Deck 10: Producing World-Class Goods and Services

Question 1

A production process characterized by long production runs to turn out finished goods over time is known as a(n):

A)extended process.
B)continuous process.
C)unrestricted process.
D)assembly process.

Answer 1

B

Question 2

A big advantage of computer-integrated manufacturing software is that it:

A)controls all of the actions of the assembly line from a central location.
B)allows CAD machines to communicate directly with CAM machines.
C)allows personal computers to communicate directly with the firm's mainframe.
D)replaces "dumb" robots with "smart" computers.

Answer 2

B

Question 3

HandZone,a manufacturer of high quality gloves and a variety of fashion accessories,already has both computer-aided design and computer-aided manufacturing.Unfortunately,the two systems cannot communicate with each other.David Warmdigit,a production manager at HandZone,has heard about some software that allows CAD and CAM to work together,and wants to learn more about it.David is interested in:

A)computer-integrated manufacturing.
B)complex systems integration.
C)linear programming software.
D)holistic internalization of operations.

Answer 3

A

Question 4

Which chart is a tool used for planning?

A)Form
B)Flow
C)Gantt
D)PERT

Question 5

In today's quality control programs,emphasis is placed on:

A)achieving customer satisfaction.
B)producing goods at the lowest possible cost.
C)keeping labour costs as low as possible.
D)detecting errors at the end of the production process before the goods are shipped to customers.

Question 6

The has transformed the purchasing function in recent years by helping firms find the best suppliers and the best prices.

A)CAD/CAM
B)PERT
C)Internet
D)QFD

Question 7

Sophisticated software that enables computer-aided design machines to communicate with computer-aided manufacturing machines is called:

A)computer-integrated manufacturing.
B)heuristic manufacturing integration.
C)a flexible system.
D)a computer-based feedback control system.

Question 8

Today,Canadian companies in the manufacturing sector:

A)depend on government imposed tariffs on foreign goods to remain competitive.
B)have altered their production and managerial styles in order to regain their competitive edge in many industries.
C)have become increasingly reliant on mass production techniques as they put more emphasis on keeping costs as low as possible.
D)are growing much more rapidly than firms in the service sector.

Question 9

Redipartz is a supplier of electronics components to a variety of manufacturers.It offers its important customers the convenience of sequential delivery.Redipartz and its major customers are likely to make use of:

A)ERP.
B)MRP.
C)MRP II.
D)PERT.

Question 10

Companies like Celestica and Ford have prospered and grown by:

A)achieving natural monopolies in their markets.
B)using franchise arrangements to sell their products in a wider range of markets.
C)focusing on manufacturing of goods rather than the provision of services.
D)getting closer to their customers by offering a variety of services.

Question 11

Enterprise resource planning (ERP)is considered more sophisticated than MRP primarily because it can:

A)find the critical path and compute its length.
B)monitor processes in multiple firms at the same time.
C)handle data about more than one product at the same time.
D)give much more precise cost estimates.

Question 12

Which of the following statements about facility location is most accurate?

A)Very few firms are still influenced by labour costs when making decisions about where to locate.
B)Recent changes in information technology have led firms to favour locations near major urban areas.
C)No matter how large they become,most companies ultimately choose to locate major facilities within a few miles of the area in which they started business.
D)Manufacturers often seek to reduce time-to-market by locating facilities in areas with access to key modes of transportation.

Question 13

One way that has had a major influence on the production process has been through developing add-on software to enhance the capabilities of ERP systems.

A)continuous improvement technology
B)statistical process control
C)information technology
D)statistical quality control

Question 14

A major reason Japanese automakers have located in Canada has been the desire to:

A)get closer to their international customers.
B)switch to less labour-intensive production methods.
C)locate in an area where labour is more productive.
D)take advantage of just-in-time inventory methods.

Question 15

The whole idea behind mass production was to:

A)give workers more control over their work environment.
B)give producers the maximum flexibility to respond to customer preferences.
C)produce goods of the highest possible quality.
D)make large quantities of a limited variety of products at very low cost.

Question 16

In a just-in-time inventory system,suppliers:

A)have a great deal of flexibility in determining when to make deliveries.
B)enjoy much lower delivery costs.
C)become more like a department in the producing firm rather than a separate business.
D)deliver materials and parts in large quantities only a few times a year.

Question 17

For services,the facility layout is usually designed to:

A)allow mass production techniques to be utilized efficiently.
B)facilitate a centralized decision-making process.
C)enable the firm to maintain a continuous production run.
D)help customers find and buy things.

Question 18

A(n)puts together components to make a product.

A)econometric process
B)modular process
C)assembly process
D)compression process

Question 19

Most new manufacturers use:

A)synthetic systems.
B)inhibited processes.
C)continuous processes.
D)intermittent processes.

Question 20

The goal of lean manufacturing is to:

A)keep inventories of finished goods as low as possible.
B)become more self sufficient by producing major components rather than buying them.
C)produce a very limited variety of goods.
D)produce goods and services with less of everything compared to mass production.

Question 21

To create their Deluxe Beef Sandwiches,Robbie's Roast Beef finely slices prime roast beef,stacks it on a sesame bun,adds special seasonings,cheese,onions,and mushrooms.The value added by Robbie's when it combines these ingredients to make a sandwich is known as:

A)marginal utility.
B)the analytic function.
C)form utility.
D)consumer surplus.

Question 22

Unlike an assembly line where workers perform only a few tasks,in a layout, teams of workers combine to perform a variety of tasks needed to produce more complex units of a final product.

A)cluster
B)spoke and wheel
C)network
D)modular

Question 23

utility is the value added by the creation of finished goods and services using raw materials,components,and other inputs.

A)Consumption
B)Form
C)Manufacturing
D)Marginal

Question 24

The main objective of lean manufacturing is to:

A)keep labour costs as low as possible by expanding the use of other resources.
B)produce products that have fewer frills and options in order to simplify the production process and keep costs as low as possible.
C)get state and local governments to handle many of the tasks currently performed by the firm.
D)produce goods using less of all types of resources compared to mass production techniques.

Question 25

Cooltreet,Inc.combines sugar,cream,eggs,and flavourings,then churns and cools the resulting mixture to a very low temperature until it freezes,creating ice cream.The method Cooltreet is using is an example of:

A)an assembly process.
B)process manufacturing.
C)an analytic production system.
D)a symbiotic process.

Question 26

MRP stands for:

A)maximized revenue potential.
B)managed resource priorities.
C)materials requirement planning.
D)minimum resource payments.

Question 27

A production process characterized by a short production run and frequent adjustments to machines so that different products can be produced is known as a(n):

A)intermittent process.
B)just-in-time process.
C)analytic process.
D)lean manufacturing system.

Question 28

The sequence of firms that perform activities required to create and deliver a good or service to consumers or industrial users is known as what?

A)supply chain management
B)logistics
C)supply chain
D)form utility

Question 29

In a(n)layout,similar equipment and functions are grouped together,but the order in which a product visits each function depends on how the item is designed.

A)fixed-position
B)just-in-time
C)process
D)assembly line

Question 30

is the process of selecting a geographic location for a company's operations.

A)Geographic appraisal
B)Facility location
C)Economic geography
D)Localistic analysis

Question 31

When working on a major project,such as a bridge or airplane,companies use a(n) _________ layout.

A)modular
B)assembly line
C)process
D)fixed-position

Question 32

The is/are presented annually to private,public and not-for-profit organizations that have displayed outstanding performance in the areas of quality and a healthy workplace.

A)Excellence in Production Award
B)Canada Awards for Excellence
C)Best Quality Producer Award
D)Juno Awards

Question 33

Operations management refers to activities managers perform to help their firms convert resources into:

A)both goods and services.
B)financial data.
C)services,rather than goods.
D)goods,rather than services.

Question 34

SitRite Furniture Company uses labour and machinery to transform wood,plastic,metal and cloth into comfortable chairs,sofas,and love seats.This process creates:

A)intangible productivity.
B)use facility.
C)place utility.
D)form utility.

Question 35

A basic characteristic of flexible manufacturing is that it:

A)is only possible when using mass production processes.
B)relies heavily on labour,since humans are more adaptable than machines.
C)uses machines designed to perform multiple tasks so they can be used to produce a variety of products.
D)achieves its flexibility at the cost of much slower rates of production than mass production techniques.

Question 36

A firm that has been certified as meeting both ISO 9000 and ISO 14000 standards has demonstrated:

A)world-class management of both quality and environmental standards.
B)sound financial and marketing practices.
C)that its recruitment and training programs for employees protect and promote basic human rights.
D)ethical treatment of both customers and employees.

Question 37

Which of the following events would be the strongest evidence that a firm's efforts to improve quality control were achieving their desired result?

A)Costs per unit of output decline by more than 10 percent.
B)The quality control department indicates that the number of defective parts has dropped significantly.
C)A survey of customers indicates a significant increase in the level of customer satisfaction.
D)Total output increases by 20 percent without an increase in labour or materials.

Question 38

Which of the following statements best describes the distinction between production management and operations management? Production management involves the activities managers perform to:

A)help create intangible products while operations management involves the activities managers perform to produce tangible products.
B)obtain physical resources while operations management involves the activities managers perform to obtain the financial resources.
C)help create services while operations management involves the activities managers perform to produce goods.
D)help create goods while operations management is a broader term that involves the activities involved in producing services as well as goods.

Question 39

In an evaluation of an area as a possible site for a facility location,quality-of-life considerations:

A)would include factors such as crime rates and quality of schools.
B)seldom play an important role,because they have little to do with profitability.
C)would include factors such as proximity to ports and rail facilities.
D)are usually the factors that receive the least attention.

Question 40

is a computer-based production and operations system that links multiple firms into one integrated production unit.

A)Enterprise resource planning (ERP)
B)Manufacturing resource planning (MRP II)
C)PERT analysis
D)Materials requirement planning (MRP)

Question 41

are a set of standards for quality management and quality assurance.

A)ISO 9000
B)TQM 2003/2004
C)ISO 14000
D)EPA 2000

Question 42

is the arrangement of resources to produce goods and services effectively and efficiently.

A)Industrial design
B)Process engineering
C)Asset allocation
D)Facility layout

Question 43

A just-in-time inventory system usually reduces costs for:

A)the producer,but not its suppliers.
B)both the producer and its suppliers.
C)suppliers,but not the producer.
D)neither the supplier or the producer,though it does lead to more flexibility for both.

Question 44

In choosing suppliers for their recently opened clothing store,the McBain family wants suppliers,who run an intermittent production process because the McBains

A)can get orders relatively quickly,thus minimizing their inventory levels.
B)can get reduced pricing from suppliers with long production runs.
C)are forced to plan well in advance in order to get inventory when they want it.
D)they get the best quality of inventory.

Question 45

standards are concerned with the best practices for managing an organization's environmental impacts.

A)ISO 9000
B)EPA 2000
C)ISO 14000
D)Enviro 2001

Question 46

Which chart is a tool used to measure progress?

A)Gantt
B)Process layout
C)Flow
D)PERT

Question 47

uses computers to help design products.

A)QPC
B)DPA
C)CAD
D)PERT

Question 48

Westside Manufacturing has just installed some new machines that are designed to do many different tasks and can be used to produce a variety of products.This indicates that Westside is moving toward:

A)mass production.
B)micro engineering.
C)multiple output processing.
D)flexible manufacturing.

Question 49

In ,machines are designed to do multiple tasks so that they can produce a variety of products.

A)systems engineering
B)modular construction
C)microdesign
D)flexible manufacturing

Question 50

is the function in the firm that searches for quality material resources,finds the best suppliers,and negotiates the best price.

A)Bartering
B)Marketing
C)Collective bargaining
D)Purchasing

Question 51

In recent years,the manufacturing sector of the Canadian economy has:

A)focused less on quality and more on reducing costs of production.
B)achieved extremely high productivity gains according to government reports.
C)moved closer to the customer.
D)become the low-wage sector of the Canadian economy.

Question 52

One way that the service sector is improving productivity is through _.

A)lean manufacturing
B)facility location
C)computer use
D)economic geography

Question 53

The fastest growing manufacturing firms in Canada are those that:

A)have expanded their operations by providing services as well as goods.
B)have emphasized a strategy of mass production to achieve economies of scale.
C)receive large government subsidies enabling them to invest in new technologies.
D)face little or no foreign competition.

Question 54

R&D refers to what?

A)materials requirement planning.
B)all government spending.
C)work directed towards innovation and improvement.
D)the spending by private industry,Canadian universities,and hospitals.

Question 55

MRP was a technique that helped managers:

A)develop a reliable sales forecast.
B)determine how many workers were needed to staff various departments.
C)make sure that the right parts and materials were available at the right time.
D)schedule the sequence of tasks workers must perform in order to complete a project.

Question 56

Production creates:

A)time utility.
B)marginal utility.
C)form utility.
D)ownership utility.

Question 57

Edwin Rivera is a production manager who believes his firm uses more of virtually all types of resources than is necessary to produce its products.He would like to find a way to cut back on labour,and reduce the firm's investment in tools and space as well.It seems that Edwin would like to adopt:

A)marginal cost management.
B)the maximin production method.
C)lean manufacturing.
D)mass production.

Question 58

Firms often use a(n)when working on a major project involving the production of a large item such as an airplane,ship,or bridge.

A)assembly line layout
B)process manufacturing technique
C)fixed-position layout
D)continuous production process

Question 59

Manufacturers of custom-designed furniture would use which type of process?

A)intermittent
B)continuous
C)process
D)assembly

Question 60

With the inventory control system,producers hold a bare minimum of parts and materials in storage.

A)first-in,first-out
B)just-in-time
C)ABC
D)maximin

Question 61

X-Sport Industries is a Canadian based manufacturer of sporting goods.Until recently,all of its sales were within Canada.However,it has decided to make a major push to sell its products in the European Union.In order to succeed in this new market X- Sport will need to:

A)cut the wages of its production workers.
B)avoid reliance on the Deming cycle.
C)convert its financial assets into euros.
D)make sure it meets ISO 9000 standards.

Question 62

Which of the following statements about the impact of CAD/CAM on manufacturing is most accurate? CAD/CAM:

A)has made it possible to produce custom-designed products with little increase in costs.
B)has replaced ERP as the most sophisticated resource planning technique.
C)allows firms to save money by replacing skilled labour with computers to perform all of the high-skill tasks.
D)is most useful to firms producing durable goods such as automobiles.

Question 63

Production management has been the traditional term used to refer to the activities managers perform to help their firms create:

A)equities.
B)services.
C)goods.
D)resources.

Question 64

involves producing what the customer wants while reducing errors before and after delivery to the customer.

A)Quality
B)Allocative efficiency
C)CAD/CAM
D)Controlling

Question 65

Which of the following did Canada rely on to sustain its exports?

A)Changing preferences
B)Lower-valued Canadian dollar
C)Trade imbalances
D)Higher tariffs

Question 66

Firms that have a goal of tend to locate facilities near major highways, ports,rail lines,and airports.

A)using ERP techniques
B)reducing time to market
C)replacing labour with machinery
D)switching to a more service-oriented product mix

Question 67

means tailoring products to meet the needs of a large number of individual customers.

A)Mass production
B)Competing in time
C)Feedback response production
D)Mass customization

Question 68

The six sigma approach to quality control:

A)relies on a special team of experts to examine every unit of output at the end of the production process.
B)detects potential problems before they occur.
C)allows only 6 defective units per one thousand units produced.
D)views quality control as a function of the marketing department.

Question 69

A failing of measures of productivity is what?

A)They are industry specific
B)They are country specific
C)They don't measure improvements in quality
D)They don't account for inflation

Question 70

enables firms to compete in time and in efficiency.

A)Mass customization
B)Computer-aided design and manufacturing
C)JIT
D)Computer-integrated manufacturing

Question 71

Operations managers at Alumax Corporation have found that they can achieve efficient production only by producing very large quantities of aluminum without shutting down the production process.This indicates that Alumax should use a(n)___________ production process.

A)systematic
B)assembly
C)intermittent
D)continuous

Question 72

Which of the following have Canadian manufacturers not done in order to regain a competitive edge?

A)Focus on quality
B)Save on costs through site selection
C)Raise the value of the Canadian dollar
D)Focus on customers

Question 73

involves computers directly in the production process.

A)AMDA
B)AMCAP
C)CAD
D)CAM

Question 74

Operations management in the service industry:

A)is tied to the export sector.
B)a much larger share of total output is being produced by non-profit organizations.
C)is all about creating a good experience for those who use the service.
D)is declining.

Question 75

Wild Bill's Cap Emporium offers to produce hats and caps according to customers' requests.Wild Bill's must be using a(n):

A)intermittent process.
B)analytic system.
C)continuous process.
D)just-in-time system.

Question 76

Which is the most complex chart?

A)Gantt
B)PERT
C)Flow
D)Control

Question 77

is the specialized area of management that converts or transforms resources into goods and services.

A)Operations management
B)Resource engineering
C)Logistics management
D)Intrapreneuring

Question 78

MegaMachines obtains computer components from a variety of suppliers and puts them together according to customer specifications to create custom-made computers.This process is an example of:

A)process manufacturing.
B)an assembly process.
C)synthetic production.
D)continuous production.

Question 79

MRP results are based on information provided by:

A)focus groups.
B)sales forecasts.
C)the firm's master budget.
D)income statements and balance sheets.

Question 80

is an operations management system that makes sure that the right parts and materials were available at the right time.

A)Scientific management
B)MRP
C)PERT analysis
D)The Gantt method