Question 1

Purchasing constitutes a key part of operations management for most small businesses.

Accepted Answer

Purchasing is an essential part of operations management for most small businesses, as it involves acquiring the necessary raw materials, goods, and services to support the production and delivery of the company's products or services. Effective purchasing strategies can help small businesses control costs, improve quality, and enhance customer satisfaction.

Question 2

The operations process may be described as a conversion or transformation process.

Accepted Answer

The operations process takes inputs and transforms them into outputs through a series of activities and processes, making it a conversion or transformation process.

Question 3

Good relationships with suppliers are important in any business,but their importance increases as business size increases.

Accepted Answer

The importance of good supplier relationships is crucial for businesses of all sizes, as they can impact cost, quality, and supply chain efficiency, not just for larger businesses.

Question 4

Outsourcing means combining purchase orders with those of other buyers to get a lower price.

Accepted Answer

Outsourcing refers to the process of contracting out a business function or process to a third-party service provider. It does not necessarily involve combining purchase orders with other buyers.

Question 5

One hundred percent inspection of products prior to shipment to customers seldom eliminates all defective items.

Accepted Answer

It is extremely rare to eliminate all defective items through 100% inspection. Some defects may be missed during the inspection process or may occur during transportation to the customer.

Question 6

The decision to make or buy components is normally easy to reverse and should therefore be reviewed at least annually.

Accepted Answer

The make-or-buy decision is often complex and involves long-term commitments, which can make it difficult and costly to reverse. It requires careful consideration of many factors including cost, capacity, quality, and strategic alignment.

Question 7

Michael Hammer and James Champy are noted for their advocacy of reengineering.

Accepted Answer

Michael Hammer and James Champy are indeed noted for their advocacy of reengineering.

Question 8

It is important that reengineering efforts take on the whole business at once to ensure efforts are coordinated.

Accepted Answer

Reengineering efforts often focus on specific processes or areas within a business to avoid overwhelming the organization and to allow for more manageable, incremental improvements. Taking on the whole business at once can lead to disruption and resistance.

Question 9

Measuring the weight of boxes of candy during a production process is an example of attribute inspection.

Accepted Answer

Measuring weight is an example of variable inspection, not attribute inspection. Attribute inspection involves checking whether a product possesses a certain characteristic, such as color or shape.

Question 10

Job shops in manufacturing typically have long production runs of unique items.

Accepted Answer

Job shops in manufacturing typically have short production runs of unique items, as they are designed to handle custom orders and small batches rather than mass production.

Question 11

Money is an input into the operations process.

Accepted Answer

Money is needed to purchase resources, pay employees, and cover other operational expenses. Thus it is an input into the operations process.

Question 12

A small manufacturer's idle capacity is one argument for buying rather than making component parts.

Accepted Answer

The answer of A small manufacturer's idle capacity is one...

Question 13

ISO 9000 was developed by the International Organization for Standardization in Geneva,Switzerland.

Accepted Answer

ISO 9000 was indeed developed by the International Organization for Standardization in Geneva, Switzerland.

Question 14

The kanban and just-in-time inventory systems are similar in nature.

Accepted Answer

Both kanban and just-in-time inventory systems aim to reduce waste and improve efficiency in production by ensuring that inventory levels are only replenished when needed. They also both emphasize the importance of communication and coordination between different departments and suppliers to achieve a smooth and streamlined production process.

Question 15

The ultimate key factor to consider in selecting a supplier is the supplier's location.

Accepted Answer

While location can be a consideration, it is not the ultimate key factor. Factors such as quality, reliability, cost, and communication are also important in selecting a supplier.

Question 16

Attribute inspection is the determination of product acceptability on the basis of whether it will work.

Accepted Answer

Attribute inspection is the determination of product acceptability on the basis of whether it meets a specified requirement, not whether it will work.

Question 17

If management expertise is limited,a small firm should make rather than buy component parts.

Accepted Answer

Limited management expertise in a small firm often means it lacks the resources and skills to efficiently produce component parts, making buying (outsourcing) a more practical option to ensure quality and focus on core competencies.

Question 18

The economic order quantity is the purchase quantity that minimizes inventory carrying costs but maximizes order costs.

Accepted Answer

The economic order quantity aims to minimize the total of both inventory carrying costs and ordering costs, not maximize order costs.

Question 19

Variable inspection is the determination of product acceptability on the basis of a variable such as weight or length.

Accepted Answer

Variable inspection involves checking a product's compliance with a predetermined specification using a quantitative variable such as weight, length, or volume.

Question 20

Acceptance sampling is the determination of product acceptability on the basis of a variable such as weight or length.

Accepted Answer

Acceptance sampling is a statistical quality control method used to determine whether to accept or reject a batch of products based on sampling a few units, rather than testing all units. It does not solely focus on variables such as weight or length but can be based on any quality characteristic.

Quiz 12: Operations Management and Control Systems