Deck 8: Producing Quality Goods and Services

Question 1

Jasper Electronics, Inc.(JEI)
Jasper Electronics, Inc., is an electronics manufacturer that creates circuits for various electronic products.Currently, the company has eight locations.It prides itself on its fast production process.
Ross is the newly appointed head operations manager of the company-and he is hoping to contribute to the company in a meaningful way.Ross has decided that there are several aspects of the production process that need to be changed or improved.One such aspect is quality control.He also wants to do some research to decide whether the company is moving in the right direction.In addition, he wishes to learn what other successful firms focus on so he can implement this knowledge at JEI.

-Refer to Jasper Electronics, Inc.Which of the following objectives would you advise Ross to focus on?

A) increasing the use of technology
B) increasing production costs to gain competitive position
C) improving the inspection process
D) eliminating expenses by reducing control procedures
E) obtaining new equipment to minimize technological expenses

Answer 1

improving the inspection process

Question 2

ABC Company
ABC Company is dedicated to operations control.It holds its suppliers to the highest standards, believing there is one best way to complete their tasks.ABC has even gone so far as to incorporate the Malcolm Baldrige National Quality Award criteria into its business.Following these criteria has allowed the company to grow from a small business to a large corporation.ABC plans on going international in the next couple of years to broaden its scope.
ABC has kept up with new technologies.In fact, it has incorporated a new computer system that helps with the development of the company's products.This system has improved ABC's production dramatically.Now, ABC will be able to sell its products at a lower cost.The ABC management is dedicated to total quality management and will do whatever is necessary to maintain quality now and for the future.
Refer to ABC Company.The supplier must have ____ in order to be the best possible option and do business with ABC.

A) marketing operations
B) productivity growth
C) technological displacement
D) reliability
E) R&D

Answer 2

D

Question 3

Describe the operations of a flexible manufacturing system (FMS).

Answer 3

Answer not provided.

Question 4

What advantages do robots have over human workers? What advantages do human workers have over robots?

Question 5

What activities does operations management involve?

Question 6

What is the purpose of quality control? Why is it important to a firm?

Question 7

ABC Company
ABC Company is dedicated to operations control.It holds its suppliers to the highest standards, believing there is one best way to complete their tasks.ABC has even gone so far as to incorporate the Malcolm Baldrige National Quality Award criteria into its business.Following these criteria has allowed the company to grow from a small business to a large corporation.ABC plans on going international in the next couple of years to broaden its scope.
ABC has kept up with new technologies.In fact, it has incorporated a new computer system that helps with the development of the company's products.This system has improved ABC's production dramatically.Now, ABC will be able to sell its products at a lower cost.The ABC management is dedicated to total quality management and will do whatever is necessary to maintain quality now and for the future.
Refer to ABC Company.Given that ABC is dedicated to operations control, the management must have incorporated all of these aspects of operations control except

A) purchasing.
B) selling.
C) inventory control.
D) scheduling.
E) quality control.

Question 8

How does basic research differ from applied research? What is the purpose of development and implementation?

Question 9

"In purchasing, the idea is for buyers to always obtain the finest-quality items available for their plant to use in making the product." Is this statement true or false? Support your answer with examples.

Question 10

When does a firm incur holding costs? When does it incur stock-out costs?

Question 11

Jasper Electronics, Inc.(JEI)
Jasper Electronics, Inc., is an electronics manufacturer that creates circuits for various electronic products.Currently, the company has eight locations.It prides itself on its fast production process.
Ross is the newly appointed head operations manager of the company-and he is hoping to contribute to the company in a meaningful way.Ross has decided that there are several aspects of the production process that need to be changed or improved.One such aspect is quality control.He also wants to do some research to decide whether the company is moving in the right direction.In addition, he wishes to learn what other successful firms focus on so he can implement this knowledge at JEI.

-Refer to Jasper Electronics, Inc.As an operating manager, Ross must do all of the following to be successful except

A) motivate and lead people.
B) understand how technology can make a manufacturer more productive and efficient.
C) appreciate the control processes that help lower production costs and improve product quality.
D) understand the relationship among the customer, the marketing of a product, and the production of a product.
E) understand how to successfully finance production to gain the larger market share.

Question 12

Explain how the production of services is different from the production of manufactured goods.

Question 13

Compare and contrast the ideas of labor-intensive and capital-intensive technology.

Question 14

Jasper Electronics, Inc.(JEI)
Jasper Electronics, Inc., is an electronics manufacturer that creates circuits for various electronic products.Currently, the company has eight locations.It prides itself on its fast production process.
Ross is the newly appointed head operations manager of the company-and he is hoping to contribute to the company in a meaningful way.Ross has decided that there are several aspects of the production process that need to be changed or improved.One such aspect is quality control.He also wants to do some research to decide whether the company is moving in the right direction.In addition, he wishes to learn what other successful firms focus on so he can implement this knowledge at JEI.

-Refer to Jasper Electronics, Inc.If JEI management were to explore the possibility of using its products in different ways, what types of research and development activities could they engage in?

A) quality control
B) applied
C) flexible
D) JIT
E) core

Question 15

ABC Company
ABC Company is dedicated to operations control.It holds its suppliers to the highest standards, believing there is one best way to complete their tasks.ABC has even gone so far as to incorporate the Malcolm Baldrige National Quality Award criteria into its business.Following these criteria has allowed the company to grow from a small business to a large corporation.ABC plans on going international in the next couple of years to broaden its scope.
ABC has kept up with new technologies.In fact, it has incorporated a new computer system that helps with the development of the company's products.This system has improved ABC's production dramatically.Now, ABC will be able to sell its products at a lower cost.The ABC management is dedicated to total quality management and will do whatever is necessary to maintain quality now and for the future.
Refer to ABC Company.For ABC, using the Baldrige award criteria could result in all of the following except

A) form utility.
B) better employee relations.
C) increased market share.
D) improved profitability.
E) higher productivity.

Question 16

Define design planning.How does it differ from operational planning?

Question 17

In what ways have American businesses tried to regain a competitive edge in the global marketplace? Why is this edge important?

Question 18

What is meant by the focus and the magnitude of a conversion process?

Question 19

How do routing and timing affect the scheduling process for a furniture manufacturer like Drexel-Heritage?

Question 20

Jasper Electronics, Inc.(JEI)
Jasper Electronics, Inc., is an electronics manufacturer that creates circuits for various electronic products.Currently, the company has eight locations.It prides itself on its fast production process.
Ross is the newly appointed head operations manager of the company-and he is hoping to contribute to the company in a meaningful way.Ross has decided that there are several aspects of the production process that need to be changed or improved.One such aspect is quality control.He also wants to do some research to decide whether the company is moving in the right direction.In addition, he wishes to learn what other successful firms focus on so he can implement this knowledge at JEI.

-Refer to Jasper Electronics, Inc.The plant layout at Jasper Electronics is mostly likely a _____.

A) fixed position layout
B) process layout
C) product layout
D) circular layout
E) capacity layout

Question 21

When a manufacturer like ExxonMobil refines crude oil, that corporation is using a(n) ____ process.

A) analytical
B) extraction
C) manufacturing
D) refining
E) synthetic

Question 22

When 3M satisfies consumers' needs for notepads that will not get lost easily by converting paper and glue into Post-It Notes, it is creating

A) reminders for employees.
B) technological advancement.
C) productive output.
D) form utility.
E) possession utility.

Question 23

If a good or service satisfies a human need, it has _____.

A) value
B) focus
C) magnitude
D) form
E) utility

Question 24

Procter & Gamble uses ____ production to produce household products.

A) critical
B) effective
C) demand
D) mass
E) efficient order

Question 25

When Gateway manufactures a computer, it is using a(n) ____ process.

A) analytical
B) qualitative
C) synthetic
D) assembly
E) conversion

Question 26

When considering the nature of the conversion, the resources that comprise the major input are called the

A) width of the conversion process.
B) magnitude of a conversion.
C) depth of a conversion.
D) number of technologies.
E) focus of the conversion process.

Question 27

In an attempt to regain a competitive edge, U.S.firms have

A) reduced production costs by selecting suppliers that offer high-quality raw materials and components at reasonable prices.
B) replaced outdated equipment with state-of-the-art manufacturing equipment.
C) used computer-aided and flexible manufacturing systems that allow a higher degree of customization.
D) improved control procedures to help ensure lower manufacturing costs.
E) All of the above are correct.

Question 28

The degree to which input resources are physically changed by the conversion is referred to as the

A) width of the conversion process.
B) magnitude of change.
C) depth of a conversion.
D) number of technologies.
E) focus of the conversion process.

Question 29

Kraft combines elbow macaroni, cheese, and cardboard to make packages of Kraft Macaroni and Cheese.This most closely resembles a(n) ____ process.

A) analytical
B) assembly
C) combined
D) synthetic
E) quantitative

Question 30

To produce a BMW sport-utility vehicle, an operations manager must engage in all of the following activities except

A) recruiting human resources.
B) controlling product quality.
C) the effective use of planning.
D) inventory management.
E) controlling production costs.

Question 31

ABC Company
ABC Company is dedicated to operations control.It holds its suppliers to the highest standards, believing there is one best way to complete their tasks.ABC has even gone so far as to incorporate the Malcolm Baldrige National Quality Award criteria into its business.Following these criteria has allowed the company to grow from a small business to a large corporation.ABC plans on going international in the next couple of years to broaden its scope.
ABC has kept up with new technologies.In fact, it has incorporated a new computer system that helps with the development of the company's products.This system has improved ABC's production dramatically.Now, ABC will be able to sell its products at a lower cost.The ABC management is dedicated to total quality management and will do whatever is necessary to maintain quality now and for the future.
Refer to ABC Company.Based on the information provided, what type of computer system is ABC Company using?

A) MIS
B) continuous
C) CAD
D) CID
E) CPM

Question 32

IBM satisfies consumers' needs for powerful, easy-to-use laptop computers by converting assorted software routines, hardware devices, and miscellaneous parts into personal computers.By doing this, IBM is creating _____.

A) consumer demand
B) market control
C) technological dependence
D) form utility
E) production efficiency

Question 33

The type of utility on which operations management focuses is ____ utility.

A) place
B) time
C) form
D) possession
E) need

Question 34

Tom's Toothpicks and Don's Doghouses both use lumber as the major input in their conversion processes.Although the input is the same for each factory, the ____ of the conversion process varies greatly between the two.

A) catalyst
B) focus
C) impetus
D) magnitude
E) capacity

Question 35

All of the managerial activities in which managers engage for the purpose of creating goods and services are known as ____ management.

A) personnel
B) operations
C) production
D) site
E) plant

Question 36

When a lumber company takes timber and converts it into lumber, cardboard, and other paper products, the company is using _____.

A) an analytical process
B) extraction manufacturing
C) a synthetic process
D) an operations process
E) raw processing

Question 37

During the period after World War II, the United States was the most productive country in the world for approximately ____ years.

A) five
B) ten
C) twenty
D) thirty
E) fifty

Question 38

Chevron and other refiners emphasize material resources in the conversion process.This implies that the material resources are the ____ of the conversion process.

A) catalyst
B) technology
C) output
D) impetus
E) focus

Question 39

Greg is in charge of making sure the raw steel brought into his company's factory is turned into high-quality bearings for sale to customers.Greg is a(n) ____ manager.

A) marketing
B) operations
C) productivity
D) middle
E) finance

Question 40

When considering the conversion process, human resources in the form of hair stylists and cosmetologists are the ____ for a beauty salon.

A) magnitude
B) utility
C) focus
D) production process width
E) analytic process

Question 41

Ford produces a wide variety of vehicles for individuals, businesses, manufacturers, and even schools.It also operates its own financing division, Ford Motor Acceptance Corp.It seems as if Ford

A) focuses on financial resources.
B) has a small magnitude.
C) has few production processes.
D) has many production processes.
E) is a service business.

Question 42

The American economy is now characterized as a(n) ____ economy.

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

Question 43

The United States is a(n) ____ economy because more effort is devoted to providing services than to producing goods.

A) transformed
B) service
C) industrialized
D) experience
E) knowledge

Question 44

A team of engineers at General Motors is in charge of discovering new knowledge that can be used to make automobiles safer and more economical.These engineers are conducting _____.

A) basic research
B) research and development
C) applied research
D) product development
E) research and implementation

Question 45

Services differ from manufactured goods in all of the following ways except

A) that services are consumed immediately.
B) when compared to manufactured goods, customers will not travel as far to purchase services.
C) the creation of services is usually labor-intensive.
D) services can be stored, and manufactured goods cannot be stored.
E) services are intangible, and it is therefore more difficult to measure customer satisfaction.

Question 46

R&D activities aimed at disclosing new knowledge that has some potential use are known as _____.

A) development and implementation
B) applied research
C) basic research
D) product design
E) design planning

Question 47

In many cases, customers will travel farther to purchase a(n) ____ than they would travel to purchase a(n) ____.

A) service; good
B) inexpensive good; expensive good
C) product; good
D) good; service
E) inexpensive service; expensive good

Question 48

A group of design engineers for Ford Motor Company spends two months in the summer in the Arizona desert researching fuel performance at extreme temperatures.Ford uses the results of these tests to improve the quality of its automobiles.The group of engineers is engaging in _____.

A) applied research
B) product design
C) basic research
D) design planning
E) horizon planning

Question 49

Cisco Systems manufactures computer hardware, uses software programs, and provides networking services to customers.As a result, Cisco uses

A) research implementation.
B) more than one production process.
C) a complex magnitude of change.
D) basic research applications.
E) multiple outputs.

Question 50

Needles, Inc.has five of its ten products at the end of the product life cycle.To maintain its market share, the firm must at least find ways to

A) reduce the cost of marketing its products.
B) cut manufacturing costs.
C) extend or refine the want-satisfying capability of its products.
D) reduce the number of employees.
E) increase the price of the product.

Question 51

One primary difference between services and the production of goods is that services are consumed ____ whereas goods can be ____.

A) one at a time; consumed more than one at a time
B) immediately; stored
C) intangibly; tangible or intangible
D) later; consumed now
E) as they are produced; special ordered

Question 52

Research activities undertaken to put new or existing knowledge to use in producing goods and services are called _____.

A) development and implementation
B) applied research
C) basic research
D) design planning
E) product design

Question 53

A set of activities intended to identify new ideas and technical advances that may result in new goods and services is called _____.

A) research and development
B) operations management
C) design planning
D) product design
E) horizon planning

Question 54

The television has undergone a large number of changes since its introduction.For example, Sony now produces not only color televisions but also such innovative products as televisions that include video equipment.This sort of product evolution is referred to as product _____.

A) extension
B) design planning
C) differentiation
D) integration
E) expansion

Question 55

On which of the following bases would it be the most difficult to evaluate customer satisfaction?

A) computer
B) laundry detergent
C) automobile
D) meal at a restaurant
E) car repair

Question 56

Product extension and refinement

A) shorten the product life cycle.
B) extend the product life cycle.
C) are too costly for most firms.
D) take place during basic research.
E) end the product life cycle.

Question 57

In a service industry such as a package carrier, the ____ of the conversion process is usually small or none at all.

A) focus
B) magnitude
C) width of processes
D) utility
E) result

Question 58

A government-funded group of scientists is assigned to discover new knowledge and scientific advances.These scientists are not required to consider the potential use of this knowledge.This group is conducting

A) development and implementation.
B) research for product life cycles.
C) applied research.
D) academic research and development.
E) basic research.

Question 59

By 2008 ____ percent of American workers were employed in service industries.

A) 28
B) 47
C) 85
D) 87
E) 92

Question 60

An Illinois-based firm crushes materials to make gravel, its only product.The gravel company has

A) few production processes.
B) a focus on human resources.
C) very little utility.
D) many production processes.
E) a focus on financial resources.

Question 61

In deciding on a product line, managers should balance ____ and product requirements.

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

Question 62

The number of customers that an Outback Steakhouse can serve at one time is the restaurant's _____.

A) capacity
B) product line
C) scope
D) size
E) service refinement

Question 63

A situation in which machines and equipment do most of the work is known as _____.

A) high technology
B) quality control
C) a labor-intensive technology
D) an industrial installation
E) a capital-intensive technology

Question 64

Purina has a new product idea to create a cat food that will give cats more energy and allow them to live longer.Management appoints a team to convert this cat food idea into an actual product.This process is called _____.

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

Question 65

A group of similar products that differ only in relatively minor characteristics is called _____.

A) inventory
B) a product line
C) product design
D) design planning
E) inventory control

Question 66

When Dell decided to produce and market an affordable personal computer, it had to consider a number of issues: product line, required capacity, and use of technology.Dealing with these issues is part of _____.

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

Question 67

When Taco Bell determines what different food items it will offer on its menu and how many it will offer, it is deciding its _____.

A) capacity
B) design planning
C) product design
D) product life cycle
E) product line

Question 68

Technology that is characterized by high initial costs and low operating costs is termed as _____.

A) a quality circle
B) capital-intensive
C) an industrial installation
D) labor-intensive
E) a process layout

Question 69

What portion of the ideas for new products, refinements, and extensions ever gets to the production stage?

A) about one-third
B) at least half
C) the majority
D) only a few
E) about two-thirds

Question 70

At a Schlage Lock factory, many employees are needed to use tiny screwdrivers and other tools to carefully assemble the inner workings of door knobs and locks.They must sit at a station and look through a magnifying glass to complete this work.This production process could best be described as _____.

A) labor-intensive technology
B) highly automated
C) capital-intensive technology
D) high capacity
E) refined product design

Question 71

An industrial company contacts Caterpillar to design a specific type of equipment for use in its manufacturing facility.If Caterpillar accepts this offer, the two companies will have to create a set of specifications from which the product can be made.This process is called

A) a product line.
B) development and implementation.
C) design planning.
D) product design.
E) capacity planning.

Question 72

A process in which people must do most of the work is called _____.

A) a quality circle
B) quality control
C) design planning
D) a labor-intensive technology
E) a capital-intensive technology

Question 73

The amount of products or services an organization can produce in a given time is known as _____.

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

Question 74

When VHS VCRs were first introduced, sales were zero.As the VCRs started to catch on, sales began to increase more and more rapidly until they peaked.Since the peak, sales have fallen, and in time DVD players or something beyond will make VCRs an unprofitable item to manufacture.This pattern is

A) the research and development cycle.
B) known as development and implementation.
C) the product line planning and exiting cycle.
D) the introduction to decline cycle.
E) the product life cycle.

Question 75

Because customer preferences must be considered, ____ play an important role in product-line decisions.

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

Question 76

When Company Tech decides to produce a new product line and determines the desired capacity, the next step is to

A) decide how big to build the new factory.
B) hire new workers for the facility.
C) decide whether to build a new plant or refurbish an existing plant.
D) determine which of the company's existing plants is best suited to produce the new product.
E) determine what the magnitude of the conversion process will be.

Question 77

Nabisco introduces Oreos with half chocolate and half peanut butter cream in the middle, by doing this it is ____ its Oreos line.

A) refining
B) implementing
C) extending
D) heavily advertising
E) applying

Question 78

When Panasonic improves the sound, clarity, and ease of operation offered by its DVD player, it is

A) shortening its product life cycle.
B) extending its basic research.
C) redistributing its product.
D) refining its existing product.
E) reducing the DVD player's functionality.

Question 79

To determine the proper size for its new restaurant in Nashville, Tennessee, operations managers and marketing managers for Hard Rock Cafe worked together to determine the restaurant's ____.

A) capacity
B) product line
C) required annual sales
D) lead time
E) production flow

Question 80

Technology that is characterized by low initial costs and high operating costs is termed _____.

A) a quality circle
B) capital-intensive
C) an industrial installation
D) labor-intensive
E) a process layout