Deck 8: Operations Management in Manufacturing and Service Industries

Question 1

Make-to-stock strategy is commonly used in the production of low volume goods.

Answer 1

False

Question 2

A printing company would use the mass production (make-to-stock)production method.

Answer 2

False

Question 3

In choosing a location for its manufacturing facilities,operations managers often choose to locate their plant close to suppliers.

Answer 3

True

Question 4

The most important task facing Bob Montgomery and his team at PowerSki was determining how to efficiently produce quality JetBoards at a reasonable cost.

Question 5

Calculating the capacity requirements of a proposed plan helps the operations manager determine how much the company must invest in building a plant.

Question 6

In a make-to-order production strategy,goods are customized to meet the needs of the buyers who ordered them.

Question 7

Businesses often find it easier to control production by locating plants fairly distant from customers.

Question 8

During the production planning stage,operations managers oversee the purchasing of raw materials.

Question 9

An operations manager is a mid-level manager who directs the transformation process by which resources are converted into products.

Question 10

Operations management is the management of the process that transforms resources into finished products.

Question 11

The make-to-order process is the practice of producing high volumes of identical goods.

Question 12

At one time,most consumer goods were customized to meet the needs of the buyer who ordered them.

Question 13

The first step in the production planning process is deciding which type of production process is best for making the goods the company intends to manufacture.

Question 14

The operations manager is directly involved in efforts to ensure that goods are produced according to specifications.

Question 15

Make-to-order strategy is commonly used in such businesses as print shops.

Question 16

The major areas of responsibility for operations managers include production planning,production control,and quality control.

Question 17

Mass production is the practice of producing high volumes of identical goods at low cost and holding them in inventory in anticipation of future demand.

Question 18

In order to plan a plant's needed capacity,the operations manager must first estimate the selling price of its products.

Question 19

During the production planning stage,operations managers continually schedule and monitor production activities.

Question 20

Make-to-order production strategy is used by companies that produce similar goods in large volumes

Question 21

_____ refers to the maximum number of goods that a facility can produce over a given period of time under normal working conditions.

A)Operations breadth
B)Product ceiling
C)Capacity
D)Production control

Question 22

Standardized products that have come off assembly lines are produced by a process known as _____.

A)mass production
B)customization
C)make-to-order production
D)cloning

Question 23

Nike uses the mass customization method of producing some of its goods through its NikeiD program.

Question 24

If a company uses the mass customization production method,its customers cannot "have it their way."

Question 25

In calculating the quantity of products to be produced you should consider all except the following:

A)forecasted demand for your product.
B)production output of your closest competitor.
C)capacity of your production facilities.
D)labor hours available.

Question 26

Businesses,such as print or sign shops,that produce low-volume,high-variety goods according to customer specifications use a process called _____.

A)mass production
B)make-to-order
C)mass customization
D)individualized production

Question 27

What is the first step in the production process?

A)Determining the quantity of products the company will produce.
B)Deciding which type of production process is best for your company.
C)Picking a location for your company.
D)Determining how the company can produce high quality products at a low cost.

Question 28

Once you've forecasted the demand for a product,you can calculate the _____ requirements of your production facility.

A)budget
B)capacity
C)personnel
D)capital

Question 29

A fixed-position layout is used to make large items that stay in one place while workers and equipment go to the product.

Question 30

Mass customization combines the advantages of customized products with the advantages of mass production.

Question 31

When choosing a location for an o HYPERLINK "http://www.google.com/url?sa=t&source=web&ct=res&cd=9&ved=0CC0QFjAI&url=http%3A%2F%2Finvestment.suite101.com%2Farticle.cfm%2Fonline_stock_trading_broker_companies&ei=wtwxS7zLPISOswOKkf3EAg&usg=AFQjCNElSwyxu5fxr9elgJHL2ee72EEkgw" nline call center,you would want to consider all of the following except:

A)favorable living conditions in the community
B)proximity to your customers.
C)availability of skilled workers.
D)amount of financial incentives offered by local governments.

Question 32

The job of the __________ consists of all the activities involved in transforming a product idea into a finished product.

A)manufacturing manager
B)conversion manager
C)transformation manager
D)operations manager

Question 33

A(n)______team consists of individuals from different functional areas assigned to work together throughout the product development process.

A)operations
B)project
C)product
D)functional

Question 34

The Vermont Teddy Bear Company uses a product layout in the manufacture of its teddy bears.

Question 35

A cellular layout uses teams of workers who handle all aspects of building a product component,a "family of components," or even a finished product.

Question 36

Which of the following companies does not devote at least a portion of its operations to mass customization?

A)Nike
B)Levi
C)Oakley
D)Colgate Palmolive

Question 37

Operations managers focus on scheduling the _____ needed to transform raw materials into finished goods.

A)workers
B)activities
C)equipment
D)machinery

Question 38

A computer manufacturer that arranges its computer assembly into self-contained teams of employees who handle all aspects of building a computer is using a process layout.

Question 39

Making decisions on how to hold down the costs of materials and labor is the job of _____.

A)each employee
B)the CEO
C)the accounting manager
D)the operations manager

Question 40

As operations manager for Consolidated American Tanks,Jim Sherman's tasks include all of the following except _____.

A)determine how goods will be produced
B)oversee the purchasing of raw materials and handling of inventories
C)ensure that goods are produced according to specification
D)work with the marketing manager to set the price of manufactured products

Question 41

Making decisions on how to hold down the costs of materials and labor is the job of ______

A)each employee
B)the CEO
C)the accounts manager
D)the operations manager

Question 42

Following basically the same process that you'd use to buy a product on eBay,a(n)_____ manager uses the Internet to buy parts and supplies.

A)materials
B)operations
C)automation
D)purchasing

Question 43

Inventory control is sophisticated software used to reduce the likelihood that someone can steal materials from a company.

Question 44

You work on Just Born's production line decorating Peeps.Arranging work in this way,by function,creates the following problems with one exception:

A)workers can get bored.
B)time required to train workers on several jobs can be extensive.
C)production lines can backup and slow down production.
D)inventories can build up.

Question 45

Just-in-time production is used by companies to process purchasing transactions,

Question 46

If you visited Just Born,a candy maker,in Bethlehem,Pennsylvania,you would see a conveyor belt parade of marshmallow peeps.The company uses a product layout.

Question 47

General Housing Corporation,a company that constructs modular homes at its plant,uses a process layout in the construction of its homes.

Question 48

In producing large items,manufacturers often use a(n)_____ layout,in which workers go to equipment and in-process products that stay in one place.

A)stationary
B)fixed-position
C)cellular
D)process

Question 49

In a(n)_____ layout,high-volume goods are produced efficiently by people,equipment,or departments arranged in a series of workstations at which previously made parts are assembled.

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

Question 50

Many companies guard against the possibility of running out of needed materials by using a material requirements planning (MRP)system.

Question 51

An electronic data interchange (EDI)system is used to monitor inventory levels.

Question 52

Materials management includes these activities: product development,purchasing,inventory control and work scheduling.

Question 53

E-procurement (or e-purchasing)involves the use of the Internet to enable senior management to interact with employees in the purchasing department.

Question 54

A company that uses a just-in-time production method produces its products just-in-time to deliver them to customers.

Question 55

High-volume goods are produced efficiently by people,equipment,or departments arranged in a(n)_____.

A)fixed-position layout
B)cellular layout
C)assembly line
D)process layout

Question 56

The Customized Communication Print Shop plans to specialize in customized announcements and newsletters and personalized stationary.Which of the following layouts would be best for this business?

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

Question 57

Both product and process layouts arrange work by _____.

A)capacity
B)function
C)strategy
D)orders

Question 58

The materials management process encompasses the process of assembling materials.

Question 59

Collins' Computers arranges its computer assembly into teams working in a U- shaped formation so that they can share the work and some of the equipment.What type of production layout does Collins' Computer use?

A)Product layout
B)Cellular layout
C)Process layout
D)Fixed position layout

Question 60

Workers or departments that perform similar tasks may be grouped together in a _____ layout.

A)component layout
B)product layout
C)critical layout
D)process layout

Question 61

A _____ chart is an easy-to-use graphical tool that helps operations managers determine the status of projects.

A)flow
B)production
C)Gantt
D)PERT

Question 62

Which of the following materials management activities is concerned with making sure the company has enough materials on hand to meet its production schedule?

A)Purchasing
B)Procurement
C)Inventory control
D)Warehousing

Question 63

The _____ manager is responsible for determining a vendor's reputation.

A)operations
B)materials
C)components
D)purchasing

Question 64

When production processes reach a certain level of complexity,operations managers may use _____ charts to schedule activities.

A)Gantt
B)PERT
C)SCAT
D)Rorschach

Question 65

Which of the following statements is not true about the critical path:

A)it is the sequence of activities that will require the greatest amount of time
B)It is identified by creating a PERT diagram
C)Saving time on the non-critical paths helps to finish the product faster
D)If you want to produce a product quicker,you have to save time on the critical path

Question 66

In order to draw up a(n)_____,managers need to know where materials are located and headed at every step in the production process.

A)PERT diagram
B)minor production schedule
C)master production schedule
D)Meerschaum schedule

Question 67

In order to draw up a(n)_____,managers need to know where materials are located and headed at every step in the production process.

A)material budget
B)minor production schedule
C)master production schedule
D)Meerschaum schedule

Question 68

The inventory-control method called _____ relies on a computerized program to calculate the quantity of materials needed for production and to determine when they should be ordered or made.

A)buying-to-order
B)material requirements planning (MRP)
C)manufacturing requirements
D)manufacturing-to-order

Question 69

Once the production process is in place,the operations manager can turn his or her attention to the daily activities of _____.

A)distribution planning
B)procurement
C)materials management
D)floor supervisors

Question 70

Which of the following is not a way in which the Internet is used by purchasing managers?

A)Sell the company's goods
B)Shop for parts and supplies using online catalogs
C)Participate in an online marketplace
D)Process transactions and transmit purchasing documents

Question 71

Companies that use a just-in-time (JIT)production system:

A)ensure that their finished products are completed just in time to fill customers' orders.
B)have higher inventory costs because of additional handling costs charged by suppliers to expedite materials.
C)have frequent contact with their suppliers.
D)set up their assembly lines just-in-time to meet customer demand.

Question 72

For complex schedules,operations managers may use PERT charts to diagram the activities required to produce a good.

Question 73

Let's say that you bought a TV on eBay and paid for it electronically.To process your transaction and transmit all of your purchasing documents,the manufacturer might use an _____ system.

A)Internet interchange
B)electronic data interchange (EDI)
C)electronic-buying
D)e-purchase interchange

Question 74

Material costs often make up ____ of total manufacturing costs.

A)25%
B)75%
C)50%
D)10%

Question 75

Gantt charts are useful when the production process is complex and activities are interrelated.

Question 76

PERT charts are simpler and easier to use than Gantt charts.

Question 77

Completing an activity on the critical path of a PERT chart early will delay the project.

Question 78

As an operations manager at Century Unlimited Industries,Sylvia Moses uses basic MRP to focus on material planning and the more sophisticated system called _____ to help monitor resources in all areas of the company.

A)manufacturing resource planning II
B)electronic data interchange
C)material resource planning II
D)advanced maximum resource planning

Question 79

All of the following are daily activities involved in the process of materials management except _____.

A)purchasing
B)inventory control
C)work scheduling
D)goods production

Question 80

Which tool is best for diagramming complex schedules?

A)Gantt Chart
B)PERT chart
C)Computer-Aided Design software (CAD)
D)Project management software