Deck 7: Operations Management and Quality

Question 1

When a company turns out ornaments in time for Christmas, it creates time utility.

Answer 1

True
Explanation:Time utility is created when products are made available for consumers when they want them.

Question 2

A company typically selects the kind of production used by most of its competitors.

Answer 2

False
Explanation:A company picks the one that best achieves its larger business strategy.

Question 3

If parts A, B, and C must be produced this week, a detailed schedule will indicate the sequence of work.

Answer 3

True
Explanation:Detailed schedules show day-to-day activities that will occur in production.

Question 4

ISO 9000 is a certification program attesting to the fact that a factory, laboratory, or office has improved its environmental performance.

Question 5

Getting a haircut and having your lawn mowed are both examples of low-contact services.

Question 6

Japanese companies adapted the concept of quality circles from quality improvement teams used by U.S. companies.

Question 7

A firm's capacity depends on both how many people it employs and the number and size of its facilities.

Question 8

ISO 9000 is a certification program attesting that a factory, laboratory, or office has met the rigorous requirements set by the International Organization for Standardization.

Question 9

Materials management involves the flow of materials inside of the production facility, while distribution management involves the flow of finished goods.

Question 10

An assembly line is an example of a custom-products layout.

Question 11

Firms that make only tangible products are engaged in goods production.

Question 12

Just-in-time (JIT) production systems normally require large amounts of "safety stock" to be maintained in a firm's warehouse.

Question 13

Each stage in the supply chain adds value for the final customer.

Question 14

Staff schedules identify which products will be produced and when.

Question 15

In a low-contact system, the customer must be a part of the system to receive the service.

Question 16

Services are more tangible, more customized, and more storable than most products.

Question 17

A process flowchart identifies the sequence of production activities, movements of materials, and work performed at each stage of the process.

Question 18

Quality improvement teams are groups of employees from various work areas who define, analyze, and solve common production problems.

Question 19

By turning raw materials into finished goods, production creates form utility.

Question 20

In a same-steps layout, equipment and people are set up to produce one type of good in a fixed sequence of steps and are arranged according to its production requirements.

Question 21

Even excellent firms focus on one competence at a time.

Question 22

A detailed schedule will indicate how many employees will be working on a given shift.

Question 23

Which term refers to a set of methods and technologies used to produce a good or service?

A) contingency plan
B) production episode
C) reduction
D) methods plan
E) operations process

Question 24

The biggest challenge of TQM is motivating employees throughout the company to achieve quality goals.

Question 25

The sales department relies on the engineering department to send samples and quotes to prospective customers on a timely basis; the sales department may be considered the engineering department's internal customer.

Question 26

Which of the following is the ability of a product to satisfy a human want or need?

A) utility
B) relative advantage
C) content
D) satisfaction
E) capacity

Question 27

Successful companies, such as 3M and FedEx, use the same operations strategy.

Question 28

Which type of utility is created when a company makes products available where consumers want them?

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

Question 29

Operations control includes materials management and quality control.

Question 30

According to the text, to ensure that truckloads of merchandise flow quickly to stores, Wal-Mart distribution centers are located near the hundreds of stores that they supply, not near the companies that supply them.

Question 31

A value chain includes an entire network of firms, beginning with suppliers and ending when production is complete.

Question 32

Value-added analysis might focus on both the elimination of waste and cost minimization.

Question 33

The goal of supply chain management is better overall flow in the system.

Question 34

Which term refers to all the activities involved in making products-goods and services-for customers?

A) operations
B) processes
C) planning
D) scheduling
E) performance

Question 35

ISO 14000 may result in a recycling program at a company.

Question 36

Operations capability is a special ability that production does especially well to outperform the competition.

Question 37

Managers of a restaurant eat at a competing restaurant in order to identify desirable improvements in their own operations; this illustrates quality control.

Question 38

For manufacturing firms, typical materials costs make up 50 to 75 percent of total product costs.

Question 39

In which of the following is the customer part of the system during service delivery?

A) a high-contact system
B) a low-contact system
C) a customer system
D) a quality system
E) a utility system

Question 40

Because supply chain strategy is based on the collective effort of a number of firms, no one firm in the chain gains a competitive advantage.

Question 41

Which term refers to the flow of information, materials, and services from raw-materials suppliers through stages in the operations process until the product reaches the end customer?

A) distribution chain
B) supply chain
C) service channel
D) distribution channel
E) performance channel

Question 42

When a company turns out costumes in time for Halloween, it creates which type of utility?

A) ownership
B) time
C) form
D) place
E) value

Question 43

Which of the following is another term for the supply chain?

A) the distribution chain
B) the distribution network
C) the value chain
D) the supply network
E) the wholesale network

Question 44

What name is given to the process by which a company analyzes another company's product to identify desirable improvements in its own product?

A) quality reliability analysis
B) benchmarking
C) performance quality analysis
D) competitive product analysis
E) quality outsourcing

Question 45

The sameness of product quality from unit to unit is referred to by which term?

A) utility
B) reliability
C) performance
D) consistency
E) quality control

Question 46

Which term refers to the strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials or services?

A) outsourcing
B) reengineering
C) controlling
D) scheduling
E) warehousing

Question 47

What term describes a special ability that production does especially well to outperform the competition?

A) supply chain management
B) total quality management
C) process engineering
D) operations capability
E) value-added analysis

Question 48

Which of the following is the amount of a product that a company can produce under normal working conditions ?

A) capacity
B) output
C) efficiency
D) burden
E) performance

Question 49

Which type of system is designed for smooth production flow to avoid inefficiencies, eliminate unnecessary inventories, and continuously improve production processes?

A) quality system
B) lean system
C) managed system
D) production system
E) flexible system

Question 50

Thousands of empty jugs move down a conveyor belt at Colgate-Palmolive before stopping to be filled and moving on to be labeled. What type of layout is utilized?

A) supply-chain
B) custom-products
C) hybrid
D) fixed-position
E) same-steps

Question 51

Which term refers to how well a product does what it is supposed to do?

A) capacity
B) consistency
C) reliability
D) performance
E) quality control

Question 52

Equipment and people are grouped according to function in which type of production layout?

A) cellular
B) same-steps
C) custom-products
D) supply-chain
E) service

Question 53

Which of the following is patterned after the successful Japanese concept of quality circles?

A) supply chain management
B) quality improvement team
C) total quality management
D) quality ownership
E) value-added analysis

Question 54

When a company makes products available where they are convenient for consumers, it creates which type of utility?

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

Question 55

Which of the following is a scheduling tool that breaks down large projects into steps to be performed and specifies the time required to perform each one?

A) Myers graphic
B) critical path chart
C) Gantt chart
D) process analysis graph
E) master schedule

Question 56

Which of the following is NOT a major objective of JIT production?

A) increasing stop-and-go production
B) reducing goods in process
C) complying with schedules
D) eliminating disruptions by continuous improvement
E) reducing inventory levels

Question 57

Which term refers to the acquisition of the raw materials a company needs to produce its products?

A) development
B) purchasing
C) goods control
D) quality control
E) wholesaling

Question 58

Which term describes the idea that quality belongs to each person who creates it while performing a job?

A) quality control
B) quality ownership
C) quality circles
D) total quality management
E) quality improvement teams

Question 59

Which of the following refers to the receiving, storing, handling, and counting of all raw materials, partly finished goods, and finished goods?

A) materials handling
B) inventory control
C) quality control
D) wholesaling
E) distribution control

Question 60

Which of the following terms refers to all activities involved in getting quality products into the marketplace?

A) quality control
B) quality reliability
C) total quality management
D) performance quality
E) quality overview

Question 61

Which of the following is a component of materials management?

A) promotion
B) distribution
C) marketing
D) warehousing
E) sales

Question 62

Performance refers to which of the following?

A) the principle that quality belongs to each person who creates it while performing a job
B) the consistency of product quality from unit to unit
C) how well the product does what it is supposed to do
D) the process by which a company analyzes a competitor's products to identify desirable improvement
E) providing value by making products available when customers want them

Question 63

Which of the following would be considered a low-contact service?

A) surgery
B) haircut
C) massage
D) electric power
E) piano lesson

Question 64

Automobile, food-processing, and television assembly plants use which type of layout?

A) make-to-order
B) location
C) custom-products
D) quality
E) same-steps

Question 65

In a business, whose job is it to draw up plans to transform resources into products and bring together basic resources, such as knowledge, physical materials, equipment, and labor?

A) CEO
B) operations manager
C) quality manager
D) floor foreman
E) supply manager

Question 66

Logan Aluminum makes coils of aluminum that it supplies to customer companies that use it to make beverage cans. Logan uses a schedule that specifies how many tons of each type of coil will be produced each week. What is this schedule called?

A) master production schedule
B) detailed schedule
C) Gantt chart
D) staff schedule
E) PERT chart

Question 67

Managers can work to reduce waste, inefficiency, and poor performance by examining procedures on a step-by-step basis. Which term describes this process?

A) advance planning
B) materials management
C) methods improvement
D) quality planning
E) quality ownership

Question 68

What is the name for a production system in which all the needed materials and parts arrive at the precise moment they are required for each production stage?

A) quality control system
B) process control system
C) just-in-time production
D) standardized production
E) custom-products production

Question 69

Which of the following would be considered a high-contact system?

A) gas company
B) electric company
C) lawn care company
D) barber shop
E) postal delivery

Question 70

Which type of layout is designed to move resources through a smooth, fixed sequence of steps?

A) same-steps
B) location
C) custom-products
D) quality
E) make-to-order

Question 71

Which term is defined as the combination of "characteristics of a product or service that bear on its ability to satisfy stated or implied needs"?

A) quality
B) production
C) quantity
D) clarification
E) capacity

Question 72

Consistency refers to which of the following?

A) the principle that quality belongs to each person who creates it while performing a job
B) the sameness of product quality from unit to unit
C) the sum of all activities involved in getting high-quality products into the marketplace
D) the process by which a company analyzes a competitor's products to identify desirable improvements
E) providing value by making products available where customers want them

Question 73

Which term describes services which cannot be produced ahead of time?

A) transformed
B) low-contact
C) unstorable
D) intangible
E) consistent

Question 74

Machine, woodworking, and dry cleaning shops typically use which type of layout?

A) product
B) custom-products
C) same-steps
D) hybrid
E) make-to-stock

Question 75

The check-processing operations at your bank would be considered to be which type of system?

A) high-contact
B) low-contact
C) conversion
D) synthetic
E) performance

Question 76

Which of the following is NOT one of the areas of materials management?

A) transportation
B) warehousing
C) purchasing
D) supplier selection
E) customer service

Question 77

3M uses which strategy for attracting customers?

A) quality
B) low-cost
C) dependability
D) flexibility
E) consistency

Question 78

Which of the following is greatly reduced in a just-in-time production system?

A) number of workers needed on the line
B) number of goods in process
C) number of shifts necessary at the plant
D) number of separate operations on the assembly line
E) number of forepersons needed at the plant

Question 79

Save-A-Lot grocery stores use which type of strategy for attracting customers?

A) flexibility
B) quality
C) low-cost
D) dependability
E) consistency

Question 80

In operations control, production managers monitor production performance by which method?

A) comparing results with detailed plans and schedules
B) checking on each worker on the production floor
C) observing activities from a platform above the workers
D) constantly talking with employees involved
E) performing spot checks of worker performance