Deck 10: Production and Operations Management

Question 1

What are the three factors in the facility location decision? Provide examples of businesses most affected by each facility location factor.

Answer 1

The three factors are transportation (including proximity to markets,proximity to raw materials,and the availability of transportation alternatives),human factors (the labor supply,local regulations,and community living conditions),and physical factors (water supply,energy,and hazardous waste and other environmental issues).Businesses affected by transportation factors include hotels (proximity to markets)and mining companies (proximity to raw materials).Businesses affected by human factors include software manufacturers (labor supply).Businesses affected by physical factors include paper mills (water supply)and chemical manufacturers (energy).

Question 2

MATCHING
Complete the following using the terms listed.
a.production
b.computer-aided design (CAD)
c.quality control
d.production and operations management
e.inventory control
f.quality
g.computer-aided manufacturing (CAM)
h.benchmarking
i.utility
j.production control
k.materials requirement planning
l.make,buy,or lease decision
m.just-in-time (JIT)system
Firms create _____,or want-satisfying power,by converting raw materials and other inputs into finished goods and services.

Answer 2

i

Question 3

MATCHING
Complete the following using the terms listed.
a.production
b.computer-aided design (CAD)
c.quality control
d.production and operations management
e.inventory control
f.quality
g.computer-aided manufacturing (CAM)
h.benchmarking
i.utility
j.production control
k.materials requirement planning
l.make,buy,or lease decision
m.just-in-time (JIT)system
_____ is a computer-based production planning system that ensures a firm has all the parts and materials it needs to produce its output at the right time and place and in the right amounts.

Answer 3

k

Question 4

MATCHING
Complete the following using the terms listed.
a.production
b.computer-aided design (CAD)
c.quality control
d.production and operations management
e.inventory control
f.quality
g.computer-aided manufacturing (CAM)
h.benchmarking
i.utility
j.production control
k.materials requirement planning
l.make,buy,or lease decision
m.just-in-time (JIT)system
The process of overseeing the production process by managing people and machinery during the conversion of materials into finished goods is known as _____.

Question 5

MATCHING
Complete the following using the terms listed.
a.production
b.computer-aided design (CAD)
c.quality control
d.production and operations management
e.inventory control
f.quality
g.computer-aided manufacturing (CAM)
h.benchmarking
i.utility
j.production control
k.materials requirement planning
l.make,buy,or lease decision
m.just-in-time (JIT)system
_____ is the function requiring production and operations managers to balance the need to keep stock on hand to meet demand against the costs of carrying inventory.

Question 6

Explain the difference between production and manufacturing.

Question 7

MATCHING
Complete the following using the terms listed.
a.production
b.computer-aided design (CAD)
c.quality control
d.production and operations management
e.inventory control
f.quality
g.computer-aided manufacturing (CAM)
h.benchmarking
i.utility
j.production control
k.materials requirement planning
l.make,buy,or lease decision
m.just-in-time (JIT)system
Engineers can design products more quickly and efficiently using _____.

Question 8

MATCHING
Complete the following using the terms listed.
a.production
b.computer-aided design (CAD)
c.quality control
d.production and operations management
e.inventory control
f.quality
g.computer-aided manufacturing (CAM)
h.benchmarking
i.utility
j.production control
k.materials requirement planning
l.make,buy,or lease decision
m.just-in-time (JIT)system
An inventory system that tries to keep inventory on hand to a minimum and seeks to eliminate all sources of waste is called a(n)_____ system.

Question 9

MATCHING
Complete the following using the terms listed.
a.production
b.computer-aided design (CAD)
c.quality control
d.production and operations management
e.inventory control
f.quality
g.computer-aided manufacturing (CAM)
h.benchmarking
i.utility
j.production control
k.materials requirement planning
l.make,buy,or lease decision
m.just-in-time (JIT)system
_____ outlines a set of procedures for coordinating people,materials,and machinery in the most efficient manner possible.

Question 10

Define continuous production processes and intermittent production processes,and provide an example of each.

Question 11

MATCHING
Complete the following using the terms listed.
a.production
b.computer-aided design (CAD)
c.quality control
d.production and operations management
e.inventory control
f.quality
g.computer-aided manufacturing (CAM)
h.benchmarking
i.utility
j.production control
k.materials requirement planning
l.make,buy,or lease decision
m.just-in-time (JIT)system
The _____ is the first step in a company's production plan.

Question 12

Describe a flexible manufacturing system.

Question 13

MATCHING
Complete the following using the terms listed.
a.production
b.computer-aided design (CAD)
c.quality control
d.production and operations management
e.inventory control
f.quality
g.computer-aided manufacturing (CAM)
h.benchmarking
i.utility
j.production control
k.materials requirement planning
l.make,buy,or lease decision
m.just-in-time (JIT)system
_____ involves measuring output against established quality standards.

Question 14

MATCHING
Complete the following using the terms listed.
a.production
b.computer-aided design (CAD)
c.quality control
d.production and operations management
e.inventory control
f.quality
g.computer-aided manufacturing (CAM)
h.benchmarking
i.utility
j.production control
k.materials requirement planning
l.make,buy,or lease decision
m.just-in-time (JIT)system
_____ analyzes CAD output.

Question 15

MATCHING
Complete the following using the terms listed.
a.production
b.computer-aided design (CAD)
c.quality control
d.production and operations management
e.inventory control
f.quality
g.computer-aided manufacturing (CAM)
h.benchmarking
i.utility
j.production control
k.materials requirement planning
l.make,buy,or lease decision
m.just-in-time (JIT)system
The process of determining how well other companies perform business functions or tasks is called _____.

Question 16

Define physical variables that affect facility locations and provide an example.

Question 17

Compare analytic production systems to synthetic production systems,and provide an example of each.

Question 18

MATCHING
Complete the following using the terms listed.
a.production
b.computer-aided design (CAD)
c.quality control
d.production and operations management
e.inventory control
f.quality
g.computer-aided manufacturing (CAM)
h.benchmarking
i.utility
j.production control
k.materials requirement planning
l.make,buy,or lease decision
m.just-in-time (JIT)system
The use of resources to convert materials into goods and services is known as _____.

Question 19

MATCHING
Complete the following using the terms listed.
a.production
b.computer-aided design (CAD)
c.quality control
d.production and operations management
e.inventory control
f.quality
g.computer-aided manufacturing (CAM)
h.benchmarking
i.utility
j.production control
k.materials requirement planning
l.make,buy,or lease decision
m.just-in-time (JIT)system
_____ describes a good or service free from deficiencies.

Question 20

Describe the differences between mass production,flexible production,and customer-driven production.

Question 21

Provide two examples of uses for robots.

Question 22

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

A)quality
B)ownership
C)worth
D)utility

Question 23

Describe the customer-oriented layout and provide an example.

Question 24

Provide an example of another college with whom your college might benchmark itself.

Question 25

Explain perpetual inventory control systems.

Question 26

Describe the PERT and how it can be used.

Question 27

When a cabinet maker combines wood,tools,and skill to create finished kitchen cabinets for a new home,the cabinet maker is engaging in ________.

A)distribution
B)time utility
C)process utility
D)production

Question 28

Once a company decides what raw materials and component parts to purchase,what factors do production managers use for comparison in choosing the best supplier?

Question 29

What is the task of production and operations management?

A)to determine the most economical routes for transporting the firms' products
B)to manage the use of people and machinery in converting materials and resources into finished goods and services
C)to manage the use of people and other resources in the development of distribution channels and promotional strategies
D)to design systems that will provide managers with information useful for decision making

Question 30

Trucks,personnel,buildings,fuel,goods to be shipped,truck parts,and packaged supplies are examples of:

A)inputs
B)outputs
C)conversion
D)transformation

Question 31

When the editors of Contemporary Business use computers,paper,and human effort to create the new edition of a text,they are engaged in ________.

A)creating time utility
B)creating possession utility
C)production
D)marketing

Question 32

________ is the use of people and machinery to convert materials into finished goods or services.

A)Manufacturing
B)Production
C)Distribution
D)Marketing

Question 33

Describe the major tasks of production and operations managers.

Question 34

Describe quality control and provide an example.

Question 35

A production system that reduces a raw material to its component parts in order to extract one or more marketable products is a(n)________ production system.

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

Question 36

Which production process describes a manufacturing operation in which long production runs generate finished products over a period of time?

A)continuous
B)intermittent
C)customized
D)periodic

Question 37

Discuss the factors a firm should consider when deciding whether to make,buy,or lease components.

Question 38

A production system that combines a number of raw materials or parts into a finished product or changes raw materials into completely different finished products is known as ________.

A)extractive
B)intermittent
C)unified
D)synthetic

Question 39

Describe just-in-time (JIT)inventory systems.

Question 40

The ABC Accountants do not standardize their service to customers because each customer has different needs.This is an example of ________ production.

A)intermittent
B)continuous
C)custom
D)job-order

Question 41

State and local governments may offer ________ to encourage businesses to locate in their area.

A)proximity to suppliers
B)tax incentives
C)proximity to raw materials
D)physical factors such as energy

Question 42

Grey Water Disposal wants to build a landfill outside Cincinnati.The company must conduct a(n)________ study,which includes analyzing the potential effects of the landfill on the water supply,air conditions,and wildlife.

A)market impact
B)consumer behavior
C)location feasibility
D)environmental impact

Question 43

Boca Bearing Company produces 30 basic types of ball bearings.Its manufacturing system uses computer-controlled machining centers,robots,and remote-controlled carts to deliver materials.In addition,the system can be modified quickly to produce the different ball bearings.This is a ________ system.

A)flexible manufacturing
B)synthetic manufacturing
C)static manufacturing
D)computer-aided design

Question 44

Which production system is Smith-Kline Beecham using when it combines calcium carbonate,simethicone,corn syrup,and other ingredients to make Tums Plus?

A)analytic
B)synthetic
C)extractive
D)service

Question 45

Computer chip manufacturers,such as Intel,must be primarily concerned with ________.

A)availability to energy
B)proximity to markets
C)community living conditions
D)availability of water supply

Question 46

Which of the following is a disadvantage of assembly lines?

A)Workers perform specialized tasks.
B)It takes fewer hours to produce products.
C)It is inefficient for producing small batches.
D)It moves the product along a conveyor belt past a number of workstations.

Question 47

Which of the following would probably be the most important consideration in determining where to locate Hefferin Paper mill Company?

A)labor supply
B)location of customers
C)physical characteristics
D)proximity to raw materials

Question 48

Which of the following layouts would be appropriate for manufacturers of bulky,heavy,or fragile products?

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

Question 49

The production facility for a space shuttle would probably be organized according to a ________ layout.

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

Question 50

Grocery stores use scanners not only for faster check-out times,but as a tool to obtain merchandise sales data and create short-term forecasts.This system is known as ________ production.

A)product-focused
B)quality control
C)data marketing
D)customer-driven

Question 51

Why have some companies set up offshore assembly plants?

A)available marketing opportunities
B)proximity to raw materials
C)low labor costs
D)inexpensive energy

Question 52

Tamara is the owner of Baker's Dozen,a bakery with all perishable products.What will be her primary consideration in regard to location?

A)proximity to raw materials
B)proximity to her market
C)availability of transportation alternatives
D)proximity to labor supply

Question 53

Which of the following are combined to result in mass production?

A)mechanization,specialized labor,and robots
B)standardization,job-order production,and specialized labor
C)analytic systems,synthetic systems,and continuous processes
D)mechanization,specialized labor,and standardization

Question 54

A firm that produces a variety of nonstandard products in relatively small quantities would probably use a ________ layout.

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

Question 55

In selecting a production facility location,labor supply would be most important to which of the following?

A)steel manufacturer
B)jewelry manufacturer
C)paper mill
D)software developer

Question 56

Which of the following statements about standardization is NOT correct?

A)Standardization is used as the basis for custom-made machinery.
B)The availability of standardized parts makes the replacement of defective and worn-out components possible.
C)Standardized parts can reduce the cost of repairs.
D)Standardized parts can be produced in quantity and assembled later.

Question 57

The production manager in a manufacturing company divides employee work into small segments so each employee can concentrate on just a few tasks.This manager is involved in ________.

A)mechanization
B)specialization
C)quality management
D)standardization

Question 58

Which type of company would be most interested in locating in an area close to its market?

A)dry cleaners
B)pharmaceutical companies
C)automobile manufacturers
D)shipbuilding companies

Question 59

Hospital rooms are typically set up with a ________ layout.

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

Question 60

A steel company whose blast furnaces never completely shut down except for in the case of malfunctions is an example of a(n)________ production system.

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

Question 61

Which of the following situations would present a challenge for a just-in-time (JIT)investment system?

A)increase in the number of suppliers
B)long-term relationships with suppliers
C)vendor managed inventory
D)sudden increase in demand

Question 62

Implementing a production plan involves all of the following steps EXCEPT ________.

A)creating a feasible budget
B)controlling inventory
C)selecting the best suppliers for materials
D)deciding whether to make,buy,or lease components

Question 63

Banks most likely utilize a ________ layout.

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

Question 64

The critical path in a PERT chart represents the ________.

A)sequence of operations that involves outside suppliers
B)sequence of operations that requires the longest time for completion
C)areas of operations that require the least amount of technical support
D)areas of operations that have abundant and extra time

Question 65

The suppler for Omega Corporation has offered the company a 5 percent discount if it will order more units less frequently.If Omega accepts the supplier's offer,the cost of carrying inventory will ________ and the cost of running out of inventory will ________.

A)rise;stay the same
B)fall;fall
C)rise;fall
D)fall;stay the same

Question 66

Part of Vicky's job as a production supervisor is to instruct each department on what work to do and the time in which they have to complete their work assignments.This part of her job is known as ________.

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

Question 67

How can a firm best protect itself against an interruption in the supply of parts?

A)Select suppliers through a competitive bidding process.
B)Use suppliers from the city where the firm is located.
C)Maintain more than one supply source.
D)Transport the parts using the firm's transportation vehicles.

Question 68

________ is the phase of production control that determines the sequence of work and specifies where and by whom each aspect of production will be performed.

A)Follow-up
B)Routing
C)Scheduling
D)Dispatching

Question 69

When Best Buy vendors ship merchandise directly to stores instead of distribution centers,the company is utilizing ________.

A)perpetual inventory
B)inventory control
C)production control
D)vendor-managed inventory

Question 70

A Gantt chart is associated with which step in production control?

A)routing
B)scheduling
C)dispatching
D)follow-up

Question 71

Which of the following layouts would be appropriate for a manufacturer who needs to produce large numbers of a single product?

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

Question 72

Snyder Industries uses 100,000 widgets each year.If Snyder decides to place more orders each year,ordering fewer widgets each time,Snyder will be carrying ________ inventory on average and the risk of running out of inventory will ________.

A)less;rise
B)less;fall
C)more;fall
D)more;rise

Question 73

Tidewater Company uses 100,000 pounds of fresh flowers each year.Because of rising energy costs,it has become more expensive for Tidewater to store flowers.All other factors being equal,Tidewater should ________ its inventory of fresh flowers,which would ________ the risk of running out of inventory.

A)reduce;have no effect on
B)increase;have no effect on
C)reduce;increase
D)increase;increase

Question 74

Sakura is a production manager and has decided that grouping machinery and equipment according to their functions works best at her company.What layout is her company using?

A)fixed
B)process
C)customer-oriented
D)product

Question 75

All of the following are expenses involved in storing inventory EXCEPT ________.

A)maintenance
B)acquisition
C)insurance
D)warehouse rent

Question 76

A plant where plastic 2-liter bottles are manufactured probably uses a ________ layout.

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

Question 77

Elijah is a warehouse production manager who has been assigned a complex project that might result in lengthy delays.In order to coordinate all aspects of the production process,Elijah has created a(n)________ chart.

A)ISO
B)FMS
C)Gantt
D)PERT

Question 78

Which of the following would least likely be purchased on a long-term contractual basis?

A)component parts for mass production
B)office supplies purchased for a small office
C)continuous supply products
D)raw materials

Question 79

Isaac's job involves setting up well-designed procedures for coordinating people,materials,and machinery for the production of mesh filters.Isaac is involved in ________.

A)inventory control
B)facility design
C)production control
D)manufacturing resource planning (MRP II)

Question 80

Harriet uses a computer-based production planning system by which a firm can ensure that it has needed parts and materials available at the right time and place and in the correct amounts.Harriet uses:

A)materials requirement planning
B)just-in-time inventory system
C)computer-aided manufacturing
D)vendor-managed inventory