Question 1

Antoine's Creamery, an eastern seaboard ice cream producer wants to license firms in Europe to produce and sell its products. We can conclude that this is good strategy if it wants to save the money it would cost to be ISO 9000 certified because the EU (European Union), unlike U.S. firms has not yet adopted these standards.

Accepted Answer

The fact that Europe hasn't adopted ISO 9000 standards is irrelevant to whether licensing firms there would be a good strategy for Antoine's Creamery. It may still be a good strategic move for other reasons, such as expanding its market reach or reducing costs of production and distribution.

Question 2

IMPUZZLED! Corporation produces jigsaw puzzles. The quality of its materials and the calibration of machines that cut and fit pieces of a puzzle are extremely important if it is to eliminate defects and meet customer specifications. If the company meets or exceed Six Sigma criteria, it will have no more than 60 defects per million puzzles.

Accepted Answer

The answer of IMPUZZLED! Corporation produces jigsaw puzzles. The quality...

Question 3

A Gantt chart is a bar graph showing production managers what projects are being worked on and the stage of development at any given time.

Accepted Answer

This statement accurately describes what a Gantt chart is and what it is used for.

Question 4

In an effort to improve the quality control process at the Southern Peanut Corporation, management is introducing the importance of the Deming Cycle to employees. This suggests that managers are aware of the need to find potential problems before they occur.

Accepted Answer

Introducing the Deming Cycle indicates a focus on preventing problems and improving quality control, suggesting that management is indeed aware of the need to identify potential problems before they occur.

Question 5

Perry manages an X-ray imaging services clinic housed adjacent to a large hospital in a major metropolitan area. Although customers are regularly surveyed to determine the level of service they perceive to be receiving, Perry finds it difficult to determine if the clinic is providing the level of service which would qualify it as an ISO 9000 firm. He explains that the volume of patients requiring urgent care on some days is more acute than on other days. He is confident that the staff is providing the same level of quality on busy days, but surveys indicate that patients do not particularly rate their clinic experience as particularly good on those days. He expects this dilemma because he understands from his recent business class that service companies find it challenging to provide the same high level of service all the time.

Accepted Answer

The passage states that service companies find it challenging to provide the same high level of service all the time, which supports the statement that it is true that Perry finds it difficult to determine if his clinic is providing the level of service that would qualify it as an ISO 9000 firm due to fluctuations in patient volume.

Question 6

The end result of PERT analysis is an estimate of the total cost of completing a project.

Accepted Answer

The end result of PERT analysis is a schedule or timeline for the project, including the critical path and expected duration of each activity. It does not provide an estimate of the total cost of completing a project. Cost estimates are typically determined through budgeting and financial analysis separate from PERT.

Question 7

Northern States Electric is in the process of trying to achieve ISO 14000 certification. Although the criteria for certification involve several milestones, we can be assured they will be evaluated on the regularity and thoroughness of their environmental audits, and how well top management reviews the firm's adherence to policies that are environmentally friendly.

Accepted Answer

The statement correctly describes some of the criteria for ISO 14000 certification.

Question 8

SQC (Statistical Quality Control) is a popular technique for analyzing the tasks involved to complete a given project, estimating the time required to complete each task, and identifying the minimum time needed to complete the project.

Accepted Answer

SQC is a technique used for monitoring and controlling the quality of a product or service, not for analyzing project tasks and timelines.

Question 9

The critical path identified by PERT analysis is the sequence of tasks that can be completed in the shortest amount of time.

Accepted Answer

The critical path identified by PERT analysis is the sequence of tasks that must be completed in a specific order to ensure the project is completed on time. It is not necessarily the shortest sequence of tasks.

Question 10

Compared to PERT networks, Gantt charts provide a more basic way to track progress on a given project.

Accepted Answer

Gantt charts are simpler and easier to read, but they do not provide as much detail as PERT networks, which can show dependencies and critical paths.

Question 11

Impact Computers wants to set up a planning system that enables it to integrate its production and operations system with those of its suppliers. As its operations management consultant, you explain that it needs a Material Requirement Planning (MRP) system.

Accepted Answer

The answer of Impact Computers wants to set up a...

Question 12

The first step in the PERT method is to assign a cost to each activity.

Accepted Answer

The first step in the PERT method is to identify all the activities involved in a project, and then to determine the sequence in which they must be completed. Only after this has been done can estimates be made for the duration of each activity, and costs assigned to them.

Question 13

An advantage of PERT diagrams is that they are usually so simple to draw that a computer is not needed.

Accepted Answer

PERT diagrams can become very complex and may require the use of computer software to create and manage.

Question 14

In a PERT network, a critical path is the sequence of tasks that takes the longest time to complete.

Accepted Answer

The critical path is defined as the longest sequence of tasks in a PERT network that must be completed on time in order for the project to be completed on time.

Question 15

PERT is a popular technique for analyzing the tasks involved to complete a given project, estimating the time required to complete each task, and identifying the minimum time needed to complete the project.

Accepted Answer

This statement accurately describes the PERT technique.

Question 16

A major purpose of the program evaluation and review technique (PERT) is to identify the minimum time needed to complete a project.

Accepted Answer

The answer of A major purpose of the program evaluation...

Question 17

Mypartz, Inc. is a major supplier of components used by Idle Time Gaming Systems. Idle Time Gaming wants to implement a just- in-time inventory system. Mypartz should benefit from this approach, since JIT systems greatly simplify the task of suppliers.

Accepted Answer

The answer of Mypartz, Inc. is a major supplier of...

Question 18

The significance of the critical path on a PERT chart is that it identifies the least costly method of producing a given product.

Accepted Answer

The significance of the critical path on a PERT chart is that it identifies the longest path of tasks and activities that must be completed on time in order to complete the project on schedule. This helps in identifying any potential delays and bottlenecks that could affect the project timeline. It does not necessarily relate to the cost of producing a product.

Question 19

Rysler Motors currently uses an ERP system to manage all of its production operations and coordinate them with the other operations of the company. The company also wants to implement a just-in-time (JIT) inventory system. Unfortunately for Rysler, ERP is incompatible with JIT, so if it adopts the new inventory system it will have to abandon ERP.

Accepted Answer

This statement is false. It is possible for an ERP system to be compatible with a JIT inventory system. In fact, many ERP systems have built-in functionality to support JIT. However, it may require customization and integration efforts to fully align the two systems.

Question 20

Star Performance, Inc. a sporting good company and Fairview Community College are interested in following the lead of other companies and implement criteria that will lead toward receiving the Baldrige Award. As their advisor, you emphasize that focusing on the measurement of customer satisfaction is one important area where both will need to excel.

Accepted Answer

This statement is true. The Baldrige Award criteria places significant emphasis on measuring customer satisfaction as a key performance indicator for organizations.

Quiz 9: Production and Operations Management