Deck 10: Achieving World-Class Operations Management

Question 1

Site selection is a part of production planning.

Answer 1

True

Question 2

Product layout is also called assembly-line layout.

Answer 2

True

Question 3

A job shop uses an intermittent production process.

Answer 3

True

Question 4

A listing of the components and the number of each required to make the product is called the bill of lading.

Question 5

Because Straube Electronics has decided to buy terminal switches instead of producing them, Straube has made a make-or-buy decision.

Question 6

The reason that Castle and Cooke processes and packages Dole pineapple products in Hawaii is more than likely because of low energy costs.

Question 7

Total quality management says that quality is the responsibility solely of the production and shipping departments.

Question 8

The just-in-time (JIT) system schedules arrival of inventory so that it can be used almost immediately and will not need to be stored on site.

Question 9

Computer-aided manufacturing (CAM) uses computers to develop and control the production process.

Question 10

The critical path method (CPM) is used to design, test, and modify new and existing products.

Question 11

Service companies generally use a repetitive or intermittent production process rather than the continuous process.

Question 12

Process layout is almost always designed as a continuous, assembly-line layout.

Question 13

Lumber mills are located near the forests in the Northwest to save shipping costs and to be near their raw material.

Question 14

Just-in-time (JIT) is an inventory system that was developed in California and is starting to catch on in Japan.

Question 15

Facilities layout is all-important in production lines but it is not important in service-oriented businesses.

Question 16

Production converts inputs into outputs by changing the inputs in some way.

Question 17

The critical path method is a sophisticated scheduling system that is based on the minimum time the project will take to complete.

Question 18

Low volume, short production runs, and high-variety production are characteristic of the continuous process.

Question 19

Robots are especially useful for repetitive tasks such as cutting sheet metal and spot welding.

Question 20

Operations management refers to the role that computers play in the production process.

Question 21

_____ is the management of the production conversion process for both goods and services.

A)Total quality control
B)Manufacturing
C)Operations management
D)Specialization
E)Functional management

Question 22

Operations managers:

A)control about three-fourths of firm's assets
B)work closely with people in marketing, finance, accounting, and human resources departments
C)help to decide which products the company should produce
D)face the challenge of combining people and other resources to produce high-quality products
E)are accurately described by all of the above

Question 23

During production planning, the operations manager must make decisions about all of the following EXCEPT:

A)site selection
B)facility layout
C)product design
D)the type of production process that will be used
E)resource planning

Question 24

_____ is the process that converts inputs into outputs that can be sold as goods and services.

A)Marketing
B)Production
C)Mechanization
D)Specialization
E)Operations

Question 25

Operations management is:

A)the process of turning product research into new product development
B)a part of marketing
C)the management of the production conversion process
D)how the firm is managed on a day-to-day basis
E)a combination of strategic and tactical management activities

Question 26

Production and operations management involves three main types of decisions that are made at three different stages.The first type of decision to be made deals with:

A)production planning
B)improving production and operations
C)the establishing of critical paths
D)inventory control
E)production control

Question 27

The ability to manufacture many goods at once is called _____ production.

A)general
B)mass
C)centralized
D)open
E)aggregated

Question 28

There is a standard approach to butchering a steer.Once the steers are butchered according to the agreed upon method, butchers are able to provide one customer with a 2-inch thick T-bone steak and another with thin pieces of steak for making fajitas.After standardized preparation, the meat is tailored to meet individual needs and desires.This is called:

A)just-in-time production
B)mass customization
C)individualized production
D)niche manufacturing
E)production-to-order

Question 29

Replacing human effort with robots is most effective for tasks requiring consistency, accuracy, and speed.

Question 30

Hans Guten makes furniture according to the specifications of the customer who ordered it.Each piece of furniture he makes is unique.He only makes one piece of furniture at a time.Guten is engaged in:

A)individualized production
B)mass production
C)customization
D)niche manufacturing
E)specialization

Question 31

Business process management provides businesses with a unified system of operation.

Question 32

Spalding produces large numbers of golf balls all at once.Spalding puts the golf balls in inventory and distributes them around the world.Spalding uses:

A)production-to-order
B)mass production
C)custom production
D)process production
E)inventory fulfillment

Question 33

Researchers predict a glut of better-educated and more highly skilled workers.

Question 34

_____ is the combining of natural resources, human resources, and capital to produce goods and services.

A)Production
B)Marketing
C)Specialization
D)Utilization
E)Mechanization

Question 35

In the last two years, BMW AG, the Bavarian auto maker, has developed a car made primarily from carbon-fibers that is not only light and fast, but also fuel efficient.(The automaker is using the carbon fiber similarly to how Audi has used aluminum.) BMW is planning to build a large plant where it can manufacture thousands of identical carbon fiber parts and then distribute these parts to its automobile manufacturing plants for incorporation into BMW vehicles.This new plant will engage in:

A)production-to-order
B)mass production
C)custom production
D)process production
E)inventory fulfillment

Question 36

In _____, goods are produced using mass production techniques up to a point.Then production is custom tailored to the needs or desires of individual customers.

A)just-in-time production
B)mass customization
C)individualized production
D)niche manufacturing
E)production-to-order

Question 37

When a thermometer manufacture combines glass tubing, mercury, red dye, paint, plastic, and metal to make thermometers, it is an example of:

A)materialization
B)production
C)intangible goods
D)marketing
E)distribution

Question 38

Synergy Oil and Gas builds oil-well drilling platforms to customer and government specifications.These platforms can cost as much as $1 billion.Synergy works on one platform at a time, and when it is finished, moves its crew to a new project.Synergy engages in:

A)individualized production
B)mass production
C)customization
D)niche manufacturing
E)specialization

Question 39

There is a facility in California that takes off-the-shelf Ford Mustangs and hones them into high-performance vehicles.The assembly line at this facility is simply a line of cars on hand-pushed carts that are moved from station to station, but many of the operations that are typically performed in an assembly plant do take place here.Using this system the company has turned out over 8,000 vehicles, more than any other American specialty vehicle manufacturer.This is an example of:

A)just-in-time production
B)mass production
C)individualized production
D)niche manufacturing
E)mass customization

Question 40

Production and operations management involves three main types of decisions that are made at three different stages.The final stage of operations management focuses on:

A)production planning
B)improving production and operations
C)the establishing of critical paths
D)inventory control
E)production control

Question 41

Which of the following factors will be important in the selection of a site for a production facility?

A)labor costs
B)proximity to raw materials
C)nearness to customers
D)access to transportation
E)all of the above

Question 42

Which of the following is a characteristic of the intermittent process?

A)short production runs
B)low variety of products
C)standardized products
D)high volume
E)none of the above

Question 43

Which of the following is the BEST example of process manufacturing?

A)swimming pool
B)Whirlpool washer/dryer
C)lamb's wool
D)computer monitors
E)home storage buildings

Question 44

Because with building costs soaring out of sight, there is pent-up demand for a well-designed, green-built, contemporary home that's actually affordable.That means it has to be efficiently constructed, and the best way to do this is in a factory, where it can be put together on an assembly line, like an automobile.A company has developed the Glidehouse can be built that way in 19 days in a factory near Vancouver, British Columbia, then trucked to your property.Glidehouse is produced through:

A)process manufacturing
B)consumer product conversion
C)the assembly process
D)production integration
E)product combination

Question 45

A company that reupholsters furniture in fabric and style selected by the owner of the piece of furniture is more than likely an example of a:

A)process manufacturer
B)job shop
C)closed shop
D)fixed-position layout
E)continuous production facility

Question 46

Which of the following businesses would be LEAST likely to use an intermittent process?

A)a print shop
B)a tax service
C)a bakery
D)an oil refinery
E)an optometrist

Question 47

DaimlerChrysler decided not to build a $750 million plant in southeast Georgia in spite of the state spending $24 million to purchase the property and an additional $36 million to prepare the site specifically for DaimlerChrysler.The _____ offered was not enough to convince DaimlerChrysler that the Georgia site was a good location for its factory.

A)availability of customers
B)proximity of raw materials
C)low labor costs
D)local incentives
E)manufacturing environment

Question 48

A _____ shop is a manufacturing firm that engages in customization.

A)union
B)process-oriented
C)customer-oriented
D)job
E)production

Question 49

Cherokee Spring Mill produces four varieties of corn meal based on how finely the corn is ground.The mill makes long production runs of high volume.Cherokee Spring Mill uses a(n) _____ process.

A)continuous
B)centralized
C)intermittent
D)customized
E)transformational

Question 50

Levi Strauss was strongly praised when it announced it was leaving China in 1993 because of the country's poor human rights record.However, China is also an inexpensive place to manufacture clothing, and in spite of its announcement, Levi did not stop making clothing in China.What type of facility location factor was most likely instrumental in Levi deciding to continue operating its facility in China?

A)availability of production inputs
B)proximity to raw materials
C)nearness to customers
D)access to transportation
E)none of the above

Question 51

A continuous production process has all of the following characteristics EXCEPT:

A)low cost per unit
B)easy scheduling
C)standardized parts
D)long production runs
E)low volume

Question 52

Which of the following is NOT a characteristic of an intermittent process?

A)low volume
B)high variety
C)custom orders
D)standardized products
E)short production runs

Question 53

A manufacturer that uses the intermittent process to produce special customer orders is called a:

A)modular shop
B)central shop
C)job shop
D)localized processor
E)centralized processor

Question 54

Which of the following companies would be LEAST likely to use the continuous process?

A)a plywood plant
B)an oil refinery
C)a chemical company
D)a bakery
E)a steel manufacturer

Question 55

In the production of corn meal for baking, corn is ground.This conversion process is an example of:

A)process manufacturing
B)consumer product conversion
C)the assembly process
D)production segregation
E)product separation

Question 56

A system that utilizes long production runs resulting in high-volume, standardized products is called a(n) _____ process.

A)intermittent
B)controllable
C)customized
D)centralized
E)continuous

Question 57

Which of the following businesses is most likely to consider proximity to raw materials when locating a new manufacturing plant?

A)a company that provides fresh baked goods for restaurants
B)a manufacturer of hunting equipment
C)a pharmaceutical manufacturer
D)a publisher of textbooks
E)a whiskey distillery

Question 58

Hershey's hot cocoa mix combines dry milk, whey, corn syrup, processed cocoa, aspartame, and artificial flavorings and colors.This conversion process is an example of:

A)process manufacturing
B)consumer product conversion
C)the assembly process
D)production integration
E)product combination

Question 59

Starcrest Publishing is one of many companies who will take demographic information about your child and publish a story written about that child.The story is already written, and a computer is used to insert the relevant information into the spaces left blank-such as the child's name, his address, his age, his grandparents' name, etc.Starcrest Publishing uses:

A)just-in-time production
B)mass customization
C)individualized production
D)niche manufacturing
E)production-to-order

Question 60

A(n) _____ is a manufacturing firm that produces goods in response to customized orders.

A)assembly plant
B)job shop
C)engineering plant
D)conversion plant
E)transformation shop

Question 61

A German company specializes in building laboratory rooms for handling dangerous viruses and bacteria.Each room is designed to have a completely separate life support system that allows the users to examine and identify the viruses and bacteria without contaminating any other area.What type of a layout would be used to construct such a room?

A)process
B)fixed-position
C)stationary
D)static
E)customized

Question 62

After product specifications are set, a company must decide whether to purchase or manufacture the parts that it needs.This is called a(n) _____ decision.

A)purchase-or-manufacture
B)buy-or-manufacture
C)make-or-buy
D)order-and-deliver
E)make-or-store

Question 63

The product layout is sometimes called the _____ layout.

A)process
B)assembly-line
C)customized
D)intermittent
E)variable

Question 64

Beyond all the publicity around a recent government audit about the lack of oversight by the Federal Aviation Administration (FAA) is another problem that has not received much publicity.Quality control is not being maintained when an airline engages a contractor to work on an engine, who in turn signs up a subcontractor to work on one part of the engine.This example represents a problem with:

A)outsourcing
B)unbundling
C)remarketing
D)demarketing
E)insourcing

Question 65

A(n) _____ layout arranges work flow around the production process.All workers performing similar tasks are grouped together.

A)intermittent
B)process
C)assembly
D)product-line
E)fixed-position

Question 66

_____ is a production technique that uses small, self-contained work stations and has each perform all or most of the tasks necessary to complete a manufacturing order.

A)Cellular manufacturing
B)Robotics
C)MRP manufacturing
D)Work station production
E)Team building

Question 67

The purchasing function, sometimes called _____, is an important part of any firm's production strategy.

A)delivery
B)coordination
C)buying procedure
D)procurement
E)recruitment

Question 68

The goal of cellular manufacturing is to:

A)create a zero-defect environment
B)reduce customer defection
C)eliminate shrinkage
D)create a team environment
E)provide quick and inexpensive customer service

Question 69

Products that are difficult to move out of a plant once they are manufactured, such as ocean-going vessels and room-sized murals, are usually manufactured in a _____ layout.

A)customized
B)service
C)static
D)centralized
E)fixed-position

Question 70

Cellular manufacturing combines aspects of both:

A)intermittent and continuous production
B)fixed position and assembly-line layouts
C)process and product layouts
D)fixed-position and process layouts
E)mass customization and process layouts

Question 71

Rego-Fix is a metalworking manufacturing company in Switzerland.The company primarily manufactures grinding machines in different size ranges.Rego-Fix has reduced setup time and change-over costs through the establishment of small, self-contained production units with teams who produce specific machines on small assembly lines.Rego-Fix uses:

A)cellular manufacturing
B)business process management
C)MRP manufacturing
D)work station production
E)modified job-shop manufacturing

Question 72

The _____ is a list of components and number of each needed for file cabinets that a manufacturing company will produce.

A)material plan
B)finished product
C)make-or-buy decision
D)bill of lading
E)bill of materials

Question 73

Which of the following manufacturers would be most likely to use a product layout?

A)a manufacturer of customized air filters
B)a small print shop
C)a motorcycle manufacturer
D)a company that manufacturers the helium balloon characters used in the Macy's Thanksgiving Day parade
E)a manufacturer of customized luggage

Question 74

In a typical set-up, American companies will employ Chinese firms to enter handwritten cards into electronic databases, but the English skills of the Chinese can only take them so far with sloppy American handwriting.Then the Chinese (or sometimes the American companies) hire Lakota Express, a company that uses Native Americans who live on a reservation in South Dakota to pick up the slack and to vet the often imperfect work.What kind of work does Lakota Express do?

A)outsourcing
B)unbundling
C)remarketing
D)demarketing
E)insourcing

Question 75

Taco Bell fast-food restaurant does not chop the lettuce and tomatoes and grate the cheese used to make its menu items, but hires someone outside the restaurant to perform these tasks.By _____ these tasks, Taco Bell can keep its overhead low and concentrate its resources on taking customer orders and assembling food.

A)outsourcing
B)unbundling
C)remarketing
D)demarketing
E)insourcing

Question 76

Inventory management performs all of the following tasks EXCEPT:

A)ordering
B)receiving
C)selling
D)storing
E)counting

Question 77

The three main types of facility layouts are:

A)product, process, and fixed-position
B)fixed-position, variable, and product
C)process, product, and service
D)intermittent, process, and customized
E)product, service, and process

Question 78

The physical arrangement of a production facility is called its:

A)capacity
B)layout
C)process
D)resources
E)plat

Question 79

What management function is production manager Cedric Stein using when he orders aluminum component parts (bumpers, drive trains, etc.) to be used in the production of Audi cars in Audi's Neckarsulm plant?

A)delivery
B)coordination
C)materials requirement planning
D)purchasing
E)recruitment

Question 80

A process layout is best for a company that has:

A)long production runs
B)repeated routine operations
C)a wide variety of products
D)a high volume of products
E)a limited variety of products