Deck 8: Producing Quality Goods and Services

Question 1

The Canadian economy is now characterized as what type of economy?

A) industrial
B) centralized
C) service
D) bureaucratic

Answer 1

C

Question 2

Every year, manufacturing contributes approximately what amount to the Canadian economy?

A) $500 billion
B) $1 trillion
C) $174 billion
D) $10 billion

Answer 2

C

Question 3

Part of the reason that employment in the Canadian manufacturing sector has _____ is that productivity has _____.

A) decreased; decreased
B) decreased; increased
C) increased; decreased
D) increased; increased

Answer 3

B

Question 4

Canadian manufacturers produce approximately what percent of total global manufacturing output?

A) 1%
B) 11%
C) 21%
D) 31%

Question 5

Which of the following refers to bringing manufacturing jobs back to Canada?

A) offshoring
B) Six Sigma
C) R&D
D) reshoring

Question 6

Executing the plan to produce a product falls within which phase of the conversion process?

A) outputs
B) production inputs
C) conversion
D) planning

Question 7

If Franklin & Co. uses labour and materials to create a finished product, Franklin & Co. is likely which type of business?

A) a restaurant
B) a hair salon
C) a toy manufacturer
D) a hotel chain

Question 8

Higher wage costs in Canada and a higher cost of living explain why employment in the manufacturing segment has done which of the following?

A) increased
B) declined
C) led to reshoring
D) led to job growth

Question 9

A physical therapy clinic with eight therapists provides a service. Which of the following describes the clinic as the producer of a service?

A) uses more raw materials than if it were producing a good
B) can produce services for delayed consumption
C) uses a process that is labour intensive
D) uses only material resources

Question 10

Increasing labour costs in foreign nations, faster product development, and federal and provincial subsidies have encouraged which of the following?

A) reshoring
B) offshoring
C) increased productivity
D) safety regulations

Question 11

Once R&D identifies an idea for a new product, what are the three main components of production planning?

A) design, facilities, and materials
B) design, materials, and operational
C) design, facilities, and operational
D) design, employee, and conversion

Question 12

Shefali is in charge of making sure the raw steel brought into her company's factory is converted into high-quality cookware for sale to customers. Shefali is which type of manager?

A) operations
B) productivity
C) top
D) finance

Question 13

What happened to productivity in North America during the time period after World War II?

A) decreased slightly
B) stayed the same
C) decreased significantly
D) increased

Question 14

Currently approximately 1.7 million Canadian workers are employed in manufacturing jobs, compared to what number back in 2004?

A) 5.2 million
B) 4.8 million
C) 2.3 million
D) 3.7 million

Question 15

Canada is one of the largest manufacturing countries in the world. Manufacturing accounts for 68% of all Canadian exports. Which of the following best describes the direction in the number of Canadians employed in the manufacturing sector?

A) increasing at a slow but steady pace
B) decreasing
C) staying the same
D) increasing rapidly

Question 16

Which of the following would be considered an output in the McDonald's example?

A) a Big Mac meal
B) cheese
C) sandwich assembly
D) frying french fries in oil

Question 17

Which of the following would be considered a production input in the McDonald's example?

A) sandwich assembly
B) cheese
C) a Big Mac meal
D) frying french fries in oil

Question 18

Which of the following would be considered part of the conversion process in the McDonald's example?

A) a Big Mac meal
B) bun, cheese, ketchup, onions, and pickles
C) creating a timeline that details how long each step of the sandwich assembly process should take
D) frozen french fries

Question 19

An idea for a new product falls within which phase of the conversion process?

A) outputs
B) automation
C) production inputs
D) conversion

Question 20

Which of the following would be considered a production input in the McDonald's example?

A) hiring of new workers
B) sandwich assembly
C) a Big Mac meal
D) frying french fries in oil

Question 21

At the beginning of 2016, Dynamic Toys Corp. estimated its sales projections for the playground equipment it manufactures. The company is expecting tremendous growth this year, and as a result expects that it will have to outsource some of its production. Why is this likely?

A) the company has calculated its sales projections incorrectly
B) the company needs to reevaluate its production technology options
C) the company has a short product line
D) the estimated production capacity is more than the company can currently handle

Question 22

A Chilean wine producer is considering ways to increase production at the winery. The option the winery is considering would involve high initial costs but lower operating costs. What is the winery likely considering?

A) lengthening its product line
B) decreasing the capacity of its production facility
C) manual production technology
D) automatic production technology

Question 23

If Heartland Corporation measures quality based on the number of satisfied customers, Heartland Corporation is likely which type of business?

A) producer of toys such as stuffed animals and remote-controlled cars
B) designer and manufacturer of clothing
C) a hardware store
D) a restaurant

Question 24

Purina has a new product idea to create cat food that gives cats more energy and healthier joints. Management appoints a team to develop a plan for converting this idea into an actual product. What is this process called?

A) design planning
B) process engineering
C) operational planning
D) product refining

Question 25

Many companies are trying to produce self-driving cars, attempting to turn an idea into a useful product. The process involves a lot of testing and safety checks. Which of the following best describes this process?

A) research and development
B) concept testing
C) beta testing
D) basic research

Question 26

Which of the following is a group of similar products that differ only in relatively minor characteristics?

A) product line
B) product design
C) design plan
D) inventory control

Question 27

What is the term for the number of customers that a Keg Steakhouse can serve at one time?

A) capacity
B) scope
C) size
D) service refinement

Question 28

Green Corporation makes a product where quality is measured by counting the number of rejects. Based on this information, what else is likely true about their product?

A) It is labour intensive to produce because people are the most utilized resource.
B) Their customers consume their product immediately after production.
C) They produce a good and use a mixture of labour and material in the production process.
D) They measure production quality by rating the level of customer satisfaction.

Question 29

Which of the following is the amount of products or services an organization can produce in a given time?

A) a product line
B) design planning
C) production
D) capacity

Question 30

If customers of The Brady Corporation have delayed consumption from the time of production, then The Brady Corporation is likely which type of business?

A) a hotel
B) a restaurant
C) a retail store
D) a bank

Question 31

A doctor's office allows 30 minutes for each appointment. If the office is open from 8:00 a.m. to 5:00 p.m. and there is a one-hour lunch break, 16 patients a day represents which of the following for the office? ​

A) service line
B) capacity
C) labour availability
D) service plan

Question 32

Nike produces athletic shoes. Which of the following describes Nike as the producer of a good?

A) can measure quality by counting the number of rejects
B) produces for immediate consumption of the product
C) uses mostly labour in the production process
D) can measure quality by counting the number of satisfied customers

Question 33

In deciding on a product line, managers should balance product requirements with which of the following?

A) specialty goods
B) last year's sales
C) demographics
D) customer preferences

Question 34

As a hospitality chain, Marriott hotels mainly produce a service. Which of the following is true about the production of services compared to goods?

A) Services often measure quality by the number of rejects.
B) Services often measure quality by the number of satisfied customers.
C) Services have delayed consumption of their product.
D) Service production is less labour intensive than goods.

Question 35

Which of the following describes a production setup that is characterized by low initial costs and high operating costs?

A) a quality circle
B) capital intensive
C) labour intensive
D) a process layout

Question 36

Because customer preferences must be considered, which of the following should play an important role in product line decisions?

A) marketing managers
B) production managers
C) human resources managers
D) first-line supervisors

Question 37

Best Buy has recently become unhappy with the manufacturer of the new Suri4 smartphone. Best Buy feels that not only are the shipments for the Suri4 taking longer, but the phones are of lower quality than the Suri3 and cost much more as well. Why is this likely to be occurring?

A) the manufacturer's ability to handle an increased capacity
B) a short product line
C) the mismanagement of a long product line
D) automatic production technology employed by the manufacturer

Question 38

Hightower Company makes a product that is immediately consumed or enjoyed by customers at the time of production. Based on this information, what else is likely true about Hightower Company?

A) It measures quality by counting the number of rejects.
B) It produces a service, not a good.
C) It uses more materials than labour in the production process.
D) It produces a good, not a service.

Question 39

When Apple decided to produce and market a watch, it had to consider a number of issues: what the watch would look like, where and how it would be produced, what options it would include, and so on. Supplying answers to these questions is part of which of the following?

A) operational planning
B) design planning
C) applied research
D) scheduling

Question 40

Which of the following involves the development of a plan for converting a product idea into an actual product?

A) operational planning
B) product design
C) design planning
D) planning horizon

Question 41

A shipyard that builds large ocean liners and yachts likely employs which type of facility layout?

A) view
B) product
C) fixed position
D) process

Question 42

Phil is the owner of a small firm that manufactures customized oil-drilling equipment. The company's manufacturing facility is organized into a fabrication section, a heat treatment section, a welding section, and a quality control section. This type of plant layout is referred to as which type of layout?

A) product
B) assembly-line
C) group manufacturing
D) process

Question 43

Exxon is building a new oil refinery. It is evaluating three different locations, all of which are located next to ocean ports, where the majority of imported oil arrives from other countries. This relates to which consideration when selecting a new facility location?

A) design planning
B) access to key resources
C) proximity to major customers
D) cost of construction and operation

Question 44

A clothing manufacturer built a new plant in Bangladesh because textile workers there are paid a fraction of what workers in Canada would be paid. This most relates to which consideration when selecting a new facility location?

A) R&D planning
B) cost of construction and operation
C) availability and cost of labour
D) access to key resources

Question 45

In 2016, Carrier Corp. announced it was eliminating 1400 jobs in the United States and moving production to a facility in Mexico. Employees in Mexico will earn approximately $23/hour less than top-paid employees in the United States. This is an example of which consideration when selecting a new facility location?

A) proximity to major customers
B) cost of construction and operation
C) availability and cost of labour
D) access to key resources

Question 46

A winery owns hundreds of acres of grape vineyards. The grape vines are tended and manually picked by a large staff of workers. Which of the following best describes the cost of this type of production setup?

A) low initial cost, low operating cost
B) low initial cost, high operating cost
C) high initial cost, low operating cost
D) high initial cost, high operating cost

Question 47

An aerospace company moved a plant to Nova Scotia partly because wages are lower there. This reflects which consideration when selecting a new facility location?

A) capacity planning
B) availability and cost of labour
C) cost of construction and operation
D) proximity to major customers

Question 48

An electronics manufacturing plant has many enormous pieces of machinery. The main function of the factory employees is to set up new production runs, transport the finished products, and repair any breakages that occur. Which of the following best describes the cost of this type of production setup?

A) low initial cost, low operating cost
B) low initial cost, high operating cost
C) high initial cost, low operating cost
D) high initial cost, high operating cost

Question 49

A food company is seeing 30% annual growth in the European market. As a result, it decides to build its next facility there. This reflects which consideration when selecting a new facility location?

A) availability and cost of labour
B) cost of construction and operation
C) proximity to major customers
D) access to key resources

Question 50

A large furniture manufacturer is building a new facility and has decided to purchase land next to its largest lumber supplier. This relates to which consideration when selecting a new facility location?

A) access to key resources
B) cost of construction and operation
C) availability and cost of labour
D) design planning

Question 51

GE Aviation is based in Mississauga, Ontario. Mississauga is ranked number1 as having low costs for facility leasing, access to transportation (rail and highway/interstates), and low property taxes. GE likely considered Mississauga for which two considerations when selecting a new facility location?

A) cost of construction and operation and access to key resources
B) proximity to major customers and access to key resources
C) cost of construction and operation and availability and cost of labour
D) access to key resources and availability and cost of labour

Question 52

When different sequences of operations are required for creating small batches of different products, which type of facility layout is used?

A) product layout
B) process layout
C) quota layout
D) output layout

Question 53

A product layout is often referred to as which of the following?

A) fixed-position layout
B) output layout
C) fixed capacity
D) assembly line

Question 54

In a shoe manufacturing plant, all shoes undergo the same operations in the same sequence. The shoes flow from one workstation to the next. Which type of layout is this?

A) output
B) product
C) process
D) work-cell

Question 55

Winston's Warehouses operates nine warehouses in and around Saskatoon. When Winston's Warehouses looks to purchase another facility, it requires the warehouse to have access to interprovincial or major highway interchanges and to have on-site access to rail. This is an example of which consideration when selecting a new facility location?

A) proximity to major customers
B) access to key resources
C) capacity planning
D) availability and cost of labour

Question 56

Which layout is used when all products undergo the same operations in the same sequence?

A) automated
B) product
C) output
D) fixed

Question 57

Caterpillar produces huge pieces of production equipment that are expensive to ship long distances. This mostly relates to which consideration when selecting a new facility location?

A) proximity to major customers
B) availability and cost of labour
C) access to key resources
D) capacity planning

Question 58

An automobile manufacturer was offered significant tax incentives to open a factory in New Brunswick, where real estate prices are lower than many other parts of the country. This relates to which consideration when selecting a new facility location?

A) access to key resources
B) availability and cost of labour
C) proximity to major customers
D) cost of construction and operation

Question 59

A company that produces solar panels built its factory in Nova Scotia, where taxes are low and land is readily available at reasonable prices. This most relates to which consideration when selecting a new facility location?

A) cost of construction and operation
B) availability and cost of labour
C) proximity to major customers
D) access to key resources

Question 60

Which of the following represents the arrangement of machinery, equipment, and personnel within a production facility?

A) facility operation
B) capacity arrangement
C) facility layout
D) design planning

Question 61

A Boeing factory manufactures 787 Dreamliner jet aircraft. Which type of layout is most likely used in this factory?

A) output
B) fixed-position
C) product
D) process

Question 62

Which of the following is the likely result from use of an ERP system?

A) increased inventory levels
B) increased material shortages
C) reduced customer satisfaction
D) reduced inventory levels

Question 63

Chevrolet assembly factories make several different models of cars along the same assembly line. During a visit to a factory, you might see a Trailblazer being assembled right behind a Cruze or Corvette. In order to have the right parts on hand for several different models, Chevrolet utilizes a computerized system that integrates production planning with inventory control. Which system is Chevrolet using?

A) MRP
B) ERP
C) JIT
D) SCM

Question 64

Which sequence of activities in a project or production process takes the longest time from start to finish?

A) order of events
B) Gantt chart
C) critical path
D) routing

Question 65

If you were to create a PERT chart for baking a cake, which of the following might be items along the critical path?

A) buying ingredients, counting candles needed, and frosting cake
B) heating oven, mixing ingredients, and frosting cake
C) heating oven, greasing pan, and mixing frosting
D) mixing ingredients, baking cake, and cooling cake

Question 66

When a very large product that is hard to move is produced, it's usually best to use which type of layout?

A) process layout
B) product layout
C) output layout
D) fixed-position layout

Question 67

Trey regularly spends his entire working day ensuring that goods were produced in accordance with design specifications. Which of the following areas does Trey work in?

A) product design
B) design planning
C) quality control
D) operations control

Question 68

One solution to materials shortages is for a production facility to carry large amounts of inventory. This typically results in which of the following?

A) higher inventory costs but happier customers
B) idle production lines but happier customers
C) idle production lines and lower inventory costs
D) longer lead times and idle production lines

Question 69

If a television supplier to Walmart had access to Walmart's television sales numbers and inventory levels in each store, and could also share that information with its raw materials suppliers, what would the television supplier likely experience?

A) lower inventory costs
B) higher inventory levels
C) poor delivery times
D) idle machinery

Question 70

If you were to look at a PERT chart for assembling a hamburger at McDonald's, you would see that grilling the beef patty and applying ketchup to the bun can be performed simultaneously. Grilling the patty takes 120 seconds, and applying the ketchup to the bun takes 10 seconds. Other steps in the process take a total of 35 seconds. What is the length of the critical path?

A) 95 seconds
B) 110 seconds
C) 120 seconds
D) 155 seconds

Question 71

HP utilizes a just-in-time inventory system to manage its supply chain. What is the goal of this system?

A) to maximize inventory on hand
B) to increase production lead times
C) to reduce inventory costs
D) to increase factory capacity

Question 72

Toyota employs a method of inventory control demanding that suppliers deliver parts and raw materials to Toyota's production facility just as they are needed and in exactly the right amounts. What is this type of inventory control known as?

A) purchase systematizing
B) flexible manufacturing
C) just-in-time inventory
D) supplier-based inventory control

Question 73

If Harley Davidson Motorcycles didn't coordinate at all with supply chain partners but still wanted to ensure timely delivery of finished product from its factory, which of the following would be a viable (but costly) strategy?

A) minimize raw material inventories
B) ramp up quality control efforts
C) implement just-in-time sales planning
D) substantially increase raw material inventories

Question 74

When Microsoft is building an Xbox, many tasks take place simultaneously. However, if there are delays in the production of outer cases the whole production process is delayed. What does this mean about the production of outer cases?

A) it is on the critical path
B) it is on the capacity path
C) it is on the timing path
D) it is the longest task

Question 75

One of the events on the critical path for producing a textbook is editing the manuscript. This means that if there is a delay in the editing process, which of the following will result?

A) more resources devoted to those events not on the critical path
B) no other events taking place until the delay is over
C) a delay in the completion of the project as a whole
D) a delay in the launch of the production process

Question 76

Which of the following refers to the process of ensuring that materials and other resources required for production are in the right place at the right time?

A) scheduling
B) design planning
C) capacity planning
D) quality control

Question 77

The steps for producing Crayola Crayons are always as follows: mixing the batch of paraffin wax, mixing the pigments, moulding the crayons, cooling, inspection, wrapping the crayons, and boxing the crayons. Crayola likely uses which type of factory layout?

A) fixed-position
B) view
C) process
D) product

Question 78

Which of the following is a disciplined approach that relies on statistical data and improved methods to eliminate defects from a firm's products?

A) Six Sigma
B) Quality Magic
C) CAM
D) CAD

Question 79

Which of the following may result from a company NOT using supply chain management?

A) lower inventory costs
B) higher prices to customers
C) efficient inventory handling
D) more financial resources for other areas

Question 80

Which of the following is a computerized system that integrates production planning and inventory control and helps managers juggle delivery schedules and lead times effectively?

A) MRP
B) JIT
C) ERP
D) RFID