Exam 10: Operations Management, Productivity, and Quality

To date, the use of industrial robots has been largely limited to operations like spot welders on assembly lines.

Supply chain management is the principle of looking at the supply chain as a whole in order to improve the overall flow through the system. a program certifying that a factory, laboratory, or office has met the quality management standards of the International Organization for Standardization. a certification program attesting to the fact that a factory, laboratory, or office has improved environmental performance. the concept that all employees are valuable contributors to a firm's business, and should be entrusted with decisions regarding their work. the redesigning of business processes to improve performance, quality, and productivity.

A consultant who came to study the production process at Honey Nuggets Inc. determined the accuracy of the upper and lower specification limits by a process capability study. a competitive product analysis. instituting a quality circles program. a triangulation process. developing a control chart.

What is the difference between high-contact and low-contact services? Give an example of each.

________ focuses on improving both the quality and productivity of an organization's operations. ROQ Reengineering Back to Basics Six Sigma ISO 9000

What advantages are obtained from the use of a just-in-time inventory system? Suppliers can be less quality conscious and thus will have lower costs The production system becomes an intermittent process The warehousing function increases in importance The number of goods in process is drastically reduced Quality of finished products increases

Ken is a production operator who plots a sample of the product and finds that it is outside the upper or lower specification limits on the control chart. What should he do? Continue with production and analyze why the problem might be occurring Do nothing; wait to see if the next sample is within the control limits Tell co-workers "the sky is falling!" Correct the problem (e.g., people, equipment, materials, or work methods) Shut down the machine and have a manager investigate the problem

Explain time, place, form, and ownership utility.

A third industrial revolution is now underway which is based on new technologies, software, robots, and miniaturization.

Why is it important that Canada increase its productivity?

What is the purpose of a process capability study? To determine how the quality of the company's products compares to the quality of its competitors' products To provide information about variation in the company's production processes To determine how much value various work activities add for customers To determine if work teams will improve quality To determine whether the causes of product failures are internal or external

Services are classified according to the extent of customer contact. Identify and briefly discuss these two processes.

Because FedEx emphasizes __________, it operations capabilities emphasize ______________. quality; quality control procedures dependability; wireless information system to track packages low prices; cost control flexibility; excess production capacity dependability; quality control procedures

Service products are characterized by three key qualities: intangibility, uncustomized, unstorability. intangibility, customization, unstorability. intangibility, customization, storability. tangibility, customization, storability. tangibility, uncustomized, storability.

What is statistical process control?

Carolyn's car needs a tune-up so she has taken it to her favorite mechanic for repair. This type of service system is a ________ system. low-interaction passive high-interaction low-contact high-contact

EZ-Trade is a retail organization that owns specialty stores for a diverse range of product categories, ranging from home furnishings and sporting goods to books and gourmet foods. With more than 50 stores, the firm is now considering entering the very lucrative low-cost market by launching Clothe-a chain of retail stores that offers affordable fashion for men, women, and children. Which of the following, if true, would strengthen the argument for being a low-cost player? Customers who believe that they need high levels of customer service are more likely to choose a niche retailer. An expected upturn in the economy will increase consumer purchasing power. Being the low-cost player requires a company to examine every aspect of its supply chain in order to identify opportunities to improve efficiency. EZ-Trade has a longer history selling clothes for men and women than it has selling clothes for children. The retailer's logistics operations are more efficient than the industry norm.

Which of the following is an external failure that should be considered in a quality/cost study of Honey Nuggets cereal? The cost of overfilling boxes Expenses incurred during production before bad products leave the plant The cost of sorting out bad boxes Expenses incurred after bad products reach the consumer All of these

In terms of business strategy as a driver of operations, Toyota uses the _________ strategy, while 3M uses the _________ strategy. quality; dependability flexibility; dependability quality; flexibility lower price; quality lower price; flexibility

Car repair is classified as a low-contact system because the customer has to wait for the repair work to be done. the work that is done is highly technical and requires skilled technicians. the customer does not have to be present in order for the service to be performed. customer satisfaction is an important consideration in the provision of the service. the statement is in error; car repair is NOT a low-contact system.