Exam 10: Operations Management, Productivity, and Quality

Product layouts are efficient ways to manage the manufacturing of multiple product lines because of its inherent structural simplicity.

Give an example of a product that is produced through an analytic process.

How does an analytic production process work? It breaks down the basic resources into components. A cost analysis is made to determine the best way to ship the product to another location. It combines a number of raw materials into a finished product. It puts together several components. Raw materials are chemically altered.

By making a product that customers can take pride in having, production creates resale value utility. form utility. time utility. operational utility. ownership utility.

_________ is focused on improving the overall flow through a system composed of various companies working together. Supply chain management Flow-through analysis Benchmarking Business process re-engineering Materials management

You have gone to the doctor to check out some recent pains. The quality of her expertise to find and diagnose the problem is an illustration of the unique service characteristic of intangibility. warrantees. customization. perishability. past experience.

A software development company is designing an evaluation plan for its software programmers. The company feels that changes are necessary because it lacks the facts it needs to distinguish outstanding software programmers from those that are only average, or worse. Previously, the company paid software programmers a flat salary and based evaluations on supervisors' opinions. Now, however, the company is considering the following measures for its software programmers: Measurement Strategy Alpha: Software programmers will be evaluated based on the total number of lines of code that they produce. Measurement Strategy Beta: Software programmers will be evaluated based on their ability to produce computer code that is free of errors. Measurement Strategy Gamma: Software programmers will be evaluated based on the market success of the products they produce. Which of the following would be most similar to a decision to use Measurement Strategy Alpha and Measurement Strategy Beta together? Axiom evaluates its sales staff on the number of sales they make and the size of those sales. Personal Devices rewards its brand managers more heavily for sales of new products than for sales of previously existing products. Stardust 'n' Clay rewards production line workers based on meeting production quotas and avoiding product defects. Oak Meteors customer service agents are evaluated based on the quantity of calls they answer and the number of follow-up purchases that those callers make. Spa World valet parkers get a yearly bonus based on overall customer performance and supplement their income with tips from customers.

If a nation's productivity drops as compared to competing nations, it will experience low inflation. a fall in its standard of living. higher profits. no loss of income. increased wealth.

In planning for quality, managers must set goals for both performance quality and quality reliability.

The adoption of JIT usually means that a company has higher inventory costs than it did before, but a better and larger selection of inventory items.

Who is Michael Porter? What is his view on Canada's competitiveness?

What is the first step in the operations planning and control process?

Which of the following is the best description of quality? A product's fitness for use by consumers How closely a product adheres to quality standards A measurement of how much is produced relative to the resources used to produce the product or service The additional output in the current year compared to the output for the previous year A measurement of how much is produced

Material requirements planning is the method that brings together all materials and parts needed at each production stage at the precise moment they are needed.

In ______systems, capacity should be set at the level of ______, while in ______ systems, capacity should be set at the level of ______. high-contact; peak demand; low-contact; average demand low-contact; peak demand; high-contact; average demand low-contact; peak demand; low-contact; average demand high-contact; average demand; high-contact; peak demand None of these

A ______ diagrams steps to be performed and specifies the time required to complete each step. master production schedule Gantt chart PERT chart materials requirement planning document methods improvement system

The number of customers that Bob's Barbecue serves varies considerably from hour to hour. In determining the number of cash registers to install, they should use average demand. peak demand. low demand. high demand. normal demand.

The consistency of product quality from one finished product to the next is quality reliability. quality control. total quality management. performance quality. a quality circle.

Clean Sweep Corporation is a consumer goods company manufacturing home-care cleaning products. Sales of Sparkle, its flagship disinfectant, and some of its other cleaning products have been sluggish during the last two quarters. Of late, retailers have also shown a lack of confidence in these product lines. The management is looking at different ways to improve the efficiency of its entire supply chain. Some senior executives believe that the company should shift to a just-in-time logistics system. However, this opinion does not have unanimous support. Which of the following, if true, would strengthen the argument for the shift to a just-in-time inventory system? Clean Sweep's storage and handling costs are significant. Clean Sweep's suppliers have not adopted just-in-time systems. The current system requires higher inventory levels during the summer as compared to the winter. Demand for Sparkle varies depending on the promotional strategies of Clean Sweep's retail partners. Sparkle comes in many varieties, none of which is more popular than the leading brand.

In low-contact systems, capacity should be set at the level of average demand, but in high contact systems, capacity should be set at the level of peak demand.