Deck 15: Managing Operations, Quality, and Productivity

Question 1

Katina has hurt her hand. She goes to the emergency room. The doctor thinks Katina has a broken wrist, and sends her for an X-ray. In this example, which type of layout does the hospital have?

A) Product layout
B) Cellular layout
C) Random layout
D) Fixed-position layout
E) Process layout

Answer 1

E
Process layouts are used in operations settings that create or process a variety of products.

Question 2

A _____ layout is appropriate when large quantities of a single product are needed.

A) process
B) cellular
C) fixed-point
D) product
E) distributed

Answer 2

D
A product layout is appropriate when large quantities of a single product are needed.

Question 3

A(n) _____ organization is one that transforms resources into an intangible output and creates time and place utility for its customers.

A) manufacturing
B) production
C) service
D) coal
E) agricultural

Answer 3

C
A service organization is one that transforms resources into an intangible output and creates time or place utility for its customers.

Question 4

_____ is a form of business that combines and transforms resources into tangible outcomes that are then sold to others.

A) Service
B) Manufacturing
C) Outsourcing
D) Licensing
E) Exporting

Question 5

A company buys electronic components, assembles them into PCs, and then ships them to customers. In this case the electronic components are _____ for the company.

A) outputs
B) products
C) processes
D) inputs
E) services

Question 6

Operations management was once called _____.

A) service management
B) process management
C) waste management
D) production management
E) output management

Question 7

In the United States, which of the following steps did the manufacturing companies take to recover from the long period of decline?

A) They increased their workforces dramatically.
B) They opened more plants.
C) They changed their market.
D) They modernized their plants.
E) They changed their sector.

Question 8

Upsilon Inc. manufactures leather handbags. It later adds leather accessories, shoes, and clothing to its production line. With this step, Upsilon is taking a _____ decision.

A) layout
B) promotion-distribution
C) capacity
D) product-service mix
E) facility

Question 9

A convenience store at the gas station provides utility for customers because it makes it easy for them to purchase a few essentials when they stop for gasoline. The convenience store belongs to the _____ industry.

A) service
B) manufacturing
C) automotive
D) importing
E) electronics

Question 10

A Canadian insurance company provides only one kind of insurance. It insures athletes who have multimillion-dollar contracts and pays them a sum of money when they are injured or unable to play. Athletes buy the insurance policies as a way to protect themselves. The insurance company's decision to specialize in this type of insurance addresses their decision regarding _____.

A) product-service mix
B) capacity
C) layout
D) location
E) human resource

Question 11

Fast food restaurants that assemble breads, spreads, and fillings as per the customers' preference belong to the _____ industry.

A) service
B) manufacturing
C) automotive
D) importing
E) exporting

Question 12

Which of the following questions is addressed by product-service mix decisions?

A) How the services need to be provided?
B) How many different products need to be offered?
C) What quantity of a product needs to be produced?
D) Where the products need to be distributed?
E) How products need to be produced?

Question 13

Globe-Mart, a large chain of department stores, strategically places distribution centers throughout the United States. In this context, Globe-Mart has made a _____ decision.

A) product layout
B) facilities location
C) capacity
D) product-service mix
E) process layout

Question 14

The total set of managerial activities an organization uses to transform resource inputs into products and services is called _____.

A) technology management
B) strategic management
C) project management
D) operations management
E) self-management

Question 15

Which of the following is addressed when considering making a capacity decision?

A) Amount of products to be manufactured
B) Location for storage of product
C) Type of products manufactured
D) Quality of products to be manufactured
E) Geographic site of facilities

Question 16

During the decline of the manufacturing sector, a tremendous growth in the _____ sector kept the U.S. economy from declining at the same rate.

A) coal
B) service
C) agriculture
D) steel
E) electronics

Question 17

During the 1970s in the United States, manufacturing entered a long period of decline. Which of the following is the primary reason for this decline?

A) Modernization of plants
B) Rise in unemployment
C) Growth in the service sector
D) Foreign competition
E) Recession

Question 18

A highest-possible-quality strategy will stress on _____.

A) the lowest possible cost regardless of quality
B) quality regardless of cost
C) low quality at low cost
D) large quantities at low cost
E) productivity regardless of quality

Question 19

An organization that transforms resources into an intangible output in order to create time or place utility for its customers is known as _____ company.

A) an outsourcing
B) a service
C) a manufacturing
D) the International Organization for Standardization 9000
E) total quality management

Question 20

If the product is a physical good, operations create value and provide _____ utility by combining many dissimilar inputs to make something that is more valuable than the actual cost of the inputs used to create it.

A) time
B) form
C) place
D) service
E) statistical

Question 21

In automation, _____ is the flow of information from the machine back to the sensor.

A) feedback
B) agrimation
C) input instruction
D) design
E) control mechanism

Question 22

Which of the following uses computers to design parts and complete products and to simulate performance so that prototypes need not be constructed?

A) Computer-aided automation
B) Computerized robotics
C) Agrimation
D) Computer-aided design
E) Flexible manufacturing systems

Question 23

Which of the following statements about manufacturing technology is true?

A) Computer-assisted manufacturing generates resistance.
B) Computer-aided design systems are always reliable.
C) Computer-integrated manufacturing systems are inexpensive.
D) Computer-aided design systems are very simple.
E) Computer-assisted manufacturing is the same as automation.

Question 24

_____ include robotic work units or workstations, assembly lines, and robotic carts or some other form of computer-controlled transport system to move material as needed from one part of the system to another.

A) Agrimations
B) Flexible manufacturing systems
C) Call-center systems
D) Computer-aided design technologies
E) Expert systems

Question 25

_____ layouts are used when families of products can follow similar flow paths.

A) Product
B) Cellular
C) Random
D) Fixed-position
E) Process

Question 26

Eagle Inc. makes golf clubs. Each set has up to 12 clubs and each club in the set is slightly different from the other. Which of the following types of layout does Eagle's manufacturing plant have?

A) Product layout
B) Cellular layout
C) Fixed-position layout
D) Random layout
E) Process layout

Question 27

In automation, _____ are the parts of the system that gather information and compare it to preset standards.

A) feedback systems
B) sensors
C) robots
D) mechanical arms
E) control mechanisms

Question 28

In automation, which of the following sends instructions to the automatic machine?

A) Feedback
B) Sensors
C) Agrimation
D) Steering system
E) Control mechanism

Question 29

In a toy manufacturing factory, the employees are stationed along the assembly line. As a toy moves along the assembly line, each employee stationed there adds a particular part to the toy. The toy factory has a _____ layout.

A) process
B) cellular
C) fixed-point
D) product
E) distributed

Question 30

Dina works in a residential construction company. She travels to the job site to build a house. The residential construction company is an example of a _____ layout.

A) product
B) cellular
C) random
D) fixed-position
E) process

Question 31

_____ is also called procurement.

A) Automation
B) Purchasing management
C) Inventory Management
D) Materials control
E) Quality control

Question 32

The _____ layout is used when the organization is creating a few very large and complex products.

A) product
B) cellular
C) fixed-position
D) process
E) distributed

Question 33

Which of the following is true of automation?

A) The development of automation has created jobs across all industries.
B) Automated machines make more errors.
C) Automation discourages innovation.
D) Automation helps to improve products and services.
E) Automation was the earliest step in the development of machines and machine-controlling devices.

Question 34

A(n) _____ is any artificial device that is able to perform functions ordinarily thought to be appropriate for human beings.

A) transformer
B) expert system
C) resistor
D) robot
E) just-in-time inventory system

Question 35

_____ layouts are used in operations settings that create or process a variety of products.

A) Product
B) Cellular
C) Random
D) Fixed-position
E) Process

Question 36

_____ is the process of managing operations control, resource acquisition and purchasing, and inventory to improve overall efficiency and effectiveness.

A) Supply-chain management
B) Technology management
C) Design management
D) Quality control
E) Productivity control

Question 37

EduCool is a web-based student information system. It allows parents to follow their child's performance online. It includes grades, attendance, assignments, and student data on a daily basis. EduCool is an example of:

A) advancement in service technology.
B) advancement in manufacturing technology.
C) computer-aided manufacturing.
D) computer aided design.
E) computer-assisted technology.

Question 38

Which of the following is true of computer-integrated manufacturing (CIM)?

A) It is a simple tool.
B) It is very different from computer-aided manufacturing.
C) In CIM, adjustment of machine placements and settings is manual.
D) It is a powerful management control tool.
E) It is a form of service technology.

Question 39

Which of the following is concerned with buying the materials and resources needed to produce products and services?

A) Automation
B) Purchasing management
C) Inventory Management
D) Materials control
E) Quality control

Question 40

Which of the following uses robot harvesters to pick fruit from a variety of trees?

A) Agrimation
B) Flexible manufacturing systems
C) Supply chain management
D) Computer--assisted manufacturing
E) Benchmarking

Question 41

Which of the following involves managing the organization's raw materials, work in process, finished goods, and products in transit?

A) Technology control
B) Purchasing management
C) Inventory control
D) Procurement
E) Quality control

Question 42

Dorothy loves buying Haven's herb bread. As advertised, she thinks it is the most versatile bread as well as being nutritious. It can be eaten by itself, made into sandwiches, added to salads, and so on. The versatility of the herb bread is a supplement to its nutrition and therefore it constitutes the _____ dimension of quality.

A) features
B) aesthetics
C) reliability
D) durability
E) serviceability

Question 43

Which of the following is also called inventory control?

A) Technology control
B) Purchasing management
C) Procurement
D) Materials control
E) Quality control

Question 44

Performance is the dimension of quality that refers to:

A) a product's primary operating characteristic.
B) the degree to which a product's design and operating characteristics meet established standards.
C) a probability of not malfunctioning during a specified period.
D) a measure of product life.
E) the speed and ease of repair.

Question 45

The purpose of an in-transit inventory is to:

A) provide the materials needed to make the product.
B) enable overall production to be divided into stages of manageable size.
C) reduce the organization's investment on storage space.
D) provide ready supply of products on customer demand and enable long, efficient production runs.
E) distribute products to customers.

Question 46

Azures Airlines operates between Washington Dulles, Newark Liberty, and Paris Charles de Gaulle airports. It offers all business-class services. The customers feel that the prices of Azures' flights are considerably lower than those of other similar airlines. This quality of Azures is an example of:

A) features.
B) aesthetics.
C) reliability.
D) perceived quality.
E) serviceability.

Question 47

Which of the following types of inventories is controlled by shop floor control systems?

A) Raw materials inventory
B) Work-in-process inventory
C) Finished goods inventory
D) In-transit inventory
E) Procurements inventory

Question 48

The purpose of a work-in-process inventory is to:

A) provide the materials needed to make the product.
B) enable overall production to be divided into stages of manageable size.
C) reduces the organization's investment in storage space.
D) provide ready supply of products on customer demand and enable long, efficient production runs.
E) distribute products to customers.

Question 49

The purpose of in-transit inventory is to:

A) provide the materials needed to make the product.
B) enable overall production to be divided into stages of manageable size.
C) reduce the organization's investment on storage space.
D) provide ready supply of products on customer demand.
E) distribute products to customers.

Question 50

Which of the following is a source of control for in-transit inventory?

A) Shop floor control systems
B) High-level production scheduling systems
C) Marketing
D) Distribution control systems
E) Purchasing models and systems

Question 51

The dimension of quality that refers to the degree to which a product's design and operating characteristics meet established standards is:

A) features.
B) conformance.
C) reliability.
D) durability.
E) serviceability.

Question 52

Which of the following inventory types provides ready supply of products on customer demand and enables long, efficient production runs?

A) Raw materials inventory
B) Work-in-process inventory
C) Procurements inventory
D) Finished goods inventory
E) In-transit inventory

Question 53

Serviceability is the dimension of quality that refers to:

A) how a product looks, feels, tastes, and smells.
B) the degree to which a product's design and operating characteristics meet established standards.
C) a probability of not malfunctioning during a specified period.
D) a measure of product life.
E) the speed and ease of repair.

Question 54

Which of the following inventory types provides the components needed to make the product?

A) Raw materials
B) Work-in-process
C) Merchandise
D) Finished goods
E) In-transit

Question 55

Just-in-time method helps an organization control its _____.

A) raw materials inventory
B) work-in-process inventory
C) quality
D) finished goods inventory
E) in-transit inventory

Question 56

_____ is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

A) Inventory
B) Process
C) Quality
D) Quantity
E) Technology

Question 57

Sarah followed an online recipe and made pizza for her family. It turned out so badly that she had to discard it. Sarah and her family said that the pizza tasted like cardboard. Which dimension of quality were they describing?

A) Aesthetics
B) Conformance
C) Reliability
D) Serviceability
E) Performance

Question 58

Which of the following is true of the Malcolm Baldrige Award?

A) It is awarded by the Rochester Institute of Technology.
B) It is awarded to firms that achieve major improvements in the quality of their products or services.
C) It is awarded to the company that has consistently maintained the same quality for 5 continuous years.
D) It is awarded to the company that has shown the highest company productivity.
E) It is awarded not to entire organizations but to individual teams of workers within organizations.

Question 59

Which of the following dimensions of quality refers to a measure of product life?

A) Reliability
B) Durability
C) Serviceability
D) Features
E) Perceived quality

Question 60

Which of the following is a source of control for raw materials?

A) Shop floor control systems
B) High-level production scheduling systems
C) Marketing
D) Distribution control systems
E) Purchasing models and systems

Question 61

_____ requires that firms document how they are using raw materials more efficiently, managing pollution, and reducing their impact on the environment.

A) ISO 14000
B) ISO 9000:2000
C) Six Sigma
D) Value-added analysis
E) Statistical quality control

Question 62

_____ is the comprehensive evaluation of all work activities, materials flows, and paperwork to determine the worth and appeal that they add for customers.

A) Acceptance sampling
B) Benchmarking
C) In-process sampling
D) Six Sigma
E) Value-added analysis

Question 63

Acceptance sampling involves sampling finished goods to ensure that quality standards have been met. It is a(n) _____ method.

A) benchmarking
B) ISO 14000
C) Six Sigma
D) statistical quality control
E) value-added analysis

Question 64

A consulting firm calculates an efficiency index for each of its consultants by dividing each consultant's total hours of work by the number of billable hours. This is a measure of _____ productivity.

A) company
B) partial
C) industry
D) individual
E) aggregate

Question 65

_____ is an economic measure of efficiency that summarizes the value of outputs relative to the value of the inputs used to create them.

A) Output-input ratio
B) Performance
C) Reliability
D) Capacity
E) Productivity

Question 66

Which of the following guidelines for increasing speed is followed in a bureaucratic organization?

A) Start from scratch
B) Minimize the number of approvals needed to do something
C) Develop and adhere to a schedule
D) Do not ignore distribution
E) Integrate speed into the organization's culture

Question 67

Which of the following TQM guidelines for reducing cycle time is most appropriate in a decentralized organization?

A) Start from scratch
B) Minimize the number of approvals needed to do something
C) Develop and adhere to a schedule
D) Do not ignore distribution
E) Integrate speed into the organization's culture

Question 68

Which of the following factors is included in the formula for computing total factor productivity?

A) Performance
B) Reliability
C) Materials
D) Aesthetics
E) Conformance

Question 69

Virtually all successful quality-enhancement programs involve making the person responsible for doing the job responsible for making sure it is done right. This critical ingredient in total quality management refers to:

A) employee involvement.
B) strategic commitment.
C) technology.
D) materials.
E) methods.

Question 70

Which of the following is the process of learning how other firms do things in an exceptionally high-quality manner?

A) Value-added analysis
B) Benchmarking
C) Outsourcing
D) Reducing cycle times
E) Statistical quality control

Question 71

Which of the following is a process of subcontracting services and operations to other firms that can perform them cheaper or better?

A) Benchmarking
B) Value-added analysis
C) Outsourcing
D) Reducing cycle times
E) Statistical quality control

Question 72

The dimension of quality of a product that refers to a probability of not malfunctioning during a specified period is the product's:

A) features.
B) conformance.
C) reliability.
D) durability.
E) serviceability.

Question 73

Bingo Inc. sends its consultants for change management to various companies to learn how those companies have coped with changes in the past. Which of the following tools or techniques is Bingo using for improving quality?

A) Benchmarking
B) Value-added analysis
C) Outsourcing
D) Reducing cycle times
E) Statistical quality control

Question 74

Carrington is one of the best restaurants in Chicago. Carrington's chefs have made arrangements with local farmers to provide them with fresh and good quality vegetables and fruits. In the context of total quality management, the chefs are focusing on _____.

A) employee involvement
B) strategic commitment
C) technology
D) materials
E) methods

Question 75

Implementing _____ requires making corrections until errors virtually disappear.

A) ISO 14000
B) ISO 9000:2000
C) Six Sigma
D) value-added analysis
E) statistical quality control

Question 76

Durability is the dimension of quality that refers to:

A) a product's primary operating characteristic.
B) the degree to which a product's design and operating characteristics meet established standards.
C) a probability of not malfunctioning during a specified period.
D) a measure of product life.
E) the speed and ease of repair.

Question 77

The ingredient in total quality management that refers to operating systems used by the organization during the actual transformation process is:

A) employee involvement.
B) strategic commitment.
C) technology.
D) materials.
E) methods.

Question 78

Which of the following is true of ISO 9000:2000?

A) Firms get to choose the organization they want to be audited by for the certification.
B) It includes 2000 standards that should be met.
C) These standards do not cover employee training and supplier relations.
D) Firms that want to meet these standards need to apply for certification.
E) The auditors review only the firm products in relation to the standards.

Question 79

Which of the following is an example of statistical quality control?

A) Benchmarking
B) Six Sigma
C) In-process sampling
D) ISO 9000:2000
E) Outsourcing

Question 80

_____ is the time needed by the organization to develop, make, and distribute products or services.

A) In-process time
B) Six Sigma time
C) Process layout time
D) Cycle time
E) Just-in-time