Deck 7: Operations Management and Quality

Question 1

The master production schedule shows which products will be produced and when the production will take place.

Answer 1

True

Question 2

Follow-up means checking to ensure that production decisions are being implemented and is a key and ongoing facet of operations.

Answer 2

True

Question 3

Total quality management includes all the activities necessary for getting quality goods and services into the marketplace.

Answer 3

True

Question 4

In a low-contact system,the customer need not be a part of the system to receive the service.

Question 5

A firm's capacity depends on both how many people it employs and the number and size of its facilities.

Question 6

ISO 9000 is a certification program attesting to the fact that a factory,laboratory,or office has improved its environmental performance.

Question 7

The American Society for Quality defines quality in terms of manufactured goods,rather than including services.

Question 8

Getting a haircut and having your lawn mowed are both examples of low-contact services.

Question 9

Operations managers do not always work in production facilities; farmers,for example,can be considered operations managers.

Question 10

Reengineering is the process by which a company implements the best practices from its own past performance and those of other companies to improve its own products.

Question 11

If parts A,B,and C must be produced this week,a detailed schedule will indicate the sequence of work.

Question 12

Over time,firms tend to achieve more than one competence.

Question 13

Quality improvement teams are groups of employees from various work areas who define,analyze,and solve common production problems.

Question 14

Materials management is the process of monitoring production performance by comparing results with plans and taking corrective action when needed.

Question 15

Business process reengineering focuses on improving all steps of business processes.

Question 16

Operations managers never directly control costs or inventory.

Question 17

Intangibles are not used in judging service quality; instead,a consumer's focus is on tangibles.

Question 18

Each stage in the supply chain adds value for the final customer.

Question 19

Firms that make tangible projects are engaged in goods production.

Question 20

The amount of a product that a company can produce under normal working conditions is its capacity.

Question 21

JIT production systems normally require large amounts of "safety stock" to be maintained in a firm's warehouse.

Question 22

By turning raw materials into finished goods,production creates form utility.

Question 23

An assembly line is an example of a custom-products layout.

Question 24

In a same-steps layout,equipment and people are set up to produce one type of good in a fixed sequence of steps and are arranged according to its production requirements.

Question 25

A process flow chart identifies the sequence of production activities,movements of materials,and work performed at each stage of the process.

Question 26

Materials management involves the flow of materials inside of the production facility,while distribution management involves the flow of finished goods.

Question 27

When a company turns out ornaments in time for Christmas,it creates time utility.

Question 28

Successful companies,such as 3M and FedEx,use the same operations strategy.

Question 29

Staff schedules identify which products will be produced and when.

Question 30

Operations capability is a special ability that production does especially well to outperform the competition.

Question 31

Japanese companies adapted the concept of quality circles from quality improvement teams used by U.S.companies.

Question 32

The goal of supply chain management is better overall flow in the system.

Question 33

An example of make-to-order operations is a hand-knit Irish sweater purchased in an upscale department store.

Question 34

Make-to-order shops are also called job shops.

Question 35

Services are typically characterized by a high degree of unstorability.

Question 36

ISO 9000 is a certification program attesting that a factory,laboratory,or office has met the rigorous requirements set by the International Organization for Standardization.

Question 37

Services are more tangible,more customized,and less storable than most products.

Question 38

The goal of supply chain management is to reduce the number of links in the channel.

Question 39

A Gantt chart breaks down large projects into steps to be performed and the time required to perform each is left up to the project manager.

Question 40

A company typically selects the kind of production used by most of its competitors.

Question 41

Quality planning involves a push toward the continued improvement of both products and production methods.

Question 42

Because supply chain strategy is based on the collective effort of a number of firms,no one firm in the chain gains a competitive advantage.

Question 43

ISO 14000 may result in a recycling program at a company.

Question 44

Managers of Restaurant A eat at a competing restaurant in order to identify desirable improvements in their own operations; this illustrates quality ownership.

Question 45

Even excellent firms focus on one competence at a time.

Question 46

Value-added analysis might focus on both the elimination of waste and cost minimization.

Question 47

The term ________ refers to all the activities involved in making products,goods and services,for customers.

A) operations
B) processes
C) planning
D) scheduling

Question 48

A value chain includes an entire network of firms ,beginning with suppliers and ending when production is complete.

Question 49

The sales department relies on the engineering department to send samples and quotes to prospective customers on a timely basis; the sales department may be considered the engineering department's internal customer.

Question 50

________ is the ability of a product to satisfy a human want.

A) Utility
B) Relative advantage
C) Content
D) Satisfaction

Question 51

The biggest challenge of TQM is motivating employees throughout the company to achieve quality goals.

Question 52

________ utility is created when a company makes products available when consumers want them.

A) Time
B) Place
C) Possession
D) Form

Question 53

Operations control includes materials management and quality control.

Question 54

According to the text,to ensure that truckloads of merchandise flow quickly to stores (regarded as customers),Wal-Mart distribution centers are located near the hundreds of stores that they supply,not near the companies that supply them.

Question 55

For manufacturing firms,typical materials costs make up 50 to 75 percent of total product costs.

Question 56

A detailed schedule will indicate how many employees will be working on a given shift.

Question 57

________ is the systematic direction and control of the processes that transform resources into finished products.

A) Marketing
B) Operations management
C) Control
D) Methods management

Question 58

Most service operations provide combinations of ________.

A) low- and high-contact systems
B) make-to-stock and make-to-order operations
C) high and low quality levels
D) goods and services

Question 59

Long-range capacity planning considers both current and future capacity requirements.

Question 60

________ utility is created when a company makes products available where consumers want them.

A) Time
B) Place
C) Possession
D) Form

Question 61

________ refers to the sameness of product quality from unit to unit.

A) Consistency
B) Reliability
C) Performance
D) Quality control

Question 62

Which of the following is NOT a component of materials management?

A) supplier selection
B) transportation
C) advertising
D) warehousing

Question 63

A ________ breaks down large projects into steps to be performed and specifies the time required to perform each one.

A) Myers graphic
B) critical path chart
C) Gantt chart
D) process analysis graph

Question 64

________ refers to how well the product does what it is supposed to do.

A) Consistency
B) Reliability
C) Performance
D) Quality control

Question 65

________ is the acquisition of the raw materials a company needs to produce its products.

A) Development
B) Purchasing
C) Goods control
D) Quality control

Question 66

The customer must be present in ________.

A) a low-contact system
B) a high-contact system
C) a service operation
D) any system

Question 67

Which of the following is a major objective of JIT production?

A) reduction of goods in process
B) elimination of disruptions by continuous improvement
C) unnecessary inventory levels
D) all of the above

Question 68

Operations control requires production managers to monitor production performance by ________.

A) comparing results with detailed plans and schedules
B) checking on each worker on the production floor
C) observing activities from a platform above the workers
D) constantly talking with employees involved

Question 69

In a ________ layout for production,equipment and people are grouped according to function.

A) cellular
B) same-steps
C) custom-products
D) service

Question 70

Examining step-by-step procedures to reduce inefficiency involves an approach called ________.

A) operations scheduling
B) reengineering
C) value-added analysis
D) methods improvement

Question 71

In a ________ system,the customer does not need to be a part of the system to receive the service.

A) high-contact
B) low-contact
C) conversion
D) quality

Question 72

Thousands of empty jugs move down a conveyor belt at Colgate-Palmolive before stopping to be filled and moving on to be labeled.What type of layout is utilized?

A) same-steps
B) custom-products
C) hybrid
D) fixed-position

Question 73

At XYZ Enterprises,cloth is cut in the front room of the facility.The cut cloth then moves to the sewing department in the back room.What type of layout is utilized?

A) product
B) custom-products
C) same-steps
D) fixed-position

Question 74

In ________,products are made according to customer specifications.

A) make-to-stock operations
B) make-to-order operations
C) a low-contact system
D) a value chain

Question 75

________ systems are designed for smooth production flow that avoid inefficiencies,eliminate unnecessary inventories,and continuously improve production processes.

A) Lean
B) Managed
C) Production
D) Flexible

Question 76

A(n)________ is a set of methods and technologies used in the production of a good or service.

A) operations process
B) production episode
C) reduction
D) methods plan

Question 77

In a ________ system,the customer is part of the system during service delivery.

A) high-contact
B) low-contact
C) customer
D) quality

Question 78

________ is a special ability that production does especially well to outperform the competition.

A) Supply chain management
B) Total quality management
C) Process engineering
D) Operations capability

Question 79

The amount of a product that a company can produce under normal working conditions is its ________.

A) capacity
B) output
C) efficiency
D) burden

Question 80

________ includes the receiving,storing,handling,and counting of all raw materials,partly finished goods,and finished goods.

A) Materials handling
B) Inventory control
C) Quality control
D) None of the above