Deck 8: Operations Management in Manufacturing and Service Industries

Question 1

Calculating the capacity requirements of a proposed plan helps the operations manager determine how much the company must invest in building a plant.

Answer 1

True

Question 2

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

Answer 2

True

Question 3

During the production planning stage, operations managers continually schedule and monitor production activities

Answer 3

False

Question 4

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

Question 5

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

Question 6

The first step in the production planning process is deciding which type of production process is best for making the goods the company intends to manufacture.

Question 7

A printing company would use the mass production (make-to-stock) production method.

Question 8

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

Question 9

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

Question 10

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

Question 11

In a make-to-order production strategy, goods are customized to meet the needs of the buyers who ordered them.

Question 12

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

Question 13

The make-to-order process is the practice of producing high volumes of identical goods.

Question 14

Make-to-order production strategy is used by companies that produce similar goods in large volumes

Question 15

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

Question 16

During the production planning stage, operations managers oversee the purchasing of raw materials.

Question 17

In order to plan a plant's needed capacity, the operations manager must first estimate the selling price of its products.

Question 18

Make-to-stock strategy is commonly used in the production of low volume goods.

Question 19

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

Question 20

In choosing a location for its manufacturing facilities, operations managers often choose to locate their plant close to suppliers.

Question 21

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

Question 22

Mass customization combines the advantages of customized products with the advantages of mass production.

Question 23

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

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

Question 24

What do we mean when we refer to the capacity of a production facility?

Question 25

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 call center, you would want to consider all of the following except:

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

Question 26

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 27

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)individualized production

Question 28

As operations manager for Consolidated American Tanks, Jim Sherman's tasks include all of the following except _____.

A)determine how goods will be produced
B)oversee the purchasing of raw materials and handling of inventories
C)ensure that goods are produced according to specification
D)work with the marketing manager to set the price of manufactured products

Question 29

What three questions should be addressed during the first step in production planning?

Question 30

A(n)______team consists of individuals from different functional areas assigned to work together throughout the product development process.

A)operations
B)project
C)product
D)functional

Question 31

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 accounting manager
D)the operations manager

Question 32

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 33

What does an operations manager do?

Question 34

_____ 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 35

Nike uses the mass customization method of producing some of its goods through its NikeiD program.

Question 36

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 37

The job of the __________ consists of all the activities involved in transforming a product idea into a finished product.

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

Question 38

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 39

How does mass production work?

Question 40

If a company uses the mass customization production method, its customers cannot "have it their way."

Question 41

E?procurement (or e-purchasing) involves the use of the Internet to enable senior management to interact with employees in the purchasing department.

Question 42

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

Question 43

A cellular layout uses teams of workers who handle all aspects of building a product component, a "family of components," or even a finished product.

Question 44

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 45

Just-in-time production is used by companies to process purchasing transactions,

Question 46

When are fixed-position layouts used in manufacturing products?

Question 47

The materials management process encompasses the process of assembling materials.

Question 48

A computer manufacturer that arranges its computer assembly into self-contained teams of employees who handle all aspects of building a computer is using a process layout.

Question 49

Many companies guard against the possibility of running out of needed materials by using a material requirements planning (MRP) system.

Question 50

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

Question 51

Both product and process layouts arrange work by _____.

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

Question 52

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

A)fixed-position layout
B)cellular layout
C)assembly line
D)process layout

Question 53

General Housing Corporation, a company that constructs modular homes at its plant, uses a process layout in the construction of its homes.

Question 54

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 workers on several jobs can be extensive.
C)production lines can backup and slow down production.
D)inventories can build up.

Question 55

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 56

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 57

A fixed-position layout is used to make large items that stay in one place while workers and equipment go to the product.

Question 58

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 59

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

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

Question 60

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)Cellular layout
C)Process layout
D)Fixed position layout

Question 61

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 62

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 63

Material costs often make up ____ of total manufacturing costs.

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

Question 64

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 65

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

Question 66

Inventory control is sophisticated software used to reduce the likelihood that someone can steal materials from a company.

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 (EDI)
C)electronic buying
D)e purchase interchange

Question 68

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

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

Question 69

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

Question 70

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 71

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)material requirements planning (MRP)
C)manufacturing requirements
D)manufacturing to order

Question 72

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

Question 73

In order to draw up a(n) _____, managers need to know where materials are located and headed at every step in the production process.

A)material budget
B)minor production schedule
C)master production schedule
D)Meerschaum schedule

Question 74

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)electronic data interchange
C)material resource planning II
D)advanced maximum resource planning

Question 75

Materials management includes these activities: product development, purchasing, inventory control and work scheduling.

Question 76

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

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

Question 77

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 transactions and transmit purchasing documents

Question 78

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

Question 79

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 80

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