Deck 21: Operations and Value Chain Management

Question 1

The fixed-position layout is one in which the equipment remains in one location and the products are brought to it.

Answer 1

False

Question 2

Product life-cycle management is manufacturing software that manages a product from creation through development, manufacturing, testing, and even maintenance in the field.

Answer 2

True

Question 3

A process layout is a facilities layout in which machines that perform the same function are grouped together in one location.

Answer 3

True

Question 4

Today, more than one-half of all businesses are service organizations and one-third of the U.S. workforce is employed in services.

Question 5

With integration, more companies are opting for a partnership approach, which involves cultivating intimate relationships with a few carefully selected suppliers and collaborating closely to coordinate tasks that benefit both parties.

Question 6

An example of a computerized manufacturing system (CMS) is a small to medium-size automated production line that can be adapted to produce more than one product line.

Question 7

The most economical level at which an inventory item should be reordered is the ROP.

Question 8

The technical core, in an automobile company, includes the plants that manufacture automobiles, while the same in a university includes teaching and research.

Question 9

According to Unlocking Innovative Solutions through TECHNOLOGY in Chapter 21, PrairieStone Pharmacy is able to provide better customer service in a smaller space.

Question 10

Using DFMA is ridiculously inexpensive.

Question 11

Reliability is the ability of the product or service to fulfill its intended function.

Question 12

The purchasing of supplies, services, and raw materials for use in the production process is known as procurement.

Question 13

A facilities layout in which machines dedicated to sequences of production are grouped in accordance with group-technology principles is known as a cellular layout.

Question 14

Capacity planning is the determination and adjustment of the organization's ability to produce products to match the organization's inventory capacity.

Question 15

CAM refers to a production technology in which computers perform new-product design.

Question 16

The field of management that specializes in production of goods and services and uses special tools and techniques for solving production problems is called operations management.

Question 17

A service organization is an organization that produces nonphysical goods that require customer involvement and cannot be stored in inventory.

Question 18

Operations strategy is the recognition of the important role of operations in organizational success and involvement of operations managers in the organization's strategic planning.

Question 19

With a product layout, the product remains in one location and the required tasks and equipment are brought to it.

Question 20

The field of management that specializes in production of goods and services and uses special tools and techniques for solving production problems is called technical management.

Question 21

The economic order quantity (EQU) is the amount that needs to be ordered to minimize the total of ordering and ordering costs.

Question 22

The most common inventory control system used for handling dependent demand inventory is manufacturing resource planning.

Question 23

Raw materials inventory includes the materials moving through the stages of the production process that are not completed products.

Question 24

The ratio of total outputs to the inputs from labor, capital, materials, and energy is called the total factor productivity.

Question 25

Three types of normal inventory are finished goods, work in process, and raw materials.

Question 26

Independent demand inventory is inventory in which item demand is related to the demand for other inventory items.

Question 27

Increased employee productivity means having workers produce more output in the same time period.

Question 28

Partial productivity is the ratio of total outputs to a major category of inputs.

Question 29

Managing the movement of materials within a facility, the shipment of incoming materials from suppliers, and the shipment of outgoing products to customers is known as distribution.

Question 30

Problems can be hidden with large inventories in operations management.

Question 31

Dependent demand inventory is inventory in which item demand is related to the demand for other inventory items.

Question 32

Under lean manufacturing, employees are discouraged to participate in the improvement of quality.

Question 33

Keeping inventories low is especially important to the high-tech firms, because so many of their products lose value quickly.

Question 34

One of the criticisms of Deming's 14 points for management productivity is that he did not emphasize teaching leadership.

Question 35

Increased managerial productivity means having workers produce more output in the same time period.

Question 36

In general, companies keep more safety stock when demand for items is easy to predict.

Question 37

JIT inventory systems are designed to reduce the level of an organization's inventory to zero.

Question 38

The EOQ formula works best when inventory items are dependent on one another.

Question 39

Logistics is the moving of finished products out to customers.

Question 40

Productivity can be improved by either increasing the amount of output using the same level of inputs or reducing the number of inputs required to produce the output.

Question 41

DFMA refers to

A) department for manufactured automobiles.
B) department for manufacturing association.
C) design for manufacturability and assembly.
D) design for materials accessibility.
E) none of these

Question 42

In which of the following ways do service organizations differ from manufacturing organizations?

A) In manufacturing organizations, the customer is directly involved in the production process.
B) In service organizations, employees are generally more satisfied.
C) In manufacturing organizations, the manufactured product cannot be placed in inventory.
D) In service organizations, the customer is directly involved in the production process.
E) In service organizations, the final product can be stored in inventory.

Question 43

The service sector has increased __________ times as fast as the manufacturing sector in the North American economy.

A) 3
B) 5
C) 7
D) 9
E) 11

Question 44

What do manufacturing organizations and service organizations have in common?

A) Both types of organizations must obtain raw materials.
B) Both types of organizations need to be concerned with scheduling.
C) Both types of organizations should be concerned with quality and productivity.
D) All of these
E) Both types of organizations must obtain raw materials and need to be concerned with scheduling

Question 45

The recognition of the important role of operations is organizational success is part of the definition of

A) operations awareness.
B) operations dominance.
C) operations strategy.
D) manufacturing organization.
E) service organization.

Question 46

With integration, more companies are opting for a(n) __________, which involves cultivating intimate relationships with a few carefully selected suppliers and collaborating closely to coordinate tasks that benefit both parties.

A) co-op
B) outreach
C) arm's length
D) divesture
E) partnership

Question 47

__________ is not a manufacturing organization.

A) Ford Motor Company
B) McDonald's
C) General Motors
D) Levi Strauss
E) All of these are manufacturing organizations.

Question 48

The __________ is the heart of the organization's production of its product or service.

A) manufacturing department
B) technical core
C) technological environment
D) production sector
E) output

Question 49

__________ is the term for managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to final consumers.

A) Procurement management
B) Supply chain management
C) Customer satisfaction
D) Logistics
E) Competitive advantage

Question 50

The notion of simplicity and DFMA translate into four concerns for product design. Which of the following is NOT one of the concerns?

A) Producibility
B) Flexibility
C) Cost
D) Reliability
E) Quality

Question 51

Airlines, universities, and consulting companies are all examples of

A) service organizations.
B) manufacturing organizations.
C) production organizations.
D) public sector organizations.
E) industrial organization.

Question 52

__________ is the best way to control operations.

A) Strategic planning
B) Bureaucratic control
C) Clan control
D) Rules and regulations
E) All of these

Question 53

__________ is the recognition of the importance of operations to the firm's success and the involvement of operations managers in the organization's strategic planning.

A) Operations strategy
B) Process layout
C) Operations awareness
D) Product layout
E) None of these

Question 54

Which of these refers to an organization that produces physical goods?

A) A manufacturing organization
B) A service organization
C) An operations management organization
D) A physical organization
E) None of these

Question 55

In a computer-manufacturing firm, the technical core includes

A) the plants where the computers are manufactured.
B) the human resources department.
C) the research and development department.
D) the marketing department.
E) all of these.

Question 56

A(n) __________ is an organization that produces nonphysical outputs that require customer involvement and cannot be stored in inventory.

A) manufacturing organization
B) service organization
C) operations management organization
D) non-inventory organization
E) consumer-driven organization

Question 57

Using DFMA is ridiculously

A) inexpensive.
B) expensive.
C) difficult.
D) laborous.
E) unreliable.

Question 58

In a(n) __________ approach of supplier relationships, an organization spreads its purchases among many suppliers and encourages them to compete with one another.

A) co-op
B) outreach
C) arm's length
D) collaboration
E) partnership

Question 59

The four major outcomes on which managers focus to build a highly effective operations systems include all of the following EXCEPT:

A) achieving superior customer responsiveness
B) achieving superior innovation with speed and flexibility
C) achieving superior quality
D) achieving superior efficiency
E) all of these are outcomes on which managers focus

Question 60

The field of management that specializes in the physical production of goods or services, according to your textbook, is known as

A) engineering management.
B) quantitative management.
C) operations management.
D) production management.
E) service management.

Question 61

The product layout is most efficient when

A) the organization produces huge volumes of custom products.
B) the organization produces huge volumes of identical products.
C) the flow of raw materials is constant.
D) combined with a process layout.
E) all of these

Question 62

A facilities layout in which machines that perform the same function are grouped together in one location is called a(n)

A) fixed-position layout
B) one-position layout
C) process layout
D) product layout
E) flexible manufacturing system

Question 63

The fixed-position layout is necessary for

A) long production runs.
B) when the organization is producing in huge volumes.
C) custom orders.
D) mass production.
E) small miniature items.

Question 64

The determination and adjustment of the organization's ability to produce products and services to match customer demand is called

A) organizational flexibility.
B) capacity planning.
C) customer satisfaction.
D) MRPII.
E) none of these.

Question 65

MANAGER'S SHOPTALK in Chapter 21 offers four tips for building a nimble organization, including all of the following EXCEPT:

A) create a flexible environment
B) recruit carefully
C) practice being fast
D) inspire your staff
E) set up rigid department

Question 66

Which of these is a facilities layout in which machines dedicated to sequences of production are grouped into cells in accordance with group-technology principles?

A) A product layout
B) A process layout
C) A fixed-position layout
D) A one-position layout
E) A cellular layout

Question 67

__________ is a production technology in which computers help guide and control the manufacturing system.

A) CAD
B) CAM
C) MRP
D) DFMA
E) None of these

Question 68

__________ is the degree to which the customer can count on the product or service to fulfill its intended function.

A) Producibility
B) Reliability
C) Cost
D) Quality
E) Simplicity

Question 69

__________ is based on group-technology principles.

A) A fixed-position layout
B) A cellular layout
C) A product layout
D) A process layout
E) All of these

Question 70

__________ refers to a production technology in which computers perform new product design.

A) CAD
B) CAM
C) MRP
D) DFMA
E) None of these

Question 71

Which of these is a facilities layout in which the product remains in one position?

A) A fixed-position layout
B) A product layout
C) A process layout
D) A cellular layout
E) All of these

Question 72

Services have one additional design requirement over product designs. This requirement is called

A) producibility.
B) cost.
C) quality.
D) timing.
E) reliability.

Question 73

The purchasing of supplies, services, and raw materials for use in the production process is called:

A) ordering
B) procurement
C) processing
D) inventory
E) none of these.

Question 74

The most common approach to selecting a site for a new location is to

A) look for bargains.
B) do a cost-benefit analysis.
C) identify expansion possibility.
D) evaluate the labor supply.
E) none of these.

Question 75

The process layout has which of the following advantages?

A) Potential economies of scale
B) It facilitates group problem solving
C) It facilitates teamwork
D) All of these
E) Potential economies of scale and group problem solving

Question 76

Which of these is inventory consisting of items that have passed through the complete production process but have yet to be sold?

A) Finished goods inventory
B) Work-in progress inventory
C) Raw material inventory
D) Possessed inventory
E) Non-physical inventory

Question 77

In __________, staffing flexibility enhanced.

A) process layout
B) product layout
C) cellular layout
D) fixed-position layout
E) one position layout

Question 78

The serviceability and value that customers gain by purchasing the product is known as

A) producibility.
B) reliability.
C) cost.
D) quality.
E) simplicity.

Question 79

A small or medium-sized automated production line that can be adapted to produce more than one product line is referred to as a

A) materials requirement planning.
B) reliable production system.
C) flexible manufacturing system.
D) dependent demand system.
E) MRPII.

Question 80

A facilities layout in which machines and tasks are arranged according to the sequence of steps in the production process is known as

A) a product layout.
B) a process layout.
C) a cellular layout.
D) one position layout.
E) multi-layer layout.