Question 1

The owner of a small printing plant wishes to begin a preventive maintenance program.What should she plan for?
A) contract with an outside firm for major repair services
B) hire millwrights
C) schedule lubrication of equipment
D) install process control charts

Accepted Answer

The best choice for a preventive maintenance program for a printing plant is to schedule lubrication of equipment. This will ensure that the machines are running smoothly and help prevent breakdowns. Contracting with an outside firm for repair services or hiring millwrights may be necessary for major repairs, but they are not necessarily part of a preventive maintenance program. Installing process control charts is also not directly related to preventive maintenance, although it may be useful for monitoring the overall performance of the plant.

Question 2

An owner wants to always know the number of units in inventory.What inventory system should the owner use?
A) ABC
B) perpetual
C) physical
D) just-in-time

Accepted Answer

A perpetual inventory system would provide real-time tracking of inventory levels, allowing the owner to always know the exact number of units in stock. The ABC inventory system categorizes inventory based on value and demand, the physical inventory system requires periodic physical counts to determine inventory levels, and the just-in-time system aims to have inventory delivered as needed to minimize excess stock on hand. None of these options would be as effective as a perpetual system for the owner's specific need of always knowing inventory levels.

Question 3

What does the just-in-time inventory system attempt to accomplish?
A) improved product quality
B) minimized order returns
C) maximized purchase discounts
D) reduced inventory

Accepted Answer

The just-in-time inventory system attempts to reduce inventory by ordering and receiving goods only as they are needed in the production process, which can help minimize storage costs, reduce waste, and improve cash flow.

Question 4

The owner of a motorcycle assembly company hires a consulting firm to implement a process that focuses on specifically eliminating waste in every facet of operations.What will the consulting firm implement?
A) JIT
B) lean manufacturing
C) synchronous management
D) reengineering

Accepted Answer

The consulting firm will implement lean manufacturing, which focuses on identifying and eliminating waste in all aspects of operations to improve efficiency and reduce costs. JIT (A) is a specific type of lean manufacturing that focuses on just-in-time delivery of materials. Synchronous management (C) refers to managing production flow in real-time to optimize efficiency, while reengineering (D) involves completely redesigning processes and systems for radical improvement. While these methods may be used in conjunction with lean manufacturing, they are not the primary focus of a waste-elimination process.

Question 5

What is used by repetitive operations in manufacturing?
A) general-purpose machines
B) job-order schedules
C) specialized equipment
D) short production runs

Accepted Answer

Repetitive operations in manufacturing require specialized equipment that can perform the same task over and over again with precision and efficiency. General-purpose machines and short production runs are typically used for more flexible manufacturing processes, while job-order schedules are used for custom or unique products.

Question 6

What costs are calculating the economic order quantity intended to minimize?
A) total inventory
B) inventory order
C) inventory carrying
D) marginal

Accepted Answer

The answer of What costs are calculating the economic order...

Question 7

In an attempt to keep inventory fresh,a small retailer is trying to minimize amounts kept in inventory.What is a potential weakness of this practice?
A) an increase in inventory carrying costs
B) stockouts lead to lost sales
C) an increase in the expense of using the retail inventory valuation method
D) an increase in inventory shrinkage through pilferage

Accepted Answer

By minimizing the amounts kept in inventory, there is a higher likelihood of stockouts occurring. This means that there may not be enough products available to meet customer demand, resulting in lost sales.

Question 8

What is the term for an inspection plan that judges products as acceptable or unacceptable,good or bad?
A) 100 percent inspection plan
B) attribute inspection
C) variable inspection
D) inspection sampling plan

Accepted Answer

Attribute inspection is a type of inspection plan where products are judged as acceptable or unacceptable, good or bad based on specific attributes or characteristics. On the other hand, variable inspection involves measuring a product's physical characteristics against a specific standard or tolerance. A 100 percent inspection plan involves inspecting every single unit of product, while an inspection sampling plan involves inspecting a subset of products to determine the quality level of the entire batch.

Question 9

Vanessa is the owner of a salon that provides hair styling,pedicures,and manicures for her clients.Which factor will affect Vanessa's customers' perception of her quality?
A) prices compared to the competition
B) speed of her service
C) care and concern
D) availability of hair products to purchase

Accepted Answer

The customers' perception of Vanessa's quality will be affected by her care and concern for them. Providing excellent customer service and showing genuine interest in her clients' needs and preferences will enhance their overall experience and increase their satisfaction with the salon's services. While prices and availability of products can be important factors for some customers, they are not as critical as the quality of service and the personal attention they receive. Fast service may also be important, but only if it does not compromise the quality of the work done.

Question 10

What is an advantage of making,rather than buying,component parts?
A) It uses otherwise idle capacity.
B) It simplifies the need for management expertise.
C) It reduces the risk of technological change and equipment obsolescence.
D) It permits concentration on the firm's specialty-its finished products.

Accepted Answer

Making component parts in-house can utilize idle capacity, making efficient use of resources and potentially reducing costs associated with underutilized facilities or staff.

Question 11

An auto restoration company mostly receives custom orders.The operations manager has created a job shop structure for the custom orders.Which of the following best describes this new structure?
A) short production runs
B) long production runs
C) special-purpose equipment
D) standardized products

Accepted Answer

A job shop structure is characterized by short production runs, which are typical for custom orders. The production process is highly flexible and customized to meet the unique needs of each order.

Question 12

Parys runs a small company that has uncomplicated purchasing requirements.Each manager purchases supplies for their own departments.What kind of business does Parys most likely run?
A) bakery
B) accounting firm
C) used-car dealer
D) dress manufacturer

Accepted Answer

An accounting firm typically has uncomplicated purchasing requirements, with each manager purchasing supplies for their own department.

Question 13

Martin recently converted his printing brokerage company to a manufacturing process by purchasing a large press.What will Martin notice when he compares the manufacturing processes to the service operation?
A) Productivity is harder to measure in manufacturing.
B) It is harder to build inventory in manufacturing.
C) It is harder to establish quality standards in services.
D) Service operations involve less contact with customers.

Accepted Answer

Manufacturing processes often have clear, quantifiable quality standards due to the tangible nature of their outputs, making it easier to establish and measure quality compared to services, which are intangible and can vary significantly based on customer experience and interaction.

Question 14

What type of maintenance includes inspections and other activities needed to prevent machine breakdowns?
A) corrective
B) full-scale
C) preventive
D) partial

Accepted Answer

Preventive maintenance is focused on identifying and addressing potential issues before they lead to machine breakdowns. This type of maintenance includes regular inspections and other proactive activities designed to keep equipment running smoothly.

Question 15

A company makes custom cabinets for large executive homes.The company sources materials from a number of suppliers to offer a wide range of cabinets and fixtures.Which factors are most relevant when the company sources components from suppliers?
A) price,quality,location,and services
B) price,promptness in paying bills,size,and reputation
C) price,market share,and honest sales representatives
D) price,discounts,warranty,and personnel policies

Accepted Answer

When sourcing components from suppliers, price is always a factor, as it affects the company's profit margins. Quality is important to ensure the final product meets customers' expectations. Location is relevant to ensure timely delivery and minimize transportation costs. Services such as technical support and after-sales service can also be important in building long-term relationships with suppliers. Therefore, factors A are the most relevant. Choices B, C, and D include some relevant factors, but not as comprehensive as A.

Question 16

An automobile dealer needs to know the number of each model car on hand at any time.What should the dealer use?
A) physical inventory system
B) just-in-time inventory system
C) ABC inventory system
D) perpetual inventory system

Accepted Answer

A perpetual inventory system is ideal for an automobile dealer to keep track of the number of each model car on hand at any time, as it updates inventory records continuously as transactions occur.

Question 17

Which of the following does quality management apply to?
A) manufacturing but not service businesses
B) service but not manufacturing businesses
C) both service and manufacturing businesses
D) neither service nor manufacturing businesses

Accepted Answer

Quality management principles can be applied to both service and manufacturing businesses to ensure effective and efficient operations and customer satisfaction.

Question 18

Akbar's company sells roses.It is customary for 20% of his entire annual sales to occur on Valentine's Day.What is most critical to Akbar's business to avoid stocking out on this day?
A) inventory control
B) outsourcing
C) reciprocal buying
D) taking purchase discounts

Accepted Answer

Inventory control is the most critical factor for Akbar's business to avoid stocking out on Valentine's Day. With 20% of annual sales occurring on this day alone, Akbar needs to ensure that he has enough inventory to meet the demand. Without proper inventory control, he risks running out of roses and losing potential sales. Outsourcing, reciprocal buying, and taking purchase discounts may be helpful in other aspects of his business, but are not as critical as inventory control on Valentine's Day.

Question 19

Why must inventory be controlled?
A) to maximize the volume of overstock goods for display and delivery
B) to protect inventory against theft or deterioration
C) to reduce bookkeeping and purchase follow-up costs
D) to raise the level of customer service

Accepted Answer

Inventory must be controlled to protect it against theft or deterioration. This ensures that the company's investment in inventory is not wasted and that products are available for sale to customers. Additionally, inventory control helps to prevent overstocking, which can lead to additional costs such as storage and increased risk of damage or obsolescence.

Question 20

An artisan supply company's production manager feels that inventory is unbalanced,leading to delayed shipments to their better customers that order higher-end brushes and canvasses.The manager implements an ABC inventory method.How will the supplies be classified under this method?
A) by physical size
B) by value
C) by perishability
D) by age

Accepted Answer

The ABC inventory method classifies inventory items based on their value. This helps to identify which products are the most important for the company's revenue and ensures that these items are always in stock. By knowing the value of each item, the company can prioritize which products need to be restocked first and which items can wait. This should help to prevent delays in shipping high-end products and ensure that the company's best customers are receiving their orders on time.

Quiz 12: Operations Management and Control Systems

The owner of a small printing plant wishes to begin a preventive maintenance program.What should she plan for?

An owner wants to always know the number of units in inventory.What inventory system should the owner use?

What does the just-in-time inventory system attempt to accomplish?

The owner of a motorcycle assembly company hires a consulting firm to implement a process that focuses on specifically eliminating waste in every facet of operations.What will the consulting firm implement?

What is used by repetitive operations in manufacturing?

What costs are calculating the economic order quantity intended to minimize?

In an attempt to keep inventory fresh,a small retailer is trying to minimize amounts kept in inventory.What is a potential weakness of this practice?

What is the term for an inspection plan that judges products as acceptable or unacceptable,good or bad?

Vanessa is the owner of a salon that provides hair styling,pedicures,and manicures for her clients.Which factor will affect Vanessa's customers' perception of her quality?

What is an advantage of making,rather than buying,component parts?

An auto restoration company mostly receives custom orders.The operations manager has created a job shop structure for the custom orders.Which of the following best describes this new structure?

Parys runs a small company that has uncomplicated purchasing requirements.Each manager purchases supplies for their own departments.What kind of business does Parys most likely run?

Martin recently converted his printing brokerage company to a manufacturing process by purchasing a large press.What will Martin notice when he compares the manufacturing processes to the service operation?

What type of maintenance includes inspections and other activities needed to prevent machine breakdowns?

A company makes custom cabinets for large executive homes.The company sources materials from a number of suppliers to offer a wide range of cabinets and fixtures.Which factors are most relevant when the company sources components from suppliers?

An automobile dealer needs to know the number of each model car on hand at any time.What should the dealer use?

Which of the following does quality management apply to?

Akbar's company sells roses.It is customary for 20% of his entire annual sales to occur on Valentine's Day.What is most critical to Akbar's business to avoid stocking out on this day?

Why must inventory be controlled?

An artisan supply company's production manager feels that inventory is unbalanced,leading to delayed shipments to their better customers that order higher-end brushes and canvasses.The manager implements an ABC inventory method.How will the supplies be classified under this method?