Deck 10: Production and Operations Management

Question 1

Production creates form utility.

Answer 1

True

Question 2

The timber industry is an example of a(n) _______ production system.

A) analytic
B) synthetic
C) continuous
D) intermittent

Answer 2

A

Question 3

Biotech firms would probably want to locate ____________________________.

A) near shipping facilities.
B) in remote, low cost counties where land is inexpensive.
C) close to raw materials.
D) near a reliable source of highly trained researchers.

Answer 3

D

Question 4

__________is useful when combined with lean production methods that use automation and information technology to reduce requirements for workers and inventory.

A) customer-driven production
B) flexible production
C) continuous production
D) synthetic production

Question 5

The want-satisfying power of a good or service is called ________________________.

A) conversion process
B) utility
C) authority
D) information sharing

Question 6

_________ is a production system in which computers help with product design, control machines, handle materials, and oversee the production function in an integrated manner.

A) Computer-Aided Design (CAD)
B) Flexible Manufacturing System (FMS)
C) Computer-Aided Manufacturing (CAM)
D) Computer-Integrated Manufacturing (CIM)

Question 7

A firm that wants to locate near a community often must prepare a _______ that analyzes how a proposed plant would affect the quality of life in the surrounding area.

A) resident impact study
B) economic impact study
C) environmental impact study
D) safety impact study

Question 8

Robots are useful for jobs that are ______________________.

A) expensive
B) repetitive or dangerous
C) difficult to standardize
D) sophisticated and require nonprogrammed decision making

Question 9

Which of the following is not a human factor in a decision where to locate a production facility?

A) area's labour supply
B) living conditions
C) taxes
D) energy

Question 10

Which of these production processes creates products in short production runs?

A) analytic
B) synthetic
C) continuous
D) intermittent

Question 11

A "lights out" factory relies heavily on which of the four factors of production?

A) natural resources
B) human resources
C) capital/technology
D) risk tolerance

Question 12

Which industries were pioneers in using robots in the production process?

A) apparel and food
B) building materials and building supplies
C) electronics and automotive
D) beverages and container

Question 13

_________ is a process used by engineers to diagram parts and entire products on the computer.

A) Computer-Aided Design (CAD)
B) Flexible Manufacturing System (FMS)
C) Computer-Aided Manufacturing (CAM)
D) Computer-Integrated Manufacturing (CIM)

Question 14

A small retailer would be most interested in a location that ______________________.

A) was near raw materials.
B) allowed easy disposal of hazardous wastes.
C) offered many transportation alternatives.
D) had a high labour supply.

Question 15

__________ is a computer tool that a manufacturer uses to analyze CAD output and the steps that a machine must take to produce a needed product or part.

A) DAP
B) CAM
C) SMF
D) MIC

Question 16

LEED guides firms in the construction of new plants that will minimize ___________.

A) costs of construction
B) environmental impact
C) redundancy in work flow
D) labour needs

Question 17

How are production and manufacturing different?

A) Production is a narrower term that applies only to services.
B) Manufacturing describes extractive processes.
C) Production applies to both manufacturing and service industries.
D) Production can be automated; manufacturing cannot be.

Question 18

Which of these production processes is the reverse of an analytic system?

A) analytic
B) synthetic
C) continuous
D) intermittent

Question 19

This _________system has been enhanced by powerful new software that allows machine tools to be reprogrammed while they are running.

A) field robots
B) perpetual inventory
C) flexible manufacturing
D) computer-aided design

Question 20

The __________ is just as crucial in non-profit organizations, such as the hospital for Sick Children and Goodwill Industries, because the goods or services they offer justify their existence.

A) production phase
B) operations process
C) management phase
D) production process

Question 21

PERT charts help an organization in the ________ phase of production control.

A) planning
B) routing
C) scheduling
D) dispatching

Question 22

The goal of just-in-time inventory systems is to ___________________________.

A) lower the cost of raw materials
B) provide the right part at the right place at the right time
C) eliminate multiple vendors
D) increase quality

Question 23

Which of the following is not one of the steps that production managers take in implementing the production plan?

A) selecting a plant location
B) controlling inventory
C) determining whether to make, buy, or lease components
D) selecting suppliers

Question 24

Which ISO standards are for environmental management?

A) 9004
B) 14001
C) 1007
D) 14000

Question 25

The first step in production control is __________________________________.

A) routing.
B) scheduling.
C) dispatching.
D) production planning.

Question 26

Which of the following layouts places the product in one spot, and the workers, materials, and equipment go to the product's location?

A) a fixed position layout
B) product layout
C) process layout
D) customer-oriented layout

Question 27

The phase of production control in which the manager instructs each department on what work to do and the time allowed for its completion is called ________________________.

A) benchmarking
B) follow up
C) job rotation
D) dispatching

Question 28

Creating well-defined procedures for coordinating people, materials, and machinery to provide the greatest production efficiency is called _________________________________.

A) benchmarking
B) process management
C) best practices
D) production control

Question 29

When Boeing (an airplane company) decides what inputs to purchase, managers must choose the best vendors for its needs. This process is called ______________________________.

A) streamlining
B) implementing the production plan
C) fixed-position layout
D) selection of suppliers

Question 30

The International Organization for Standardization (ISO) carries out all auditing and certification for its standards.

Question 31

Why is it important to pay attention to negative feedback from customers?

A) Complaints are objective measures of quality.
B) Negative feedback sends a signal that firms are not achieving appropriate quality standards.
C) Complaints allow the competitors to learn about your business.
D) Customers have expectations that are difficult to meet so negative feedback has limited value to the firm.

Question 32

Since suppliers often offer virtually identical quality levels and prices, the final decision on supplier selection often depends on ______________________________________.

A) the firm's past experience with each supplier
B) the location of the supplier
C) which supplier the competitor is using
D) which supplier has an Internet site

Question 33

Production managers use __________to create schedules that identify the specific parts and materials required to produce an item.

A) DAC
B) MRP
C) MAP
D) TIR

Question 34

Boeing assembles aircraft at a large facility in Everett, Washington. After the airplane is assembled, it taxis across a highway overpass to a separate building where it is painted according to the customer's specifications. The paint facility is an example of ?????________________.

A) a fixed position assembly process
B) product-specific assembly
C) process layout
D) customer-oriented layout

Question 35

Research shows that ISO 9000 certification results in which of the following:

A) minimizes harm to the environment
B) creates barriers to entry in industries
C) encourages trade disputes between international competitors
D) enhances a company's competitiveness and leads to improved business performance

Question 36

From the options below, which one BEST defines the purpose of benchmarking?

A) forces companies to reduce labour costs
B) helps spot defective products
C) helps a firm determine performance standards and best practices
D) only works for companies within the same industry

Question 37

A function that balances the costs of storing inventory with the need to have stock on hand to meet demand is referred to as ________________________________.

A) just-in-time inventory system
B) inventory control
C) inventory management
D) materials requirement planning

Question 38

Which of the following is not a physical variable factor in a decision where to locate a production facility?

A) water supplies
B) weather
C) local regulations
D) available energy

Question 39

Which layout below is not part of a basic facility layout?

A) process layout
B) customer-oriented layout
C) inventory control layout
D) fixed-position layout

Question 40

What should direct the production manager in the choice of a company to benchmark?

A) operates in same industry
B) in close proximity of plant location
C) employs a process for desired study and to emulate
D) one that competitors agree is the firm to beat