) place
D) possession
E) leisure

Question 55

What name is given to the process by which a company analyzes another company's product to identify desirable improvements in its own product?

A) quality reliability analysis
B) benchmarking
C) performance quality analysis
D) competitive product analysis
E) quality outsourcing

Question 56

Which of the following is patterned after the successful Japanese concept of quality circles?

A) supply chain management
B) quality improvement team
C) total quality management
D) quality ownership
E) value-added analysis

Question 57

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 58

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 59

Which term describes the idea that quality belongs to each person who creates it while performing a job?

A) quality control
B) quality ownership
C) quality circles
D) total quality management
E) quality improvement teams

Question 60

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 61

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 62

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 63

Which of the following BEST describes total quality management?

A) the principle that quality belongs to each person who creates it while performing a job
B) the consistency of a product's 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) a certification program attesting that an operations process has met rigorous requirements

Question 64

The check-processing operations at your bank would be considered to be which type of system?

A) high-contact
B) low-contact
C) dynamic
D) synthetic
E) performance

Question 65

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 66

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

A) transformed
B) low-contact
C) unstorable
D) intangible
E) consistent

Question 67

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 68

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 69

Which of the following would be considered a low-contact service?

A) surgery
B) haircut
C) massage
D) electric power
E) piano lesson

Question 70

Which of the following is NOT one of the areas of materials management?

A) transportation
B) warehousing
C) purchasing
D) supplier selection
E) customer service

Question 71

3M uses which strategy for attracting customers?

A) quality
B) low-cost
C) dependability
D) flexibility
E) consistency

Question 72

Which of the following would be considered a high-contact system?

A) gas company
B) electric company
C) lawn care company
D) barber shop
E) postal delivery

Question 73

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 74

Which of the following is greatly reduced in a just-in-time production system?

A) workers needed on the line
B) goods in process
C) shifts necessary at the plant
D) separate operations on the assembly line
E) forepersons needed at the plant

Question 75

Logan Aluminum makes coils of aluminum that it supplies to customer companies that use it to make beverage cans.Logan uses a schedule that specifies how many tons of each type of coil will be produced each week.What is this schedule called?

A) master production schedule
B) detailed schedule
C) Gantt chart
D) staff schedule
E) PERT chart

Question 76

Which of the following is a component of materials management?

A) promotion
B) distribution
C) marketing
D) warehousing
E) sales

Question 77

Save-A-Lot grocery stores use which type of strategy for attracting customers?

A) flexibility
B) quality
C) low-cost
D) dependability
E) consistency

Question 78

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 79

Automobile,food-processing,and television assembly plants use which type of layout?

A) make-to-order
B) location
C) custom-products
D) quality
E) same-steps

Question 80

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