Deck 17: Operations Management: Putting It All Together

Question 1

__________first proposed the relationship between quality and business success in the early 1950s.

A)Frederick Winslow Taylor
B)W.Edwards Deming
C)Peter Drucker
D)Henry Mintzberg

Answer 1

B

Question 2

Computer-aided design/computer-aided manufacturing (CAD/CAM) is a combination of software that can be used to design output and send instructions to automated equipment to perform the steps needed to produce this output.

Answer 2

True

Question 3

The only standard in the ISO 9000 family for which organizations can be certified is ISO 9011.

Answer 3

False

Question 4

In a cellular layout, cells are designed to be operated by a few workers who perform a wider array of tasks than assembly-line workers.

Question 5

A product layout is used by firms that need to produce small batches of goods that require a degree of customization.

Question 6

Samantha, a game programmer working for GameZone Inc., uses a software program that enables her to create drawings quickly and easily. The software also allows her to create 3-D drawings. In this scenario, which of the following software does Samantha use?

A)Computer-aided design software
B)Computer-aided engineering software
C)Computer-aided manufacturing software
D)Computer-aided processing software

Question 7

MoneyMatters, a finance firm, provides support to HMD Inc. in its financial matters and taxation processes of its employees. Later, HMD decides to create an in-house financial team to manage its financial matters. In this scenario, MoneyMatters loses its business because of _____ done by HMD.

A)outsourcing
B)offshoring
C)vertical integration
D)critical path method

Question 8

Ursula Corp., a manufacturer of notebooks, makes small batches of particular kinds of notebooks according to customer demand. In this way, it caters to the needs of various customers without increasing the manufacturing cost much. In this scenario, which of the following techniques does Ursula employ?

A)Computer-aided engineering
B)Mass production
C)Adjustable manufacturing
D)Mass customization

Question 9

Enterprise resource planning (ERP) systems are:

A)complex.
B)cheap.
C)easy to implement.
D)user-friendly.

Question 10

Unlike in the 1960s, most operations managers today view the natural environment as something to exploit.

Question 11

Which of the following is a difference between total quality management (TQM) and Six Sigma?

A)Unlike TQM, Six Sigma relies on teams of workers to carry out specific tasks and projects to improve quality.
B)Unlike TQM, Six Sigma aims to reduce defects of any process to a level of no more than 3.4 per million opportunities.
C)Unlike Six Sigma, TQM relies on extensive employee training.
D)Unlike Six Sigma, TQM relies on expert guidance.

Question 12

Retail firms normally hold work in process or raw materials.

Question 13

Greg owns a furniture business and produces only enough goods to meet the current demand. This helps him save inventory costs. In this context, Greg uses just-in-time (JIT) production.

Question 14

In a servicescape, functionality refers to factors such as decor, background music, lighting, noise levels, and even scents.

Question 15

Unlike goods, services are _____.

A)tangible
B)consumed
C)experienced
D)palpable

Question 16

Harry, an architect working for Buildext Corp., uses a software program to create blueprints of buildings planned by him. This software enables him to create 3-D drawings that make his presentation effective. In this scenario, which of the following software does Harry use to create the blueprints?

A)Computer-aided design software
B)Computer-aided engineering software
C)Computer-aided manufacturing software
D)Computer-aided processing software

Question 17

Dennis, a manager at Luis Bryan Inc., oversees the activities involved in creating the right products and services in the right quantities and distributing them to the right customers. His decisions have a major impact on the company's financial success. This illustrates operations management.

Question 18

David works in a small manufacturing firm that makes customized office furniture. He feels it is important to work directly with customers to design high-quality furniture that precisely meets their needs. He believes that doing so would create more value for customers and provide a better relationship between the price of the product and its benefits. In the given scenario, David most likely _____.

A)uses mass production
B)focuses on efficiency
C)focuses on effectiveness
D)uses undifferentiated marketing

Question 19

Distinguishing between the critical path and other paths can:

A)lead to a lot of confusion in the planning of projects.
B)help operations managers allocate resources more efficiently.
C)provide clarity about the inventories of an organization.
D)create a dispute among employees regarding the work flow.

Question 20

Tang Bakery reviews the feedback of its customers every month and customizes the production of its cakes based on this feedback. It requires complex planning and control management. The bakery makes small batches of its most popular cakes to maintain customization. In this scenario, which of the following layouts does Tang Bakery use?

A)A combined layout
B)A process layout
C)A product layout
D)A cellular layout

Question 21

Which of the following statements is true of offshoring?

A)It is the same as outsourcing processes to other organizations.
B)A firm often offshores processes by directly investing in its own foreign facilities.
C)A firm that uses offshoring faces less risk of intellectual property theft.
D)It occurs when a firm gains control over its value chain by performing all processes internally.

Question 22

Selena, a school teacher working at NSP Elementary School, plans the activities for the sports day of the school. She prepares a list of all the planned activities to be done on that day with time allotted for each activity and decides the sequence to be followed for the activities. This information could be used to construct a(n) _____ for her plan.

A)SWOT matrix
B)inventory checklist
C)critical path
D)Six Sigma model

Question 23

Computer-integrated manufacturing results when:

A)computer-aided design is integrated with the critical path method.
B)computer-aided design or computer-aided manufacturing software is integrated with a production unit.
C)computer-aided design or computer-aided manufacturing software system is integrated with robots.
D)computer-aided design is integrated with a cellular layout.

Question 24

Krest Bank has installed over 50 ATMs across the city that allow its customers to deposit cash into their bank accounts at their convenience. In this scenario, Krest Bank offers its customers a _____.

A)nondurable good
B)perishable product
C)service
D)process

Question 25

Edith, the CEO of Harry's Inc., a manufacturer of men's apparel, believes in manufacturing large quantities of the company's standardized clothing line to keep the manufacturing costs low. In this scenario, Edith follows:

A)outsourcing.
B)the mass production strategy.
C)the mass customization strategy.
D)vertical integration.

Question 26

A _____ falls between the product layout and the process layout.

A)cellular layout
B)combined layout
C)fixed position layout
D)functional layout

Question 27

Which of the following statements is true of enterprise resource planning (ERP) systems?

A)They help manage activities along an entire supply chain.
B)They are inexpensive and easy to implement.
C)They require users to enter and access data in traditional ways.
D)They are the software version of the critical path method.

Question 28

The tangible and intangible features of a product are sometimes called the _____.

A)customer benefit package
B)product layout
C)value chain
D)critical path

Question 29

Which of the following is a benefit of holding large inventories?

A)Absence of holding costs due to tax exemption
B)Decreased risk of losses due to depreciation
C)Availability of abundant funds
D)Reduced ordering costs

Question 30

Effectiveness means producing products that:

A)are cheap.
B)are mass-produced.
C)create value.
D)create interest.

Question 31

Love Your Feet Inc., a shoe manufacturing company, tries to acquire a certification from the International Organization for Standardization. It ensures the authorities that it continually improves its environmental performance and implements a systematic approach to setting environmental targets and to achieving those targets. In this scenario, which of the following certifications is Love Your Feet trying to acquire?

A)ISO 9000
B)ISO 13485
C)ISO 14001
D)ISO 22000

Question 32

Thermos Inc. recently acquired robots to make thermometers in its factory. Teresa, the CEO of Thermos, instructs her employees to use software to program the robots to manufacture thermometers as efficiently as possible. In this scenario, which of the following software is Thermos Inc. planning to use?

A)Computer-aided manufacturing software
B)Computer-aided design software
C)Computer-aided processing software
D)Computer-aided engineering software

Question 33

A _____ is used for goods that must be produced at a specific site or that are so large and bulky that it isn't feasible to move them from station to station.

A)process layout
B)product layout
C)fixed position layout
D)cellular layout

Question 34

In operations management, _____ means using resources to create value by providing customers with goods and services that offer a better relationship between price and perceived benefits.

A)effectiveness
B)efficiency
C)throughput
D)productivity

Question 35

In today's highly competitive global markets, operations managers:

A)realize that a product that offers better features attracts more customers than one that has a lower price.
B)recognize that achieving efficiency is more important than achieving effectiveness.
C)focus primarily on keeping costs low so as to make a profit while keeping prices competitive.
D)focus solely on the benefits of products, while completely ignoring the costs of manufacturing those products.

Question 36

Kidzo Inc., a toy car company, has several groups in its manufacturing unit dedicated to do different tasks. For example, it has a group that makes toy car wheels, another group that takes care of the contour of cars, and a separate group that assembles all the parts together. In this scenario, Kidzo uses a _____.

A)cellular layout
B)process layout
C)product layout
D)combined layout

Question 37

Abraham, a lead engineer at Softos Inc., wants to test his building designs for flaws and optimize them before submitting them to his clients. Which of the following software is most likely to be used by Abraham for this purpose?

A)Computer-aided design software
B)Computer-aided engineering software
C)Computer-aided manufacturing software
D)Computer-aided processing software

Question 38

Dazzling Inc., a cosmetics manufacturing company, introduces a new moisturizer at a premium price. Despite this, it is able to generate a large amount of sales and profit from the new product as customers love its anti-ageing and anti-tanning features and do not mind spending more to buy the product. The customers believe that the product is worth its price. In this scenario, Dazzling has incorporated _____ in its business.

A)effectiveness
B)efficiency
C)undifferentiated marketing
D)vertical integration

Question 39

Identify a benefit of holding larger inventories.

A)Less holding costs
B)Less risk
C)Abundance of funds
D)Smoother production schedules

Question 40

_____ is an approach to quality improvement characterized by very ambitious quality goals, extensive training of employees, and a long-term commitment to working on quality-related issues.

A)Six Sigma
B)Pareto analysis
C)Just-in-time production
D)Lean production

Question 41

A _____ is a sequence of activities that must be completed in a particular order for the overall project to be completed.

A)value chain
B)path
C)servicescape
D)poka-yoke

Question 42

Pamela, the accounts manager of Brian & Preston Corp., suggests the operations managers to move the production unit of the company to Bordenia, a poor country that can offer labor at cheaper wages. In this scenario, Pamela is suggesting _____ of the company's production process.

A)acquisition
B)offshoring
C)vertical integration
D)outsourcing

Question 43

The _____ is a project-management tool that illustrates the relationships among all the activities involved in completing a project and identifies the sequence of activities likely to take the longest to complete.

A)critical path method
B)Six Sigma principle
C)program evaluation and review technique
D)vertical integration technique

Question 44

Foodies Bakery is popular for the variety of bread and cookies it offers. Pistachio cookies are its best-selling product. In this scenario, the pistachio cookie is an example of _____.

A)intangible products
B)nondurable goods
C)complementary products
D)durable goods

Question 45

GRT Logistics takes the help of the latest technology to get its processes done. It uses fully programmed systems for which human control is not required at all. These systems operate the machinery and equipment on their own to perform a variety of tasks. In this scenario, GRT Logistics has done _____ of its processes.

A)vertical integration
B)automation
C)offshoring
D)outsourcing

Question 46

Which of the following statements is true of robots?

A)They often perform jobs that most human workers find dangerous.
B)They assist managers in determining the critical path for a project.
C)They are invariably immobile and perform jobs at one position.
D)They are inflexible and cannot be reprogrammed to perform new tricks.

Question 47

Steagrillz, a restaurant, uses pleasant music and lighting along with impressive decor to attract customers. In the context of a servicescape, the restaurant is attempting to enhance its _____.

A)ambience
B)signage
C)dissonance
D)functionality

Question 48

Pastawesome, a popular restaurant for pastas, follows an established procedure to make pastas. It boils the required amount of pasta and prepares a large quantity of various sauces at one go every day using a standardized recipe. Following this, the cooks prepare the pastas according to the orders received. In this scenario, Pastawesome uses a _____.

A)product layout
B)process layout
C)cellular layout
D)combined layout

Question 49

Dekak Motors, a car manufacturer, releases a new car that boasts of an affordable price tag of $2,500. The firm is able to keep costs down by eliminating repetitive processes and by employing skilled workers who can perform multiple tasks. This reduces production time and also increases the output. In this scenario, Dekak Motors most likely uses _____.

A)a traditional assembly line
B)total quality management
C)Six Sigma
D)lean production

Question 50

Which of the following statements is true of offshoring?

A)It doesn't require outsourcing.
B)It is an expensive deal for organizations.
C)It doesn't move the processes done by an organization to foreign locations.
D)It creates the environment in which the customer and service provider interact.

Question 51

Arranging for other organizations to perform supply chain functions that were previously performed internally is known as _____.

A)vertical integration
B)outsourcing
C)servicescape
D)enterprise resource planning

Question 52

Ucon Inc., a manufacturing company, handles all the supply chain functions on its own. This has resulted in an inefficient use of resources and delays in production. To resolve these issues, the management decides to hire external agencies to perform some operations. In this scenario, Ucon Inc. is most likely to adopt the strategy of _____.

A)homeshoring
B)outsourcing
C)vertical integration
D)cannibalization

Question 53

Given the trend toward offshoring and outsourcing, value chains have become:

A)interesting.
B)complex.
C)easy to manage.
D)risk-free.

Question 54

A _____ doesn't require work to be performed in a specific sequence; instead, the product can be moved from one type of machinery to another in whatever sequence is necessary.

A)combined layout
B)cellular layout
C)fixed position layout
D)process layout

Question 55

__________refers to moving production or support processes to foreign countries.

A)Backshoring
B)Offshoring
C)Vertical integration
D)Homesourcing

Question 56

During the baseball season, Arenaz Stadium uses large and bulky machinery to level the ground. Since the baseball championship is an annual event, the management does not move the machinery and uses it as and when required. In this scenario, Arenaz uses a _____.

A)fixed position layout
B)product layout
C)process layout
D)cellular layout

Question 57

A _____ is a set of related activities that transform inputs into outputs, thus adding value.

A)divestment
B)poka-yoke
C)process
D)portfolio

Question 58

Marie, an operations manager at Clagox Systems, spends a lot of time in figuring out ways to achieve the established goals of the company at minimal costs. She conducts meetings and asks for suggestions from her teammates to reach the targets at the lowest possible expense. In this scenario, Marie focuses on _____.

A)effectiveness
B)efficiency
C)undifferentiated marketing
D)immediate predecessors

Question 59

Which of the following statements is true of total quality management (TQM)?

A)It recognizes that quality should be defined by the perceptions of customers.
B)It views quality exclusively as a concern of the top management of a firm.
C)It requires firms to adopt a focus on making improvements an annual concern.
D)It focuses on correction of errors rather than prevention of errors.

Question 60

Devon Construction Inc. is currently in the midst of a residential construction project. The company's operations manager realizes that certain phases of the project are behind schedule due to unavailability of raw materials. Which of the following tools should Devon's operations manager use to better manage project scheduling?

A)The SWOT matrix
B)The critical path method
C)Computer-aided design software
D)Vertical integration

Question 61

__________consists of the sequence of activities in a project that is expected to take the longest to complete.

A)The critical path
B)A value chain
C)Vertical integration
D)Enterprise resource planning

Question 62

The machinery used in a _____ is often highly specialized, designed to perform one specific task very efficiently.

A)cellular layout
B)process layout
C)product layout
D)fixed position layout

Question 63

Unlike total quality management (TQM), Six Sigma:

A)focuses on reducing the processing time of production activities.
B)uses advanced techniques that require a high level of expertise.
C)pursues a strategy of preventing mistakes that create defects.
D)emphasizes holding of large inventories of goods.

Question 64

VRM Cars is a custom car shop that buys and sells modified cars. It also provides the facility of adding more features to the models available in the market as desired by the customers. In this scenario, VRM Cars deals in _____.

A)intangible goods
B)nondurable goods
C)complementary goods
D)durable goods

Question 65

_____ is an approach to manufacturing that emphasizes the elimination of waste in all aspects of manufacturing processes.

A)The critical path method
B)Enterprise resource planning
C)Six Sigma
D)Lean production

Question 66

Prextos Corp., after incurring losses, decides to move its manufacturing unit to a foreign location where it would get labor at cheaper rates. This way it plans to make profit. In this scenario, Prextos is planning to employ _____ to cut down its losses.

A)acquisition
B)offshoring
C)vertical integration
D)outsourcing

Question 67

_____ is a simple method incorporated into a production process designed to eliminate or greatly reduce errors.

A)A poka-yoke
B)Six Sigma
C)Just-in-time production
D)A critical path

Question 68

_____ is a software-based approach to integrate an organization's information flows.

A)Vertical integration
B)Computer-aided design
C)Computer-aided engineering
D)Enterprise resource planning

Question 69

Identify a disadvantage of holding larger inventories.

A)Increased ordering costs
B)Increased risk of stock-outs and lost sales
C)Tied-up funds until goods are sold
D)Irregular production schedules

Question 70

Which of the following statements is true of the changing scenario of operations management in American business over the last five decades?

A)The nonfarm labor force is increasingly joining the goods-producing sector.
B)The current trend in value chain design is to rely more on vertical integration and less on outsourcing and other services.
C)There has been a shift from mass customization to mass production.
D)There has been a fundamental shift away from the production of goods and toward the provision of services.

Question 71

David, the operations manager of Klambunk Motors, is responsible for determining the manufacturing costs and finalizing all the team-specific activities required to manufacture an automobile before launching it in the market. In this scenario, David determines the _____ needed to transform the company's inputs into outputs.

A)divestiture
B)poka-yoke
C)process
D)event

Question 72

Brianne is a project manager working for SNP Corp., a publishing company. She is currently managing a project that involves three basic activities-authoring, editing, and copyediting. She uses a project-management tool to analyze these three activities and find out the sequence of activities that is likely to take the longest time to complete. The analysis shows that authoring would take the maximum time to complete. It also shows that authoring is an immediate predecessor of editing and editing is an immediate predecessor of copyediting. In this scenario, Brianne takes the help of _____ to plan her projects effectively.

A)the critical path method
B)a value chain
C)poka-yokes
D)enterprise resource planning

Question 73

Which of the following statements is true of a product layout?

A)It organizes machinery, equipment, and other resources according to the specific sequence of operations that must be performed.
B)It groups different types of machinery and equipment into self-contained cells.
C)It is used for goods that must be produced at a specific site or that are so large and bulky that it is not feasible to move them from station to station.
D)It is used by firms that need to produce small batches of goods that require a degree of customization.

Question 74

Brendon, an employee of ADG Machinery, uses a software program that helps him test, analyze, and optimize his machine designs through computer simulations. While running the computer simulations, he corrects the flaws before approving the designs. In this scenario, Brendon uses _____ software.

A)computer-aided design
B)computer-aided engineering
C)computer-aided manufacturing
D)computer-aided processing

Question 75

In operations management, quality is defined in terms of:

A)how well the ratio of cost to output fares.
B)how well a product satisfies customer preferences.
C)the number of defects per thousand units of output.
D)the time taken to inspect one unit of a product.

Question 76

Mervin, the vice president of Flares Corp., a curtain manufacturing company, emphasizes that the production of curtains should meet the actual current demand. He believes in minimizing the need to hold inventories of finished products and work in process at each stage of the supply chain. In this scenario, which of the following production systems does Mervin follow?

A)Cellular production
B)Mass customization production
C)Job production
D)Just-in-time production

Question 77

Operos Inc., a multinational company, decides to take charge of its social media advertising that was previously managed by another agency. This scenario best exemplifies _____.

A)outsourcing
B)offshoring
C)vertical integration
D)the critical path method

Question 78

A project-management tool that illustrates the relationships among all the activities involved in completing a project and identifies the sequence of activities likely to take the longest to complete is called _____.

A)a fixed position layout
B)the critical path method
C)an immediate predecessor
D)a value chain

Question 79

Employing lean principles in the service sector can be challenging because:

A)waiting time in services cannot be reduced.
B)customers often participate in providing services.
C)large inventories are involved in providing services.
D)services have complex and inflexible supply chains.

Question 80

__________are stocks of goods or other items held by an organization.

A)Kanbans
B)Servicescapes
C)Inventories
D)Poke-yokes