Question 1

__________ has transformed the purchasing function in recent years by helping firms find the best suppliers and the best prices.

Accepted Answer

The Internet has enabled firms to easily search and compare supplier offerings and prices, leading to more efficient and cost-effective purchasing decisions.

Question 2

To reduce the cost of holding too much inventory,many companies have implemented:

Accepted Answer

Just-in-time (JIT) inventory control is designed to minimize inventory carrying costs by only ordering or producing items as needed. This approach helps companies save on warehousing and storage expenses, as well as reduce the risk of inventory becoming obsolete or damaged. By keeping inventory levels low, companies can also free up capital that might otherwise be tied up in excess stock.

Question 3

MRP is a technique that helps managers:

Accepted Answer

MRP, or Material Requirements Planning, is a technique that helps managers ensure that the right parts and materials are available at the right time. This is accomplished by using a computerized system to calculate inventory requirements based on a production schedule and sales forecasts. The system then generates purchase orders or work orders to ensure that the necessary materials are available when needed.

Question 4

The ___________ National Quality Award is given to firms that achieve an outstanding level of overall quality based on performance in seven key areas.

Accepted Answer

The Malcolm Baldrige National Quality Award is given to organizations that demonstrate excellence in seven key areas: leadership, strategic planning, customer focus, measurement, analysis and knowledge management, workforce focus, operations focus, and results. It is administered by the National Institute of Standards and Technology (NIST) and is the highest level of national recognition for performance excellence that a U.S. organization can receive.

Question 5

The six sigma approach to quality control:

Accepted Answer

The six sigma approach focuses on detecting and preventing potential problems early in the production process, rather than relying on a team of experts to examine every unit of output at the end. It is a comprehensive approach to quality control that involves all departments of the organization, not just marketing. It also sets a very high standard for defect rates, allowing only 3.4 defects per million units produced. Therefore, option B is the correct choice.

Question 6

An example of a __________ is building a new home on a lot.

Accepted Answer

A fixed-position layout is the most appropriate choice for building a new home on a lot since the home is being constructed on a fixed location and all needed resources (materials, equipment, workforce) must be brought to that location.

Question 7

In manufacturing,a __________ is frequently used in operations that serve different customers' different needs.

Accepted Answer

A process layout is used when the operations involve a variety of products, processes, and different requirements. A single production line is inefficient, and operations depend on a group of firms with diverse requirements. Therefore, process layouts are usually desired for operations that perform various tasks.

Question 8

___________ is a computer application that enables a firm to combine computerized functions of all divisions and subsidiaries of the firm into a single,integrated software program that uses a single database.

Accepted Answer

Enterprise resource planning (ERP) is a computer application that integrates all functions of a firm into a single software program, using a single database. It allows for better communication and collaboration between different divisions and subsidiaries of the firm, leading to improved efficiency and productivity. Materials requirement planning (MRP), manufacturing resource planning (MRPII), and PERT analysis are all planning tools, but they do not have the capability to integrate all functions of a firm. Therefore, D is the best choice.

Question 9

MRP is the acronym for:

Accepted Answer

MRP stands for Materials Requirement Planning, which is a process of determining the materials and resources needed to produce a product based on demand, inventory levels, and production capacity.

Question 10

In today's quality control programs,emphasis is placed on:

Accepted Answer

Today's quality control programs place emphasis on achieving customer satisfaction. This means that products must meet or exceed customer expectations, and any issues or defects must be resolved before the product is shipped. Cost containment is also a consideration, but it is not the primary focus of quality control programs. Similarly, keeping labor costs low is a consideration but is not the primary emphasis of quality control programs. Finally, detecting errors at the end of the production process is not an effective approach to quality control, as it does not address the root cause of the problem and can result in costly recalls and returns.

Question 11

Maintaining ___________ involves producing what the customer wants while reducing errors before and after delivery to the customer.

Accepted Answer

Maintaining quality involves producing what the customer wants while reducing errors before and after delivery to the customer. The other options, manufacturing control, allocative efficiency, and CAD/CAM, are related to different aspects of production and efficiency but do not directly address the importance of customer satisfaction and error reduction.

Question 12

ERP is the acronym for:

Accepted Answer

ERP stands for Enterprise Resource Planning, which refers to a software system that helps businesses manage and integrate various aspects of their operations, including finance, human resources, supply chain management, and customer relationship management. Options A, B, and D are not relevant to the term ERP.

Question 13

____________ examines statistical samples of product components at each stage of the production process and plots the results on a graph in order to spot and correct any variances from desired quality levels.

Accepted Answer

Statistical process control is a quality control method that examines statistical samples of product components at each stage of the production process and plots the results on a graph in order to spot and correct any variances from desired quality levels. CAD/CAM is a computer-aided design and manufacturing system used for creating and producing products. Econometrics is a statistical method used in economics to study relationships among various economic variables. Analysis of variance is a statistical technique used to determine the sources of variation in a set of data.

Question 14

__________ is the operations management planning function that searches for quality material resources,finds the best suppliers,and negotiates the best price.

Accepted Answer

The function described in the scenario is purchasing, which involves finding quality material resources, identifying potential suppliers, and negotiating the best price. Marketing involves promoting and selling products or services. Collective bargaining refers to negotiations between employers and employees or their representatives. Bartering is an exchange of goods or services without using money. Therefore, the best choice is D, purchasing.

Question 15

Today manufacturers are relying more heavily on:

Accepted Answer

Manufacturers are increasingly relying on one or two suppliers to foster strong relationships and improve efficiency through shared information and collaboration.

Question 16

With the __________ inventory control system,producers hold only the amount of materials and parts that they need for a short period of time - sometimes just a few hours.

Accepted Answer

The just-in-time (JIT) inventory control system is characterized by holding only the necessary amount of materials and parts for a short period of time, often just a few hours, in order to minimize inventory costs and improve efficiency. This contrasts with other inventory control systems, such as the maximum system which involves holding large amounts of inventory, and the ABC system which prioritizes certain items for inventory control. The first-in, first-out system, or FIFO, is a method of inventory control that prioritizes the use of older inventory before newer inventory, but it is not a specific inventory control system like JIT.

Question 17

___________ is a set of international standards for quality management and quality assurance.

Accepted Answer

ISO 9000 is a set of international standards that provide guidance and tools for companies to ensure their products and services consistently meet customer requirements and enhance customer satisfaction. The ISO 9000 standards focus on quality management and quality assurance, covering areas such as documentation, customer satisfaction, process improvement, and employee training. EPA 2000 is not a known set of international standards, ISO 14000 is a set of standards for environmental management, and TQM (Total Quality Management) is a management approach that emphasizes continuous improvement, but it is not a specific set of standards.

Question 18

The Deming Cycle is:

Accepted Answer

The Deming Cycle, also known as the PDCA Cycle (Plan-Do-Check-Act), is a process for continuous quality improvement by identifying potential quality errors, implementing a plan to address them, checking whether the plan worked, and then acting on any necessary changes. It is not related to employee performance evaluation, facility location, or identical production steps.

Question 19

The operations planning practice of inputting sales forecasts into computer software that accurately predicts the amount and timing of materials needed to complete products and projects is ________________.

Accepted Answer

This process is known as Materials Requirement Planning (MRP). MRP is a software-based system that helps businesses manage their resources efficiently by forecasting demand and tracking inventory levels to ensure materials are available when needed.

Question 20

____________ standards are concerned with the best practices for managing an organization's environmental impacts.

Accepted Answer

ISO 14000 standards are specifically designed to provide guidance on best practices for managing an organization's environmental impacts. EPA 2000, Eurogreen 700, and Enviro 2001 are not recognized standards for environmental management.

Quiz 9: Production and Operations Management