Deck 8: Producing Quality Goods and Services

Question 1

Define design planning. How does it differ from operational planning?

Answer 1

Answer not provided.

Question 2

What advantages do robots have over human workers? What advantages do human workers have over robots?

Answer 2

Answer not provided.

Question 3

Provide an example of a product that has refined the want-satisfying capability of its product and a second product that has extended the capability of its product.

Answer 3

Answer not provided.

Question 4

What does improving productivity mean? How can a manufacturing or service business improve productivity?

Question 5

When does a firm incur holding costs? When does it incur stock-out costs?

Question 6

What is the purpose of quality control? Why is it important to a firm?

Question 7

Briefly assess the good and bad news of the current U.S. manufacturing environment.

Question 8

Jasper Electronics, Inc.
Jasper Electronics, Inc., is an electronics manufacturer that creates circuits for various electronic products. Currently, the company has eight locations. It prides itself on its fast production process. Ross is the newly appointed head operations manager of the company―and he is hoping to contribute to the company in a meaningful way. Ross has decided that there are several aspects of the production process that need to be changed or improved. One such aspect is quality control. He also wants to do some research to decide whether the company is moving in the right direction. In addition, he wishes to learn what other successful firms focus on so he can implement this knowledge at JEI.
Refer to Jasper Electronics, Inc. Which of the following objectives would you advise Ross to focus on?

A) Increasing the use of technology
B) Increasing production costs to gain competitive position
C) Improving the inspection process
D) Eliminating expenses by reducing control procedures
E) Obtaining new equipment to minimize technological expenses

Question 9

Explain how the production of services is different from the production of manufactured goods.

Question 10

Compare and contrast the ideas of labor-intensive and capital-intensive technology.

Question 11

What activities does operations management involve?

Question 12

"In purchasing, the idea is for buyers to always obtain the finest-quality items available for their plant to use in making the product." Is this statement true or false? Support your answer with examples.

Question 13

What is meant by the focus and the magnitude of a conversion process?

Question 14

In what ways have American businesses tried to regain a competitive edge in the global marketplace? Why is this edge important?

Question 15

Describe the operations of a flexible manufacturing system (FMS).

Question 16

What are some of the primary benefits of lean manufacturing?

Question 17

Jasper Electronics, Inc.
Jasper Electronics, Inc., is an electronics manufacturer that creates circuits for various electronic products. Currently, the company has eight locations. It prides itself on its fast production process. Ross is the newly appointed head operations manager of the company―and he is hoping to contribute to the company in a meaningful way. Ross has decided that there are several aspects of the production process that need to be changed or improved. One such aspect is quality control. He also wants to do some research to decide whether the company is moving in the right direction. In addition, he wishes to learn what other successful firms focus on so he can implement this knowledge at JEI.
Refer to Jasper Electronics, Inc. In his effort to improve the quality control of products manufactured at JEI, Ross might employ

A) the critical path.
B) statistical quality control.
C) improved scheduling.
D) a PERT diagram.
E) a Gantt chart.

Question 18

Jasper Electronics, Inc.
Jasper Electronics, Inc., is an electronics manufacturer that creates circuits for various electronic products. Currently, the company has eight locations. It prides itself on its fast production process. Ross is the newly appointed head operations manager of the company―and he is hoping to contribute to the company in a meaningful way. Ross has decided that there are several aspects of the production process that need to be changed or improved. One such aspect is quality control. He also wants to do some research to decide whether the company is moving in the right direction. In addition, he wishes to learn what other successful firms focus on so he can implement this knowledge at JEI.
Refer to Jasper Electronics, Inc. As an operations manager, Ross must do all of the following to be successful except

A) motivate and lead people.
B) understand how technology can make a manufacturer more productive and efficient.
C) appreciate the control processes that help lower production costs and improve product quality.
D) understand the relationship among the customer, the marketing of a product, and the production of a product.
E) understand how to successfully finance production to gain the larger market share.

Question 19

Jasper Electronics, Inc.
Jasper Electronics, Inc., is an electronics manufacturer that creates circuits for various electronic products. Currently, the company has eight locations. It prides itself on its fast production process. Ross is the newly appointed head operations manager of the company―and he is hoping to contribute to the company in a meaningful way. Ross has decided that there are several aspects of the production process that need to be changed or improved. One such aspect is quality control. He also wants to do some research to decide whether the company is moving in the right direction. In addition, he wishes to learn what other successful firms focus on so he can implement this knowledge at JEI.
Refer to Jasper Electronics, Inc. The plant layout at Jasper Electronics is mostly likely a

A) fixed position layout.
B) process layout.
C) product layout.
D) circular layout.
E) capacity layout.

Question 20

How do routing and timing affect the scheduling process for a furniture manufacturer like Drexel-Heritage?

Question 21

Successful operations managers must be able to do all of the following except

A) lead and motivate people.
B) use technology to make a manufacturer more productive.
C) advertise and sell the firm's product.
D) control production costs.
E) improve product quality.

Question 22

When Black & Decker manufactures its wide array of tools, it is using a(n) ____ process.

A) analytical
B) qualitative
C) synthetic
D) assembly
E) conversion

Question 23

Jasper Electronics, Inc.
Jasper Electronics, Inc., is an electronics manufacturer that creates circuits for various electronic products. Currently, the company has eight locations. It prides itself on its fast production process. Ross is the newly appointed head operations manager of the company―and he is hoping to contribute to the company in a meaningful way. Ross has decided that there are several aspects of the production process that need to be changed or improved. One such aspect is quality control. He also wants to do some research to decide whether the company is moving in the right direction. In addition, he wishes to learn what other successful firms focus on so he can implement this knowledge at JEI.
Refer to Jasper Electronics, Inc. If JEI management were to explore the possibility of using its products in different ways, what types of research and development activities could they engage in?

A) Quality control
B) Applied
C) Flexible
D) PERT
E) Core

Question 24

ABC Company
ABC Company is dedicated to operations control. It holds its suppliers to the highest standards, believing there is one best way to complete their tasks. ABC has even gone so far as to incorporate the Malcolm Baldrige National Quality Award criteria into its business. Following these criteria has allowed the company to grow from a small business to a large corporation. ABC plans on going international in the next couple of years to broaden its scope.
ABC has kept up with new technologies. In fact, it has incorporated a new computer system that helps with the development of the company's products. This system has improved ABC's production dramatically. Now, ABC will be able to sell its products at a lower cost. The ABC management is dedicated to total quality management and will do whatever is necessary to maintain quality now and for the future.
Refer to ABC Company. For ABC, using the Baldrige award criteria could result in all of the following except

A) form utility.
B) better employee relations.
C) increased market share.
D) improved profitability.
E) higher productivity.

Question 25

The type of utility on which production and operations management focuses is ____ utility.

A) place
B) time
C) form
D) possession
E) need

Question 26

Kraft combines elbow macaroni, cheese, and cardboard to make packages of Kraft Macaroni and Cheese. This most closely resembles a(n) ____ process.

A) analytical
B) assembly
C) combined
D) synthetic
E) quantitative

Question 27

Procter & Gamble, NCR, and Ford are all involved in ____, which involves bringing manufacturing jobs back to the United States.

A) offshoring
B) Six Sigma
C) PERT
D) reshoring
E) R&D

Question 28

ABC Company
ABC Company is dedicated to operations control. It holds its suppliers to the highest standards, believing there is one best way to complete their tasks. ABC has even gone so far as to incorporate the Malcolm Baldrige National Quality Award criteria into its business. Following these criteria has allowed the company to grow from a small business to a large corporation. ABC plans on going international in the next couple of years to broaden its scope.
ABC has kept up with new technologies. In fact, it has incorporated a new computer system that helps with the development of the company's products. This system has improved ABC's production dramatically. Now, ABC will be able to sell its products at a lower cost. The ABC management is dedicated to total quality management and will do whatever is necessary to maintain quality now and for the future.
Refer to ABC Company. What chart could help ABC determine the best possible way to accomplish the tasks?

A) Gantt chart
B) Supply chart
C) PERT chart
D) MRP chart
E) ERP chart

Question 29

In an attempt to regain a competitive edge, U.S. firms have

A) reduced production costs by selecting suppliers that offer high-quality raw materials and components at reasonable prices.
B) used green manufacturing to conserve natural resources and sustain the planet.
C) used computer-aided and flexible manufacturing systems that allow a higher degree of customization.
D) improved control procedures to help ensure lower manufacturing costs.
E) done all of the above.

Question 30

To produce a BMW sport-utility vehicle, an operations manager must engage in all of the following activities except

A) recruitment of human resources.
B) control of product quality.
C) effective use of planning.
D) inventory management.
E) control of production costs.

Question 31

When 3M satisfies consumers' needs for notepads that will not get lost easily by converting paper and glue into Post-It Notes, it is creating

A) reminders for employees.
B) technological advancement.
C) productive output.
D) form utility.
E) possession utility.

Question 32

ABC Company
ABC Company is dedicated to operations control. It holds its suppliers to the highest standards, believing there is one best way to complete their tasks. ABC has even gone so far as to incorporate the Malcolm Baldrige National Quality Award criteria into its business. Following these criteria has allowed the company to grow from a small business to a large corporation. ABC plans on going international in the next couple of years to broaden its scope.
ABC has kept up with new technologies. In fact, it has incorporated a new computer system that helps with the development of the company's products. This system has improved ABC's production dramatically. Now, ABC will be able to sell its products at a lower cost. The ABC management is dedicated to total quality management and will do whatever is necessary to maintain quality now and for the future.
Refer to ABC Company. Given that ABC is dedicated to operations control, the management must have incorporated all of these aspects of operations control except

A) purchasing.
B) selling.
C) inventory control.
D) scheduling.
E) quality control.

Question 33

When a lumber company takes timber and converts it into lumber, cardboard, and other paper products, the company is using

A) an analytical process.
B) extraction manufacturing.
C) a synthetic process.
D) an operations process.
E) raw processing.

Question 34

During the period after World War II, the United States was the most productive country in the world for approximately ____ years.

A) five
B) ten
C) twenty
D) thirty
E) fifty

Question 35

ABC Company
ABC Company is dedicated to operations control. It holds its suppliers to the highest standards, believing there is one best way to complete their tasks. ABC has even gone so far as to incorporate the Malcolm Baldrige National Quality Award criteria into its business. Following these criteria has allowed the company to grow from a small business to a large corporation. ABC plans on going international in the next couple of years to broaden its scope.
ABC has kept up with new technologies. In fact, it has incorporated a new computer system that helps with the development of the company's products. This system has improved ABC's production dramatically. Now, ABC will be able to sell its products at a lower cost. The ABC management is dedicated to total quality management and will do whatever is necessary to maintain quality now and for the future.
Refer to ABC Company. The supplier must have ____ in order to be the best possible option and do business with ABC.

A) marketing operations
B) productivity growth
C) technological displacement
D) reliability
E) R&D

Question 36

If a good or service satisfies a human need, it has

A) value.
B) focus.
C) magnitude.
D) form.
E) utility.

Question 37

All of the managerial activities in which managers engage for the purpose of creating goods and services are known as ____ management.

A) personnel
B) operations
C) production
D) site
E) plant

Question 38

Gio is in charge of making sure the raw steel brought into her company's factory is turned into high-quality bearings for sale to customers. Gio is a(n) ____ manager.

A) marketing
B) operations
C) productivity
D) middle
E) finance

Question 39

ABC Company
ABC Company is dedicated to operations control. It holds its suppliers to the highest standards, believing there is one best way to complete their tasks. ABC has even gone so far as to incorporate the Malcolm Baldrige National Quality Award criteria into its business. Following these criteria has allowed the company to grow from a small business to a large corporation. ABC plans on going international in the next couple of years to broaden its scope.
ABC has kept up with new technologies. In fact, it has incorporated a new computer system that helps with the development of the company's products. This system has improved ABC's production dramatically. Now, ABC will be able to sell its products at a lower cost. The ABC management is dedicated to total quality management and will do whatever is necessary to maintain quality now and for the future.
Refer to ABC Company. Based on the information provided, what type of computer system is ABC Company using?

A) PERT
B) Continuous
C) CAD
D) CID
E) CPM

Question 40

When a manufacturer like ExxonMobil refines crude oil, that corporation is using a(n) ____ process.

A) analytical
B) extraction
C) manufacturing
D) refining
E) synthetic

Question 41

A government-funded group of scientists is assigned to discover new knowledge and scientific advances. These scientists are not required to consider the potential use of this knowledge. This group is conducting

A) development and implementation.
B) research for product life cycles.
C) applied research.
D) academic research and development.
E) basic research.

Question 42

Today approximately ____ percent of American workers are employed in service industries.

A) 28
B) 47
C) 62
D) 87
E) 94

Question 43

When considering the conversion process, human resources in the form of hair stylists and cosmetologists are the ____ for a beauty salon.

A) magnitude
B) utility
C) focus
D) production process width
E) analytic process

Question 44

In many cases, customers will travel farther to purchase a(n) ____ than they would travel to purchase a(n) ____.

A) service; good
B) inexpensive good; expensive good
C) product; good
D) good; service
E) inexpensive service; expensive good

Question 45

A set of activities intended to identify new ideas and technical advances that may result in new goods and services is called

A) research and development.
B) operations management.
C) design planning.
D) product design.
E) horizon planning.

Question 46

Tom's Toothpicks and Don's Doghouses both use lumber as the major input in their conversion processes. Although the input is the same for each factory, the ____ of the conversion process varies greatly between the two.

A) catalyst
B) focus
C) impetus
D) magnitude
E) capacity

Question 47

A group of design engineers for Ford Motor Company spend two months in the summer in the Arizona desert researching fuel performance at extreme temperatures. Ford uses the results of these tests to improve the quality of its automobiles. The group of engineers is engaging in

A) applied research.
B) product design.
C) basic research.
D) design planning.
E) horizon planning.

Question 48

In a service industry such as a package carrier, the ____ of the conversion process is usually small or none at all.

A) focus
B) magnitude
C) width of processes
D) utility
E) result

Question 49

The American economy is now characterized as a(n) ____ economy.

A) industrial
B) centralized
C) service
D) stagnant
E) bureaucratic

Question 50

Chevron and other refiners emphasize material resources in the conversion process. This implies that the material resources are the ____ of the conversion process.

A) catalyst
B) technology
C) output
D) impetus
E) focus

Question 51

Scientists at R&E Labs worked for two years on a project to eventually add more knowledge to the science of photography. But in a meeting with the board of directors last week, they had nothing new to report. This is always a risk with

A) basic research.
B) applied research.
C) development and implementation.
D) a lack of research.
E) underfunded research projects.

Question 52

Apple satisfies consumers' needs for powerful, lightweight, easy-to-use laptops by converting assorted software routines, hardware devices, and miscellaneous parts into portable computers. By doing this, Apple is creating

A) consumer demand.
B) market control.
C) technological dependence.
D) form utility.
E) production efficiency.

Question 53

The degree to which input resources are physically changed by the conversion is referred to as the

A) width of the conversion process.
B) magnitude of change.
C) depth of a conversion.
D) number of technologies.
E) focus of the conversion process.

Question 54

Services differ from manufactured goods in all of the following ways except

A) services are consumed immediately.
B) when compared to manufactured goods, customers will not travel as far to purchase services.
C) the creation of services is usually labor-intensive.
D) services can be stored, and manufactured goods cannot be stored.
E) services are intangible, and it is therefore more difficult to measure customer satisfaction.

Question 55

R&D activities aimed at disclosing new knowledge that has some potential use are known as

A) development and implementation.
B) applied research.
C) basic research.
D) product design.
E) design planning.

Question 56

One primary difference between services and the production of goods is that services are consumed ____ whereas goods can be ____.

A) one at a time; consumed more than one at a time
B) immediately; stored
C) intangibly; tangible or intangible
D) later; consumed now
E) as they are produced; special ordered

Question 57

An Illinois-based firm crushes materials to make gravel, its only product. The gravel company has

A) few production processes.
B) a focus on human resources.
C) very little utility.
D) many production processes.
E) a focus on financial resources.

Question 58

Ford produces a wide variety of vehicles for individuals, businesses, manufacturers, and even schools. It also operates its own financing division, Ford Motor Acceptance Corp. It seems as if Ford

A) focuses on financial resources.
B) has a small magnitude.
C) has few production processes.
D) has many production processes.
E) is a service business.

Question 59

Most of the goods and services that we enjoy today can be traced back to an invention or idea that was the result of

A) customer service representatives.
B) research and development.
C) a whim.
D) financial management.
E) a hunch.

Question 60

Cisco Systems manufactures computer hardware, uses software programs, and provides networking services to customers. As a result, Cisco uses

A) research implementation.
B) more than one production process.
C) a complex magnitude of change.
D) basic research applications.
E) multiple outputs.

Question 61

When Dell decided to produce and market an affordable personal computer, it had to consider a number of issues: what the computer would look like, where and how it would be produced, what options it would include, and so on. Supplying answers to these questions is part of

A) operational planning.
B) basic research.
C) applied research.
D) design planning.
E) scheduling.

Question 62

The television has undergone numerous changes since its introduction. For example, Sony produces basic color televisions and also such innovative electronics as televisions with Blue-Ray players and Internet streaming. This sort of product evolution is referred to as product

A) extension.
B) design planning.
C) differentiation.
D) integration.
E) expansion.

Question 63

A group of similar products that differ only in relatively minor characteristics is called

A) inventory.
B) a product line.
C) product design.
D) design planning.
E) inventory control.

Question 64

When Panasonic improves the sound, clarity, and ease of operation offered by its Blu-Ray players, it is

A) shortening its product life cycle.
B) extending its basic research.
C) redistributing its product.
D) refining its existing product.
E) reducing the DVD player's functionality.

Question 65

Research activities undertaken to put new or existing knowledge to use in producing goods and services are called

A) development and implementation.
B) applied research.
C) basic research.
D) design planning.
E) product design.

Question 66

Because customer preferences must be considered, ____ play an important role in product-line decisions.

A) marketing managers
B) production managers
C) human resources managers
D) financial managers
E) first-line supervisors

Question 67

An industrial company contacts Caterpillar to design a specific type of equipment for use in its manufacturing facility. If Caterpillar accepts this offer, the two companies will have to create a set of specifications from which the product can be made. This process is called

A) a product line.
B) development and implementation.
C) design planning.
D) product design.
E) capacity planning.

Question 68

A team of engineers at General Motors is in charge of discovering new knowledge that can be used to make automobiles safer and more economical. These engineers are conducting

A) basic research.
B) research and development.
C) applied research.
D) product development.
E) research and implementation.

Question 69

In deciding on a product line, managers should balance ____ and product requirements.

A) convenience goods
B) specialty goods
C) customer preferences
D) demographics
E) last year's sales

Question 70

The process of creating a set of specifications from which the product can be produced is called

A) technology.
B) research and development.
C) design planning.
D) product design.
E) a product line.

Question 71

The development of a plan for converting a product idea into an actual product is called

A) design planning.
B) research and development.
C) product design.
D) operational planning.
E) planning horizon.

Question 72

Product extension and refinement

A) shorten the product life cycle.
B) extend the product life cycle.
C) are too costly for most firms.
D) take place during basic research.
E) end the product life cycle.

Question 73

What portion of the ideas for new products, refinements, and extensions ever gets to the production stage?

A) About one-third
B) At least half
C) The majority
D) Only a few
E) About two-thirds

Question 74

When Taco Bell determines what different food items it will offer on its menu and how many it will offer, it is deciding its

A) capacity.
B) design planning.
C) product design.
D) product life cycle.
E) product line.

Question 75

Purina has a new product idea to create a cat food that will give cats more energy and allow them to live longer, more pleasurable lives. Management appoints a team to convert this cat food idea into an actual product. This process is called

A) design planning.
B) process engineering.
C) operational planning.
D) product lining.
E) product refining.

Question 76

When Nabisco introduces Oreos with half chocolate and half peanut butter cream in the middle, it is ____ its Oreos line.

A) refining
B) implementing
C) extending
D) heavily advertising
E) applying

Question 77

Needles, Inc., has five of its ten products at the end of the product life cycle. To maintain its market share, the firm must at least find ways to

A) reduce the cost of marketing its products.
B) cut manufacturing costs.
C) extend or refine the want-satisfying capability of its products.
D) reduce the number of employees.
E) increase the price of the product.

Question 78

During the design planning stage for its new appliances, Torr, Inc. needs to determine how many different product variations there will be. This is the same as determining the product

A) features.
B) life cycles.
C) line.
D) prices.
E) availability.

Question 79

When VHS VCRs were first introduced, sales were zero. As VCRs started to catch on, sales began to increase more and more rapidly until they peaked. After the peak, sales fell when DVD players took over that market with VCR sales almost non-existent now. This pattern is

A) the research and development cycle.
B) development and implementation.
C) the product line planning and exiting cycle.
D) the introduction to decline cycle.
E) the product life cycle.

Question 80

The amount of products or services an organization can produce in a given time is known as

A) a product line.
B) design planning.
C) production.
D) lead time.
E) capacity.