Question 1

Cooperative purchasing organizations for small businesses are more successful now because of the
A) acceptance of coops as a business model by suppliers.
B) diversification of numerous global suppliers.
C) increased use of the Internet to locate more suppliers.
D) use of crowdsourcing to locate new suppliers.

Accepted Answer

The increased use of the Internet to locate more suppliers has significantly contributed to the success of cooperative purchasing organizations for small businesses. It allows these organizations to easily find and connect with a wide range of suppliers globally, enhancing their purchasing power and options.

Question 2

Discuss quality tools and techniques that can be used to improve quality. Specifically describe the difference between inspection vs. poka-yoke as a quality assurance method. How do these methods relate to Ishikawa's "The Basic Seven" and statistical methods of quality control?

Accepted Answer

The answer of Discuss quality tools and techniques that can...

Question 3

Describe the ABC Inventory Classification System, and give examples of each category for a food item common to a restaurant.

Accepted Answer

The answer of Describe the ABC Inventory Classification System, and...

Question 4

Discuss principles of lean production, specifically the ways that the Toyota Production System uses to eliminate waste.

Accepted Answer

The answer of Discuss principles of lean production, specifically the...

Question 5

Discuss the objectives of inventory management.

Accepted Answer

The answer of Discuss the objectives of inventory management....

Question 6

The buying services from a third party to manage a firm's functions is known as
A) asset efficiency.
B) diversification of supplies.
C) importing.
D) outsourcing.

Accepted Answer

Outsourcing involves buying services from a third party to manage a firm's functions. This can be a cost-effective way for a company to access specialized skills or technologies without having to invest in developing them in-house. Other options listed (asset efficiency, diversification of supplies, importing) do not specifically relate to the practice of outsourcing.

Question 7

Describe common inventory record-keeping systems and list guidelines for their use.

Accepted Answer

The answer of Describe common inventory record-keeping systems and list...

Question 8

A suggestion for increasing outsourcing success is
A) have a backup plan in case of supplier failure.
B) outsource the unique product of the business.
C) convey complete trust in the outsourcing firm as a sign of good faith and do not monitor progress.
D) negotiate for priority in the production schedule.

Accepted Answer

Having a backup plan in case of supplier failure can increase the chances of outsourcing success. This ensures that the business is still able to function even if the outsourcing firm fails to deliver. It also shows that the business has taken proactive measures to mitigate any potential risks associated with outsourcing.

Question 9

Myra operates a punch press on a production line. Because she is slower than the operators both before and after her in the process, work stacks up at her press. Myra is a
A) bottleneck.
B) constraint.
C) defect.
D) hazard.

Accepted Answer

Myra is a bottleneck because she is slowing down the entire production process due to the work piling up at her press.

Question 10

Which of the following solutions to a constraint would increase efficiency?
A) Move maintenance times.
B) Inspect quality.
C) Subdivide work.
D) Expand resources.

Accepted Answer

Moving maintenance times would increase efficiency by reducing the amount of time that the machine is down for maintenance.

Question 11

Which of the following is of greatest concern to a production manager?
A) A bottleneck
B) Capacity waste
C) A constraint
D) Overproduction

Accepted Answer

The answer of Which of the following is of greatest...

Question 12

Raj's company can either make the components or buy them. He should decide to make the components rather than buy them from a supplier
A) when utilization of plant capacity permits more economical production.
B) when an outside supplier specializes in the production of that component.
C) if in-house operations can concentrate on the firm's specialty-the finished product.
D) if the risk of equipment obsolescence can be transferred to the supplier.

Accepted Answer

A) When a company has unused plant capacity, producing components in-house can be more cost-effective than outsourcing. This is because the fixed costs associated with the plant are already incurred, so the company only needs to consider the variable costs of production.

Question 13

Christie and Kevin are starting a produce farm raising organic vegetables. Kevin plans to sell the produce wholesale to a local restaurant, and Christie is going to start a cooking school spotlighting the produce. Complete the following table detailing the inputs and outputs between the product business versus the service business. What are the similarities?
$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Product: } \
\text { Wholesale Restaurant Sales }
\end{array} & \text { Operation } & \begin{array} { c } 
\text { Services: } \
\text { Organic Food Cooking School }
\end{array} \
\hline & \text { Input } & \
\hline & \text { Processes } & \
\hline & \text { Output } & \
\hline
\end{array}$

Accepted Answer

The answer of Christie and Kevin are starting a produce...

Question 14

Shoichiro Toyoda, former president of Toyota Motors, built on Ford's concepts and focused on the need to eliminate waste from the production system. He followed a(n) _____ approach.
A) assembly line
B) distribution
C) lean production
D) synchronous production

Accepted Answer

Shoichiro Toyoda used the concept of "lean production" which focuses on minimizing waste in the production system. This approach was developed by Toyota and is also known as the Toyota Production System.

Question 15

Holly is a business consultant who assists new companies in writing business plans. What type of manufacturing operation would Holly's business be considered, and what are important characteristics for operational success?

Accepted Answer

The answer of Holly is a business consultant who assists...

Question 16

The approach that recognizes the assets and activities of the company are interdependent and should be managed so as to maximize the company's performance is
A) capacity management.
B) lean production.
C) synchronous management.
D) waste-less production.

Accepted Answer

Synchronous management recognizes that all assets and activities of a company are interconnected and should be managed together in order to maximize overall performance. It takes into account the entire value stream and focuses on reducing lead times, eliminating waste, and increasing efficiency. Capacity management is a narrower focus on maximizing the efficiency of a company's resources. Lean production and waste-less production are specific methodologies within synchronous management.

Question 17

To build a good relationship with a supplier and become more competitive, a small business should
A) pay bills at the latest date possible.
B) ignore sales representatives until ready to buy.
C) browbeat the supplier into special concessions.
D) minimize abrupt cancellations of orders, particularly to gain temporary advantages.

Accepted Answer

Minimizing abrupt cancellations of orders helps in building trust and reliability with suppliers, making the relationship stronger and more beneficial for both parties. It shows respect for the supplier's operations and can lead to better terms and cooperation, enhancing competitiveness.

Question 18

Terrell is trying to decide whether to concentrate his purchases with one supplier or diversify with two or three. One factor in favor of a single supplier is
A) insurance against interruptions caused by strikes.
B) a particular supplier's superiority in product quality.
C) knowing the customer's loyalty, the supplier may provide better prices and service.
D) locating the best source in terms of price, quality, and service with each purchase.

Accepted Answer

The answer of Terrell is trying to decide whether to...

Question 19

An approach that emphasizes efficiency through elimination of waste independent of other aspects of the process is called
A) capacity management.
B) lean production.
C) synchronous management.
D) waste-less production.

Accepted Answer

The approach that emphasizes efficiency through elimination of waste independent of other aspects of the process is called lean production. Lean production is focused on reducing waste and increasing efficiency in all aspects of the production process. The other options, capacity management, synchronous management, and waste-less production, do not necessarily focus specifically on the elimination of waste.

Question 20

Aaron operates a lemonade stand in New York City's Central Park. His business is seasonal, but within those seasons several other factors influence the demand for lemonade. Aaron is most likely to use _____ to help him predict demand on a daily basis.
A) associative forecasting
B) linear regression
C) historical sales data
D) the weather report

Accepted Answer

The answer of Aaron operates a lemonade stand in New...

Quiz 21: Managing Small Business Operations

Cooperative purchasing organizations for small businesses are more successful now because of the

Discuss quality tools and techniques that can be used to improve quality. Specifically describe the difference between inspection vs. poka-yoke as a quality assurance method. How do these methods relate to Ishikawa's "The Basic Seven" and statistical methods of quality control?

Describe the ABC Inventory Classification System, and give examples of each category for a food item common to a restaurant.

Discuss principles of lean production, specifically the ways that the Toyota Production System uses to eliminate waste.

Discuss the objectives of inventory management.

The buying services from a third party to manage a firm's functions is known as

Describe common inventory record-keeping systems and list guidelines for their use.

A suggestion for increasing outsourcing success is

Myra operates a punch press on a production line. Because she is slower than the operators both before and after her in the process, work stacks up at her press. Myra is a

Which of the following solutions to a constraint would increase efficiency?

Which of the following is of greatest concern to a production manager?

Raj's company can either make the components or buy them. He should decide to make the components rather than buy them from a supplier

Shoichiro Toyoda, former president of Toyota Motors, built on Ford's concepts and focused on the need to eliminate waste from the production system. He followed a(n) _____ approach.

Holly is a business consultant who assists new companies in writing business plans. What type of manufacturing operation would Holly's business be considered, and what are important characteristics for operational success?

The approach that recognizes the assets and activities of the company are interdependent and should be managed so as to maximize the company's performance is

To build a good relationship with a supplier and become more competitive, a small business should

Terrell is trying to decide whether to concentrate his purchases with one supplier or diversify with two or three. One factor in favor of a single supplier is

An approach that emphasizes efficiency through elimination of waste independent of other aspects of the process is called

Aaron operates a lemonade stand in New York City's Central Park. His business is seasonal, but within those seasons several other factors influence the demand for lemonade. Aaron is most likely to use _____ to help him predict demand on a daily basis.