Deck 15: Achieving World-class Operations Management

Question 1

Mass production relies heavily standardization, mechanization, and which of the following?

A) reliability
B) efficiency
C) specialization
D) uniformity

Answer 1

C

Question 2

Which of the following is the opposite of mass production?

A) customization
B) niche manufacturing
C) individualization
D) specified production

Answer 2

A

Question 3

Production and operations management involves three main types of decisions that are made at three different stages. At which stage is the focus on controlling quality and costs?

A) tactical control
B) production planning
C) defect elimination
D) operational control

Answer 3

A

Question 4

The activities of operations managers are best described by which of the following?

A) They face the challenge of combining people and other resources to produce high-quality products.
B) They do not decide which products the company should produce but act on the decisions of upper management.
C) They work closely with people in the marketing and production departments only.
D) They control about one-quarter of a company's assets.

Question 5

There is a standard approach to butchering a steer; however, after standardized preparation, the meat is tailored to meet individual needs and desires. This is an example of which type of production?

A) niche manufacturing
B) just-in-time production
C) individualized production
D) mass customization

Question 6

Which of the following is the process that converts inputs into outputs that can then be sold as goods and services?

A) production
B) marketing
C) specialization
D) mechanization

Question 7

Spalding produces large numbers of golf balls all at once. Spalding puts the golf balls in inventory and distributes them around the world. Which of the following type of production is Spalding using?

A) production-to-order
B) mass production
C) custom production
D) process production

Question 8

What is the way in which a good is made or a service is provided?

A) production process
B) production layout
C) general production
D) production design

Question 9

Production and operations management involves three main types of decisions that are made at three different stages. The final stage of operations management focuses on which of the following?

A) inventory control
B) improving production and operations
C) production planning
D) establishing critical paths

Question 10

Which of the following is the combining of natural resources, human resources, and capital to produce goods and services?

A) marketing
B) specialization
C) utilization
D) production

Question 11

The aspect of operations management in which the company considers its resources and its own strategic goals in an effort to determine the best production methods is known as which of the following?

A) efficiency optimization
B) operations maximization
C) production planning
D) establishing critical paths

Question 12

The emphasis on keeping manufacturing costs low by producing uniform products by using repetitive and standardized process is part of which of the following?

A) centralized production
B) mass production
C) uniform production
D) standard production

Question 13

What is the ability to manufacture many goods at once?

A) centralized production
B) open production
C) general production
D) mass production

Question 14

When a thermometer manufacturer combines glass tubing, mercury, red dye, paint, plastic, and metal to make thermometers, it is an example of which of the following?

A) distribution
B) materialization
C) production
D) marketing

Question 15

In which type of production are goods produced using mass-production techniques up to a point, then production is custom tailored to the needs or desires of individual customers?

A) individualized production
B) niche manufacturing
C) mass customization
D) just-in-time production

Question 16

Which of the following is the management of the production conversion process for both goods and services?

A) total quality control
B) operations management
C) manufacturing
D) specialization

Question 17

Production and operations management involves three main types of decisions that are made at three different stages. The first type of decision to be made involves which of the following?

A) establishing critical paths
B) production planning
C) improving production and operations
D) inventory control

Question 18

Operations management is best described as which of the following?

A) the management of the production conversion process
B) a combination of strategic and tactical management activities
C) the process of turning product research into new product development
D) how the company is managed on a day-to-day basis

Question 19

Which of the following is NOT one of the four important decisions that must be made in production planning?

A) facility layout
B) employee allocation
C) resource planning
D) site selection

Question 20

Which of the following is NOT one of the three types of production?

A) mass customization
B) customization
C) customized production
D) mass production

Question 21

Which of the following processes are used for short production runs?

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

Question 22

What is a production process in which the basic input is broken down into one or more outputs?

A) process manufacturing
B) continuous process
C) intermittent process
D) assembly process

Question 23

Which of the following businesses is most likely to consider proximity to raw materials when locating a new manufacturing plant?

A) manufacturer of eyeglasses
B) light bulb manufacturer
C) company that cans vegetables
D) computer manufacturer

Question 24

Cherokee Spring Mill produces four varieties of cornmeal based on how finely the corn is ground. The mill makes long production runs of high volume. Which process does Cherokee Spring Mill use?

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

Question 25

Which of the following companies would be LEAST likely to use the continuous process?

A) plywood plant
B) bakery
C) chemical company
D) oil refinery

Question 26

Which of the following is a characteristic of the intermittent process?

A) short production runs
B) high volume
C) standardized products
D) low variety of products

Question 27

What is a production process in which the basic inputs are either combined to create the output or transformed into the output?

A) intermittent manufacturing
B) assembly process
C) process manufacturing
D) continuous process

Question 28

In the production of cornmeal for baking, corn is ground. This conversion process is an example of which of the following processes?

A) process manufacturing
B) production segregation
C) the assembly process
D) consumer product conversion

Question 29

Which of the following businesses would be LEAST likely to use an intermittent process?

A) print shop
B) oil refinery
C) tax service
D) bakery

Question 30

Hans Guten makes furniture according to the specifications of the customer who ordered it. Each piece of furniture he makes is unique and he makes only one piece of furniture at a time. Guten is engaged in which of the following production processes?

A) mass production
B) individualized production
C) customization
D) niche manufacturing

Question 31

What is a system that utilizes long production runs resulting in high-volume, standardized products?

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

Question 32

Production involves converting inputs into outputs. Which of the following is NOT considered an input?

A) raw materials
B) machinery
C) inventory
D) human resources

Question 33

Levi Strauss was strongly praised when it announced it was leaving China in 1993 because of the country's poor human rights record. However, China is also an inexpensive place to manufacture clothing, and in spite of its announcement, Levi did not stop making clothing in China. Which of the following facility location factors was most likely instrumental in Levi's deciding to continue operating its facility in China?

A) nearness to customers
B) proximity to raw materials
C) availability of production inputs
D) access to transportation

Question 34

Which type of processes do most service companies use?

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

Question 35

What is a manufacturer that uses the intermittent process to produce special customer orders?

A) a job shop
B) a central shop
C) a modular shop
D) a localized processor

Question 36

Starcrest Publishing is one of many companies that will take demographic information about your child and publish a story written about that child. The story is already written, and a computer is used to insert the relevant information into the spaces left blank. Starcrest Publishing uses which of the following processes?

A) mass customization
B) just-in-time production
C) niche manufacturing
D) individualized production

Question 37

A hot cocoa mix combines dry milk, whey, corn syrup, processed cocoa, aspartame, and artificial flavourings and colours. This conversion process is an example of which of the following?

A) assembly process
B) production integration
C) consumer product conversion
D) process manufacturing

Question 38

A company starts up a website where customers can create the perfect athletic shoe to support their particular shape of foot and style of activity. Visitors to the site select from 15 different elements to design a pair of shoes perfect for them. This company uses which of the following processes?

A) just-in-time production
B) individualized production
C) niche manufacturing
D) mass customization

Question 39

Which of the following shops is a manufacturing company that engages in customization?

A) job shop
B) process-oriented shop
C) union shop
D) customer-oriented shop

Question 40

A company that reupholsters furniture in fabric and style selected by the owner of the piece of furniture is more than likely an example of which type of manufacturing?

A) process manufacturer
B) fixed-position layout
C) closed shop
D) job shop

Question 41

Which of the following manufacturers would be most likely to use a product layout?

A) a small print shop
B) a company that manufactures the helium balloon characters used in a parade
C) a manufacturer of customized air filters
D) a motorcycle manufacturer

Question 42

Which of the following layouts arranges work flow around the production process and has all workers performing similar tasks are grouped together?

A) assembly
B) intermittent
C) process
D) product line

Question 43

What percentage of a manufacturer's total costs can the costs of shipping raw materials and finished goods be?

A) as much as 15%
B) as much as 25%
C) as much as 35%
D) as much as 45%

Question 44

The product layout is sometimes called which of the following?

A) customized layout
B) process layout
C) assembly-line layout
D) intermittent layout

Question 45

What is the goal of cellular manufacturing?

A) to eliminate shrinkage
B) to reduce customer defection
C) to create a team environment
D) to create a zero-defect environment

Question 46

Which of the following is a list of components and the number of each needed for file cabinets to be produced by a manufacturing company?

A) bill of lading
B) bill of materials
C) material plan
D) finished product

Question 47

A German company specializes in building laboratory rooms for handling dangerous viruses and bacteria. Each room is designed to have a completely separate air system that allows the users to examine and identify the viruses and bacteria without contaminating any other area. Which type of layout would be used to construct such a room?

A) fixed-position layout
B) static layout
C) process layout
D) stationary layout

Question 48

Which of the following is a common incentive offered by countries to try to attract companies to set up in their country?

A) free and quick visas
B) subsidies to hire locals
C) free land
D) tax breaks

Question 49

Which of the following is NOT one of the three main types of facility layouts?

A) assembly
B) fixed-position
C) product
D) process

Question 50

What is the physical arrangement of a production facility called?

A) process
B) layout
C) capacity
D) resources

Question 51

After product specifications are set, a company must decide whether to purchase or manufacture the parts that it needs. Which of the following identifies the type of decision required?

A) order and deliver
B) buy or manufacture
C) make or buy
D) purchase or manufacture

Question 52

A process layout is best for a company that has which of the following?

A) repeated routine operations
B) a high volume of products
C) a wide variety of products
D) long production runs

Question 53

Cellular manufacturing combines aspects of which of the following?

A) fixed-position and assembly-line layouts
B) process and product layouts
C) fixed-position and process layouts
D) intermittent and continuous production

Question 54

DaimlerChrysler decided not to build a $750 million plant in southeast Georgia in spite of the state's spending $24 million to purchase the property and an additional $36 million to prepare the site specifically for DaimlerChrysler. Which of the following factors was offered?

A) availability of customers
B) proximity of raw materials
C) low labour costs
D) local incentives

Question 55

Products that are difficult to move out of a plant once they are manufactured, such as ocean-going vessels and room-sized murals, are usually manufactured in which of the following layouts?

A) fixed-position layout
B) centralized layout
C) customized layout
D) static layout

Question 56

Products that require a continuous or repetitive production process use which of the following type of facility layout?

A) continuous layout
B) process layout
C) fixed-position layout
D) product layout

Question 57

Which of the following is a production technique that uses small, self-contained work stations and has each perform all or most of the tasks necessary to complete a manufacturing order?

A) MRP manufacturing
B) cellular manufacturing
C) robotics
D) work station production

Question 58

What is the purchasing function sometimes known as?

A) coordination
B) a buying procedure
C) procurement
D) delivery

Question 59

Taco Bell does not chop the lettuce and tomatoes or grate the cheese used to make its menu items, but hires a company outside the restaurant to perform these tasks. Taco Bell can keep its overhead low and concentrate its resources on taking customer orders and assembling food by doing which of the following?

A) outsourcing
B) demarketing
C) remarketing
D) unbundling

Question 60

What are the three main types of facility layouts?

A) intermittent, variable, and customized
B) fixed position, variable, and service
C) product, process, and fixed position
D) process, product, and service

Question 61

Which of the following approaches uses a master computerized system to ensure that materials, labour, and equipment are available for production?

A) the materials adjustment system
B) perpetual inventory
C) materials requirement planning
D) controlled assembly plan

Question 62

Which of the following focuses on smoothing transitions along the supply chain so that the company can satisfy its customers with quality products and services while focusing on forging tighter bonds with its suppliers?

A) distribution smoothing
B) participative channel management
C) channel power management
D) supply chain management

Question 63

What is the first step in controlling production?

A) routing
B) finding suppliers
C) production planning
D) streamlining the production process

Question 64

What are the two key aspects of production control?

A) inventory and raw material availability
B) raw material availability and scheduling
C) routing and inventory management
D) routing and scheduling

Question 65

When are Gantt charts most helpful?

A) when production routes are long and complex
B) when bottlenecks do not exist
C) when task times are less than one hour
D) when only a few tasks are involved

Question 66

Supply chain management is best described by which of the following?

A) It is a complex computerized system for managing resources efficiently.
B) It focuses on the internal routing of products from raw materials to finished goods.
C) It focuses on developing tighter bonds with suppliers.
D) It focuses on removing scheduling bottlenecks within the company.

Question 67

What is the goal of inventory management?

A) to always buy the cheapest raw material
B) to buy as much as possible
C) to hold as much as possible in stock
D) to hold down costs and maintain accurate levels of inventory

Question 68

Which of the following approaches is a computerized resource planning system that includes information about the company's suppliers and customers as well as data generated internally?

A) enterprise resource planning
B) the PERT chart
C) manufacturing resource planning II
D) manufacturing resource planning

Question 69

When an operations manager has purchased raw material or component parts on the Internet, he or she is engaging in which of the following?

A) e-tailing
B) Internet purchasing
C) computer-assisted buying
D) e-procurement

Question 70

Which of the following is a useful tool for routing, where production managers "map" the flow from suppliers through the factory to customers?

A) value-stream mapping
B) route visualization
C) production charting
D) bottleneck identification

Question 71

Manufacturing resource planning II is best described by which of the following?

A) It considers both the external and the internal environment.
B) It was developed by the Japanese at the same they developed just-in-time systems.
C) It is used to make production planning decisions, such as facility layout and site selection.
D) It is a complex computerized system for generating production plans.

Question 72

Electronic data interchange is an important communications tool for which of the following?

A) just-in-time
B) supply chain management
C) manufacturing resources planning
D) PERT charts

Question 73

Which of the following charts are bar graphs that are plotted on a timeline to show the relationship between scheduled and actual production?

A) bellwether
B) Taylor
C) procedural
D) Gantt

Question 74

Many companies keep a continuously updated list of inventory levels, orders, sales, and receipts. What is this type of inventory called?

A) month-to-month inventory
B) just-in-time inventory
C) coordinating inventory
D) perpetual inventory

Question 75

What do companies need in the case of supply chain disruptions?

A) contingency plans
B) alternative suppliers
C) inventory reserves
D) emergency items

Question 76

Which of the following is a system that would note how a possible strike in an Edmonton, Alberta, plant will threaten supplies of a needed component part as well as how customer preference for time-saving devices is increasing and then use this information in production planning?

A) manufacturing resource planning
B) manufacturing resource planning II
C) enterprise resource planning
D) the PERT chart

Question 77

What is the term for the entire sequence of procuring inputs, producing goods and services, and delivering goods and services to customers?

A) material requirements planning
B) inventory management
C) supply chain
D) enterprise resource planning

Question 78

Which of the following statements best describes reverse auctions?

A) Reverse auctions are an effective procurement process for critical production materials.
B) Large manufacturers do not engage in reverse auctions.
C) In a reverse auction, potential suppliers bid against each other.
D) There are no risks associated with reverse auctions.

Question 79

Which of the following best describes good routing procedures?

A) They increase productivity.
B) They continuously confirm the efficiency of the site location.
C) They reduce bottlenecks.
D) They ensure the availability of needed materials in a timely fashion.

Question 80

What is the supply of goods that a company holds for use in production or for sale to customers?

A) merchandise
B) inventory
C) goods for sale
D) backlog