Deck 8: The Operations Plan: How Will You Make the Product

Question 1

Production can consist of either breaking raw material down into component parts or combining material to create the final products.

Answer 1

True

Question 2

The object of determining the EOQ is to _______.

A)minimize total
B)variable costs
C)maximize total product
D)minimize total fixed costs
E)equalize costs over a year's time
F) defray costs until the next accounting cycle

Answer 2

A, B

Question 3

_______ is assigning work to a facility.

A)Scheduling
B)Loading
C)Leading
D)Perpetuating
E)Reordering

Answer 3

B

Question 4

_______ specifies the time and sequence in which the work is to be done and develops a schedule for it.

A)Perpetuating
B)Leading
C)Reordering
D)Scheduling
E)Loading

Question 5

A _______ shows work and how long it should take to be completed.

A)PERT Chart
B)Excel Chart
C)Gantt Chart
D)Inventory Table
E)Process Flow Chart

Question 6

The transformational process consists of which of the following elements?

A)Input
B)Design
C)Realignment
D)Process
E)Output

Question 7

Which of the following is true of supply chain management?

A)Having a good relationship with suppliers throughout the supply chain is essential to the success of a small business.
B)It is the network of businesses that participate in the process of producing and delivering a product to the customer.
C)It is also called the value chain.
D)It coordinates the flow of information and materials through the supply chain.
E)It coordinates the flow of money through the supply chain.

Question 8

Which of the following is true of material requirement planning?

A)It costs a firm more money by increasing inventory levels.
B)It saves the firm money by
C)reducing inventory levels.
D)It controls the material needed in production.
E)It yields slower delivery times.
F) Just-in-Time inventory can slow a production process down.

Question 9

Which of the following are critical questions to ask of inventory control?

A)How much to order at any one time
B)What components to order
C)Where the facility is located
D)How many workers it will take to get one project completed
E)When to reorder

Question 10

Identify all components of the transformation process, from beginning to end.

Question 11

Contrast motion study, direct time study, and predetermined time standards.

Question 12

Describe the mission of logistics and how it can work for a company.

Question 13

List at least five of the six components of carrying costs.

Question 14

Describe the approaches to production control, loading, and scheduling.

Question 15

Explain how Gantt Charts can help logistics managers make wise decisions.

Question 16

_______ are those costs associated with ordering materials from the ordering cost through receiving, inspection, and storage.

A)Cover costs
B)Lost cost
C)Inventory costs
D)Carrying costs
E)Rolling costs

Question 17

The mission of _______ is to produce the appropriate goods or services in the right quality and quantity, and to distribute them to the right place at the right time.

A)inventory
B)outsourcing
C)logistics
D)warranties
E)time studies

Question 18

_______refers to the terms and situations in which repairs or exchanges will be made if a product does not function as originally described or intended.

A)Capital outlay
B)Product warranty
C)Inventory
D)Direct time study
E)Procurement

Question 19

Comparison of costs alone may not give a definitive answer to the question of whether to make or buy because other non-quantitative factors may outweigh pure price considerations.

Question 20

If the price of purchasing the goods is cheaper
than manufacturing them, the firm will probably purchase the material in question.

Question 21

Stopwatches are used to time a task for a direct time study.

Question 22

JIT techniques are the result of the supply-push efforts of a firm to schedule production.

Question 23

Carrying costs vary directly with the size of the inventory.

Question 24

The more units of inventory you procure, the cheaper the procurement costs per unit.

Question 25

Small lots minimize procurement costs while maximizing storage costs.

Question 26

During lead time, the company continues to use and draw down its inventory.

Question 27

The combination of usage during lead time and safety stock desired will determine the reorder point.

Question 28

Done properly, TQM involves taking away responsibility from workers for performing their job in the best way.

Question 29

Statistical quality control involves using control charts that show expected and actual performance.

Question 30

_______ refers to the component material or physical goods that any operation must consume.

A)Inventory
B)Materials
C)Warehousing
D)Capital outlay
E)Time and motion study

Question 31

_______ means that a company would rather transfer the assembly of its products to outside suppliers instead of doing the work itself.

A)Resourcing
B)Critical timing
C)Benchmarking
D)Outsourcing
E)Logistics

Question 32

_______ is the process of systematically recording, analyzing, and synthesizing the times required to perform a task.

A)Time study
B)Motion study
C)Time differentiation
D)Supply chaining
E)Material requirement planning

Question 33

Define ISO 9000 and describe how it is used today.