Deck 11: Operations Management in Manufacturing and Service Industries

Question 1

Make-to-order strategy is commonly used in such businesses as print shops.

Answer 1

True

Question 2

Mass production is the practice of producing high volumes of identical goods at low cost and held in inventory in anticipation of future demand.

Answer 2

True

Question 3

Transforming resources into finished goods is the job of the operations manager.

Answer 3

True

Question 4

The most important task facing Bob Montgomery and his team at PowerSki was determining how to efficiently produce quality JetBoards at reasonable prices.

Question 5

Mass customization and make-to-stock strategy is the same thing.

Question 6

Standardized products that have come off assembly lines are produced by a process known as _____.

A) mass production
B) customization
C) make-to-order production
D) cloning

Question 7

At one time, most consumer goods were customized to meet the needs of the buyer who ordered them.

Question 8

As operations manager for Consolidated American Tanks, Jim Sherman's major task is _____.

A) working with other managers
B) making goal?oriented decisions
C) improving operational efficiency
D) all of these

Question 9

An operations manager is a mid-level manager who directs this transformation process by which resources are converted into products.

Question 10

In performing quality control tasks, the operations manager is directly involved in efforts to ensure that goods are produced according to specification and that quality standards are maintained.

Question 11

Before making decisions about the operations process, operations managers must consider the goals set by marketing manager.

Question 12

The major areas of responsibility for operations managers include production planning, production control, and quality control.

Question 13

The control process starts when operations managers decide not only which goods and how many will be produced, but when.

Question 14

Production planning involves continually scheduling and monitoring production activities.

Question 15

In performing the production control responsibilities, operations managers determine how goods will be produced.

Question 16

After calculating your capacity requirements, you're ready to determine how much investment you'll need to make in your plant and equipment.

Question 17

Businesses often find it easier to control production by locating plants fairly distant from customers.

Question 18

Operations management is the management of the process that transforms resources into products.

Question 19

The operations manager is directly involved in efforts to ensure that goods are produced according to specifications.

Question 20

The management of the process that transforms resources into products is known as _____.

A) manufacturing management
B) conversion management
C) transformation management
D) operations management

Question 21

What do we mean when we refer to "product capacity"?

Question 22

If you visited Just Born, a candy maker, in Bethlehem, Pennsylvania, you would see a conveyor belt parade of marshmallow peeps. The company uses a product layout.

Question 23

What does an operations manager do?

Question 24

In producing large items, manufacturers may use fixed-position layouts in which workers go to products that stay in one place.

Question 25

When choosing a location for an o HYPERLINK "http://www.google.com/url?sa=t&source=web&ct=res&cd=9&ved=0CC0QFjAI&url=http%3A%2F%2Finvestment.suite101.com%2Farticle.cfm%2Fonline_stock_trading_broker_companies&ei=wtwxS7zLPISOswOKkf3EAg&usg=AFQjCNElSwyxu5fxr9elgJHL2ee72EEkgw" nline stock trading broker company, you would want to consider all of the following except:

A) favorable living conditions.
B) proximity to your customers.
C) availability of skilled workers.
D) amount of financial incentives offered by local governments.

Question 26

Which of the following companies does not devote at least a portion of its operations to mass customization?

A) Nike
B) Levi
C) Oakley
D) Colgate Palmolive

Question 27

An assembly line is a series of workstations at which raw materials are made into parts.

Question 28

Manufacturing managers focus on scheduling the _____ needed to transform raw materials into finished goods.

A) workers
B) activities
C) equipment
D) machinery

Question 29

All decisions made in the planning stage, which have long-range implications and are crucial to a firm's success, involve _____.

A) soul searching
B) layoffs
C) trade-offs
D) computerized input

Question 30

General Housing uses a process layout in the construction of its modular homes.

Question 31

A computer manufacturer that arranges its computer assembly into self-contained teams of employees working in a U-shaped formation so that they can share the workload and handle all aspects of building the computers is using a process layout.

Question 32

A cellular layout requires large teams of workers who can handle all aspects of building a product component.

Question 33

In calculating the quantity of products to be produced you should consider all except the following:

A) forecasted demand for your product.
B) Production output of your closest competitor.
C) capacity of your production facilities.
D) labor hours available.

Question 34

You work on Just Born's production line decorating Peeps. Arranging work in this way, by function, creates the following problems with one exception:

A) workers can get bored.
B) time required to train you on several jobs can be extensive.
C) production lines can backup and slow down production.
D) inventories can build up.

Question 35

Making decisions on how to hold down the costs of materials and labor is the job of _____.

A) each employee
B) the CEO
C) the accounts manager
D) the operations manager

Question 36

Businesses, such as print or sign shops, that produce low?volume, high?variety goods according to customer specifications use a process called _____.

A) mass production
B) make-to-order
C) mass customization
D) customer customization

Question 37

How does mass production work?

Question 38

The Vermont Teddy Bear Company uses a product layout in the manufacture of its teddy bears.

Question 39

What three questions should be addressed during the first step in production planning?
1) How much input do I receive from a particular customer prior to producing my goods? 2) Am I making a one-of-a-kind good based solely on customer specifications, or am I producing standardized, high-volume goods to be sold later? 3) Do I offer customers the option of "customizing" an otherwise standardized good to meet their specific needs?

Question 40

What is the first step in the production process?

A) Determining the quantity of products the company will produce.
B) Deciding which type of production process is best for your company.
C) Picking a location for your company.
D) Determining how the company can produce high quality products at a low cost.

Question 41

Workers or departments that perform similar tasks may be grouped together in a _____ layout.

A) component layout
B) product layout
C) critical layout
D) process layout

Question 42

High-volume goods are produced efficiently by people, equipment, or departments arranged in a(n)_____.

A) maximum?work line
B) cellular layout
C) assembly line
D) s-shaped layout

Question 43

In a(n) _____ layout, high-volume goods are produced efficiently by people, equipment, or departments arranged in a series of workstations at which previously made parts are assembled.

A) product
B) assembly?line
C) product?line
D) manufacturing

Question 44

When are fixed-position layouts used in manufacturing products?

Question 45

An electronic data interchange (EDI) system is used to monitor inventory levels.

Question 46

The Customized Communication Print Shop plans to specialize in customized announcements and newsletters and personalized stationary. Which of the following layouts would be best for this business?

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

Question 47

Inventory control is a method used to ensure that no one steals a company's inventory.

Question 48

The materials management process encompasses the process of assembling materials.

Question 49

In the past, many companies guarded against the possibility of running out of materials and consequently stopping production by using a just-in-time inventory system.

Question 50

E?procurement (or e-purchasing) involves the use the Internet to interact with suppliers.

Question 51

Both product and process layouts arrange work by _____.

A) capacity
B) function
C) strategy
D) orders

Question 52

Collins' Computers arranges its computer assembly into teams working in a U- shaped formation so that they can share the work and some of the equipment. What type of production layout does Collins' Computer use?

A) Product layout
B) Process layout
C) Fixed position layout
D) Cellular layout

Question 53

In producing large items, manufacturers often use a(n) _____ layout, in which workers go to products that stay in one place.

A) stationary
B) fixed-position
C) cellular
D) immobile

Question 54

Describe each of the major types of facility layouts: process, product, cellular and fixed position.

Question 55

A company that uses a just-in-time production method produces its product just-in-time to deliver them to customers.

Question 56

To help monitor resources in all areas of the company, the sophisticated system called manufacturing resource planning (MRP II) goes beyond a system for material planning.

Question 57

Once you've forecasted the demand for a product, you can calculate the _____ requirements of your production facility.

A) budget
B) capacity
C) personnel
D) capital

Question 58

Just-in-time production helps companies process transactions and issue purchasing documents.

Question 59

_____ refers to the maximum number of goods that a facility can produce over a given period of time under normal working conditions.

A) Operations breadth
B) Product ceiling
C) Capacity
D) Production control

Question 60

Materials management encompasses purchasing, inventory control and work scheduling.

Question 61

Which of the following is not a way in which the Internet is used by purchasing managers?

A) Sell the company's goods
B) Shop for parts and supplies using online catalogs
C) Participate in an online marketplace
D) Process your transactions and transmit purchasing documents

Question 62

Let's say that you bought a TV on eBay and paid for it electronically. To process your transaction and transmit all of your purchasing documents, the manufacturer might use an _____ system.

A) Internet interchange
B) electronic data interchange
C) electronic?buying
D) e?purchase interchange

Question 63

Which of the following materials management activities is concerned with making sure the company has enough materials on hand to meet its production schedule?

A) Purchasing
B) Procurement
C) Inventory control
D) Warehousing

Question 64

The _____ manager is responsible for determining a vendor's reputation.

A) operations
B) materials
C) components
D) purchasing

Question 65

Completing an activity on the critical path of a PERT chart early will delay the project.

Question 66

When production processes reach a certain level of complexity, operations managers may use _____ charts to schedule activities.

A) Gantt
B) PERT
C) SCAT
D) Rorschach

Question 67

Gantt charts are useful when the production process is complex and activities are interrelated.

Question 68

For complex schedules, operations managers may use PERT charts to diagram the activities required to produce a good.

Question 69

Describe just-in-time production and explain why companies adopt this production method.

Question 70

What is e-purchasing and how do companies use this method to interact with suppliers?

Question 71

The inventory?control method called _____ relies on a computerized program to calculate the quantity of materials needed for production and to determine when they should be ordered or made.

A) buying?to?order
B) manufacturing requirements
C) manufacturing?to?order
D) material requirements planning

Question 72

PERT charts are simpler and easier to use than Gantt charts.

Question 73

A _____ chart is an easy-to-use graphical tool that helps operations managers determine the status of projects.

A) flow
B) production
C) Gantt
D) PERT

Question 74

Material costs often make up ____ of total manufacturing costs.

A) 25%
B) 75%
C) 50%
D) 10%

Question 75

Once the production process is in place, the operations manager can turn his or her attention to the daily activities of _____.

A) distribution planning
B) procurement
C) materials management
D) floor supervisors

Question 76

Companies that use a just-in-time (JIT) production system:

A) ensure that their finished products are completed just in time to fill customers' orders.
B) have higher inventory costs because of additional handling costs charged by suppliers to expedite materials.
C) have frequent contact with their suppliers.
D) set up their assembly lines just-in-time to meet customer demand.

Question 77

All of the following are daily activities involved in the process of materials management except _____.

A) purchasing
B) inventory control
C) work scheduling
D) goods production

Question 78

Following basically the same process that you'd use to buy a product on eBay, a(n) _____ manager uses the Internet to buy parts and supplies.

A) materials
B) operations
C) automation
D) purchasing

Question 79

As an operations manager at Century Unlimited Industries, Sylvia Moses uses basic MRP to focus on material planning and the more sophisticated system called _____ to help monitor resources in all areas of the company.

A) manufacturing resource planning II
B) manufacturing requirement planning II
C) material resource planning II
D) advanced maximum resource planning

Question 80

Which tool is best for diagramming complex schedules?

A) Gantt Chart
B) PERT chart
C) Computer-Aided Design software
D) Project management software