Deck 9: Production Systems

Question 1

Feedback is the information from the output applied back to the input.

Answer 1

True
Explanation:Feedback is the information from the output applied back to the input.

Question 2

Mass production involves the creation of identical goods or services.

Answer 2

True
Explanation:Mass production involves the creation of identical goods or services.

Question 3

Corrections will not lead to performance improvements at the leverage point.

Answer 3

False
Explanation:At the leverage point, where a relatively small correction could make the entire company perform better.

Question 4

In a PERT diagram,the critical path is the shortest sequence of operations.

Question 5

A company that hires an outside firm to do its accounting and payroll function is outsourcing that function.

Question 6

Value webs are multidimensional networks of suppliers and outsourcing partners.

Question 7

PERT diagrams are bar charts that show production managers what projects are being worked on and what stage they are in.

Question 8

Making sure you have what you need no earlier than when you need it is known as just-in-time inventory management.

Question 9

Inventory control refers to determining how much of what to have on hand at any given time.

Question 10

System is an interconnected and coordinated set of elements and processes that converts inputs to desired outputs.

Question 11

Lean systems are systems whose productivity is relatively low.

Question 12

Offshoring is moving processes to markets that are closer to home in order to minimize transportation and management costs.

Question 13

A firm's suppliers are not part of its value chain.

Question 14

Estimates of future demand for a company's products or services are referred to as production forecasts.

Question 15

Productivity is the measure of the efficiency at which an organization can convert inputs into outputs.

Question 16

The period of time that elapses between placing an order and actual receipt is the product's lag time.

Question 17

Outsourcing and offshoring are synonymous terms.

Question 18

Capacity planning is not directly linked to estimation of future demand.

Question 19

Capacity planning refers to making decisions about the arrangement of production work centers and other elements.

Question 20

Scheduling determines how long each operation takes and deciding which tasks are done in which order.

Question 21

Which of the following is a major difference between a line view and a circular view?

A) Multiple activities are considered in a series view, unlike a circular view.
B) A line view has multiple activities, unlike a circular view.
C) A circular view includes feedback, unlike a line view.
D) A circular view shows multiple activities, unlike a line view.
E) Multiple activities are considered in a circular view, unlike a serial view.

Question 22

Statistical process control refers to the use of random sampling and tools,such as control charts,to monitor the production process.

Question 23

Doing the job right the first time is the basic principle of quality control.

Question 24

ISO 9000 is a methodology used for customized production and avoids the use of standards.

Question 25

Gobex financial services is a multinational firm that has many branches across the globe.The U.S subsidiary of the firm assigns its accounting tasks to the Chinese subsidiary.Lower labor costs enable the Chinese firm to perform the tasks more efficiently.This is an example of ________.

A) offshoring
B) outsourcing
C) leveraging
D) customization
E) external valuation

Question 26

The point in a system where a small correction could improve performance is called the ________.

A) break even point
B) breaking point
C) leverage point
D) equilibrium point
E) point of no return

Question 27

Services that must be consumed at the same time they are produced are known as perishable services.

Question 28

Customer involvement tends to be more for goods than services.

Question 29

________ refers to contracting out certain business functions or operations to other companies.

A) Outsourcing
B) Scaling
C) Rescaling
D) Customization
E) External valuation

Question 30

Buxus Auto is a U.S manufacturer of automobiles.The company used to procure car accessories from a firm based in China.The quality of the parts the firm was receiving from China was below par and the firm decides to stop the purchase from China and procure the accessories from a U.S.based firm.This is an example of ________.

A) offshoring
B) outsourcing
C) leveraging
D) reshoring
E) external valuation

Question 31

Identical goods or services are created in large quantities in mass customization.

Question 32

Kaizen calls for continuous quality improvements.

Question 33

In systems view,an organizational department is viewed as a(n)________.

A) serial milestone of a process
B) system without outputs
C) independent entity
D) interconnected element
E) system without inputs

Question 34

________ include all the elements and processes from transforming raw materials to making the final products available to the ultimate customer.

A) Customer chains
B) Supply webs
C) Value chains
D) Supply chains
E) Product cycles

Question 35

Organizations can promote systems thinking by ________.

A) showing people how they contribute to the overall goal
B) implementing output-based individual incentives
C) restricting interactions at the subsystem level
D) giving them direct solutions from the top
E) implementing output-based incentives for small teams

Question 36

Measuring quality against established standards after production is known as quality assurance.

Question 37

Scalability is the potential to increase production by expanding or replicating its initial production capacity.

Question 38

________ refers to transferring a part or all of a business function to a facility in another country.

A) Offshoring
B) Scaling
C) Leveraging
D) Customization
E) External valuation

Question 39

LaSalle Plating is a U.S.company that offers metal finishing services.The company used to handle employee benefit administration and payroll management in-house,but recently decided to have these functions handled by an outside firm in Chicago.Which of the following terms best refers to this new strategy adopted by the company?

A) outsourcing
B) leveraging
C) dislocating
D) offshoring
E) internalization

Question 40

In batch-of-one production,the producer creates a unique good or service for each customer.

Question 41

Which of the following is the main objective of engaging in inventory control?

A) providing a channel for customer communication
B) obtaining feedback from the customers
C) providing a channel for brand communication
D) balancing supply and storage costs
E) storing less finished products and more raw materials

Question 42

Rolber Cycles is a manufacturer of racing bicycles.The company gives extreme importance to customer responsiveness and keeps products ready in the warehouse to deliver to customers immediately after they receive an order.These products are best referred to as ________.

A) supplies
B) inventory
C) layouts
D) system tools
E) production intermediaries

Question 43

Ronda Scooters is a leading Asian manufacturer of electric scooters.The company procures raw materials from a firm based in China.The Chinese supplier delivers materials in about three weeks after receiving a confirmed order.This period is referred to as the materials' ________.

A) procurement delay
B) lead time
C) lag time
D) run time
E) process forecast

Question 44

The technology known as ________ attaches small antenna tags to products or shipping containers to help the company track where needed materials are in its supply chain.

A) resource identification tags
B) U-key
C) ISO 9000
D) just-in-time
E) radio frequency identification

Question 45

________ refers to the acquisition of the raw materials,parts,components,supplies,and finished products required to produce goods and services.

A) Procurement
B) Logistics
C) Operation
D) Finishing
E) Inventorying

Question 46

________ refers to determining the right quantities of supplies and products to have on hand and tracking where those items are.

A) Customer relationship management
B) Summative evaluation
C) Quality control
D) Inventory control
E) Statistical process control

Question 47

Goods and materials kept in stock for production or sale are called ________.

A) supplies
B) inventory
C) layouts
D) system tools
E) production intermediaries

Question 48

________ refers to establishing the overall level of resources needed to meet customer demand.

A) Production planning
B) Facility analysis
C) Capacity planning
D) Process control
E) Critical path analysis

Question 49

Supply chain management refers to the business procedures,policies,and computer systems that ________.

A) separate supply chain from the value chain of an organization
B) convert supply chain into a cohesive system
C) separate supply chain from other business functions
D) help an organization communicate with competing firms
E) create a procurement process independent of the supply chain

Question 50

John's Apparel is a tailoring shop that manufactures custom-made dresses for special occasions and festivals.While ordering raw materials,John estimates that he would sell 500 Santa Claus lawn decorations in November.In this case john is performing a(n)________.

A) production forecast
B) capacity planning
C) PERT analysis
D) resource planning
E) critical path analysis

Question 51

A rural hospital is trying to determine how many beds it should have in its emergency room.This is an example of ________.

A) production scheduling
B) site selection
C) critical path analysis
D) capacity planning
E) systemic risk reduction

Question 52

A supply chain ________.

A) cannot be distinct for different departments
B) is applicable for services rather than goods
C) has only two components
D) does not include end customers
E) coordinates the flow of goods and materials

Question 53

The period of time between placing an order for supplies and receiving the material is called ________.

A) process forecast
B) run time
C) lead time
D) lag time
E) procurement delay

Question 54

Which of the following is an advantage of offshoring?

A) Hidden costs and risks are rarely involved in offshoring.
B) U.S. firms can charge lower prices through offshoring.
C) Offshoring is the best way to improve business agility.
D) Information risks are low when offshoring services.
E) Offshoring is the best way to increase customer responsiveness.

Question 55

________ refers to overseeing all the activities involved in producing goods and services.

A) Facilities management
B) Capacity planning
C) Procurement
D) Logistics
E) Operations management

Question 56

________ refers to the arrangement of production work centers and other elements needed to process goods and services.

A) Supply chain
B) Facility layout
C) Capacity plan
D) Critical path
E) Production forecast

Question 57

Hudson Foods markets processed foods in the United States.The company obtains raw materials from small scale producers in the U.S.and Canada.This act of getting the necessary raw materials for production is called ________.

A) inventorying
B) operation
C) finishing
D) logistics
E) procurement

Question 58

The phenomenon where U.S.companies move their production back to U.S.soil is known as ________.

A) offshoring
B) outsourcing
C) leveraging
D) reshoring
E) external valuation

Question 59

Which of the following is a legitimate disadvantage of offshoring?

A) U.S. Consumers will be charged higher prices due to offshoring.
B) Global trade will decline if businesses offshore processes.
C) Customer responsiveness may suffer due to offshoring.
D) Customers will lack choice in many industries due to offshoring.
E) U.S. competitiveness will decrease if businesses offshore processes.

Question 60

A bank is building a new branch in a small suburb,and one of the decisions it must make is how many teller windows it needs to serve its customers effectively and cost efficiently on an average day.This is an example of ________.

A) production scheduling
B) capacity planning
C) site selection
D) critical path analysis
E) systemic risk reduction

Question 61

Which of the following is a key difference between quality control and quality assurance?

A) High level managers perform quality control whereas middle managers perform quality assurance.
B) Quality assurance is more proactive than quality control.
C) Quality assurance is a subset of quality control process.
D) Quality control is continuous, whereas quality assurance is intermittent.
E) Quality control is typically preferred by organizations that focus on quality.

Question 62

________ refers to the creation of identical goods or services in large quantities.

A) Mass customization
B) Batch-of-one production
C) Mass production
D) Customized production
E) Mass personalization

Question 63

Dell Computers allows customers to place orders online.The company produces major parts using bulk production and allows customers to personalize such features as software,color,memory size,and screen size.This type of manufacturing is an example of ________.

A) mass customization
B) mass production
C) customized production
D) mass manufacturing
E) batch-of-one production

Question 64

________ is a special type of bar chart that shows the progress of all the tasks needed to complete a project.

A) Forecast schedule
B) Gantt chart
C) Value chart
D) PERT diagram
E) Supply chain diagram

Question 65

Jass Glass Studio has been hired to make a church window.A church hires the company to make ten windows based on a design provided by the Church.This is an example of ________.

A) mass production
B) batch production
C) customized production
D) mass customization
E) standard production

Question 66

Most services are consumed at the same time they are produced and cannot exist before or after that time.This means that most services are ________.

A) separable
B) scalable
C) perishable
D) measurable
E) standardized

Question 67

Grinder is a manufacturer of aluminum and steel balls used in large machineries.The company periodically estimates the future demand of its products and bases manufacturing on this data.Such estimates of the company are called ________.

A) operation plans
B) PERT reports
C) resource plans
D) critical paths
E) production forecasts

Question 68

________ is a comprehensive approach of companywide policies,practices,and procedures to ensure that every product meets quality standards.

A) Statistical process control
B) Quality assurance
C) Quality control
D) Quality directive
E) Corrective management

Question 69

The sequence of activities that take the longest time from start to finish in a PERT diagram is called the ________ path.

A) external
B) lagging
C) minor
D) critical
E) buffered

Question 70

________ refers to measuring quality against established standards after the good or service has been produced and weeding out any defective products.

A) Statistical process control
B) Quality assurance
C) Quality control
D) Continuous quality
E) Total quality management

Question 71

________ refers to the creation of a unique good or service for each customer.

A) Mass production
B) Batch production
C) Customized production
D) Mass customization
E) Standard production

Question 72

________ is the potential to increase production by expanding or replicating its initial production capacity.

A) Perishability
B) separability
C) Serviceability
D) Scalability
E) Capacity

Question 73

Morkel Toys is a manufacturer of toys.The company produces tens of thousands of Barbie Dolls in its factories everyday.It uses large machinery to automate the production and the output is standardized.This is an example of ________.

A) mass customization
B) batch-of-one production
C) mass production
D) customized production
E) mass personalization

Question 74

________ are estimates of future demand for a company's products.

A) Operation plans
B) PERT reports
C) Resource plans
D) Critical paths
E) Production forecasts

Question 75

Polar Refrigerator Company reduces its inventory carrying costs by having their vendors deliver materials right before they are needed in the production process.This is an example of ________ inventory management.

A) discounted
B) PERT
C) JIT
D) buffered
E) economic order based

Question 76

________ refers to the efficiency with which an organization can convert inputs to outputs.

A) Productivity
B) Sustainability
C) Security
D) Capacity
E) System value

Question 77

Which of the following is the main purpose of just-in-time systems?

A) disintermediation of distribution
B) bettering work scheduling
C) strategic analysis
D) capacity improvement
E) better inventory management

Question 78

________ is a tool used by manufacturing facilities to coordinate production of all the goods the company makes.

A) JIT system
B) Value web
C) Six Sigma
D) Inventory list
E) Master production schedule

Question 79

The manufacturing approach in which part of the product is mass produced and the remaining features are customized is known as ________.

A) batch-of-one production
B) mass production
C) customized production
D) mass manufacturing
E) mass customization

Question 80

________ refers to the degree to which a product or process meets reasonable or agreed-upon expectations.

A) Quality
B) Standard
C) Scalability
D) Capacity
E) Serviceability