Deck 10: Production and Operations Management

Question 1

Petroleum refining is an example of an analytic production system.

Answer 1

True

Question 2

A "lights out" factory is completely automated to the extent that no workers are needed to make what the factory produces.

Answer 2

True

Question 3

Computer-aided design systems allow engineers to design components and products on computer screens faster and with fewer mistakes than they could working with traditional drafting systems. They pick up where computer-aided manufacturing systems leave off.

Answer 3

True

Question 4

Mass production makes outputs available in larger quantities, but higher costs, than individually crafted items would cost.

Question 5

One advantage of the labour specialization of mass production is that it can lead to boring jobs.

Question 6

Boeing engineers' use of computers to build new commercial jet models in the virtual world before they are actually built in production is an example of green manufacturing.

Question 7

A continuous production process creates products in short production runs.

Question 8

Corn processing is an example of analytic production.

Question 9

A company uses raw materials to produce a product. The company is creating time utility.

Question 10

The production process is applicable for not-for-profit organizations.

Question 11

The production process converts inputs into outputs.

Question 12

Flexible production systems typically involve using information technology to share the details of customer orders, programmable equipment to fulfill orders, and skilled people to carry out whatever tasks are necessary to fill an order. They are less complicated and require less cooperation than do mass production systems.

Question 13

Under division of labour, work is divided into its simplest form and each worker focuses on different tasks.

Question 14

Most services, such as accountants and plumbers, result from intermittent production systems.

Question 15

All outputs of the production process are tangible goods and services.

Question 16

Flexible production is now widely used in the auto industry.

Question 17

An important use of robots is to free humans from potentially dangerous assignments such as handling hazardous materials.

Question 18

Trisha owns a line of hand-made purses. She is paid in advance and creates items that are custom made according to her clients' specifications. Trisha uses a system of customer-driven production.

Question 19

A light bulb is an example of a standardized part, which simplifies the replacement process.

Question 20

An analytic production system reduces a raw material to its component parts in order to extract a marketable product or products.

Question 21

The production planning process begins with the choice of goods and services to offer customers.

Question 22

Computer-integrated manufacturing combines the use of robots, CAD/CAM, and flexible manufacturing systems.

Question 23

A reason for bringing production facilities closer to the final markets where goods will be sold is the reduced time and cost for shipping.

Question 24

GM is assessing local labour costs as well as the availability of workers with necessary qualifications as it determines a location for its new plant. These are examples of human factors.

Question 25

A product layout can efficiently produce a large number of similar products but is relatively inflexible.

Question 26

LEED is aimed at promoting the most sustainable construction processes available.

Question 27

Availability of adequate labour is a more important location decision for hotels and other service businesses than proximity to markets.

Question 28

Software manufacturers such as Dell are more concerned with physical factors than human factors.

Question 29

The new methods of drilling for natural gas are more damaging to the environment than the traditional methods.

Question 30

Airplane manufacturers have traditionally used a fixed-position layout.

Question 31

Managers should maintain access to multiple supply sources.

Question 32

Potential plant location choices become more limited when skilled employee technicians are required.

Question 33

Automobile assembly lines have been traditionally based on process layouts.

Question 34

Theme parks, such as Walt Disney World, are often located in warm climates so they can attract visitors year round.

Question 35

Production managers must continually evaluate results of the production process and make adjustments along the way.

Question 36

Hospitals often use a customer-oriented layout.

Question 37

The decision to make, buy, or lease sometimes hinges on the availability of outside suppliers that can dependably meet a firm's standards for quality and quantity.

Question 38

A process layout groups machinery and other equipment according to their functions.

Question 39

Custom machine shops are typically organized in a product layout.

Question 40

A product layout is one in which the product remains in a fixed position and workers, materials, and machines are transported to and from it.

Question 41

Routing choices depend on the nature of the good or service and the facility layout.

Question 42

Just-in-time inventory systems shift much of the responsibility for carrying inventory to vendors.

Question 43

Robert owns a small art gallery with only a few components. His company does NOT necessarily need an inventory system based on materials requirement planning.

Question 44

Megan's company builds custom guitars based on client specifications. Her company would best utilize a just-in-time system.

Question 45

Eva is determining the sequence of work throughout a manufacturing facility and who will perform which task at which location. Eva is engaged in the production control step known as scheduling.

Question 46

The first step in production control is production scheduling.

Question 47

The need for confidentiality sometimes affects the decision to purchase or lease.

Question 48

For most companies, price is the only consideration when selecting a supplier.

Question 49

Gantt charts are most effective for scheduling complex projects with several variables.

Question 50

Just-in-time inventory systems increase production flexibility and allow for continuous production.

Question 51

Many firms insist on long-term contracts with suppliers to ensure the availability of materials.

Question 52

Warehousing costs, taxes, insurance, and maintenance are expenses involved in storing inventory.

Question 53

Production control creates procedures for coordinating people, materials, and machinery efficiently.

Question 54

Product layout is also known as an assembly line.

Question 55

Raw materials are often purchased on a long-term contractual basis.

Question 56

For a major purchase, negotiations between a purchaser and potential vendors are done as quickly as possible in order to begin the manufacturing process.

Question 57

MRP is a management philosophy aimed at improving profits by involving workers in the operations process and eliminating waste through cost reductions, inventory reductions, and quality improvements.

Question 58

One potential problem with just-in-time systems is the added risk of running out of inventory if demand unexpectedly surges.

Question 59

A fixed-position layout places the product in different spots.

Question 60

Perpetual inventory systems typically use computers to continuously monitor the amounts and locations of their stocks.

Question 61

Which of the following are combined to result in mass production?

A) mechanization, specialized labour, and robots
B) standardization, job-order production, and specialized labour
C) analytic systems, synthetic systems, and continuous processes
D) mechanization, specialized labour, and standardization

Question 62

The production manager in a manufacturing company divides employee work into small segments so each employee can concentrate on just a few tasks. This manager is involved in ______.

A) specialization
B) standardization
C) mechanization
D) quality management

Question 63

A typical factory spends up to half its operating budget identifying and fixing mistakes.

Question 64

When a cabinet maker combines wood, tools, and skill to create finished kitchen cabinets for a new home, the cabinet maker is engaging in ______.

A) time utility
B) distribution
C) production
D) process utility

Question 65

Companies may use many different benchmarks, depending on their objectives.

Question 66

Identifying how leaders in certain fields perform and continually comparing and measuring performance against these outstanding performers is called benchmarking.

Question 67

To receive an ISO family certification, a company must undergo an on-site audit.

Question 68

A Gantt chart shows sequence and the critical path for performing the steps in a project.

Question 69

Quality is the state of being free of deficiencies or imperfections.

Question 70

The first step of production control is production planning.

Question 71

The ISO 14000 standards help organizations to ensure that their products and services are of high quality.

Question 72

PERT is a scheduling technique designed to minimize production delays.

Question 73

The critical path in a PERT diagram illustrates the most expensive operations that need to be done.

Question 74

What is the task of production and operations management?

A) to determine the most economical routes for transporting the firms' products
B) to manage the use of people and machinery in converting materials and resources into finished goods and services
C) to manage the use of people and other resources in the development of distribution channels and promotional strategies
D) to design systems that will provide managers with information useful for decision making

Question 75

Trucks, personnel, buildings, fuel, goods to be shipped, truck parts, and packaged supplies are examples of

A) outputs.
B) transformation.
C) inputs.
D) conversion.

Question 76

The phase of production control in which the manager instructs each department on the work to be done and the time allowed for its completion is called dispatching.

Question 77

Quality control involves measuring products and services against established quality standards.

Question 78

______ is the use of people and machinery to convert materials into finished goods or services.

A) Manufacturing
B) Production
C) Distribution
D) Marketing

Question 79

The want-satisfying power of a good or service is called ______.

A) quality
B) ownership
C) worth
D) utility

Question 80

When the editors of Contemporary Business use computers, paper, and human effort to create the new edition of a text, they are engaged in ______.

A) production
B) marketing
C) creating time utility
D) creating possession utility