Deck 8: Producing Quality Goods and Services

Question 1

All the activities managers engage in to produce goods and services are called operations management.

Answer 1

True

Question 2

In order to compete in the global economy,U.S.firms have focused on increasing prices and improving the bottom-line profit amount.

Answer 2

False

Question 3

When manufacturing a product like a computer or an automobile,planning takes place both before anything is produced and during the production process.

Answer 3

True

Question 4

Capacity to a service business means something completely different from capacity to a production business.

Question 5

A labor-intensive technology is one in which people must do most of the work.

Question 6

A synthetic process combines raw materials or components to create a finished product.

Question 7

Product extension and refinement are expected results of a firm's development and implementation effort.

Question 8

After World War II,the United States became the most productive country in the world.

Question 9

The goal of applied research is scientific advancement,without regard for its potential uses in the development of goods and services.

Question 10

Deciding on the product line involves balancing customer preferences and production requirements.

Question 11

Development and implementation are research activities undertaken to put new or existing knowledge to use in producing goods and services.

Question 12

Oil companies use a synthetic process when they refine crude oil.

Question 13

Form utility is created by converting raw materials,people,finances,and information into finished products.

Question 14

A service economy is one in which more effort is devoted to the production of goods than to the production of services.

Question 15

Operations managers refer to the development of a plan for converting a product idea into an actual product as design planning.

Question 16

The major resource or resources that comprise the major input for a conversion process is often referred to as the focus.

Question 17

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

Question 18

To regain market share,many American firms have lowered quality standards.

Question 19

An analytical process breaks raw materials into different component parts.

Question 20

The term magnitude is used to describe the number of production processes that are used to produce products or services.

Question 21

A process layout is used when all products undergo the same operations in the same sequence.

Question 22

An assembly line at a Rubbermaid production facility is an example of a product layout.

Question 23

The responsibility for monitoring schedules to ensure that the work flows according to schedule is called follow-up.

Question 24

The major objective of quality control is to see that the organization produces no imperfect products.

Question 25

Purchasing personnel should check the reliability of potential suppliers as well as suppliers' ability to meet delivery schedules.

Question 26

When a company successfully applies the just-in-time system,it minimizes its inventory storage costs.

Question 27

The cost of running out of inventory is referred to as a holding cost.

Question 28

When firms use inspection to monitor quality,only the finished product is examined for defects or potential problems.

Question 29

A common planning horizon for operational plans is one year.

Question 30

When machines and equipment do most of the work in a manufacturing plant,it is referred to as a mechanical-intensive process.

Question 31

An auto repair shop is an example of a fixed-position layout.

Question 32

Quality control is the process of ensuring that materials are at the right place at the right time.

Question 33

In supplier selection,the main idea is to find the highest-quality materials available.

Question 34

Materials that will become part of a product during the conversion process are called raw materials.

Question 35

The objective of purchasing is to ensure that required materials are available when they are needed,in the proper amounts,and at minimum cost.

Question 36

Purchasing personnel need not worry about a tiny difference in price when a large quantity is being bought.

Question 37

Automation is characterized by low initial costs and high operating costs.

Question 38

The process of managing inventories to minimize both holding costs and potential stock-out costs is called inventory control.

Question 39

Quality circles have been used successfully to solve product defect problems in U.S.firms.

Question 40

Since computers have been invented,materials requirements planning (MRP)is an outdated method of controlling inventory.

Question 41

Since ISO 9000 quality standards were developed in Switzerland and affect only European firms,they don't apply to firms in the United States doing business in Europe.

Question 42

XYZ Company ​XYZ Company is dedicated to operations control.It holds its suppliers to the highest standards,believing there is one best way to complete their tasks.XYZ 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.XYZ plans on going international in the next couple of years to broaden its scope. ​XYZ 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 XYZ's production dramatically.Now,XYZ will be able to sell its products at a lower cost.The XYZ management is dedicated to total quality management and will do whatever is necessary to maintain quality now and for the future.
Refer to XYZ Company.For XYZ,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 43

XYZ Company ​XYZ Company is dedicated to operations control.It holds its suppliers to the highest standards,believing there is one best way to complete their tasks.XYZ 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.XYZ plans on going international in the next couple of years to broaden its scope. ​XYZ 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 XYZ's production dramatically.Now,XYZ will be able to sell its products at a lower cost.The XYZ management is dedicated to total quality management and will do whatever is necessary to maintain quality now and for the future.
Refer to XYZ Company.Based on the information provided,what type of computer system is XYZ Company using?

A) PERT
B) Continuous
C) CAD
D) CID
E) CPM

Question 44

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 45

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 46

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

A) recruitment of human resources.
B) control of product quality.
C) effective use of planning.
D) inventory management.
E) control of production costs.

Question 47

Productivity is a measure of output per unit of time per worker.

Question 48

Increased business investment in facilities and equipment usually results in lower employee productivity.

Question 49

CAD stands for "computer-assisted development programs."

Question 50

XYZ Company ​XYZ Company is dedicated to operations control.It holds its suppliers to the highest standards,believing there is one best way to complete their tasks.XYZ 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.XYZ plans on going international in the next couple of years to broaden its scope. ​XYZ 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 XYZ's production dramatically.Now,XYZ will be able to sell its products at a lower cost.The XYZ management is dedicated to total quality management and will do whatever is necessary to maintain quality now and for the future.
Refer to XYZ Company.Given that XYZ 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 51

FMS (an abbreviation from this chapter)stands for Ford Motor Systems.

Question 52

Oliver 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.Oliver is a(n)____ manager.

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

Question 53

According to management experts,increased government regulations have increased productivity among American workers.

Question 54

When compared to total quality management,Six Sigma often has more top-level support,more training for employees,and more teamwork.

Question 55

Jason 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. ​Rick is the newly appointed head operations manager of the company-and he is hoping to contribute to the company in a meaningful way.Rick 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 Jason Electronics,Inc.Which of the following objectives would you advise Rick 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

Question 56

Jason 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. ​Rick is the newly appointed head operations manager of the company-and he is hoping to contribute to the company in a meaningful way.Rick 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 Jason 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) PERT
E) Core

Question 57

Jason 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. ​Rick is the newly appointed head operations manager of the company-and he is hoping to contribute to the company in a meaningful way.Rick 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 Jason Electronics,Inc.The plant layout at Jason Electronics is mostly likely a

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

Question 58

Jason 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. ​Rick is the newly appointed head operations manager of the company-and he is hoping to contribute to the company in a meaningful way.Rick 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 Jason Electronics,Inc.As an operating manager,Rick 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 59

Robots are especially effective in carrying out creative tasks and assignments.

Question 60

XYZ Company ​XYZ Company is dedicated to operations control.It holds its suppliers to the highest standards,believing there is one best way to complete their tasks.XYZ 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.XYZ plans on going international in the next couple of years to broaden its scope. ​XYZ 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 XYZ's production dramatically.Now,XYZ will be able to sell its products at a lower cost.The XYZ management is dedicated to total quality management and will do whatever is necessary to maintain quality now and for the future.
Refer to XYZ Company.The supplier must have ____ in order to be the best possible option and do business with XYZ.

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

Question 61

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

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

Question 62

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 63

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 64

When Black & Decker manufactures its wide array of tools,it is using a(n)____ process.

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

Question 65

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 66

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 67

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

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

Question 68

Today approximately ____ percent of American workers are employed in service industries.

A) 28
B) 47
C) 86
D) 90
E) 94

Question 69

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 70

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) used green manufacturing to conserve natural resources and sustain the planet.
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 these answer choices.

Question 71

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 72

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 73

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 74

Successful operations managers must be able to do all of the following except

A) lead and motivate people.
B) use technology to make a manufacturer more productive.
C) advertise and sell the firm's product.
D) control production costs.
E) improve product quality.

Question 75

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 76

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 77

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 78

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 79

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 80

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

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