Question 1

Work groups tend to be better at coordination than specialization.

Accepted Answer

A) True 
 B)False

Question 2

Wallie's Western Wear is a retailer of western style clothing that produces all of its own products. Wallie and Wanda, the owners, want to incorporate a system to solve quality problems and understand they need to start with their customers. What suggestions would be helpful for this process?

Accepted Answer

Wallie's Western Wear should consider th

Question 3

Weighing bags of mulch during a production process is an example of an variable inspection.

Accepted Answer

A) True 
 B)False

Question 4

Christie and Kevin are starting a produce farm raising organic vegetables. Kevin plans to sell the produce wholesale to a local restaurant and Christie is going to start a cooking school spotlighting the produce. Complete the following table detailing the inputs and outputs between the product business versus the service business. What are the similarities?

Accepted Answer

@#IMG-DLM& Both businesses use organic p

Question 5

Bottlenecks in a process are responsible for slower throughput times for the entire process.

Accepted Answer

A) True 
 B)False

Question 6

Quality is

Accepted Answer

A)  the features of a product or service that ultimately satisfy the needs of customers. 
B)  defined by The American Society for Quality. 
C)  an all encompassing management approach to providing excellent products and service. 
D)  a cornerstone of the national ISO 9000 process. 
A)  the features of a product or service that ultimately satisfy the needs of customers. 
B)  defined by The American Society for Quality. 
C)  an all encompassing management approach to providing excellent products and service. 
D)  a cornerstone of the national ISO 9000 process.

Question 7

Buying components is preferable to making them when it is necessary to protect a secret design for a seasonal item.

Accepted Answer

A) True 
 B)False

Question 8

Bobbi Jo pulls one part from the production line every 15 minutes and measures its dimensions against the specifications. Bobbi Jo is using:

Accepted Answer

A)  acceptance sampling. 
B)  a control chart. 
C)  statistical process control. 
D)  TQM. 
A)  acceptance sampling. 
B)  a control chart. 
C)  statistical process control. 
D)  TQM.

Question 9

Service businesses are typically more concerned with _____ costs than with the cost of materials for operations.

Accepted Answer

A)  equipment 
B)  fixed asset 
C)  labor 
D)  leasing 
A)  equipment 
B)  fixed asset 
C)  labor 
D)  leasing

Question 10

A small business owner decides that her firm has a good customer focus and adequate tools and techniques needed for a TQM program. To be assured of a strong quality program, she must also have the proper

Accepted Answer

A)  benchmarking. 
B)  marketing research. 
C)  organizational culture. 
D)  statistical quality control. 
A)  benchmarking. 
B)  marketing research. 
C)  organizational culture. 
D)  statistical quality control.

Question 11

Match the term with its definition. Some terms may not be used.
-An all-encompassing management approach to providing high-quality products or services

Accepted Answer

A) Acceptance sampling 
B) Attributes 
C) Bottleneck 
D) Constraint 
E) Inspection
F)ISO 9000
G)Operations
H)Operations management
I)Poka-Yoke
J)Quality
K)Total quality management
L)Variables 
A) Acceptance sampling 
B) Attributes 
C) Bottleneck 
D) Constraint 
E) Inspection
F)ISO 9000
G)Operations
H)Operations management
I)Poka-Yoke
J)Quality
K)Total quality management
L)Variables

Question 12

Match the term with its definition. Some terms may not be used.
-A method of controlling inventory that uses a targeted service level, allowing statistical determination of the appropriate amount of inventory to carry

Accepted Answer

A) ABC method 
B) Associative forecasting 
C) Cooperative purchasing organization 
D) Cycle counting 
E) Demand management strategies
F)Economic order quantity
G)Just-in-time inventory system
H)Perpetual inventory system
I)Physical inventory system
J)Poka-yoke
K)Statistical inventory control
L)Two-bin inventory system 
A) ABC method 
B) Associative forecasting 
C) Cooperative purchasing organization 
D) Cycle counting 
E) Demand management strategies
F)Economic order quantity
G)Just-in-time inventory system
H)Perpetual inventory system
I)Physical inventory system
J)Poka-yoke
K)Statistical inventory control
L)Two-bin inventory system

Question 13

Match the term with its definition. Some terms may not be used.
-The most restrictive limit on capacity, determining the capacity of the entire system

Accepted Answer

A) Acceptance sampling 
B) Attributes 
C) Bottleneck 
D) Constraint 
E) Inspection
F)ISO 9000
G)Operations
H)Operations management
I)Poka-Yoke
J)Quality
K)Total quality management
L)Variables 
A) Acceptance sampling 
B) Attributes 
C) Bottleneck 
D) Constraint 
E) Inspection
F)ISO 9000
G)Operations
H)Operations management
I)Poka-Yoke
J)Quality
K)Total quality management
L)Variables

Question 14

ISO 9000

Accepted Answer

A)  is more important for large global firms than small firms with domestic markets. 
B)  measures how companies have improved their environmental footprint. 
C)  is challenging to earn but is rewarding from a marketing viewpoint. 
D)  reflects international excellence in quality management standards. 
A)  is more important for large global firms than small firms with domestic markets. 
B)  measures how companies have improved their environmental footprint. 
C)  is challenging to earn but is rewarding from a marketing viewpoint. 
D)  reflects international excellence in quality management standards.

Question 15

Forrester Research has shown that using computerized information systems can cut accounts payable costs by 95%.

Accepted Answer

A) True 
 B)False

Question 16

Outsourcing non-competitive functions can free the entrepreneur to focus on his/her greatest strengths.

Accepted Answer

A) True 
 B)False

Question 17

Terrell is trying to decide whether to concentrate his purchases with one supplier or diversify with two or three. One factor in favor of a single supplier is:

Accepted Answer

A)  insurance against interruptions caused by strikes. 
B)  a particular supplier's superiority in product quality. 
C)  knowing the customer's loyalty, the supplier may provide better prices and service. 
D)  locating the best source in terms of price, quality and service with each purchase. 
A)  insurance against interruptions caused by strikes. 
B)  a particular supplier's superiority in product quality. 
C)  knowing the customer's loyalty, the supplier may provide better prices and service. 
D)  locating the best source in terms of price, quality and service with each purchase.

Question 18

One factor that differentiates the operations of a service firm from manufacturing is its

Accepted Answer

A)  operating space. 
B)  ability to maintain high quality standards. 
C)  inability to produce services and hold them in inventory. 
D)  working hours. 
A)  operating space. 
B)  ability to maintain high quality standards. 
C)  inability to produce services and hold them in inventory. 
D)  working hours.

Question 19

A suggestion for increasing outsourcing success is

Accepted Answer

A)  have a back-up plan in case of supplier failure. 
B)  outsource the unique product of the business. 
C)  periodically monitor the company's progress. 
D)  negotiate for priority in the production schedule. 
A)  have a back-up plan in case of supplier failure. 
B)  outsource the unique product of the business. 
C)  periodically monitor the company's progress. 
D)  negotiate for priority in the production schedule.

Question 20

A genuine concern for customer needs and customer satisfaction can assist the TQM efforts of a small business.

Accepted Answer

A) True 
 B)False

Exam 21: Managing Operations

Work groups tend to be better at coordination than specialization.

Wallie's Western Wear is a retailer of western style clothing that produces all of its own products. Wallie and Wanda, the owners, want to incorporate a system to solve quality problems and understand they need to start with their customers. What suggestions would be helpful for this process?

Weighing bags of mulch during a production process is an example of an variable inspection.

Bottlenecks in a process are responsible for slower throughput times for the entire process.

Quality is

Buying components is preferable to making them when it is necessary to protect a secret design for a seasonal item.

Bobbi Jo pulls one part from the production line every 15 minutes and measures its dimensions against the specifications. Bobbi Jo is using:

Service businesses are typically more concerned with _____ costs than with the cost of materials for operations.

A small business owner decides that her firm has a good customer focus and adequate tools and techniques needed for a TQM program. To be assured of a strong quality program, she must also have the proper

Match the term with its definition. Some terms may not be used. -An all-encompassing management approach to providing high-quality products or services

Match the term with its definition. Some terms may not be used. -A method of controlling inventory that uses a targeted service level, allowing statistical determination of the appropriate amount of inventory to carry

Match the term with its definition. Some terms may not be used. -The most restrictive limit on capacity, determining the capacity of the entire system

ISO 9000

Forrester Research has shown that using computerized information systems can cut accounts payable costs by 95%.

Outsourcing non-competitive functions can free the entrepreneur to focus on his/her greatest strengths.

Terrell is trying to decide whether to concentrate his purchases with one supplier or diversify with two or three. One factor in favor of a single supplier is:

One factor that differentiates the operations of a service firm from manufacturing is its

A suggestion for increasing outsourcing success is

A genuine concern for customer needs and customer satisfaction can assist the TQM efforts of a small business.

The Entrepreneurial Life

Integrity and Ethics: Foundations for Success in Small Business

Starting a Small Business

Franchises and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Organizational Plan: Teams, Legal Structures, Alliances, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product Development and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Professional Management and the Small Business

Managing Human Resources

Managing the Firms Assets

Managing Risk in the Small Business

A: Managing Risk in the Small Business

Filters