Question 1

When a company turns out ornaments in time for Christmas, it creates time utility.

Accepted Answer

Time utility is created when products are made available for consumers when they want them.

Question 2

A company typically selects the kind of production used by most of its competitors.

Accepted Answer

A company picks the one that best achieves its larger business strategy.

Question 3

If parts A, B, and C must be produced this week, a detailed schedule will indicate the sequence of work.

Accepted Answer

Detailed schedules show day-to-day activities that will occur in production.

Question 4

ISO 9000 is a certification program attesting to the fact that a factory, laboratory, or office has improved its environmental performance.

Accepted Answer

This is a description of ISO 14000.

Question 5

Getting a haircut and having your lawn mowed are both examples of low-contact services.

Accepted Answer

Getting a haircut is a high-contact service.

Question 6

Japanese companies adapted the concept of quality circles from quality improvement teams used by U.S. companies.

Accepted Answer

Quality improvement teams are patterned after the Japanese concept of quality circles.

Question 7

A firm's capacity depends on both how many people it employs and the number and size of its facilities.

Accepted Answer

Capacity is the amount of a product that a company can produce under normal conditions.

Question 8

ISO 9000 is a certification program attesting that a factory, laboratory, or office has met the rigorous requirements set by the International Organization for Standardization.

Accepted Answer

More than 160 countries have adopted ISO 9000 as a national standard.

Question 9

Materials management involves the flow of materials inside of the production facility, while distribution management involves the flow of finished goods.

Accepted Answer

Materials management is the process by which managers plan, organize, and control the flow of materials from design through distribution of finished goods.

Question 10

An assembly line is an example of a custom-products layout.

Accepted Answer

An assembly line is a same-steps layout.

Question 11

Firms that make only tangible products are engaged in goods production.

Accepted Answer

Goods are tangible products, while services may be either tangible or intangible.

Question 12

Just-in-time (JIT) production systems normally require large amounts of "safety stock" to be maintained in a firm's warehouse.

Accepted Answer

JIT production reduces inventory levels by bringing needed materials together only at the precise time they are needed for production and/or shipment to the customer.

Question 13

Each stage in the supply chain adds value for the final customer.

Accepted Answer

The supply chain starts with raw-materials suppliers and continues until the product reaches the end customer.

Question 14

Staff schedules identify which products will be produced and when.

Accepted Answer

Staff schedules, in general, specify assigned working times in upcoming days-perhaps for as many as 30 days or more-for each employee on each work shift.

Question 15

In a low-contact system, the customer must be a part of the system to receive the service.

Accepted Answer

An example of a low-contact system is mail delivery, where the customer need not be present to receive the service.

Question 16

Services are more tangible, more customized, and more storable than most products.

Accepted Answer

Services are less tangible and less storable than goods.

Question 17

A process flowchart identifies the sequence of production activities, movements of materials, and work performed at each stage of the process.

Accepted Answer

A process flowchart can be analyzed to isolate wasteful activities, sources of delay, and other inefficiencies.

Question 18

Quality improvement teams are groups of employees from various work areas who define, analyze, and solve common production problems.

Accepted Answer

Quality improvement teams seek to improve both their own work methods and the products they make.

Question 19

By turning raw materials into finished goods, production creates form utility.

Accepted Answer

Form utility is created when raw materials and human skills are converted into finished goods and services.

Question 20

In a same-steps layout, equipment and people are set up to produce one type of good in a fixed sequence of steps and are arranged according to its production requirements.

Accepted Answer

A same-steps layout allows for the efficient use of an assembly line, where production operations are set up along a product-flow line.

Quiz 7: Operations Management and Quality