Question 1

Give an example of an internal failure.

Accepted Answer

An internal failure is a quality failure

Question 2

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 Gamma would be vulnerable to criticism in what way?

Accepted Answer

A)  Many factors other than software programming are required for market success. 
B)  It sets up a goal that is unattainable. 
C)  It underestimates the effect that good software programming can have on the customer's experience. 
D)  It would require the company to change its current approach to evaluating software programmers. 
E)  It fails to establish a goal that requires any significant effort to achieve. 
A)  Many factors other than software programming are required for market success. 
B)  It sets up a goal that is unattainable. 
C)  It underestimates the effect that good software programming can have on the customer's experience. 
D)  It would require the company to change its current approach to evaluating software programmers. 
E)  It fails to establish a goal that requires any significant effort to achieve.

Question 3

Coast Capital Savings Credit Union branch in Surrey, B.C., simplified the banking experience of its customers and developed an innovative new service called "You're the Boss Mortgage" which was named the Mortgage of the Year by canadianmortgagetrends.com. This is an example of benchmarking.

Accepted Answer

A) True 
 B)False

Question 4

A supply chain includes the entire network of manufacturing firms, beginning with suppliers and ending when production is complete at the factory and the product is put into inventory in the warehouse.

Accepted Answer

A) True 
 B)False

Question 5

What is quality?

Accepted Answer

Quality is a product

Question 6

In ________ systems, capacity should be set at the level of ________, while in ________ systems, capacity should be set at the level of ________.

Accepted Answer

A)  high-contact; peak demand; low-contact; average demand 
B)  low-contact; peak demand; high-contact; average demand 
C)  low-contact; peak demand; low-contact; average demand 
D)  high-contact; average demand; high-contact; peak demand 
E)  none of these 
A)  high-contact; peak demand; low-contact; average demand 
B)  low-contact; peak demand; high-contact; average demand 
C)  low-contact; peak demand; low-contact; average demand 
D)  high-contact; average demand; high-contact; peak demand 
E)  none of these

Question 7

What is one reason why it is a bad idea for a company to have excess capacity?

Accepted Answer

A)  Wastes raw materials 
B)  Increases customer dissatisfaction 
C)  Ties up money in extra machines 
D)  Decreases form utility 
E)  Slows delivery of product 
A)  Wastes raw materials 
B)  Increases customer dissatisfaction 
C)  Ties up money in extra machines 
D)  Decreases form utility 
E)  Slows delivery of product

Question 8

In the product layout of facilities planning, the resources are processed through the same fixed sequence of steps to become finished goods.

Accepted Answer

A) True 
 B)False

Question 9

Scooters Corp. manufactures motorized scooters. Virtually all scooters are sold through direct appeals on the QVC shopping network. Overwhelmed by recent demand, top management is concerned about quality levels. What is a reasonable goal for product quality?

Accepted Answer

The scooters must, of course, be safe to

Question 10

ISO 9000 is

Accepted Answer

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

Question 11

The schedule that shows which products will be produced, when production will occur, and what resources will be used during specified time frames is called a(n)

Accepted Answer

A)  inventory control schedule. 
B)  master production schedule. 
C)  control chart. 
D)  short-term detailed production schedule. 
E)  material requirements plan. 
A)  inventory control schedule. 
B)  master production schedule. 
C)  control chart. 
D)  short-term detailed production schedule. 
E)  material requirements plan.

Question 12

Labour productivity is determined by dividing GNP by the total number of workers in a country.

Accepted Answer

A) True 
 B)False

Question 13

A soft drink manufacturer who has many outlets for its product is providing

Accepted Answer

A)  place utility. 
B)  ownership utility. 
C)  form utility. 
D)  price utility. 
E)  time utility. 
A)  place utility. 
B)  ownership utility. 
C)  form utility. 
D)  price utility. 
E)  time utility.

Question 14

Planning, organizing, and controlling the flow of materials from design through distribution of finished goods is

Accepted Answer

A)  quality control. 
B)  material requirements planning. 
C)  statistical process control. 
D)  materials management. 
E)  inventory planning and control. 
A)  quality control. 
B)  material requirements planning. 
C)  statistical process control. 
D)  materials management. 
E)  inventory planning and control.

Question 15

If the total resources needed to create a given amount of a product decreases, productivity has

Accepted Answer

A)  decreased and quality has increased. 
B)  not changed. 
C)  decreased. 
D)  increased. 
E)  cannot determine from information provided. 
A)  decreased and quality has increased. 
B)  not changed. 
C)  decreased. 
D)  increased. 
E)  cannot determine from information provided.

Question 16

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. A senior executive claims that a move to a "just-in-time" logistics system would be a mistake because even if the system is effective at reducing inventory and handling costs, the change would not be noticed by customers. The executive claims that the change should be rejected as it runs counter to Clean Sweep's goal of being "customer-focused." Which of the following is the best criticism of the senior executive's position?

Accepted Answer

A)  It does not prove that focusing on the customer helps an organization become successful. 
B)  It does not suggest an improvement to Clean Sweep's current system. 
C)  It fails to recognize that having a more efficient supply chain will allow Clean Sweep to offer more value to its customers. 
D)  It does not establish that the costs of switching to the new system would outweigh any cost-reduction benefits the system might provide. 
E)  It does not describe the inventory systems used by Clean Sweep's competitors. 
A)  It does not prove that focusing on the customer helps an organization become successful. 
B)  It does not suggest an improvement to Clean Sweep's current system. 
C)  It fails to recognize that having a more efficient supply chain will allow Clean Sweep to offer more value to its customers. 
D)  It does not establish that the costs of switching to the new system would outweigh any cost-reduction benefits the system might provide. 
E)  It does not describe the inventory systems used by Clean Sweep's competitors.

Question 17

Firms with increasing productivity rates can provide higher wage increases to workers more easily than firms with declining productivity rates.

Accepted Answer

A) True 
 B)False

Question 18

What is a master production schedule?

Accepted Answer

A master production schedule i

Question 19

________ focuses on improving both the quality and productivity of an organization's operations.

Accepted Answer

A)  ROQ 
B)  Re-engineering 
C)  Back to Basics 
D)  Six Sigma 
E)  ISO 9000 
A)  ROQ 
B)  Re-engineering 
C)  Back to Basics 
D)  Six Sigma 
E)  ISO 9000

Question 20

When your favourite restaurant prepares your favourite meal, they are creating

Accepted Answer

A)  form utility. 
B)  price utility. 
C)  time utility. 
D)  place utility. 
E)  ownership utility. 
A)  form utility. 
B)  price utility. 
C)  time utility. 
D)  place utility. 
E)  ownership utility.

Give an example of an internal failure.

Coast Capital Savings Credit Union branch in Surrey, B.C., simplified the banking experience of its customers and developed an innovative new service called "You're the Boss Mortgage" which was named the Mortgage of the Year by canadianmortgagetrends.com. This is an example of benchmarking.

A supply chain includes the entire network of manufacturing firms, beginning with suppliers and ending when production is complete at the factory and the product is put into inventory in the warehouse.

What is quality?

In systems, capacity should be set at the level of , while in systems, capacity should be set at the level of .

What is one reason why it is a bad idea for a company to have excess capacity?

In the product layout of facilities planning, the resources are processed through the same fixed sequence of steps to become finished goods.

Scooters Corp. manufactures motorized scooters. Virtually all scooters are sold through direct appeals on the QVC shopping network. Overwhelmed by recent demand, top management is concerned about quality levels. What is a reasonable goal for product quality?

ISO 9000 is

The schedule that shows which products will be produced, when production will occur, and what resources will be used during specified time frames is called a(n)

Labour productivity is determined by dividing GNP by the total number of workers in a country.

A soft drink manufacturer who has many outlets for its product is providing

Planning, organizing, and controlling the flow of materials from design through distribution of finished goods is

If the total resources needed to create a given amount of a product decreases, productivity has

Firms with increasing productivity rates can provide higher wage increases to workers more easily than firms with declining productivity rates.

What is a master production schedule?

________ focuses on improving both the quality and productivity of an organization's operations.

When your favourite restaurant prepares your favourite meal, they are creating

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

Give an example of an internal failure.

Coast Capital Savings Credit Union branch in Surrey, B.C., simplified the banking experience of its customers and developed an innovative new service called "You're the Boss Mortgage" which was named the Mortgage of the Year by canadianmortgagetrends.com. This is an example of benchmarking.

A supply chain includes the entire network of manufacturing firms, beginning with suppliers and ending when production is complete at the factory and the product is put into inventory in the warehouse.

What is quality?

In ________ systems, capacity should be set at the level of ________, while in ________ systems, capacity should be set at the level of ________.

What is one reason why it is a bad idea for a company to have excess capacity?

In the product layout of facilities planning, the resources are processed through the same fixed sequence of steps to become finished goods.

Scooters Corp. manufactures motorized scooters. Virtually all scooters are sold through direct appeals on the QVC shopping network. Overwhelmed by recent demand, top management is concerned about quality levels. What is a reasonable goal for product quality?

ISO 9000 is

The schedule that shows which products will be produced, when production will occur, and what resources will be used during specified time frames is called a(n)

Labour productivity is determined by dividing GNP by the total number of workers in a country.

A soft drink manufacturer who has many outlets for its product is providing

Planning, organizing, and controlling the flow of materials from design through distribution of finished goods is

If the total resources needed to create a given amount of a product decreases, productivity has

Firms with increasing productivity rates can provide higher wage increases to workers more easily than firms with declining productivity rates.

What is a master production schedule?

________ focuses on improving both the quality and productivity of an organization's operations.

When your favourite restaurant prepares your favourite meal, they are creating

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

In systems, capacity should be set at the level of , while in systems, capacity should be set at the level of .