Deck 10: Producing World-Class Goods and Services

Question 1

Operations management involves inventory management,quality control,and production scheduling.

Answer 1

True

Question 2

In recent years,operations management has become more focused on providing services,because that is where the growth and profit potential is greatest.

Answer 2

True

Question 3

Manufacturing firms are more likely to succeed if they focus exclusively on the production of goods and allow other firms to provide services.

Answer 3

False

Question 4

In the future,the service sector will become a larger part of the economy.

Question 5

In making a location decision,businesses seldom consider "quality of life" in various locations,because factors that influence quality of life have little or no impact on profits.

Question 6

Facility location is one of the functions of operations management planning.

Question 7

Operations management converts resources to goods and services.

Question 8

Marci is majoring in operations management at ABC University.Unfortunately,the evolution of Canada from a manufacturing-oriented to a service-oriented economy means that Marci will probably find few job openings in her chosen area.

Question 9

When it comes to location decisions,labour costs are no longer an important consideration for most manufacturing firms.

Question 10

Juan is a manager at Elastic Plastic,Inc.His duties include production scheduling and keeping tabs on the company's inventory.These activities suggest that Juan is involved in marketing management.

Question 11

Using computers is one way the service sector is improving productivity.

Question 12

The Canadian economy today is most accurately classified as a manufacturing and service economy.

Question 13

Operations management planning includes such issues as facility location and facility layout.

Question 14

Manufacturing firms that want to minimize time-to-market are likely to choose facility sites that give them easy access to their preferred modes of transportation.

Question 15

Evidence suggests that Canadian manufacturing firms can no longer compete against the best firms in the rest of the world.

Question 16

Operations management is a specialized area in management that is concerned with the production of both goods and services.

Question 17

Due to the growth of the Internet,the cost of labour is no longer an important consideration in location decisions of business firms.

Question 18

Today's business climate is characterized by constant and relentless change.

Question 19

An example of the growing importance of services is in the area of corporate computing.

Question 20

Billie just graduated with high honours with a degree in operations management from a respected university.The knowledge she gained and skills she developed while obtaining this degree could make her an attractive employee for either a manufacturing firm or a service firm.

Question 21

A key element of the statistical quality control process is the reliance on quality control experts to inspect at the end of the production line to make sure that no defective products are shipped to final customers.

Question 22

According to W.Edward Deming,the father of the quality movement,his cycle of quality control was: Plan,Check,Do,Act (PCDA).

Question 23

Facility layout is a function of operations management that involves determining the best way to arrange resources in order to produce goods and services effectively and efficiently.

Question 24

The process layout simplifies production by using the same sequence of processes regardless of the design of the item being produced.

Question 25

Another way to work closely with suppliers is to locate production facilities near supplier facilities.

Question 26

The Internet has enabled operations management to become an inter-firm process where companies work together to design,produce and ship products.

Question 27

Millwell Manufacturing has just redesigned its facility layout to group similar equipment and functions together,and to allow flexibility in the sequence in which products are produced using these functions.Millwood's new layout is an example of the fixed position approach.

Question 28

Enterprise resource planning (ERP)is simpler and less sophisticated than manufacturing resource planning (MRP).

Question 29

Statistical quality control and statistical process control is designed to find errors before they happen.

Question 30

One limitation of MRP is that it is not a computer-based approach.

Question 31

One drawback of Statistical process control is that they require an expensive quality inspection of each item at the end of the production process.

Question 32

The Deming cycle involves four steps.

Question 33

Materials requirement planning is a newer version of enterprise resource planning.

Question 34

Telecommuting is another word for outsourcing.

Question 35

The production of a bridge,ship,or large airplane usually involves a variable-position facility layout.

Question 36

Solarsys Aeronautics has just been awarded a contract to build a large lab module that will be attached to a new space station.The module is approximately 48 feet long,17 feet in diameter,and weighs over sixty tons.Solarsys should use an assembly line plant layout to produce this module.

Question 37

An industry where outsourcing happens is software R&D.

Question 38

Ken is an outdoorsman whose love of hunting and fishing led him to start a mail order company specializing in hunting and fishing gear.He decided to locate his business near Whistler in Vancouver,partly because of low labour costs,but mainly because the area offered excellent fishing and hunting opportunities,a low crime rate,and a pleasant climate.Ken's location decision was strongly influenced by quality of life considerations.

Question 39

For services,facility layout is usually designed to centralize the decision-making process.

Question 40

The assembly line layout remains the most popular layout for most processes.

Question 41

ISO 14000 is a collection of the best practices for managing an organization's impact on the environment.

Question 42

Process manufacturing physically or chemically alters materials to make a product.

Question 43

Production creates form utility.

Question 44

Process manufacturing refers to combining components and raw materials to make a product.

Question 45

The integration and organization of information and logistics across firms is a function of supply chain management.

Question 46

The value added by the creation of finished goods and services from inputs is called ownership utility.

Question 47

Firms that satisfy the ISO 9000 and ISO 14000 standards have demonstrated a world-class management system in both quality and environmental standards.

Question 48

Enterprise resource planning (ERP)can be used to link multiple firms into one integrated production unit.

Question 49

The function that searches for high-quality material resources,finds the best suppliers and negotiates the best price is called planning.

Question 50

The European Union demands that all firms that want to do business with its member nations must satisfy ISO standards.

Question 51

Just-in-time inventory control requires a large amount of inventory and parts kept on the premises.

Question 52

Lometrica is a successful firm that has just been certified as having met all of the latest ISO 9000 standards.We can conclude that Lometrica is doing a world-class job of managing the environmental impact of its operations.

Question 53

ISO 14000 is a new set of product quality standards that has replaced the old ISO 9000 standards.

Question 54

ISO 9000 refers to a set of international standards for quality management and assurance.

Question 55

Logistics dictates that your business also has to be concerned with minimizing the cost of your inputs.

Question 56

Only firms in the manufacturing sector can create true form utility.

Question 57

Under the six sigma quality control standard,there are only 3.4 defects per million units produced.

Question 58

One valid criticism of modern production planning methods such as ERP is that there is no way to use recent advances in information technology (IT)with these systems.

Question 59

For Canadian manufacturers to be competitive,they must find ways to keep the costs of inputs down and yet still increase output.

Question 60

An assembly process involves physically or chemically manipulating raw materials to create a product.

Question 61

Businesses that provide services typically cannot use mass customization because services are not tangible products that can be customized.

Question 62

ABC Fabrics promotes itself as a specialty manufacturer that will produce according to customer specifications.This firm will probably be best served by using an intermittent process in production.

Question 63

The Cooldaze Ice Company compresses carbon dioxide and cools it to a very low temperature to make dry ice.The method used by Cooldaze is an example of process manufacturing.

Question 64

The main difference between process manufacturing and an assembly process is that process manufacturing uses sophisticated robots and automated machinery to produce a good or service,while an assembly process uses labour and simple tools to make a product.

Question 65

A disadvantage of flexible manufacturing systems is that they usually require a great deal of labour because machines are rarely capable of handling a wide variety of tasks.

Question 66

J & R Industries typically produces very large batches of standardized products used by plumbers,such as pipe fittings and valves that must be produced in standard sizes.A continuous production process would work well for J & R.

Question 67

Although lean manufacturing attempts to reduce the amount of labour used in the manufacturing process,it typically does so by increasing the amount of most of the other resources used in the production process.

Question 68

Intermittent production processes are characterized by short production runs and frequent changes of machinery in order to produce different products.

Question 69

Despite its early promise,computer-aided design has not met with much success in increasing productivity.

Question 70

The advantage of computer-integrated manufacturing software is that it allows computer-aided design machines to communicate directly with computer aided manufacturing machines.

Question 71

A continuous production process is characterized by long production runs that turn out finished goods over time.

Question 72

Flexible manufacturing systems use machines that are designed to do a multitude of tasks so that they can produce a variety of goods.

Question 73

One drawback of intermittent production processes is that they tend to be much slower than continuous processes.

Question 74

Carol Preston is the plant manager for a firm that makes coats and jackets.She would like to use CAD/CAM techniques to be able to custom-make these items.Unfortunately,CAD/CAM is much better suited for producing industrial goods like machinery and equipment than it is at producing consumer goods like coats and jackets.

Question 75

The purpose of computer-integrated manufacturing (CIM)is to unite computer-aided design with computer-aided manufacturing.

Question 76

Featured Furnishings is a company that specializes in producing custom-made furniture.A continuous production process would be the most efficient way for Featured Furnishings to produce its products.

Question 77

Many new manufacturers in Canada use continuous production processes.

Question 78

Lean manufacturing is a strategy of producing standardized products that have no frills or extra features in order to keep prices low.

Question 79

Integration of computers into the design and manufacture of products is the development that has had the greatest impact on production techniques and strategies in recent years.

Question 80

CAD/CAM has made it possible to custom-design products to meet the tastes of small markets with very little increase in costs.