Question 1

The three main considerations in deciding which supplier to use on a continuing basis are price,quality,and service.

Accepted Answer

Price, quality, and service are three crucial factors that businesses often consider when selecting a supplier they intend to work with frequently. These factors are important because they can impact the overall success of the company.

Question 2

Having attended a management seminar,the owner of a small manufacturing firm is considering using a just-in-time inventory system.Which of the following may be a source of difficulty?

Accepted Answer

Implementing a just-in-time inventory system requires suppliers to deliver materials and goods in a timely and efficient manner. If the firm does not have a strong relationship with its suppliers or lacks the bargaining power to negotiate favorable terms, it may encounter difficulties in implementing the system.

Question 3

A control chart illustrates the limits for the process being controlled.

Accepted Answer

A control chart is a tool used in statistical process control to monitor the performance of a process and identify any special causes of variation. It includes upper and lower control limits that represent the acceptable range of variation for the process. Any data points that fall outside of these limits are considered to be out of control and may signal the need for corrective action.

Question 4

Despite their differences,all operations processes are similar in that they change inputs into outputs.

Accepted Answer

All operations processes involve the conversion of inputs into outputs, even if the specifics of the process differ.

Question 5

What is the primary purpose of reengineering and methods improvement?

Accepted Answer

The primary purpose of reengineering and methods improvement is to improve a firm's productivity and competitive strength. While finding the proper time and establishing standard cost are important aspects of process improvement, ultimately the goal is to increase a company's efficiency and effectiveness in order to compete more successfully in the market. Increasing quality levels of products may be a byproduct of these efforts, but it is not the primary purpose.

Question 6

What approach to management was popularized by Michael Hammer and James Champy?

Accepted Answer

Michael Hammer and James Champy popularized the concept of business process reengineering, or simply reengineering, in their 1993 book "Reengineering the Corporation." This approach involves radically redesigning and streamlining business processes to improve efficiency, reduce costs, and enhance customer value.

Question 7

Mitzie finds that competition in the printing industry is at an all-time high.She feels that she must improve the quality inspection process in her plant.Ultimately,who will judge the quality of work from Mitzie's plant?

Accepted Answer

The customer ultimately judges the quality of work from Mitzie's plant. They will be the ones using the printed materials and determining if they meet their expectations and needs.

Question 8

Martin purchased a four-colour press to transition his printing brokerage from a service to a manufacturing operation.What will the ink be classified as in the production process?

Accepted Answer

The ink is considered an input as it is a resource used to produce the final output.

Question 9

Reengineering consists of work analysis through time and motion study.

Accepted Answer

Reengineering involves redesigning business processes, structures, and systems to improve efficiency and effectiveness, and may or may not include time and motion study analysis.

Question 10

Amritpal is negotiating the cost of pink roses with her floral supplier.The demand for pink roses has increased and Amritpal wants a better price.What activity is Amritpal fulfilling in her business?

Accepted Answer

Negotiating the cost of supplies, such as pink roses, is part of the operations activity in a business, as it involves managing the day-to-day activities required to produce goods or services, including procurement of materials.

Question 11

Repetitive manufacturing is used for very short runs of the same custom items.

Accepted Answer

Repetitive manufacturing is used for long runs of the same standard items, while job shop manufacturing is used for short runs of custom items.

Question 12

Which of the following includes cleaning and lubricating equipment?

Accepted Answer

Cleaning and lubricating equipment falls under the category of preventive maintenance, which involves routine maintenance tasks to prevent equipment breakdowns and prolong the life of the equipment. Production control, supervising and follow-up, and scheduling and dispatching are not directly related to cleaning and lubricating equipment.

Question 13

Johnny's company supplies most Caribbean countries with Styrofoam cups and plates.He receives very large orders for the same size cups and plates.What type of manufacturing operation does Johnny have?

Accepted Answer

Repetitive manufacturing is the best choice as Johnny's company produces large orders of Styrofoam cups and plates in a repetitive manner, indicating a high-volume, low-variety manufacturing operation. Job shop, project manufacturing, and flow processing are not suitable choices for Johnny's operation.

Question 14

What is the definition of quality?

Accepted Answer

Quality refers to the features and characteristics of a product or service that enable it to satisfy the needs of customers. This includes factors such as reliability, durability, performance, and overall satisfaction.

Question 15

Tracee is comparing actual results from production to targets to determine if corrective action is required.What is Tracee engaged in?

Accepted Answer

Tracee is engaged in the control cycle, which includes monitoring actual results and comparing them to predetermined targets. This is done to identify any variances and determine if corrective action is required. The other options are not directly related to the process of comparing actual results to targets.

Question 16

Which statement best describes a company that uses the just-in-time inventory system?

Accepted Answer

The just-in-time inventory system is designed to cut inventory levels to the minimum required for production, in order to reduce costs and increase efficiency. This means that choice C, "It cuts inventory to the minimum," best describes a company that uses the just-in-time inventory system. Choices A, B, and D do not accurately describe this system.

Question 17

Concentration of purchases with one supplier has the advantage of facilitating prompt treatment of rush orders.

Accepted Answer

When a company concentrates its purchases with one supplier, it establishes a close relationship with that supplier. As a result, the supplier is more willing and capable of fulfilling rush orders promptly.

Question 18

Charanjit's company makes wooden window shutters.He receives a large order for vinyl shutters and outsources the work to another supplier.Why would Charangit buy these shutters rather than making them?

Accepted Answer

Buying them requires less diversified managerial experience and skills because Charanjit's company specializes in wooden shutters, not vinyl, implying a different set of skills and possibly equipment would be needed for vinyl shutters.

Question 19

A small electrical wholesaler is attempting to reduce inventory levels and provide for rapid delivery of purchased items.To which supplier area should the wholesaler give special attention?

Accepted Answer

Location is the most important factor for a small electrical wholesaler looking to reduce inventory levels and provide for rapid delivery of purchased items. Choosing suppliers who are located closer to the wholesaler's warehouse will allow for faster delivery times and reduced transportation costs.

Question 20

What is the advantage of diversifying sources of supply?

Accepted Answer

Diversifying sources of supply provides insurance against temporary disruption in supply. If a firm relies on only one supplier and that supplier experiences supply issues or goes out of business, the firm's operations can be seriously impacted. By diversifying suppliers, a firm can mitigate the risk of a disruption in supply.

Quiz 12: Operations Management and Control Systems