Deck 17: Operating for Success

Question 1

Which of the following is not a step in the production-distribution chain?

A) A consumer wears jewelry to work.
B) A consumer enters a jewelry shop and buys a ring.
C) A goldsmith crafts 10 rings.
D) A wholesaler buys a large number of rings.
E) The jewelry shop owner buys a ring to put in the store.

Answer 1

A

Question 2

Competitors can be a good source of information about suppliers because they ________.

A) Have proprietary pricing
B) Buy from them
C) Know the representatives
D) All of the above
E) None of the above

Answer 2

D

Question 3

Lost sales and goodwill are potentially significant costs that may arise from ________.

A) Too little inventory
B) Too much inventory
C) Both A and B
D) Giving too much
E) Caring too much

Answer 3

A

Question 4

________ follow quality.

A) People
B) Functions
C) Profits
D) Brokers
E) Wholesalers

Question 5

________ control simply means that you look at the inventory on hand, and when the stock level of an item appears to be low, you reorder.

A) Visual
B) Standard
C) Audit
D) Loose
E) Planned

Question 6

________ are the amounts of inventory or raw materials and work-in-process kept to guarantee service levels.

A) Safety stock levels
B) Sufficiency levels
C) Minimum lots
D) Modicum levels
E) Adequacy levels

Question 7

If the lead time for garage doors is 2 weeks and you sell 100 doors per week and you always want at least 20 doors in stock, what is the Reorder Point?

A) 220
B) 320
C) 420
D) 20
E) 40

Question 8

Within Six Sigma, the statistical methods are designed to eliminate defects to a failure rate of ________ defects per one million opportunities, or a 99.9997% success rate.

A) 3.4
B) 0.34
C) 34
D) 340
E) None of the above

Question 9

________, an American economist, argued that business should focus on making quality products instead of maximizing profits-and that profits would follow.

A) W. Edwards Deming
B) Conrad Hilton
C) Paul Samuelson
D) Jonathan Anderson
E) Jennifer Jewet

Question 10

Suppliers may be found through ________.

A) Trade shows, conferences, and catalogs
B) Newspapers
C) Magazines
D) All of the above
E) None of the above

Question 11

Job shops are useful to manufacturers because they ________.

A) Make a part less expensively
B) Maintain and provide specialized equipment
C) Produce parts of consistent quality
D) All of the above
E) None of the above

Question 12

A ________ is a model or pattern that serves as an example of how a product would look and operate if it were manufactured.

A) Prototype
B) Specification
C) Blueprint
D) Description
E) Plan

Question 13

The family of standards for quality management systems established by the International Organization for Standardization is ________.

A) ISO9000
B) ISO2008
C) ISO8800
D) ISO7000
E) None of the above

Question 14

The set of actions that produce goods and services is called ________.

A) Operations
B) Manufacturing
C) Shipping
D) Sales
E) Marketing

Question 15

Engineers from what company developed Six Sigma in the 1980s?

A) Motorola
B) General Motors
C) Intel
D) Apple
E) Microsoft

Question 16

________ are three of the eight quality management principles for organizational improvement.

A) Customer focus, continual improvement, and involvement of people
B) Conflicted supplier relationships, process approach, and leadership
C) Customer focus, leadership, and policy approach
D) All of the above
E) None of the above

Question 17

What organization administers the Malcolm Baldrige National Quality Award?

A) National Institute of Standards and Technology (NIST)
B) National Aeronautical and Space Administration (NASA)
C) United Nations (UN)
D) European Union (EU)
E) North American Free Trade Agreement (NAFTA)

Question 18

The amount of inventory to order that will total the minimum total ordering and holding costs is called the ________.

A) Economic Order Quantity (EOQ)
B) Reorder Point (ROP)
C) Economic Reorder Point (ERP)
D) Point of Economic Quantity (PEQ)
E) None of the above

Question 19

One submethodology employed in Six Sigma is DMAIC, which stands for ________.

A) Define, measure, analyze, improve, and control
B) Define, minimize, assess, improve, and collect
C) Describe, measure, assess, improve, and control
D) Discover, maximize, assess, improve, and coordinate
E) Define, measure, acquire, impress, and control

Question 20

Organizations applying for the Baldrige Award are judged on ________.

A) Customer and market focus
B) Leadership and strategic planning
C) Process management and human resources focus
D) All of the above
E) None of the above

Question 21

The management of sourcing, procuring, production, and logistics to go from raw materials to end consumers across multiple intermediate steps constitutes supply chain management.

Question 22

Retail point-of-sales systems, restaurant menu order systems, and concert venue ticketing systems are all examples of ________.

A) Industry-specific technology
B) Systems for large businesses
C) Custom software applications
D) Operational systems
E) Point-of-sale applications

Question 23

________ is the process of going forward or backward on the idea-to-market continuum.

A) Vertical integration
B) Horizontal integration
C) Supplier integration
D) Concentric integration
E) None of the above

Question 24

Which of the following is given by the President of the United States?

A) Malcolm Baldrige National Quality Award
B) ISO9000:2001
C) Benchmarking Excellence Award
D) Small Business of the Year
E) Entrepreneurial Excellence Award

Question 25

Job shops make a final product for consumers or end customers.

Question 26

Factors to consider when selecting a ________ include conformance to quality standards, extension of trade credit, and timely delivery.

A) Supplier
B) Sales representative
C) Customer
D) Banker
E) Lawyer

Question 27

The inventory method in which you look at the inventory on hand and you reorder when the stock level of an item appears to be low is called ________.

A) Visual control
B) Proximal management
C) Estimation
D) Basic control
E) All of the above

Question 28

Safety stock levels refer to the amounts of inventory or raw materials and work-in-process that are kept to ensure the satisfying of customer demand.

Question 29

________ is the management of sourcing, procuring, production, and logistics to go from raw materials to end consumers across multiple intermediate steps.

A) Supply Chain Management
B) Total Quality Management
C) The Production-Distribution chain
D) Operational Management
E) Systems Management

Question 30

Quality is a degree of excellence and conformance to specifications or standards.

Question 31

A critical component of Supply Chain Management is ________.

A) Managing inventory
B) Identifying and securing suppliers
C) Both A and B
D) Finding the customer
E) Manufacturing at an acceptable level

Question 32

One essential aspect of an inventory management system is the purchasing plan, which ensures that the items needed are in stock when they are needed.

Question 33

Benchmarking is what you are doing when you create a competitive comparison for marketing purposes or when you compare your projected or actual financial ratios to industry levels.

Question 34

ROP = (Average Demand per Unit of Lead Time × Lead Time) - Safety Stock.

Question 35

A measure of quality that may be used in Total Quality Management (TQM) is ________.

A) Return rates
B) On-time delivery
C) Compliance with product specifications
D) All of the above
E) None of the above

Question 36

Few cities and towns have zoning laws that limit what you can do in a residential area.

Question 37

Comparing one company's performance against that of other companies in the same industry or against best practices, standards, or certification criteria is called ________.

A) Benchmarking
B) Quality comparison
C) Profiling
D) Contrast
E) Appraisal

Question 38

There are no legal issues or concerns related to the creation of a supply chain.

Question 39

Location and layout are not critical for all types of businesses.

Question 40

The three factors included in the calculation of the Reorder Point are ________.

A) Demand, lead time, and safety stock
B) Demand, inventory, and price
C) Supply, price, and safety stock
D) Supply, lead time, and safety stock
E) Demand, price, and safety stock

Question 41

Define "tooling costs" and "set-up costs" and explain their roles in manufacturing.

Question 42

Suppliers can be found on the Internet as well as on a number of other sources.

Question 43

Reorder point means that you look at the inventory on hand, and when the stock level of an item appears to be low, you reorder.

Question 44

What steps can an organization take to incorporate technology (name at least three) and why might they be beneficial?

Question 45

Describe and discuss two unique advantages and two unique disadvantages of starting a manufacturing business.

Question 46

Managing inventory is not related to marketing success.

Question 47

Explain why "profits follow quality."

Question 48

One unique feature of manufacturers is that they can make products that do not exist yet.

Question 49

What is benchmarking?

Question 50

Operations are the set of actions that produce goods and services, and operational efficiency is critical to business success.