Deck 11: Achieving World-class Operations Management

Question 1

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

Answer 1

B

Question 2

What is the ability to manufacture many goods at once is called?

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

Answer 2

D

Question 3

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

Answer 3

C

Question 4

In which of the following 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 5

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 6

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 firm is managed on a day-to-day basis

Question 7

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

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

Question 8

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

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

Question 9

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 of the following type of manufacturing?

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

Question 10

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

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

Question 11

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 processes?

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

Question 12

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 13

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 called which of the following type of production?

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

Question 14

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 15

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 16

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 17

A company starts up a website where customers can create the perfect athletic shoe to support their particular shape of feet 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 18

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 19

Operations managers activities 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 firm's assets.

Question 20

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 21

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

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

Question 22

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 23

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.Cherokee Spring Mill uses which of the following processes?

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

Question 24

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 25

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

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

Question 26

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

A) a manufacturer of eyeglasses
B) a light bulb manufacturer
C) a company that cans vegetables for a supermarket chain
D) a computer manufacturer

Question 27

The product layout is sometimes called which of the following?

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

Question 28

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 29

Which of the following layouts arranges work flow around the production process? All workers performing similar tasks are grouped together.

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

Question 30

A system that utilizes long production runs resulting in high-volume,standardized products is called which of the following processes?

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

Question 31

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 32

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 33

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 34

What are the three main types of facility layouts?

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

Question 35

What is the physical arrangement of a production facility called?

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

Question 36

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

Question 37

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 38

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 39

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

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

Question 40

What is the purchasing function sometimes known as?

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

Question 41

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

Question 42

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 43

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 44

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 45

Which of the following statements about reverse auctions is MOST accurate?

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 46

What is the first step in controlling production?

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

Question 47

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 48

Which of the following approaches is a computerized resource planning system that includes information about the firm'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 49

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 50

Which of the following focuses on smoothing transitions along the supply chain so that the firm 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 51

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 52

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 53

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

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

Question 54

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 set up bottlenecks.
D) They ensures the availability of needed materials in a timely fashion.

Question 55

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 56

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 57

Taco Bell does not chop the lettuce and tomatoes and 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 58

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 59

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 60

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 61

Which of the following best describes Six Sigma?

A) a technique for routing that eliminates bottlenecks
B) a quality control process
C) a method for customizing production scheduling
D) a type of reverse auction

Question 62

Which of the following type of management emphasizes the use of quality principles in all aspects of a company's operations?

A) quality teamwork
B) cultural quality
C) total quality
D) critical quality

Question 63

Which of the following systems uses a computer to design and test new products and modify existing ones?

A) computer-aided manufacturing
B) computer-aided design
C) just-in-time design
D) flexible manufacturing system

Question 64

Which of the following is an important scheduling tool for large projects? It breaks the projects into a sequence of events and smaller tasks.

A) the crucial task system
B) the sequence of elements
C) project sequencing
D) the critical path method

Question 65

Which of the following is the technology involved in designing,constructing,and operating computer-controlled machines that can perform tasks independently?

A) robotics
B) process manufacturing
C) mechanization
D) computer-based manufacturing

Question 66

What is the process of creating quality standards and measuring finished goods and services against standards?

A) quality circles
B) controlling the elements
C) quality control
D) standard evaluation

Question 67

PERT charts differ from the critical path method in one important way.What is it?

A) PERT charts assign one time to finish each task; CPM does not.
B) PERT charts are based on the use of quality principles; CPM is not.
C) PERT charts assign three time estimates for each activity; CPM does not.
D) PERT charts can be used in service organizations; CPM cannot.

Question 68

Computer-aided manufacturing uses computers to perform which of the following tasks?

A) to design new programs
B) to design new products
C) to modify products
D) to develop and control production processes

Question 69

Which of the following combines computerized manufacturing processes with other computerized systems used before and after manufacturing?

A) flexible manufacturing
B) just-in-time manufacturing
C) computer-integrated manufacturing
D) computer-aided design

Question 70

What does total quality management focus on?

A) creating buyer/supplier dependence
B) computer-aided design
C) creating transactional relationships
D) continuous improvement

Question 71

What do the letters "CAD" stand for?

A) competitive ad designer
B) commercial-art design
C) computer-aided design
D) continuous art documentation

Question 72

Which of the following is the streamlining of production by eliminating steps in the production process that do not add benefits that customers are willing to pay for?

A) manufacturing consolidation
B) lean manufacturing
C) removing the fat
D) manufacturing compression

Question 73

A CAD/CAM system is best described as which of the following?

A) an inventory system
B) a tax service
C) a depreciation schedule
D) a production design and control system

Question 74

Which of the following is one of the biggest shortcomings of Gantt charts?

A) They cannot be used to identify bottlenecks.
B) They assign three time estimates for the completion of each task.
C) They are static.
D) They cannot be used for simple tasks.

Question 75

What do Gantt charts and PERT charts have in common?

A) They are both tools for computer-aided design.
B) They are both common scheduling tools for complex situations.
C) They both are useful in making sure that all resources are available at the start of a complex project.
D) They are both tools used for evaluating potential site locations.

Question 76

What is the Japanese inventory system that minimizes inventory costs and provides those inputs as they are needed for a particular production run?

A) perpetual inventory
B) raw materials coordination
C) just-in-time
D) controlled assembly

Question 77

Sally's job is to evaluate the cheese her company produces against a prototype for colour,smell,consistency,and taste.Her job on the production line is which of the following type of control?

A) process
B) procedural
C) coordination
D) quality

Question 78

Which of the following is a disadvantage associated with the flexible manufacturing system?

A) A flexible manufacturing system provides consistent quality.
B) A flexible manufacturing system can create to customer specifications.
C) A flexible manufacturing system is initially expensive.
D) A flexible manufacturing system can easily be reprogrammed.

Question 79

Suppose a part is redesigned in the computer-aided design system,and the changes are quickly transmitted both to the machines producing the part and to all other departments that need to know about and plan for the change.Which of the following systems is being used?

A) computer-controlled manufacturing (CCM)
B) a coordinated-manufacturing system (CMF)
C) computer-oriented design (COD)
D) computer integrated manufacturing (CIM)

Question 80

In 1992 Mazda included a solar-powered ventilation system on its cars.Because customers were not willing to pay for this benefit and did not complain when it was no longer available,Mazda discontinued it.This is an example of which of the following?

A) manufacturing consolidation
B) lean manufacturing
C) removing the fat
D) manufacturing compression