Deck 20: Production and Control

Question 1

________ refers to the relationship between the total amount of goods or services being produced and the organizational resources needed to produce them.

A)Productivity
B)Zero-base budgeting
C)Control factor
D)Quality assurance
E)Break-even ratio

Answer 1

A

Question 2

Quality assurance is a(n)________.

A)process used to determine how many products should be inspected to calculate a probability that the total number of products will meet organizational quality standards
B)process used to determine the number of products to be inspected during a random check
C)standardized system used by organizations to measure employee performance in achieving the desired quality
D)consortium of a small group of workers who meet with management to discuss quality-related problems
E)operations process involving a broad group of activities aimed at achieving the organization's quality objectives

Answer 2

E

Question 3

Production is the transformation of organizational resources into products.

Answer 3

True

Question 4

Sharie asked you to explain the relationship that exists between inputs and outputs when measuring productivity.Which one of the following best defines this important relationship?

A)The lower the value of the ratio of inputs to outputs,the lower the productivity of the organization.
B)The lower the value of the ratio of inputs to outputs,the higher the productivity of the organization.
C)The higher the value of the ratio of inputs to outputs,the lower the productivity of the organization.
D)The higher the value of the ratio of outputs to inputs,the higher the productivity of the organization.
E)The lower the value of the ratio of inputs to outputs,the less the productivity of the organization.

Question 5

An organization decides to improve its raw material handling process by buying a material handling crane.This is an example of using ________.

A)human resources
B)automation
C)statistical quality control
D)flexible manufacturing
E)fixed-position layouts

Question 6

What is productivity and how is it important to organizations?

Question 7

ADB,Inc. ,an integrated renewable products company,applies its industrial synthetic biology platform to provide alternatives to select petroleum-sourced products used in specialty chemical and transportation fuel markets worldwide.The company recently observed a dip in their overall productivity.Provide a few suggestions to improve the productivity at ADB.

Question 8

Keith is struggling to understand what his manager meant when he was told to focus on the resources utilized during the transformation process.Which one of the following best defines what "transformation" means in this context?

A)converting money into various country's currencies
B)converting organizational resources into products
C)tracking human work hours into a project
D)tracking dollars spent on a project
E)converting inventory orders

Question 9

Which one of the following statements is true about production in organizations?

A)Production is considered a process of conception rather than transformation.
B)The production process does not occur in most service organizations.
C)Organizational assets remain unaffected in the process of production.
D)Production can be considered to be the transformation of resources into products.
E)The production process is not considered a part of an organization's value chain.

Question 10

The assets available to managers for production are called ________.

A)managerial structures
B)organizational layouts
C)process structures
D)organizational resources
E)functional layouts

Question 11

Which one of the following companies originally pioneered the use of cubes in offices but now today is experimenting with alternative office layout arrangements for their employees with focus on boosting morale and productivity?

A)General Electric
B)Cisco
C)Google
D)American Express
E)Intel

Question 12

Production occurs at service organizations just as it does at manufacturing organizations.What is the final product called at a hospital?

A)doctor appointments
B)doctor scheduling
C)health plans
D)health care
E)doctor orders

Question 13

Productivity is the relationship between the total amounts of goods or services being produced and the organizational resources needed to produce them.

Question 14

________ is the process used to determine how many products should be inspected to calculate a probability that the total number of products will meet organizational quality standards.

A)Statistical quality control
B)Quality assurance
C)Six sigma
D)Quality circle
E)Kaizen procedure

Question 15

Which one of the following is the best strategy that a company can use to improve organizational productivity?

A)Increase employee salaries and provide additional incentives to the employees.
B)Attempt to increase the bargaining power of the suppliers.
C)Redesign products to make them easier to assemble.
D)Allocate more budget to the operational activities of the firm.
E)Reduce the number of units produced per day to give more attention to product quality.

Question 16

Furntech Corporation manufactures and markets traditional and computer-related office products and supplies.The company is looking for ways to improve its productivity to become more competitive.Which one of the following actions of the company will be least effective in improving organizational productivity?

A)It makes necessary changes to product design.
B)It provides additional training to its workforce.
C)It automates some of its lengthy processes.
D)It attempts to improve its recruitment procedures.
E)It reduces its level of production to focus on product quality.

Question 17

According to Deming's flow diagram for improving product quality,which one of the following is the next step after the receipt and test of materials?

A)testing of processes,machines,methods,costs
B)production and assembly of raw materials
C)assembly and inspection of raw materials
D)distribution of materials across the organization
E)conducting consumer research on product quality

Question 18

Which one of the following is the most accurate observation of product quality?

A)Product quality is more dependent on labor than on the other factors of production.
B)It is a measure of how well a product does what it is intended to do.
C)Quality refers to a product's ability to make an impact on the customers.
D)It can be defined as a ratio of the total output to the total input.
E)Quality refers to the design attributes that are formed internally.

Question 19

Which one of the following terms specifically refers to the ratio of outputs to inputs?

A)credibility
B)quality
C)productivity
D)revenue
E)competency

Question 20

The first step in using quality circles is ________.

A)establishing the theme for observation
B)determining the objective of observation
C)implementing a new procedure
D)obtaining necessary data
E)determining the target rate

Question 21

A flow of interrelated events toward a goal,purpose,or end is specifically referred to as a ________.

A)process
B)system
C)strategy
D)scheme
E)structure

Question 22

Quality ranking is totally dependent on the industry standards.

Question 23

In reality,who is it that determines the ranking of quality for a firm's products and services?

A)competitors
B)suppliers
C)customers
D)managers
E)employees

Question 24

If Barb wants to involve all of her employees in quality control by asking for their ideas for judging and maintaining product quality,she should form a/an ________.

A)quality square
B)quality newspaper
C)quality group
D)quality force
E)quality circle

Question 25

Briefly define the main points of strategies,systems,and processes.

Question 26

Which one of the following strategies involves a plan of action focused on the transformation of a firm's resources into goods and services?

A)layout
B)product
C)capacity
D)process
E)location

Question 27

A manufacturing company that produces plastic products creates a plan that outlines the different ways of managing the transformation process.The plan contains detailed information about aspects such as the handling of materials,operation of the assembly line,and the labor used in production.This plan of action is called a ________ strategy.

A)process
B)product
C)development
D)layout
E)capacity

Question 28

Product quality determines an organization's ________.

A)skill set
B)reputation
C)customer base
D)competitive move
E)financial balance

Question 29

Because of the attention to constantly improving quality,a firm's focus on quality processes are actually more of a ________ than a/an ________.

A)destination;continuous journey
B)destination;process
C)continuous journey;adventure
D)continuous journey;destination
E)process;continuous journey

Question 30

Quality assurance is a continuum of activities that starts when quality standards are set and ends when quality goods and services are delivered to the customer.

Question 31

________ is an operational plan of action outlining which goods and services an organization will produce and market.

A)Capacity strategy
B)Product strategy
C)Process strategy
D)Layout strategy
E)Location strategy

Question 32

The performance of managerial activities that involve selecting,designing,managing,controlling and updating production systems is called ________.

A)strategic management
B)tactical management
C)operations management
D)input management
E)service management

Question 33

________ is/are a plan of action.

A)Systems
B)Strategy
C)Processes
D)Appraisals
E)Policies

Question 34

Human effort is often replaced by electromechanical devices in operations such as welding,materials handling,design,and drafting.This is called automation.

Question 35

Which one of the following companies does your text say makes excellent use of robotics to improve warehouse productivity?

A)Nestle
B)International Harvester
C)Amazon
D)Google
E)Cisco

Question 36

An organization wants to involve all company employees in quality control.Can you suggest a technique to help the organization?

Question 37

Deming's quality flow diagram eliminates barriers between the company and the customer,between the customer and the suppliers,and between the company and its employees.Therefore,an organization's interpretation of quality really is expressed in its ________.

A)strategies
B)organizational design
C)leadership profiles
D)control plans
E)financial plan

Question 38

________ is a plan of action aimed at providing the organization with the right facilities to produce the needed output at the right time.

A)Location strategy
B)Process strategy
C)Product strategy
D)Layout strategy
E)Capacity strategy

Question 39

Which one of the following is an example of a modern capacity strategy?

A)construct large plants that perform all the value adding activities
B)produce more than the actual demand to minimize customer dissatisfaction
C)build large specialized plants to concentrate all the tasks at one place
D)construct smaller and more specialized plants that focus on a few tasks
E)produce less than the actual demand to reduce the costs of operation

Question 40

Compare and contrast quality assurance and statistical quality control.Which one do you think is preferable to organizations? Explain your answer.

Question 41

________ is the degree to which managers attain organizational objectives;while ________ is the degree to which organizational resources contribute to productivity.

A)Efficiency;effectiveness
B)Efficiency;innovation
C)Effectiveness;innovation
D)Effectiveness;collaboration
E)Effectiveness;efficiency

Question 42

The process used to manufacture beer is a product-oriented,high-volume,and low-variety process.This can be called a(n)________ process.

A)cyclical
B)job-shop
C)repetitive
D)assembly-line
E)continuous

Question 43

Operational tools are often used as part of a firm's human resource strategy.Which one of the following is an operational tool used by managers to improve productivity and ensure the safety of workers?

A)work methods analysis
B)motion-study technique
C)job design
D)work measurement method
E)operations control

Question 44

________ is a technique for reducing inventories to a minimum by arranging for production components to be delivered to the production facility only when it is about to be used.

A)Flexible manufacturing
B)Just-in-time control
C)Mass customization
D)Six Sigma production
E)Total preventive maintenance

Question 45

Organizations commonly employ more than one type of manufacturing process at the same time and in the same facility.

Question 46

________ are operational tools used to establish labor standards and are useful for planning,control,productivity improvements,costing and pricing,bidding,compensation,motivation,and financial incentives.

A)Work measurement methods
B)Manpower plans
C)Motion-study techniques
D)Work method analyses
E)Job design strategies

Question 47

Briefly describe JIT inventory control.

Question 48

Which one of the following process strategies is characteristic of the auto and appliance industries?

A)repetitive process
B)continuous process
C)flexible process
D)job-shop process
E)low-volume process

Question 49

Explain the concept of a layout strategy and discuss the various types of layouts.

Question 50

Work methods analyses are an operational tool that is performed for new or existing jobs to improve productivity and ensure the safety of workers.

Question 51

Tom's company repairs machines only after they have malfunctioned.This is an example of ________.

A)quality circle initiative
B)maintenance control policy
C)pure-breakdown policy
D)total productive maintenance
E)quality assurance initiative

Question 52

________ layout is a layout pattern that groups together similar types of equipment.

A)Process
B)Fixed position
C)Group technology
D)Product
E)Material

Question 53

Explain and discuss the concept of operations strategies.

Question 54

Effectiveness refers to doing things right whereas efficiency refers to doing the right things.

Question 55

The ________ process includes the production of one-of-a-kind items as well as unit production.

A)job-shop
B)assembly line
C)serial
D)parallel
E)fixed position

Question 56

Which one of the following strategies involves a plan of action focused on ensuring the company has facilities necessary to meet future demands for goods and services?

A)layout
B)product
C)capacity
D)process
E)location

Question 57

Which one of the following is the first stage in a cost control program?

A)measuring actual labor costs incurred
B)making changes to reduce actual labor and material costs
C)comparing planned labor and material costs to incurred costs
D)measuring actual material and process costs incurred
E)establishing standard or planned cost amounts

Question 58

Operational tools are often used as part of a firm's human resource strategy.Which one of the following is an operational plan that outlines who will perform a specific job and how and where the job will be conducted?

A)work methods analysis
B)work measurement methods
C)motion-study techniques
D)job design
E)operations control

Question 59

Operational tools are often used as part of a firm's human resource strategy.Which one of the following is an operational tool used to establish labor standards?

A)work methods analysis
B)work measurement methods
C)motion-study techniques
D)job design
E)operations control

Question 60

Which layout strategy would be most appropriate for an organization with a limited number of different products that require high production volumes,highly specialized equipment,and narrow employee skills?

A)product layout
B)process layout
C)functional layout
D)fixed-position layout
E)equipment layout

Question 61

A budget that automatically indicates an increase in the amount of resources allocated for various organizational activities when production levels go up is called a(n)________.

A)variable budget
B)zero-base budget
C)parallel budget
D)incremental budget
E)dependable budget

Question 62

Which one of the following is the best example of a control technique management could use to identify any problems or issues that may need to be addressed during their firm's operations and production stages?

A)quality control inspections
B)value statements
C)labor force planning
D)capacity planning
E)layout strategies

Question 63

Which one of the following ratios is best suited to analyze how the company finances its projects?

A)inventory turnover
B)debt ratio
C)current ratio
D)acid test ratio
E)return on investment

Question 64

Which one of the following terms refers to the expenses that fluctuate with changes in the number of products produced?

A)variable costs
B)depreciation
C)asset purchase costs
D)costs of mechanism
E)inflationary costs

Question 65

David Lamb leads a team of engineers at Alpha technologies,a leading software company.David started his career as a program developer and is widely recognized as a subject matter expert.He is not very involved in the day-to-day management of the team and instead promotes a great deal of autonomy among team members.However,he does help out if the team comes across unanticipated problems associated with atypical tasks.This is an example of ________.

A)management by exception
B)the process control method
C)continuous operational control
D)customary process control
E)management by objectives

Question 66

Which one of the following outlines the financial plan of an organization for a particular period?

A)income statement
B)balance sheet
C)HR design
D)product layout
E)budget

Question 67

Pure-breakdown policy involves regular activities such as machine adjustments,lubrication,cleaning,parts replacement,and painting.

Question 68

________ is a control technique that allows only significant deviations between planned and actual performance to be brought to a manager's attention.

A)Management by exception
B)Disaster management
C)Contingency planning
D)Process control
E)Management by objectives

Question 69

What are the potential pitfalls of budgets?

Question 70

________ is the amount of the total costs of producing a product that exceeds the total revenue gained from selling the product.

A)Loss
B)Depreciation
C)Asset purchase costs
D)Break-even point
E)Inflationary costs

Question 71

Inventory turnover is an example of a(n)________ ratio.

A)operations
B)profitability
C)liquidity
D)activity
E)leverage

Question 72

________ is defined as the amount of total revenue that exceeds the total costs of producing the products sold.

A)Total cost
B)Profit
C)Marginal cost
D)Loss
E)Depreciation

Question 73

A(n)________ is an expense incurred by the organization regardless of the number of products produced.

A)variable cost
B)sunk cost
C)total cost
D)fixed cost
E)inflationary cost

Question 74

A company uses current ratio to analyze its financial position.Which one of the following types of information can be obtained from current ratio?

A)efficiency of inventory management
B)productivity of the company's assets
C)information on the short-term solvency
D)information on the total debt of the company
E)information on financial leverage

Question 75

Return on investment is an example of a(n)________ ratio.

A)operations
B)profitability
C)liquidity
D)leverage
E)activity

Question 76

Which one of the following statements is true of the control tools used in organizations?

A)It helps to pinpoint organizational strengths and weaknesses.
B)It is generally used during the product design stage.
C)Control tools are not used for day-to-day operations.
D)Employee control is not possible with the use of these tools.
E)These tools are used by workers more than managers.

Question 77

Altratex is the manufacturer of electronic power stabilizers.The company has spent $50,000 toward the purchase of capital goods and machinery.It has also paid $8,000 toward annual building maintenance and $1,500 for annual insurance premium.The company has 15 permanent employees who earn an annual salary of $1,500 each.The other variable costs for producing a stabilizer is $15.How many units should the company sell in order to recover its investment if each unit is priced at $40?

A)2,175
B)4,579
C)3,132
D)3,280
E)2,833

Question 78

Identify the algebraic equation to determine the break-even point.

A)BE = VC/(P-FC)
B)BE = P/ (FC-VC)
C)BE = C/R
D)BE = (P-VC)/(FC-VC)
E)BE = FC/(P-VC)

Question 79

________ is an operations control activity that determines the flow of materials from vendors through an operations system to customers.

A)Just-in-time philosophy
B)Zero-based control
C)Work scheduling
D)Production planning
E)Materials control

Question 80

Which one of the following techniques is best suited to analyze the financial position of an organization?

A)process modeling
B)motion-study techniques
C)value analysis
D)functional analysis
E)ratio analysis