Deck 11: Operations Management in Manufacturing and Service Industries

Question 1

Production planning involves continually scheduling and monitoring production activities.

Answer 1

False

Question 2

The management of the process that transforms resources into products is known as _____.

A) manufacturing management
B) conversion management
C) transformation management
D) operations management

Answer 2

D

Question 3

Standardized products that have come off assembly lines are produced by a process known as _____.

A) mass production
B) customization
C) make-to-order production
D) cloning

Answer 3

A

Question 4

The operations manager is directly involved in efforts to ensure that goods are produced according to specifications.

Question 5

The major areas of responsibility for operations managers include production planning, production control, and quality control.

Question 6

An operations manager is a mid-level manager who directs this transformation process by which resources are converted into products.

Question 7

Make-to-order strategy is commonly used in such businesses as print shops.

Question 8

Mass production is the practice of producing high volumes of identical goods at low cost and held in inventory in anticipation of future demand.

Question 9

After calculating your capacity requirements, you're ready to determine how much investment you'll need to make in your plant and equipment.

Question 10

Businesses often find it easier to control production by locating plants fairly distant from customers.

Question 11

The most important task facing Bob Montgomery and his team at PowerSki was determining how to efficiently produce quality JetBoards at reasonable prices.

Question 12

Operations management is the management of the process that transforms resources into products.

Question 13

In performing quality control tasks, the operations manager is directly involved in efforts to ensure that goods are produced according to specification and that quality standards are maintained.

Question 14

As operations manager for Consolidated American Tanks, Jim Sherman's major task is _____.

A) working with other managers
B) making goal?oriented decisions
C) improving operational efficiency
D) all of these

Question 15

In performing the production control responsibilities, operations managers determine how goods will be produced.

Question 16

At one time, most consumer goods were customized to meet the needs of the buyer who ordered them.

Question 17

Before making decisions about the operations process, operations managers must consider the goals set by marketing manager.

Question 18

Transforming resources into finished goods is the job of the operations manager.

Question 19

The control process starts when operations managers decide not only which goods and how many will be produced, but when.

Question 20

Mass customization and make-to-stock strategy is the same thing.

Question 21

If you visited Just Born, a candy maker, in Bethlehem, Pennsylvania, you would see a conveyor belt parade of marshmallow peeps. The company uses a product layout.

Question 22

Making decisions on how to hold down the costs of materials and labor is the job of _____.

A) each employee
B) the CEO
C) the accounts manager
D) the operations manager

Question 23

Businesses, such as print or sign shops, that produce low?volume, high?variety goods according to customer specifications use a process called _____.

A) mass production
B) make-to-order
C) mass customization
D) customer customization

Question 24

What three questions should be addressed during the first step in production planning?
1) How much input do I receive from a particular customer prior to producing my goods? 2) Am I making a one-of-a-kind good based solely on customer specifications, or am I producing standardized, high-volume goods to be sold later? 3) Do I offer customers the option of "customizing" an otherwise standardized good to meet their specific needs?

Question 25

You work on Just Born's production line decorating Peeps. Arranging work in this way, by function, creates the following problems with one exception:

A) workers can get bored.
B) time required to train you on several jobs can be extensive.
C) production lines can backup and slow down production.
D) inventories can build up.

Question 26

All decisions made in the planning stage, which have long-range implications and are crucial to a firm's success, involve _____.

A) soul searching
B) layoffs
C) trade-offs
D) computerized input

Question 27

When choosing a location for an o HYPERLINK "http://www.google.com/url?sa=t&source=web&ct=res&cd=9&ved=0CC0QFjAI&url=http%3A%2F%2Finvestment.suite101.com%2Farticle.cfm%2Fonline_stock_trading_broker_companies&ei=wtwxS7zLPISOswOKkf3EAg&usg=AFQjCNElSwyxu5fxr9elgJHL2ee72EEkgw" nline stock trading broker company, you would want to consider all of the following except:

A) favorable living conditions.
B) proximity to your customers.
C) availability of skilled workers.
D) amount of financial incentives offered by local governments.

Question 28

A cellular layout requires large teams of workers who can handle all aspects of building a product component.

Question 29

An assembly line is a series of workstations at which raw materials are made into parts.

Question 30

In calculating the quantity of products to be produced you should consider all except the following:

A) forecasted demand for your product.
B) Production output of your closest competitor.
C) capacity of your production facilities.
D) labor hours available.

Question 31

A computer manufacturer that arranges its computer assembly into self-contained teams of employees working in a U-shaped formation so that they can share the workload and handle all aspects of building the computers is using a process layout.

Question 32

What do we mean when we refer to "product capacity"?

Question 33

General Housing uses a process layout in the construction of its modular homes.

Question 34

What does an operations manager do?

Question 35

Which of the following companies does not devote at least a portion of its operations to mass customization?

A) Nike
B) Levi
C) Oakley
D) Colgate Palmolive

Question 36

Manufacturing managers focus on scheduling the _____ needed to transform raw materials into finished goods.

A) workers
B) activities
C) equipment
D) machinery

Question 37

The Vermont Teddy Bear Company uses a product layout in the manufacture of its teddy bears.

Question 38

How does mass production work?

Question 39

What is the first step in the production process?

A) Determining the quantity of products the company will produce.
B) Deciding which type of production process is best for your company.
C) Picking a location for your company.
D) Determining how the company can produce high quality products at a low cost.

Question 40

In producing large items, manufacturers may use fixed-position layouts in which workers go to products that stay in one place.

Question 41

Both product and process layouts arrange work by _____.

A) capacity
B) function
C) strategy
D) orders

Question 42

Just-in-time production helps companies process transactions and issue purchasing documents.

Question 43

To help monitor resources in all areas of the company, the sophisticated system called manufacturing resource planning (MRP II) goes beyond a system for material planning.

Question 44

A company that uses a just-in-time production method produces its product just-in-time to deliver them to customers.

Question 45

In the past, many companies guarded against the possibility of running out of materials and consequently stopping production by using a just-in-time inventory system.

Question 46

Collins' Computers arranges its computer assembly into teams working in a U- shaped formation so that they can share the work and some of the equipment. What type of production layout does Collins' Computer use?

A) Product layout
B) Process layout
C) Fixed position layout
D) Cellular layout

Question 47

An electronic data interchange (EDI) system is used to monitor inventory levels.

Question 48

High-volume goods are produced efficiently by people, equipment, or departments arranged in a(n)_____.

A) maximum?work line
B) cellular layout
C) assembly line
D) s-shaped layout

Question 49

Describe each of the major types of facility layouts: process, product, cellular and fixed position.

Question 50

E?procurement (or e-purchasing) involves the use the Internet to interact with suppliers.

Question 51

In a(n) _____ layout, high-volume goods are produced efficiently by people, equipment, or departments arranged in a series of workstations at which previously made parts are assembled.

A) product
B) assembly?line
C) product?line
D) manufacturing

Question 52

In producing large items, manufacturers often use a(n) _____ layout, in which workers go to products that stay in one place.

A) stationary
B) fixed-position
C) cellular
D) immobile

Question 53

_____ refers to the maximum number of goods that a facility can produce over a given period of time under normal working conditions.

A) Operations breadth
B) Product ceiling
C) Capacity
D) Production control

Question 54

The materials management process encompasses the process of assembling materials.

Question 55

The Customized Communication Print Shop plans to specialize in customized announcements and newsletters and personalized stationary. Which of the following layouts would be best for this business?

A) Process
B) Product
C) Cellular
D) Fixed-position

Question 56

When are fixed-position layouts used in manufacturing products?

Question 57

Workers or departments that perform similar tasks may be grouped together in a _____ layout.

A) component layout
B) product layout
C) critical layout
D) process layout

Question 58

Materials management encompasses purchasing, inventory control and work scheduling.

Question 59

Inventory control is a method used to ensure that no one steals a company's inventory.

Question 60

Once you've forecasted the demand for a product, you can calculate the _____ requirements of your production facility.

A) budget
B) capacity
C) personnel
D) capital

Question 61

The _____ manager is responsible for determining a vendor's reputation.

A) operations
B) materials
C) components
D) purchasing

Question 62

Which of the following materials management activities is concerned with making sure the company has enough materials on hand to meet its production schedule?

A) Purchasing
B) Procurement
C) Inventory control
D) Warehousing

Question 63

Completing an activity on the critical path of a PERT chart early will delay the project.

Question 64

PERT charts are simpler and easier to use than Gantt charts.

Question 65

For complex schedules, operations managers may use PERT charts to diagram the activities required to produce a good.

Question 66

A _____ chart is an easy-to-use graphical tool that helps operations managers determine the status of projects.

A) flow
B) production
C) Gantt
D) PERT

Question 67

Let's say that you bought a TV on eBay and paid for it electronically. To process your transaction and transmit all of your purchasing documents, the manufacturer might use an _____ system.

A) Internet interchange
B) electronic data interchange
C) electronic?buying
D) e?purchase interchange

Question 68

When production processes reach a certain level of complexity, operations managers may use _____ charts to schedule activities.

A) Gantt
B) PERT
C) SCAT
D) Rorschach

Question 69

Material costs often make up ____ of total manufacturing costs.

A) 25%
B) 75%
C) 50%
D) 10%

Question 70

The inventory?control method called _____ relies on a computerized program to calculate the quantity of materials needed for production and to determine when they should be ordered or made.

A) buying?to?order
B) manufacturing requirements
C) manufacturing?to?order
D) material requirements planning

Question 71

Following basically the same process that you'd use to buy a product on eBay, a(n) _____ manager uses the Internet to buy parts and supplies.

A) materials
B) operations
C) automation
D) purchasing

Question 72

As an operations manager at Century Unlimited Industries, Sylvia Moses uses basic MRP to focus on material planning and the more sophisticated system called _____ to help monitor resources in all areas of the company.

A) manufacturing resource planning II
B) manufacturing requirement planning II
C) material resource planning II
D) advanced maximum resource planning

Question 73

Gantt charts are useful when the production process is complex and activities are interrelated.

Question 74

All of the following are daily activities involved in the process of materials management except _____.

A) purchasing
B) inventory control
C) work scheduling
D) goods production

Question 75

Which of the following is not a way in which the Internet is used by purchasing managers?

A) Sell the company's goods
B) Shop for parts and supplies using online catalogs
C) Participate in an online marketplace
D) Process your transactions and transmit purchasing documents

Question 76

Once the production process is in place, the operations manager can turn his or her attention to the daily activities of _____.

A) distribution planning
B) procurement
C) materials management
D) floor supervisors

Question 77

Describe just-in-time production and explain why companies adopt this production method.

Question 78

What is e-purchasing and how do companies use this method to interact with suppliers?

Question 79

Companies that use a just-in-time (JIT) production system:

A) ensure that their finished products are completed just in time to fill customers' orders.
B) have higher inventory costs because of additional handling costs charged by suppliers to expedite materials.
C) have frequent contact with their suppliers.
D) set up their assembly lines just-in-time to meet customer demand.

Question 80

Which tool is best for diagramming complex schedules?

A) Gantt Chart
B) PERT chart
C) Computer-Aided Design software
D) Project management software