Question 1

What is just-in-time (JIT) production? How does a JIT system help managers minimize inventory costs?

Accepted Answer

A just-in-time (JIT) production system i

Question 2

What is a supply chain?

Accepted Answer

A supply chain is the flow of informatio

Question 3

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

Accepted Answer

A high-contact system is one in which th

Question 4

A product layout is

Accepted Answer

A)  a spatial arrangement of production activities designed to make one type of product in a fixed sequence. 
B)  a spatial arrangement of production activities that groups equipment and people according to function. 
C)  a method for analyzing a service by showing the flow of processes that constitutes it. 
D)  a spatial arrangement of production facilities designed to move families of products through similar flow paths. 
E)  a production system in which a single factory uses automation to produce a wide variety of products. 
A)  a spatial arrangement of production activities designed to make one type of product in a fixed sequence. 
B)  a spatial arrangement of production activities that groups equipment and people according to function. 
C)  a method for analyzing a service by showing the flow of processes that constitutes it. 
D)  a spatial arrangement of production facilities designed to move families of products through similar flow paths. 
E)  a production system in which a single factory uses automation to produce a wide variety of products.

Question 5

Toys for Pops is a small business that focuses on indoor and outdoor games intended for an adult male clientele. It stocks a range of fantasy action figures and models, low-impact athletic accessories such as Frisbees and croquet sets, and a wide range of video games. The business has grown to the point that a larger location is needed. Recently, a location has come up for rent at a nearby strip mall at a favorable rate. The facility would provide the business with much needed shelf space and more room for employees behind the counter. However, the strip mall is in an area that has also seen a rapid increase in petty crime. The CEO feels that the advantages of the new location support the decision to relocate. Which of the following, if true, would weaken the CEO's position?

Accepted Answer

A)  The iffy reputation of the area in which the strip mall is located would make the business's current employees uneasy about their safety at work, which would lead to increased turnover in staff. 
B)  The lower cost of living in the new neighborhood would make it easier to hire employees willing to accept lower salaries. 
C)  Video games sales, after several years of increases, have reached a plateau and are unlikely to show further growth in the next few years. 
D)  The strip mall has no other current vacancies. 
E)  The current staff has been stable for several years and is well versed in details of video games and other specialty items. 
A)  The iffy reputation of the area in which the strip mall is located would make the business's current employees uneasy about their safety at work, which would lead to increased turnover in staff. 
B)  The lower cost of living in the new neighborhood would make it easier to hire employees willing to accept lower salaries. 
C)  Video games sales, after several years of increases, have reached a plateau and are unlikely to show further growth in the next few years. 
D)  The strip mall has no other current vacancies. 
E)  The current staff has been stable for several years and is well versed in details of video games and other specialty items.

Question 6

Stardust 'n' Clay is a manufacturer and mass marketer of personal care products and nutritional supplements. The company plans to launch a line of organic beauty products that are made entirely from mineral pigments and organic plant extracts. These products, though expensive to process, offer much higher margins than the company's current lines of beauty products. The market for organic beauty products is relatively untapped, with just a handful of players. Which of the following, if true, would strengthen the case for Stardust 'n' Clay to begin developing organic beauty products?

Accepted Answer

A)  Retailers report a consumer preference for inexpensive skin-care and beauty products that do a better job than the ones currently available. 
B)  Organic raw materials sourced from economically weak countries provide a source of livelihood for the local population. 
C)  Organic raw materials for such products can be sourced from developing countries at a lower cost. 
D)  The first mover in this industry is witnessing reasonable growth. 
E)  A growing number of women 18-34 consider the health impact of chemicals found in a beauty product when making a cosmetics purchase decision. 
A)  Retailers report a consumer preference for inexpensive skin-care and beauty products that do a better job than the ones currently available. 
B)  Organic raw materials sourced from economically weak countries provide a source of livelihood for the local population. 
C)  Organic raw materials for such products can be sourced from developing countries at a lower cost. 
D)  The first mover in this industry is witnessing reasonable growth. 
E)  A growing number of women 18-34 consider the health impact of chemicals found in a beauty product when making a cosmetics purchase decision.

Question 7

Because Toyota emphasizes ________, its operations capabilities emphasize ________.

Accepted Answer

A)  quality; automated equipment for consistent product buildup 
B)  dependability; wireless information system to track packages 
C)  quality; production capacity 
D)  flexibility; excess production capacity 
E)  dependability; quality control procedures 
A)  quality; automated equipment for consistent product buildup 
B)  dependability; wireless information system to track packages 
C)  quality; production capacity 
D)  flexibility; excess production capacity 
E)  dependability; quality control procedures

Question 8

In businesses like restaurants or supermarkets, the business is sized to meet a level of

Accepted Answer

A)  normal demand. 
B)  low demand. 
C)  peak demand. 
D)  average demand. 
E)  high demand. 
A)  normal demand. 
B)  low demand. 
C)  peak demand. 
D)  average demand. 
E)  high demand.

Question 9

Give an example of an external failure.

Accepted Answer

An external failure is a quality failure

Question 10

Quality means a product's fitness for use in terms of offering the features that consumers want.

Accepted Answer

A) True 
 B)False

Question 11

Which term refers to all the activities necessary for getting high-quality goods and services into the marketplace?

Accepted Answer

A)  Quality circles 
B)  Quality ownership 
C)  Statistical process control 
D)  Total quality management 
E)  Statistical process analysis 
A)  Quality circles 
B)  Quality ownership 
C)  Statistical process control 
D)  Total quality management 
E)  Statistical process analysis

Question 12

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 weaken the argument for the shift to a just-in-time logistics system?

Accepted Answer

A)  Carrying too much inventory results in higher-than-necessary inventory-carrying costs. 
B)  Under the new system, the company would have inventory sufficient for fewer days of operations. 
C)  Clean Sweep's most important suppliers prefer a flexible supply schedule. 
D)  Implementing the system would require an extensive overhaul of the existing supply chain. 
E)  Demand for Clean Sweep's products is stable and predictable. 
A)  Carrying too much inventory results in higher-than-necessary inventory-carrying costs. 
B)  Under the new system, the company would have inventory sufficient for fewer days of operations. 
C)  Clean Sweep's most important suppliers prefer a flexible supply schedule. 
D)  Implementing the system would require an extensive overhaul of the existing supply chain. 
E)  Demand for Clean Sweep's products is stable and predictable.

Question 13

The three characteristics of services that distinguish them from goods production are intangibility, customization, and unstorability.

Accepted Answer

A) True 
 B)False

Question 14

Unlike Gantt charts, PERT charts identify the critical path for meeting project goals.

Accepted Answer

A) True 
 B)False

Question 15

Describe the ways a business's operation processes can be classified.

Accepted Answer

Operations processes can be classified b

Question 16

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.
The choice to use only Measurement Strategy Beta would be vulnerable to criticism because it would give the software programmers an incentive to do what?

Accepted Answer

A)  Make overly optimistic commitments to customer-facing employees at the company 
B)  Spend too much time checking their code in order to eliminate any possibility of error 
C)  Develop projects that meet programming requirements but not market requirements 
D)  Skip the quality assurance checks that reveal the most damaging software errors 
E)  Produce more lines of code than are required to perform a given function 
A)  Make overly optimistic commitments to customer-facing employees at the company 
B)  Spend too much time checking their code in order to eliminate any possibility of error 
C)  Develop projects that meet programming requirements but not market requirements 
D)  Skip the quality assurance checks that reveal the most damaging software errors 
E)  Produce more lines of code than are required to perform a given function

Question 17

Which of the following would be considered a low-contact service?

Accepted Answer

A)  Surgery 
B)  Haircut 
C)  Massage 
D)  Electric power 
E)  Piano lesson 
A)  Surgery 
B)  Haircut 
C)  Massage 
D)  Electric power 
E)  Piano lesson

Question 18

Quality/cost studies show what a firm's current costs are, and also reveal

Accepted Answer

A)  areas that have the biggest cost-savings potential. 
B)  the limits of acceptable and unacceptable quality in production of a good or service. 
C)  how much quality will have to be achieved in order to meet consumer expectations. 
D)  how motivated employees are to build quality into products. 
E)  the level of quality that is currently being achieved. 
A)  areas that have the biggest cost-savings potential. 
B)  the limits of acceptable and unacceptable quality in production of a good or service. 
C)  how much quality will have to be achieved in order to meet consumer expectations. 
D)  how motivated employees are to build quality into products. 
E)  the level of quality that is currently being achieved.

Question 19

The most important factor in location planning for high-contact businesses is ________, but for low-contact business the most important factor in location planning is ________.

Accepted Answer

A)  availability of labour; proximity to customers 
B)  proximity to customers; community living conditions 
C)  community living conditions; transportation costs 
D)  transportation costs; proximity to resource supplies 
E)  proximity to customers; proximity to resource supplies 
A)  availability of labour; proximity to customers 
B)  proximity to customers; community living conditions 
C)  community living conditions; transportation costs 
D)  transportation costs; proximity to resource supplies 
E)  proximity to customers; proximity to resource supplies

Question 20

ISO 9000:2000 certified businesses must

Accepted Answer

A)  have documented procedures for each stage of production. 
B)  have no defects. 
C)  have strict quality controls. 
D)  produce a variety of quality goods. 
E)  be productive. 
A)  have documented procedures for each stage of production. 
B)  have no defects. 
C)  have strict quality controls. 
D)  produce a variety of quality goods. 
E)  be productive.

What is just-in-time (JIT) production? How does a JIT system help managers minimize inventory costs?

What is a supply chain?

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

A product layout is

Because Toyota emphasizes , its operations capabilities emphasize .

In businesses like restaurants or supermarkets, the business is sized to meet a level of

Give an example of an external failure.

Quality means a product's fitness for use in terms of offering the features that consumers want.

Which term refers to all the activities necessary for getting high-quality goods and services into the marketplace?

The three characteristics of services that distinguish them from goods production are intangibility, customization, and unstorability.

Unlike Gantt charts, PERT charts identify the critical path for meeting project goals.

Describe the ways a business's operation processes can be classified.

Which of the following would be considered a low-contact service?

Quality/cost studies show what a firm's current costs are, and also reveal

The most important factor in location planning for high-contact businesses is , but for low-contact business the most important factor in location planning is .

ISO 9000:2000 certified businesses must

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters

Exam 10: Operations Management, Productivity, and Quality

What is just-in-time (JIT) production? How does a JIT system help managers minimize inventory costs?

What is a supply chain?

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

A product layout is

Because Toyota emphasizes ________, its operations capabilities emphasize ________.

In businesses like restaurants or supermarkets, the business is sized to meet a level of

Give an example of an external failure.

Quality means a product's fitness for use in terms of offering the features that consumers want.

Which term refers to all the activities necessary for getting high-quality goods and services into the marketplace?

The three characteristics of services that distinguish them from goods production are intangibility, customization, and unstorability.

Unlike Gantt charts, PERT charts identify the critical path for meeting project goals.

Describe the ways a business's operation processes can be classified.

Which of the following would be considered a low-contact service?

Quality/cost studies show what a firm's current costs are, and also reveal

The most important factor in location planning for high-contact businesses is ________, but for low-contact business the most important factor in location planning is ________.

ISO 9000:2000 certified businesses must

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters

Because Toyota emphasizes , its operations capabilities emphasize .

The most important factor in location planning for high-contact businesses is , but for low-contact business the most important factor in location planning is .