Deck 18: Managing Service and Manufacturing Operations

Question 1

What measure of performance indicates how many inputs it takes to produce or create an output?

A) reliability
B) performance accountability
C) productivity
D) TQM

Answer 1

C

Question 2

Roger is comparing battery life from several battery suppliers.What is Roger evaluating?

A) reliability
B) assurance
C) durability
D) responsiveness

Answer 2

C

Question 3

Which type of productivity is a measure of performance that indicates how much of a particular kind of input it takes to produce an output?

A) breakdown
B) segregated
C) unifactor
D) partial

Answer 3

D

Question 4

At their core,companies are systems that combine inputs,such as labour,raw materials,capital,and knowledge,to produce finished products and other types of outputs.Which term best describes the type of system a company is?

A) organizational
B) production
C) social
D) predictable

Question 5

Which quality characteristic can be applied to both goods and services?

A) reliability
B) serviceability
C) durability
D) homogeneity

Question 6

What is the definition of quality according to the American Society for Quality?

A) the characteristics of a product or service that satisfy customer needs
B) a product that customers perceive as free of deficiencies
C) any product made from error-free components
D) a product produced according to a sacrificing design plan

Question 7

Which type of productivity shows how much labour,capital,materials,and energy it takes to create an output?

A) temporal
B) multifactor
C) functional
D) continuous

Question 8

Why is productivity important to countries?

A) Productivity matters because it produces a higher standard of living.
B) Greater productivity results in lower wages.
C) Productivity increases supply and reduces demand for products.
D) Productivity reduces taxation.

Question 9

Dylan wishes to purchase an electric keyboard to take with him to college residence when he lives away from home.He is reading reviews of several brands.A key factor in his decision is which company will be able to help the fastest should his keyboard require repair.What feature of the keyboard is important to Dylan?

A) reliable
B) serviceable
C) responsive
D) consistent

Question 10

Massey Ferguson,a division of AGCO Corp.,has introduced two new front-cut mowers designed to provide a high level of serviceability.Which statement best describes the mowers?

A) The mowers demonstrate a long time frame between necessary maintenance.
B) The mowers must be sent back to the manufacturer for repair.
C) The mowers are easy to repair.
D) The mowers have a high mean time before product failure.

Question 11

Why is productivity so important?

A) Productivity is a ratio of benefits to costs (i.e., benefits divided by costs).
B) For companies, higher productivity can lead to lower costs.
C) For countries, higher company productivity produces a higher standard of living.
D) Productivity decreases make products more affordable.

Question 12

Robin Subaru centrifugal pumps combine a powerful overhead-cam engine,heavy-duty construction,and reliable performance for dewatering in light construction,flood control,homeowner,firefighting,and irrigation applications.The pumps are also designed for durability.Which statement best describes these pumps?

A) The pumps break down frequently.
B) The pumps demonstrate a short time frame between necessary maintenance.
C) The pumps must be sent back to the manufacturer for repair.
D) The pumps have a high mean time before product failure.

Question 13

What determines a product's quality?

A) reliability, homogeneity, and durability
B) tangibility, validity, and homogeneity
C) serviceability, tangibility, and validity
D) durability, reliability, and serviceability

Question 14

Which type of productivity was the manager of a sign manufacturer interested in when determining how much glass tubing was needed to produce a neon sign for a casino?

A) composite
B) multifactor
C) partial
D) breakdown

Question 15

Nesha is determining levels of efficiency at different times of the year.She is reviewing the contract work costs,supplier purchases,re-tooling to adjust capacity,and utility bills between high and low seasons.What kind of productivity is Nesha reviewing?

A) labour productivity
B) partial productivity
C) integrated productivity
D) multifactor productivity

Question 16

What is the correct relationship among productivity,outputs,and inputs?

A) productivity = (inputs/outputs)
B) productivity = [(inputs ´ outputs)/100]
C) outputs = (productivity/inputs)
D) productivity = (outputs/inputs)

Question 17

Eleanor is deciding between two spas to schedule a massage,facial,and pedicure.What will she base her decision on?

A) reliability
B) validity
C) responsiveness
D) homogeneity

Question 18

Which term can be used to describe a product that is easy to maintain and fix?

A) reliable
B) serviceable
C) durable
D) tangible

Question 19

The CEO of a company that manufactures maple wooden cutting boards has determined that it takes two hours of labour,a planer,a sander,an electric saw,and $5.67 to make one maple cutting board from a piece of maple lumber 46 cm square and 5 cm thick.Which type of productivity has the CEO determined about his company in order to compare its operation with that of its competition?

A) integrated
B) multifactor
C) segregated
D) functional

Question 20

Shine Bros.Corp.,a recycling company based in Spencer,Iowa,bought its first Fuchs machine-an MHL 320 scrap handler-in 1998.Since then,the company has bought two additional Fuchs scrap handlers to perform various scrap-handling tasks at its Spencer yard.According to the owners of the company,"We now know the average time between breakdowns." Which characteristic of product quality were the owners describing?

A) reliability
B) serviceability
C) responsiveness
D) consistency

Question 21

Judy is arranging the end of year party at a restaurant for the company's employees.Judy considered a new restaurant but decided to make a reservation at the one she has used in the past since she has never been disappointed.What characteristic of the restaurant keeps Judy returning?

A) reliability
B) assurance
C) responsiveness
D) tangibility

Question 22

According to the TQM strategy,what should be a company's primary goal?

A) customer focus and satisfaction
B) continuous improvement
C) teamwork
D) participative management

Question 23

What is ISO 14000?

A) ISO 14000 provides ISO certification for service providers.
B) ISO 14000 is a series of five international standards for achieving consistency in quality management and quality assurance in companies throughout the world.
C) ISO 14000 is a series of international standards for managing, monitoring, and minimizing an organization's harmful effect on the environment.
D) ISO 14000 is the interim ISO certification that is granted in the event that ISO 9000 certification is temporarily withdrawn.

Question 24

What is total quality management (TQM)?

A) TQM is an integrated organization-wide strategy for improving product and service quality.
B) TQM is a specific technique used to reposition a company's product so as to justify higher prices.
C) TQM is based on four mutually reinforcing principles: customer focus, customer satisfaction, participative management, and delegation.
D) TQM was developed and is monitored by the International Organization of Standards to monitor employee satisfaction.

Question 25

What is a requirement for ISO 9000 certification?

A) The company must be a U.S.-based organization only.
B) The company must have been recently reorganized.
C) The company must show that it follows its own procedures.
D) The company must be an industrial service organization.

Question 26

An article addressed to nurses who work in intensive care said,"Patients may feel isolated or ostracized from those around them,including medical staff,because of their condition or appearance.Practices affirming the patient's intrinsic value and individual personality will be critical to establishing trust and rapport." Providing which of the following is one method to affirm a patient's intrinsic value?

A) empathy
B) serviceability
C) durability
D) homogeneity

Question 27

Donna runs a printing company and has called her press supplier.The supplier is having difficulty locating a repair company for the press.What problem exists with the press?

A) product failure
B) TQM
C) assurance
D) serviceability

Question 28

Which of the following is continuous improvement typically associated with?

A) low morale and reduced customer satisfaction
B) a reduction in variation and higher customer satisfaction
C) batch processing and a broad chain of command
D) a flat organizational structure and a broad chain of command

Question 29

What types of companies can apply for ISO 9000 certification?

A) manufacturing and experience organizations
B) manufacturing and service organizations
C) service and non-profit organizations
D) experience and non-profit organizations

Question 30

A purchasing manager chooses to procure 95 percent of the main raw material the company needs from one supplier.The supplier knows the company's products extremely well,is always friendly and professional to deal with,and if anything goes wrong,takes care of the problem right away.What does the purchasing manager value most in the supplier?

A) empathy
B) level of assurance
C) the supplier's prices
D) the supplier's friendliness

Question 31

What may cause ISO 9000 suspension or cancellation?

A) The company produces inconsistent quantity of product.
B) The company replaces some of its manufacturing capability with service delivery.
C) The company fails a periodic audit following their initial certification.
D) The company's profit declines.

Question 32

Which of the following is one of the principles that characterize TQM?

A) teamwork
B) organizational dialogue
C) the equity theory
D) autonomy

Question 33

Brake Parts Inc.,manufacturer of Raybestos brand brakes,is at the forefront of the replacement brake industry as a result of its ongoing commitment to continuous product improvement and its uncompromising dedication to providing customers with the most advanced,premium quality product technology through teamwork.In other words,which of the following is Brake Parts committed to?

A) a bureaucratic structure
B) total quality management
C) winning ISO 8000 certification
D) implementing an MRP program

Question 34

In terms of service quality characteristics,which of the following terms can be used to describe a major newspaper that provides news of interest to its readers,consistently at the same time and place daily?

A) proactive
B) responsive
C) durable
D) reliable

Question 35

Which of the following recognizes companies that follow the management system put in place to improve quality?

A) ISO 9000 certification
B) the Blanchard Award
C) the Herzberg Award for Excellence
D) kanban certification

Question 36

Total quality management (TQM)saved Xerox from bankruptcy when it was badly beleaguered by its Japanese rivals.What would TQM have brought to Xerox to save it from bankruptcy?

A) Every Xerox employee, from the top to the bottom, became focused on meeting or exceeding its customers' needs.
B) The company became committed to satisfying its shareholders.
C) Xerox managers focused on financial goals, using budgets and financial statement ratios to guide their decisions.
D) Xerox adopted a cost-cutting philosophy

Question 37

In TQM terms,which of the following is an organizational goal to provide products or deliver services that meet or exceed customers' expectations?

A) market response
B) customer satisfaction
C) market focus
D) positive framing

Question 38

Which of the following is one of the principles that characterize TQM?

A) third party certification
B) delegation
C) participative management
D) customer focus and satisfaction

Question 39

What does TQM state a company's primary goals should be?

A) Earning profits and customer focus should always be a company's primary goals.
B) Quality levels and customer satisfaction should be a company's primary goals.
C) Customer focus and customer satisfaction should be a company's primary goals.
D) Quality levels and earning profits should be a company's primary goals.

Question 40

What do studies clearly show customers care more about than anything else when buying services?

A) responsiveness
B) assurance
C) reliability
D) tangibles

Question 41

Wacker Corp.,one of the leading light construction equipment suppliers to the rental industry,has purchased new software,which will allow its employees to extend its electronic support skills and parts-ordering efficiencies for its customers.Which aspect has been improved,likely leading to greater employee satisfaction?

A) service capability
B) service recovery
C) service benchmarking
D) service empowerment

Question 42

Chris has started his own computer manufacturing company.Realizing each of his customers will have different specifications,he creates an inventory of the basic computer platform then adds storage,memory,and other components as specified by each customer.What type of operation does Chris have at his company?

A) assemble-to-stock
B) assemble-to-order
C) make-to-order
D) make-to-stock

Question 43

Many organizations rely on teaming as a key to their productivity and credit their use of teams with performance improvements,such as increased efficiency,improved participation and innovation,error reduction,quality improvement,increased responsiveness,cost-effectiveness,better customer service,and improved employee satisfaction.Which of the following is this statement illustrating?

A) the importance of benchmarking
B) the prevalence of ISO certification
C) how restructuring leads to stakeholder satisfaction
D) how teamwork can result in total quality management

Question 44

One key assumption in the service business is that success depends on how well employees deliver their services to customers.However,which of the following does the service-profit chain assume success depends on?

A) the availability of factors of production
B) autocratic management
C) a high degree of centralization
D) the way employees are treated

Question 45

Which of the following is the key concept behind the service-profit chain?

A) employee satisfaction
B) service capability
C) internal service quality
D) high value service

Question 46

What is the term for restoring customer satisfaction to strongly dissatisfied customers?

A) service recovery
B) service enhancement
C) customer focus
D) customer re-engineering

Question 47

A relatively large Swiss population lives in northern London,England.For three years,the Swiss newspaper Neue Zurcher Zeitung shipped in 800 copies of the newspaper daily.Only about 40 percent sold because the papers did not arrive until almost lunchtime,and potential readers perceived that the news was already old.Which type of operation did the newspaper publisher use,in terms of the amount of processing?

A) assemble-to-order operation
B) make-to-order operation
C) make-to-stock operation
D) assemble-to-stock operation

Question 48

In which of the following operations does the lowest degree of processing occur?

A) assemble-to-stock
B) assemble-to-order
C) make-to-order
D) make-to-stock

Question 49

Connie is the president of a gift baskets company.She is quite happy with the sales manager she hired earlier in the year.Connie has noticed more customers calling to say how happy they are with the baskets prepared for them.She has also noticed many customers placing subsequent orders.What has the new sales manager brought to Connie's company?

A) MBO
B) high-value service
C) delegation
D) autonomy

Question 50

In which type of operations classification are manufacturing operations classified in terms of the amount of assembly that occurs after a customer order is received?

A) processing
B) flexibility
C) production
D) operations

Question 51

The United Kingdom's Royal Mail (the equivalent of Canada Post)needed to transform the image its customers had of it.A key part of the transformation was to permanently pass decision-making authority and responsibility to its workforce and allow them to develop and implement their ideas on how to improve performance and service to customers.According to one manager,"We understand now that people who work here care as much as managers do about the business." Which of the following did the Royal Mail use to improve its image?

A) downsizing
B) a taller organizational structure
C) synergy
D) service recovery

Question 52

Which type of operation is most dependent on the accuracy of sales forecasts?

A) assemble-to-stock operations
B) assemble-to-order operations
C) make-to-order operations
D) make-to-stock operations

Question 53

Mackenzie is the new operations manager of an auto specialty company.Mackenzie reflects on how production is different at this company vs where he last worked.In his previous company,the production schedule was steady and predictable as large quantities of a few products were produced.At this new company,each client has a different requirement and work doesn't begin until the client's needs are defined.What type of operation does Mackenzie now manage?

A) assemble-to-order
B) make-to-order
C) make-to-stock
D) assemble-to-stock

Question 54

This is a description of what happened to a patron at a station of the United Kingdom's Royal Mail (the equivalent of Canada Post): "In the 15 minutes I waited in line,during which I shuffled forward one yard and two places,I had ample opportunity to watch what the other three staff were doing.They were busy all right,but the main task was counting each stamp in their folders.In this vital work,two of the three were overseen by another member of staff.There was no eye contact with the waiting customers." Which of the following does the Royal Mail need to engage in,assuming that this experience is typical?

A) service recovery
B) process integration
C) manufacturing flexibility
D) just-in-time manufacturing

Question 55

Leon is the quality control officer at a furniture manufacturing firm.Leon is searching for a new supplier of plastic strips that line the edges of most of their office desks.The current supplier's recent orders have provided strips with too many deviations from specifications in the original purchase agreement.What characteristic of the plastic strips is Leon unhappy with?

A) performance breakdown
B) underperformance measure
C) aberration
D) variation

Question 56

Which of the following is a benefit that companies gain by empowering service workers for service recovery?

A) Employees provide information to higher-level managers who make operating decisions.
B) Employees become competitive against each other, vying for promotions.
C) Employee interaction with customers will be warm and enthusiastic.
D) Employees negotiate terms with both suppliers and customers.

Question 57

What is a difference between goods and services?

A) Services are produced, but goods are performed.
B) Goods are intangible, but services are tangible.
C) Goods can be collected and stored, but services are perishable and unstorable.
D) Quality can be easily assessed for services, but not for goods.

Question 58

What does service recover restore for the company?

A) Service recovery restores customer satisfaction to strongly dissatisfied customers.
B) Service recovery restores focus on financial goals.
C) Service recovery restores cost consciousness in sales staff.
D) Service recovery restores a focus on cutting waste.

Question 59

Raquel is the new CEO of a technology company.Raquel has changed the focus of the company from pure profit orientation to a customer orientation.Each employee,regardless of their position in the company,conducts their tasks with the customer's needs in mind.What has Raquel brought to this company?

A) autonomy
B) autocratic management
C) TQM
D) MBO

Question 60

Xerox is a firm believer in total quality management (TQM).Anne Mulcahy,the president of Xerox,was quoted as saying,"TQM may help employees figure out how to solve a specific problem.But the really big payoff comes when they share that solution with others." Which characteristic of TQM was Mulcahy promoting in her statement?

A) continuous improvement
B) variation elimination
C) teamwork
D) market focus

Question 61

Hattie Cao operates Peachy Keen and sells her products through catalogue orders.Cao produces and sells seven kinds of peach pies,three kinds of peach cakes,two kinds of peach cookies,and a peach salsa.She normally keeps 250 jars of salsa in stock,but she noticed today that she has more than 500 bottles in her inventory.According to the textbook,what should Cao do with her excess inventory?

A) She should cut prices on the salsa to increase its sales.
B) She should donate the salsa and get a tax write off.
C) She should throw the excess away.
D) She should send out the salsa as a free sample to potential customers.

Question 62

What are the three key parts of materials requirement planning (MRP)?

A) the aggregate inventory, suppliers' invoices, and bills of lading
B) inventory records, trend analyses, and production schedules
C) the master production schedule, the bill of materials, and inventory records
D) suppliers' invoices, distribution schedules, and bills of lading

Question 63

What is the term for the number of times per year that a company sells or replaces its average inventory?

A) stock rollover
B) average aggregate inventory
C) the average inventory replacement cycle
D) inventory turnover

Question 64

The maker of Beecham's barbecue sauces uses 3,000 bottles annually.The optimal order quantity for bottles is 300.The company fills about 150 bottles daily.How often should the manufacturer place an order for more bottles?

A) once a week
B) twice a week
C) every two days
D) every day

Question 65

Two basic measures of inventory are inventory turnover and average aggregate inventory.What is the third?

A) inventory depreciation
B) inventory amortization
C) weeks of supply
D) multifactor inventory

Question 66

What kind of cost is associated with maintaining an inventory?

A) customer retention
B) stockout
C) sales commission
D) amortization

Question 67

A relatively large Swiss population lives in northern London,England.The Swiss newspaper Neue Zurcher Zeitung has recently begun publishing the paper in London (instead of having copies flown in from Zurich).The paper contains many of the items that are in the Swiss-published paper as well as information that is important to the Swiss living in England.Which type of operation does the newspaper publisher use,in terms of the amount of processing?

A) make-to-order operation
B) assemble-to-stock operation
C) make-to-stock operation
D) assemble-to-order operation

Question 68

Which of the following inventories includes the basic inputs in a manufacturing process?

A) finished goods
B) work-in-process
C) component parts
D) raw materials

Question 69

What is materials requirement planning (MRP)used with?

A) MRP is used with inventory mining.
B) MRP is used with dependent demand systems.
C) MRP is used with tickets that indicate when to reorder various inventory items.
D) MRP is used with independent demand systems.

Question 70

What kind of costs are transaction costs and the loss of customer goodwill?

A) ordering costs
B) setup costs
C) holding costs
D) stockout costs

Question 71

Pamela makes cloth dolls,which she sells to friends and relatives.She has more than 200 m of fabric,100 m of ribbon,a box of 500 wiggle eyes,stuffing,20 dolls in various stages of completion,and 15 completed dolls.Which of the following terms best describes this list of items?

A) raw materials
B) component materials
C) finished products
D) inventory

Question 72

Pamela makes cloth dolls,which she sells to friends and relatives.She currently has more than 200 m of fabric,100 m of ribbon,a box of 500 eyes,stuffing,20 dolls in various stages of completion,and 15 completed dolls.How many items are in Pamela's work-in-process inventory?

A) 15
B) 20
C) 100
D) 200

Question 73

Pamela makes cloth dolls,which she sells to friends and relatives.She currently has more than 200 m of fabric,100 m of ribbon,a box of 500 eyes,stuffing,20 dolls in various stages of completion,and 15 completed dolls.How many items are in Pamela's finished goods inventory?

A) 15
B) 20
C) 100
D) 500

Question 74

Mass distributors lower prices substantially to sell increased volumes of hardware products.What costs would hardware stores have to manage when maintaining larger-than-needed inventories by including them as overhead?

A) containment costs
B) stockout costs
C) holding costs
D) amortization costs

Question 75

What kind of costs are downtime and lost efficiency?

A) ordering costs
B) setup costs
C) holding costs
D) stockout costs

Question 76

A company that embroiders T-shirts,baseball caps,and backpacks uses 15,000 plain T-shirts annually.The optimal order quantity is 500 shirts.The company embroiders about 150 shirts daily.Which calculations would indicate that the company should place an order approximately every three days?

A) materials requirement planning
B) just-in-time inventory management
C) break-even
D) economic order quantity

Question 77

Hattie Cao operates Peachy Keen and sells her products through catalogue orders.Cao produces and sells seven kinds of peach pies,three kinds of peach cakes,two kinds of peach cookies,and a peach salsa.She normally keeps 250 jars of salsa in stock,but she noticed today that she has more than 500 bottles in her inventory.Cao decided to reduce her inventory by lowering her price.Her plan to get rid of excessive inventory was so successful that she found herself sold out in just a couple of days.Which of the following did Cao experience?

A) a loss of amortization
B) negative sales
C) a stockout
D) an aggregated turnover

Question 78

Which of the following is a well-known technique for managing inventory?

A) progressive inventory management (PIM)
B) stock out avoidance (SOA)
C) materials requirement planning (MRP)
D) excess inventory movement (EIM)

Question 79

Rhett Butler Trucking is a viable bulk carrier providing just-in-time (JIT)transportation for both chemical and dry bulk products throughout the United States and into Canada.Which of the following makes an accurate statement about the companies that use this transport carrier?

A) These companies expect the chemical and dry bulk products to be delivered as they are needed by the production line.
B) These companies cannot continue operations when a stockout occurs.
C) These companies have high inventory turnover rates.
D) These companies use a master production schedule to control service recovery costs.

Question 80

Which of the following is the kind of inventory a manufacturer would keep in stock?

A) supplier materials
B) nonrenewable materials
C) component parts
D) shelving