Deck 6: Management and Leadership in Todays Organizations

Question 1

The Deming method to quality control emphasizes the reformation of attitudes,comprehensive controls and annual objective reviews.

Answer 1

False

Question 2

CAD/CAM has made it possible to custom-design products to meet the tastes of small markets with very little increase in costs.

Answer 2

True

Question 3

Continuous improvement refers to making each employee responsible for the quality of his or her own work.

Answer 3

False

Question 4

ISO 14000 is a series of required standards covering environmental management tools and systems.

Question 5

The Malcolm Baldridge Award was established by Congress to enhance the competitiveness of U.S.organizations.

Question 6

In the process of operations management,a firm transforms resources such as raw materials,supplies,and even human resources into goods and services.

Question 7

Six Sigma is both a precise set of statistical tools and a rallying cry for continuous improvement.

Question 8

Quality at the source refers to the philosophy of making each employee responsible for the quality of his or her work.

Question 9

Quality is defined the same way by everyone.

Question 10

Although it is most often thought of as applying to manufacturing processes,Six Sigma can be applied to any business process where the quality of the result may be quantified and the results of each process tracked.

Question 11

W.Edwards Deming is most responsible for the prevention approach to quality.

Question 12

Lean manufacturing involves searching for implementing radical change in business processes.

Question 13

Mass customization is not exclusive to product intensive businesses.Service businesses have learned how to use mass customization to serve their customers.

Question 14

A Gantt chart is a time-based graphic display that shows whether a machine or a process is producing at the expected quality level.

Question 15

Only manufacturers are eligible to apply for the Malcolm Baldridge Award.

Question 16

Companies that employ lean manufacturing and flexible manufacturing produce better quality products,but have costlier production lines.

Question 17

Operations management converts resources into goods and services.

Question 18

Mass customization is tailoring products to meet the needs of individual customers.

Question 19

ISO 9000 is a set of quality standards.

Question 20

Contemporary manufacturers in the U.S.lack the flexibility to use intermittent production processes.

Question 21

___________ uses computers to help design products.

A) PERT
B) QPC
C) DPA
D) CAD

Question 22

CAD/CAM makes it possible to custom-design products to meet the needs of ________ with ________.

A) Small markets; a decrease in cost
B) Very large markets; no increase in cost
C) Small markets; very little increase in cost
D) International markets; products that are complex

Question 23

Production management is the traditional term used to describe all the activities managers do to help their firms create:

A) resources
B) goods
C) services
D) equities

Question 24

A production process characterized by a short production run and frequent adjustments to machines so that different products can be produced is known as a(n):

A) Just-in-time process.
B) Lean manufacturing system.
C) Analytic process.
D) Intermittent process.

Question 25

__________ is both a precise set of statistical tools and a rallying cry for continuous improvement.

A) Malcolm Baldridge Award
B) Continuous improvement
C) Six sigma
D) Quality at the source

Question 26

Operations management is a specialized area in management that converts resources into:

A) services, rather than goods
B) goods, rather than services
C) both goods and services
D) financial data

Question 27

__________ is a series of voluntary international standards covering environmental management tools and systems.

A) ISO 9000
B) EOQ 9000
C) ISO 14000
D) EOG 14000

Question 28

Quality guru Deming emphasizes statistical quality control through employee empowerment.

Question 29

___________ is a series of voluntary international standards covering environmental management tools and systems.

Question 30

The inventory control system that schedules materials to arrive and leaves as they are needed is called JIT or Just in Time.

Question 31

___________ is a set of quality standards for international business.

A) EOQ 9000
B) ISO 9000
C) Continuous improvement
D) Malcolm Baldridge Award

Question 32

______________ involves computers directly in the production process.

A) CAD
B) CAM
C) AMDA
D) AMCAP

Question 33

Although lean manufacturing attempts to reduce the amount of labor used in manufacturing process,it typically does so by increasing the amount of most of the other resources used in the production process.

Question 34

Which of the following statements best describes the distinction between production management and operations management? Production management involves:

A) Activities managers perform to help create services while operations management involves the activities managers perform to produce goods.
B) Activities managers perform to obtain physical resources while operations management involves the activities managers perform to obtain the financial resources.
C) Activities managers perform to help create goods while operations management is a broader term that involves the activities involved in producing services as well as goods.
D) Activities managers perform to help create intangible products while operations management involves the activities managers perform to produce tangible products.

Question 35

___________ is a systematic approach to identifying and eliminating waste and non-value-added activities.

A) Malcolm Baldridge Award
B) Lean manufacturing
C) Six sigma
D) Quality at the source

Question 36

__________ is the specialized area of management that converts or transforms resources into goods and services.

A) Logistics management
B) Resource engineering
C) Intrapreneuring
D) Operations management

Question 37

_________ manufacturing is a systematic approach to identifying and eliminating waste and no-value-added activities.

Question 38

A production process characterized by long production runs to turn out finished goods over time is known as a(n):

A) Assembly process.
B) Continuous process.
C) Extended process.
D) Unrestricted process.

Question 39

Production creates:

A) Time utility
B) Possession utility
C) Form utility
D) Marginal utility

Question 40

___________ is the creation of goods and services using land,labor,capital,entrepreneurship and knowledge.

A) Resource combination
B) Supply chain management
C) Production
D) Purchasing

Question 41

_________ is the physical arrangement of resources in the production process.

A) Facility location
B) Facility layout
C) ERP
D) RRL

Question 42

Harmon Furniture Company uses labor and machinery to transform wood,plastic,metal and cloth into comfortable chairs,sofas,and love seats.This process creates:

A) Form utility.
B) Place utility.
C) Use facility.
D) Intangible productivity.

Question 43

_____________ examines statistical samples of product components at each stage of the production process and plots the results on a graph in order to spot and correct any variances from desired quality levels.

A) CAD/CAM
B) Econometrics
C) Analysis of variance
D) Statistical process control

Question 44

Katz's Travel Inc.is a medium-sized agency that specializes in vacation packages.It has packages available around the globe-everything from cruises,to beach resort vacations,to historical tours.The customer chooses the amount they would like to pay,the area of the world they would like to visit and what they would like to do.Based on this information,Katz's Travel uses __________ to delight the customers.

A) Excellent human resource management
B) The Internet
C) Mass customization
D) Lean manufacturing

Question 45

MRP is a technique that helps managers:

A) Develop a reliable sales forecast.
B) Schedule the sequence of tasks workers must perform in order to complete a project
C) Determine how many workers are needed to staff various departments.
D) Make sure that the right parts and materials are available at the right time.

Question 46

The Deming Cycle is:

A) A checklist that enables managers to evaluate employee performance more systematically.
B) A systematic method of evaluating potential facility locations.
C) A process for finding potential quality errors before they occur.
D) A process for using identical production steps in the creating of different types of products.

Question 47

With the ___________ inventory control system,producers hold only the amount of materials and parts that they need for a short period of time-sometimes just a few hours.

A) ABC
B) First-in, first-out
C) Just-in-time (JIT)
D) Maximum

Question 48

MRP is the acronym for:

A) Minimum resource payments.
B) Maximized revenue potential
C) Managed resource priorities
D) Materials requirement planning

Question 49

A company becomes lean by ______ its capacity to produce high-quality goods,while _______ its need for resources.

A) Investigating; planning
B) Increasing; decreasing
C) Decreasing; increasing
D) Planning; investigating

Question 50

Lean manufacturing ___________ productivity.

A) Increases
B) Decreases
C) Has no effect on
D) Removes the need for added

Question 51

The operations planning practice of inputting sales forecasts into computer software that accurately predicts the amount and timing of materials needed to complete products and projects is:

A) Enterprise Resource Planning.
B) Materials Requirement Planning.
C) Virtual accuracy tool.
D) Computer Based Materials Model.

Question 52

The main objective of lean manufacturing is to:

A) Keep labor costs as low as possible by expanding the use of other resources.
B) Produce products that have fewer frills and options in order to simplify the production process and keep costs as low as possible.
C) Produce goods using less of all types of resources.

Question 53

Which of the following is a likely reason that a company would move its facility from one location to another?

A) Availability of expensive labor
B) Higher quotas on competing goods
C) Access to various modes of transportation
D) Unavailability of a retired workforce.

Question 54

__________ is the process of selecting a geographic location for a company's operations.

A) Facility location
B) Facility layout
C) FRP
D) Geographic requirements planning

Question 55

The Six Sigma approach to quality control:

A) Relies on a special team of experts to examine every unity of output at the end of the production process.
B) Detects potential problems early on to prevent their occurrence.
C) Views quality control as a function of the marketing department.
D) Allows only 600 defective units per one thousand units produced.

Question 56

______________ means tailoring products to meet the needs of a large number of individual customers.

A) Mass customization
B) Mass production
C) Competing in time
D) Feedback in response production

Question 57

The goal of lean manufacturing is to:

A) Keep inventories of finished goods as high as possible.
B) Produce goods and services with less of everything that goes into the process.
C) Produce a very limited variety of goods.
D) Become more self-sufficient by producing major components rather than buying them.

Question 58

To reduce the cost of holding too much inventory,many companies have implemented:

A) ABC inventory management.
B) First-in, last-out inventory control.
C) Just-in-time inventory control.
D) Maximum inventory management.

Question 59

Dave's Cap Emporium offers to produce hats and caps according to customers' requests.Dave's utilizes a(n):

A) Analytic system.
B) Just-in-time system.
C) Intermittent process.
D) Continuous process.

Question 60

ERP is the acronym for:

A) Educated rights planning
B) Extensive research planning
C) Enterprise resource planning
D) Emphatic requirements planning

Question 61

The equipment and software Shawn wants to acquire will allow the computers used to design motors to be linked directly to the computer-aided equipment of the factory floor.Shawn is proposing to set up a(n):

A) Modular manufacturing system.
B) Computer-integrated manufacturing system.
C) E-hub that relies on network software to control the production process.
D) First-in, first-out production system.

Question 62

Which of the following would be most helpful to a production manager who wanted to determine the minimum time required to complete a proposed project?

A) TQM
B) CAD/CAM
C) ERP
D) PERT

Question 63

_____________ is a technique to analyze and sequence tasks involved in completing a project,to estimate the time needed to complete each task,and to determine the minimum amount of time needed to complete each project.

A) PERT
B) ECON
C) LIFO
D) GANTT

Question 64

Enterprise resource planning (ERP)goes beyond the capabilities of MRP because it:

A) Gives much more precise cost estimates.
B) Finds the critical path and computes its length.
C) Monitors the computerized functions of all divisions and subsidiaries of the firm in single software.
D) Handles research data about more than one product at the same time.

Question 65

_________ are a set of international standards for quality management and quality assurance.

A) EPA 2000
B) ISO 14000
C) ISO 9000
D) TQM 2003/2004

Question 66

In a PERT network,the sequence of tasks that takes the longest to complete is called the:

A) Optimal path.
B) Maximum path.
C) Straight path.
D) Critical path.

Question 67

In a just-in-time inventory system,suppliers:

A) Deliver materials and parts in large quantities only a few times a year.
B) Enjoy much lower delivery costs.
C) Have a great deal of flexibility in determining when to make deliveries.
D) Become more like a department in the producing firm rather than a separate business.

Question 68

________ standards are concerned with the best practices for managing an organization's environmental impacts.

A) EPA 2000
B) ISO 14000
C) Eurogreen 700
D) Enviro 2001

Question 69

The purpose of determining the critical path on a PERT network is to:

A) Identify the sequence of tasks that takes the longest to complete.
B) Estimate a payment schedule so that a budget can be established.
C) Find the sequence of events that is the most expensive to complete.
D) Establish a delivery schedule for just-in-time inventory.

Question 70

What is the Malcolm Baldridge Award?

Question 71

Which of the following statements is most accurate?

A) Most manufacturing firms are turning to an assembly line layout to produce output as efficiently as possible.
B) For service firms, the main objective in facility layout is to centralize the control of operations.
C) Facility layout is important for manufacturing plants because facility layout decisions can have a huge impact on the firm's costs.
D) In a modular layout, workers are assigned a specific station along an assembly line and specialize in performing a specific task.

Question 72

Missy works as a new product development engineer for a company that makes solar panels for residential and commercial purposes.Her company uses PERT network software for all development projects.As she nears the final month of her timeline for completing a new panel,Missy will focus on those activities that are:

A) Most costly to complete.
B) On the priority bar of the PERT chart.
C) Near the end of the PERT network.
D) On the critical path of the PERT network.

Question 73

Production manager Dave Harmon wants to link all the divisions and subsidiaries of his firm's computerized functions into a single,integrated software program that uses a single database.In order to achieve this goal,Dave could make use of:

A) Enterprise resource planning.
B) Manufacturing resource planning.
C) Program evaluation and review techniques.
D) Gantt charts.

Question 74

The ________ National quality award is given to firms that achieve an outstanding level of overall quality based on performance in seven key areas.

A) Association of Operations Managers
B) Excellence in Production Committee
C) National association of Manufacturers
D) Malcolm Baldridge.