Deck 11: Production and Operations Management

Question 1

Facility layout is the function of operations management that considers the physical arrangement of resources, including people, in the production process

Answer 1

True

Question 2

Labor availability, living conditions, and laws and regulations are the separate but interrelated components of the human factor in location selection.

Answer 2

True

Question 3

With a mass customization system, products are produced based on specific customer wants and needs.

Answer 3

True

Question 4

In addition to increased production and reduced costs in production systems, technology may also improve product quality but decrease the product variety.

Question 5

A company almost never selects a location in a high labor cost community.

Question 6

Production is the process of getting a good or service to the customer.

Question 7

Companies that provide a service do NOT need to be concerned with efficient production processes.

Question 8

When operating with a just-in-time inventory system, suppliers deliver parts and materials right at the time that the buyer is going to use them in the production process.

Question 9

Richard owns a waste disposal factory that emits potentially harmful gases into the air. He decided not to open another factory that would have been close to a small town. He considered the human factor.

Question 10

Improvements in technology have significantly increased the quantity of products as well as helped reduce costs.

Question 11

The addition of using robots in production systems has reduced the need for technicians and engineers.

Question 12

Global companies can gain a competitive edge over other large-scale companies if they can reduce transportation costs.

Question 13

Enterprise resource planning (ERP)is simpler and less sophisticated than manufacturing resource planning (MRP).

Question 14

Transportation costs are one of the major expenses that many manufacturing companies must consider.

Question 15

Wendy is a manager at Ribbons and Bows, Inc. Her job responsibilities include production scheduling and inventory control. Wendy must hold a marketing management position.

Question 16

Manufacturers use CAM (computer aided manufacturing)to create three-dimensional designs of products before they are built.

Question 17

The facility layout can affect employee's morale and productivity.

Question 18

Cost is the only consideration when choosing a supplier.

Question 19

Mass-produced goods are usually manufactured on an automated assembly line.

Question 20

Mass customization allow companies to respond quickly to the individual needs of consumers.

Question 21

Which business process outlines the steps from identifying a new business opportunity to receiving payment for the product?

A)customer-driven production
B)customer-driven prospect
C)prospect-to-cash
D)prospect-to-profit

Question 22

In terms of the prospect-to-cash process, the area responsible for finding new customers and business opportunities is the ________ team.

A)engineering
B)sales and marketing
C)production
D)order management

Question 23

ISO is a worldwide, independent organization that sets global measures of quality.

Question 24

Which component in a flexible manufacturing system manages the system and corrects any problems?

A)central computer
B)human labor
C)manufacturing system
D)processing machine

Question 25

A significant aspect of total quality management is catering to the customers' needs and desires.

Question 26

Flexible production is made up of four components. Which of the following is NOT a component?

A)central computers
B)processing machines
C)prospect-to-cash
D)human labor

Question 27

When referring to flexible manufacturing, it is TRUE that it ________.

A)relies heavily on labor, since humans are more adaptable and smarter than even the fastest machines
B)uses machines designed to perform multiple tasks so they can be used to produce a variety of products
C)achieves its flexibility at the cost of much slower rates of production than mass production techniques
D)is only possible when using mass production processes since these processes are specifically designed to adapt

Question 28

The MOST significant effect of an inefficient production process is ________.

A)decreased profits and increased production costs
B)higher employee turnover and poorly qualified staff
C)decreased demand for product and lower sales
D)increased levels of competition and decreased profits

Question 29

The goal achieved by using mass production is to ________.

A)produce goods of the highest possible quality
B)replace all employee jobs with speedier machines
C)provide the maximum flexibility in production
D)produce large quantities goods at a low cost

Question 30

The MAIN goal of utilizing a mass customization production system is to ________.

A)produce as many identical products as possible in the shortest amount of time
B)utilize robots to reduce production expenses while achieving customer satisfaction regardless of production cost
C)produce a customized product that will achieve customer satisfaction regardless of production costs
D)produce a customized product at almost the rate of mass production while achieving customer satisfaction

Question 31

Fiona is in charge of quality control testing for her company. Her method of quality control is to build quality into every step of the production process. This is the total quality management approach.

Question 32

A company uses machines designed to do multiple tasks so that they can produce a variety of products. This company uses a ________ manufacturing process.

A)mass
B)customer-driven
C)flexible
D)prospect-to-cash

Question 33

Lentine, Inc. builds machinery and robots that can assemble a wide variety of appliances including refrigerators, stoves, microwaves, ovens, dishwashers, wash machines, and dryers. Lentine, Inc. sells products to companies that would use a ________ production system.

A)mass
B)lean
C)robotic
D)flexible

Question 34

Jim runs a plant that produces cosmetics and uses a flexible manufacturing production process, while his brother Bill runs a plant that manufactures basic household appliances using a mass production system. The benefit Jim's plant has over Bill's plant is that Jim's plant ________.

A)can produce products with slight variations
B)produces goods according to individual customers' needs
C)produces a large quantity of goods quickly
D)is rigid and therefore significantly less expensive

Question 35

When using a customer-driven production system, engineers would be responsible for ________ in the prospect-to cash-process.

A)providing information to the other departments so they can process the quote or fill the order
B)order processing, transaction management, inventory control and shipping
C)assembling materials into a product based on the specifications in the quote
D)finding potential customers and new business opportunities

Question 36

American Girl, Inc. manufactures dolls with a variety of hair, eye, and skin colors as well as a variety of hair styles. The consumer is able to choose the combination of features that meets their need. The doll is then manufactured according to the customer requirements. American Girl, Inc. must use ________.

A)mass production
B)flexible production
C)mass customization
D)order management

Question 37

A product with the ISO 9001 seal has achieved the highest quality possible.

Question 38

The purpose of the program evaluation and review technique PERT is to identify the minimum time needed to complete a project.

Question 39

Jesse works for a canning factory that creates soda cans for distribution. His job is to move identically filled boxes from the end of the production line to the shipping area. He is one of only thirty employees at the factory because most of the work is done by machines. Which type of production does Jesse's company use?

A)flexible production
B)market-driven production
C)customer-driven production
D)mass production

Question 40

In production, scheduling refers to the efficient organization of equipment, facilities, labor, and materials.

Question 41

The impact of CAD/CAM on manufacturing ________.

A)has only been experienced by companies producing large products such as cars, boats, and large equipment
B)has been to save money by replacing human labor with computers
C)has been to make it possible to produce large quantities of customized products without incurring higher costs
D)has been to replace the use of industrial robots with more modern machines

Question 42

Dynamite Dance Wear is excited about implementation of a new system to improve its production processes. It is now able to offer custom designed costumes to its customers. Customers are able to select the color, fabric and design, submit each dancer's measurements, and Dynamite Dance Wear will quickly produce custom-cut costumes to fit each dancer with little additional cost. Dynamite Dance Wear must be using a(n)________ system.

A)mass production
B)CAD/CAM
C)DAC/DAF
D)assembly line

Question 43

A factory is planning to open in a small town that is currently struggling economically. The town residents should expect a(n)________.

A)improved economy
B)reduced taxes
C)increase in natural resources
D)lower standards of living

Question 44

________ is the physical arrangement of resources in the production process.

A)Facility location
B)Facility layout
C)Lean production
D)Lean layout

Question 45

Manufacturers that have implemented the use of robots in their production systems enjoy all of the following advantages EXCEPT a(n)________.

A)reduced production costs
B)improved precision
C)protection of human workers
D)reduction of technical employees

Question 46

The production manager is responsible for all of the following EXCEPT ________.

A)setting schedules
B)making buying decisions
C)overseeing quality control
D)preparing financial reports

Question 47

Utility supplies should be a consideration when determining a company location because ________.

A)it is almost impossible to find a location near water suitable for business development
B)it is likely to find inexpensive utilities in remote areas, which reduces operating expenses
C)it is always smart for businesses to locate near power supply, water and, communications
D)it is less expensive to locate businesses near inexpensive utility resources

Question 48

Utility ________ refers to the availability of public infrastructure services.

A)cache
B)supply
C)provision
D)availability

Question 49

Darcy is considering opening a factory near a small town in North Dakota. Of the factors listed, the MOST important factor she should consider is ________.

A)the number of qualified workers in the community
B)the average level of education in the community
C)the cost of living expenses within the community
D)the weather patterns in the area

Question 50

A benefit of CAD (Computer Aided Design)and CAM (Computer Assisted Manufacturing)to manufacturers is it ________.

A)provides custom-designed products without incurring higher costs
B)replaces the need for human labor by using robots
C)reduces the costs of materials needed to be kept in the inventory
D)is less complicated to operate than other manufacturing software

Question 51

Which of the following refers to the integration of the computer-aided design and computer-aided manufacturing systems with the aspects of a firm's production process?

A)assimilation engineering
B)integration engineering
C)simultaneous engineering
D)synchronized engineering

Question 52

The demand for ________ has grown since advanced technology has become common in factories.

A)managers
B)line workers
C)sales people
D)engineers

Question 53

The MOST frequent reason that some corporations send their manufacturing operations outside of the United States is to find highly skilled workers who ________.

A)require lower wages than their U.S. counterparts
B)require less training than their U.S. counterparts
C)speak more languages than their U.S. counterparts
D)commute for longer distances than their U.S. counterparts

Question 54

Which of the following refers to the use of a computer to create two-dimensional or three-dimensional models of physical parts?

A)computer-aided design systems
B)computer-aided manufacturing systems
C)computer-designed manufacturing systems
D)computer-integrated design systems

Question 55

The U.S. Department of Labor ________.

A)runs government owned businesses
B)sets the minimum wage for workers
C)monitors laws affecting workers.
D)regulates the use of resources for businesses

Question 56

________ refers to the value given to finished products.

A)Utility
B)Production management
C)Facility layout
D)Facility utility

Question 57

Jeff is part of his company's production management team. His team is responsible for doing all of the following EXCEPT ________.

A)determining what to produce and where to locate the facility
B)determining the size and layout of a facility
C)identifying business prospects that the company will pursue
D)identifying what machinery to use to minimize costs

Question 58

Which of the following is not a component of the human factor?

A)labor availability
B)living conditions
C)available transportation
D)laws and regulations

Question 59

Software that combines computer-aided design functions with computer-aided manufacturing machines is called a(n)________.

A)computer-integrated manufacturing
B)industrial robot system
C)customer-driven production
D)flexible production system

Question 60

What statement BEST explains the decision to make or buy?

A)Price is the most important thing to consider in this decision.
B)Many factors must be considered in this decision.
C)Quality of products is the most important thing to consider in this decision.
D)Access to suppliers is the most important thing to consider in this decision.

Question 61

Crystal is the production manager at Pawelk's, a vacuum cleaner manufacturer. When ordering from her supplier, she must ensure that it does all of the following EXCEPT ________.

A)provide trusted quality
B)meet product deadlines
C)deliver appropriate quantities
D)receive positive recommendations

Question 62

Jamie is given a routine project to manage and is told materials will become available in three weeks. She has built a strong relationship and trust level with the supplier. Her next step is to ________.

A)contact her suppliers to see if materials can be shipped sooner
B)develop a schedule and determine a shipping date
C)develop a schedule based on the shipping date
D)determine the start date based on project completion date

Question 63

Kim is implementing the concept of total quality management within her company. The results she expects include ________.

A)a higher standard of products and increased cost savings
B)higher prices for products due to the extra process involved
C)a one-time product improvement unlikely to reproduce
D)a limited presence in the global marketplace

Question 64

________ is a set of principles concerned with reducing waste and improving flow.

A)Routing
B)Quality control
C)Lean production
D)Customer-driven production

Question 65

Which statement BEST describes the concept of "total quality"?

A)Total quality is about reaching a peak level of quality and maintaining it.
B)Total quality is about building quality into every step of the production process.
C)Total quality is about shifting the responsibility for quality control to one team.
D)Total quality is about inspecting products when they are finished.

Question 66

MRP helps managers ________.

A)identify the critical path for producing materials within a specified time
B)assign the order and timing in which jobs are completed on specific projects
C)make sure the right parts and materials are available at the right time
D)assign jobs to specific machines so that they can be completed most efficiently

Question 67

Jim is in charge of inventory control for his company. He has parts and materials set aside that are not to be used unless absolutely necessary. Jim uses a ________ inventory control system.

A)just-in-time
B)reserve stock system
C)book stock
D)manual eyeballing

Question 68

A ________ allows a computer to keep track of how many items are in stock and sold.

A)just-in-time inventory system
B)reserve stock system
C)radio frequency identification
D)stock book solution

Question 69

The six sigma approach to quality control ________.

A)requires a team to inspect products at the end of production
B)finds potential problems early to prevent recurrence
C)views quality control as a marketing role
D)allows six errors per batch

Question 70

Prior to the implementation of total quality management, defective items were ________.

A)sold as perfect products
B)incorporated into a new product
C)scrapped or reworked
D)stored indefinitely

Question 71

The two components that go into making an effective schedule are ________ and ________.

A)loading; sequencing
B)routing; sequencing
C)loading; routing
D)estimating; sequencing

Question 72

Companies use routing in order to ________.

A)buy
B)manufacture
C)outsource
D)transport

Question 73

________ is the process of receiving, storing, handling, and tracking of everything in a company's stock.

A)Inventory control
B)Total quality management
C)Reserve stock system
D)Just-in-time inventory

Question 74

Which of the following computer-based programs lets a manager know what resources are needed by a particular date to fill an order on time?

A)statistical process control
B)computer-aided manufacturing
C)materials requirement planning
D)stock book solution

Question 75

Retro Inc. wanted to reduce the amount of supplies it had on hand at any given time to the minimum required. To accomplish this goal, it implemented a ________ system.

A)just-in-time
B)reserve stock system
C)book stock
D)manual eyeballing

Question 76

The old method of quality control in the United States believed it was best to test products ________.

A)at least 3 times before completion
B)during the production process
C)after completion of a product
D)after every step in the assembly line

Question 77

Enterprise resource planning (ERP)takes MRP one step further because it ________.

A)electronically tracks the status and quantity of each item in the system
B)allows materials to be ordered only as they are needed
C)performs inventory control and process scheduling for manufacturing
D)performs inventory control and process scheduling for the entire company

Question 78

________ is the use of techniques, activities, and processes to guarantee that a certain good or service meets a specified standard.

A)Inventory control
B)Supply line control
C)Quality control
D)Management control

Question 79

Which of the following resources is NOT designed to help businesses connect with suppliers?

A)trade magazines
B)the International Organization for Standardization
C)the Better Business Bureau
D)the local chamber of commerce

Question 80

Which of the following business management systems consolidates information into a central database that is accessible to various system modules?

A)statistical process control
B)enterprise resource planning
C)material requirement planning
D)lean production