Deck 18: Managing Service and Manufacturing Operations

Question 1

Three basic measures of inventory are average aggregate inventory,weeks of supply,and inventory turnover.

Answer 1

  True

Question 2

Internal service quality means that an entire organization,from top to bottom,should be focused on meeting customers' needs.

Answer 2

  False

Question 3

Which of the following is a characteristic of a quality product? 

A) ​Validity 
B) ​Reliability 
C) ​Homogeneity 
D) ​Tangibility

Answer 3

  B

Question 4

The production team of a company that manufactures cricket balls has determined the quantity of leather,threads,labor,and electricity required to make one cricket ball.The collective effort of all these resources would help the company determine its _____.

A) ​economic order quantity 
B) ​partial productivity 
C) ​multifactor productivity 
D) ​internal service quality

Question 5

Extrinsic productivity is an overall measure of performance that indicates how much labor,capital,materials,and energy it takes to produce an output.

Question 6

If a machine requires 40 tons of steel to produce 30 tons of reinforced rods,which of the following indicates the productivity of the machine? 

A) ​0.75 
B) ​1.33 
C) ​1.50 
D) ​0.67

Question 7

Manufacturing operations are classified according to the depth of their inventory stock.

Question 8

ISO 9000 is a series of five international standards for achieving consistency in quality management and quality assurance in companies throughout the world.

Question 9

Service recovery is a process that involves ceasing a company's operations when its customers are dissatisfied with the service provided.

Question 10

_____ indicates how much labor,capital,materials,and energy it takes to create an output.

A) ​Multifactor productivity 
B) ​Economic order quantity 
C) ​Partial productivity 
D) ​Inventory turnover

Question 11

High-value service leads to customer satisfaction and customer loyalty,which,in turn,lead to long-term profits and growth.

Question 12

Durability is a quality characteristic that determines the quality of a service.

Question 13

As the Baldrige Award is directly based on the ISO 9000 standards,it is essentially the U.S.version of recognition for excellence in meeting the ISO 9000 standards.

Question 14

A just-in-time (JIT)inventory system is used with independent demand systems.

Question 15

Remus is a manager in a company that manufactures light bulbs.He calculates the daily work productivity by determining the amount of tungsten filaments required to produce a light bul B.This is an example of _____.

A) ​partial productivity 
B) ​internal service quality 
C) ​multifactor productivity 
D) ​service recovery

Question 16

The easier it is to maintain a working product or fix a broken product,the more reliable that product is.

Question 17

With respect to service recovery,empowering workers means giving service employees the authority and responsibility to make decisions that immediately solve customer problems.

Question 18

Economic order quantity (EOQ)formulas are intended for use with dependent demand systems.

Question 19

The easier it is to maintain a working product or fix a broken product,the more _____ that product is.

A) ​reliable 
B) ​serviceable 
C) ​tangible 
D) ​durable

Question 20

Service capability is an ongoing commitment to increase product and service quality by constantly assessing and improving the processes and procedures used to create those products and services.

Question 21

Atrade Foods Inc.is a chain of supermarkets where part of employees' monthly paychecks depend on customer satisfaction.80 percent of the salary is based on earnings and the remaining 20 percent is based on customer satisfaction ratings and service quality.In this case,Atrade Foods Inc.is committed to _____.

A) ​total quality management 
B) ​line-flow production 
C) ​implementing an MRP program 
D) ​internal service quality

Question 22

TrinkCan,a soft drink manufacturing company,produces around 10,000 bottles of soft drinks per day.The bottling system used by the company is very efficient,and it dispatches close to 1000 bottles an hour.Once the bottling system is turned on,it functions constantly to cap and dispatch bottles until the machine is turned off.The bottling system of TrinkCan is an example of: 

A) ​continuous-flow production. 
B) ​prototype production. 
C) ​batch production. 
D) ​job shop production.

Question 23

The key concept behind the service-profit chain is: 

A) ​the quality of treatment that employees receive from a company's internal service providers. 
B) ​the quality of treatment that employees receive from the customers of a company. 
C) ​the quality of treatment that customers receive from the employees providing services. 
D) ​the quality of treatment that customers receive from a company as compared to its competitors.

Question 24

According to total quality management (TQM),which of the following should be a company's primary goal? 

A) ​Reciprocity 
B) ​Distinctive competency 
C) ​Participative management 
D) ​Customer satisfaction

Question 25

When customers become dissatisfied with the service they have received,service businesses must switch to the process of _____.

A) ​service recovery 
B) ​service enhancement 
C) ​customer focus 
D) ​customer reengineering

Question 26

Which of the following best illustrates batch production? 

A) ​A standard packaging operation of processed cheese 
B) ​Assembly operation of automobile parts in an assembly line 
C) ​Turning, drilling, and milling of plastics and alloy steels to make fifty different parts of a container 
D) ​Manufacturing hundred bolts, hundred nuts, and two hundred shafts

Question 27

The lowest degree of processing occurs in _____. 

A) ​assemble-to-order operations 
B) ​make-to-order operations 
C) ​batch operations 
D) ​make-to-stock operations

Question 28

Which of the following is true of the International Organization for Standardization (ISO)9000 certification? 

A) ​ISO 9000 certification involves a series of three standards for achieving consistency in quality assurance in organizations. 
B) ​ISO 9000 certification helps organizations specifically manage, monitor, and minimize harmful effects on the environment. 
C) ​ISO 9000 certification requires a company to show that it is following its own procedures to improve production. 
D) ​ISO 9000 certification is specifically applicable to the travel and tourism industry.

Question 29

In the context of total quality management (TQM),_____ is a deviation in the form,condition,or appearance of a product from the quality standard for that product.

A) ​aberration 
B) ​variation 
C) ​divergence 
D) ​contention

Question 30

A _____ operation does not start processing or assembling products until it receives a customer request.

A) ​line-flow 
B) ​make-to-order 
C) ​make-to-stock 
D) ​continuous-flow

Question 31

The International Organization for Standardization (ISO)helps set standards for _____ countries.

A) ​143 
B) ​153 
C) ​163 
D) ​173

Question 32

Which of the following characteristics of quality products is defined in terms of the average time between breakdowns? 

A) ​Serviceability 
B) ​Homogeneity 
C) ​Reliability 
D) ​Tangibility

Question 33

A moderate degree of processing occurs in _____.

A) ​assemble-to-order operations 
B) ​make-to-order operations 
C) ​batch operations 
D) ​make-to-stock operations

Question 34

Which of the following statements best explains the term inventory? 

A) ​It is the amount and number of raw materials, parts, and finished products that a company has in its possession. 
B) ​It is the amount and number of products or services that a company has dispatched to the market in the past one year. 
C) ​It is the capability of a company to produce a set number of products per month. 
D) ​It is the capability of a company to buy raw materials or parts for the production of finished products.

Question 35

Which of the following awards by the U.S.government's National Institute for Standards and Technology recognizes companies for their achievements in quality and business performance? 

A) ​The Baldrige Award 
B) ​The Deming Prize 
C) ​The Gold Shield Award 
D) ​The Telstra Business Awards

Question 36

The extent to which service providers give individual attention and care to customers' concerns and problems is called: 

A) ​service reliability. 
B) ​responsiveness. 
C) ​assurance. 
D) ​empathy.

Question 37

One of the three principles that characterize total quality management (TQM) is: 

A) ​third-party certification. 
B) ​customer focus and satisfaction. 
C) ​distinctive competency. 
D) ​participative management and innovation.

Question 38

According to the service-profit chain,success begins with: 

A) ​autocratic management. 
B) ​a high degree of centralization. 
C) ​better treatment of service employees by management. 
D) ​the availability of enterprising ideas.

Question 39

Which of the following is a characteristic of quality products that is also applicable to quality services? 

A) ​Reliability 
B) ​Serviceability 
C) ​Durability 
D) ​Validity

Question 40

A car servicing company is known for consistently providing excellent services to its customers.In the context of the characteristics of a quality service,which of the following characteristics is being displayed by the company? 

A) ​Service assurance 
B) ​Service responsiveness 
C) ​Service durability 
D) ​Service reliability

Question 41

_________ is a type of productivity that assesses how efficiently companies use only one input,such as labor,when creating outputs.

Question 42

If a company manufactures two products,such as automobile spark plugs and sports shoes,it should use _________ to calculate separate inventories for its products.
A.Just-in-time inventory systems
B.Kanban inventory formulas
C.Economic order quantity (EOQ)formulas
D.Materials requirement planning (MRP)systems

Question 43

Swiftspan Inc.is a construction company.It uses 202,500 gallons of paint a year.If the ordering costs are $32 per order and holding costs are $9 per gallon,the optimal quantity of order is _____.

A) ​1,200 gallons 
B) ​2,400 gallons 
C) ​4,800 gallons 
D) ​3,600 gallons

Question 44

The Baldrige Award is the best,most cost-effective and comprehensive business health audit.Businesses that apply for the Baldrige Award are judged on _________ criteri
A.
A.five
B.six
C.seven
D.eight

Question 45

_________ typically indicates the cost or number of hours of labor it takes to produce an output.

Question 46

_________ is the average overall inventory during a particular time period.

Question 47

A factory uses 625 tons of steel per year to make reinforced rods.Its ordering costs are $40 per order,and its holding costs are $5 per ton.According to the economic order quantity (EOQ)model,approximately how often does the company have to place an order to maintain optimal order quantity? 

A) ​Every 55 days 
B) ​Every 56 days 
C) ​Every 57 days 
D) ​Every 58 days

Question 48

In the context of manufacturing operations,_________ is the term used to describe the degree to which manufacturing operations can easily and quickly change the number,kind,and characteristics of products they produce.
A.manufacturing resilience
B.manufacturing flexibility
C.manufacturing docility
D.manufacturing automation

Question 49

In the context of the principles of total quality management (TQM),_________ means collaboration between managers and nonmanagers,across business functions,and between the company and its customers and suppliers.

Question 50

Kraers Inc.keeps an average of 200 finished widgets in inventory each month,and it sold 2000 widgets this year.Therefore,the inventory turnover of the company is: 

A) ​10. 
B) ​20. 
C) ​100. 
D) ​200.

Question 51

Soft Toys Corp.makes plastic toys for children.It recently received an order for 250 toy cars.For this order,the available inventory included 100 kilograms of plastic,75 kilograms of fiber glass,500 toy wheels,1000 light-emitting diode (LED)bulbs,135 toy cars in various stages of manufacturing,and 50 completed toy cars.In this scenario,which of the above components of the inventory can be categorized under work-in-process inventory? 

A) ​The final order of 250 toy cars 
B) ​The 135 cars in various stages of manufacturing 
C) ​The 50 completed toy cars 
D) ​The 500 toy wheels

Question 52

_________ are also known as partially finished goods.
A.Work-in-process inventories
B.Component parts inventories
C.Average aggregate inventories
D.Raw material inventories

Question 53

_________ means products cannot be repaire
D.They can only be replace
D.

Question 54

_________ are typically small manufacturing operations that handle special manufacturing processes.
A.Continuous units
B.Line units
C.Batches
D.Job shops