Question 1

Free flow layout refers to:
A) a layout that gives customers more time to browse.
B) a layout strategy often used in car dealerships.
C) retail stores that do not charge for shopping carts.
D) a design strategy that is available for free to download from the Internet.

Accepted Answer

Free flow layout refers to a layout strategy where products and fixtures are arranged in an irregular and asymmetrical pattern to encourage customers to explore and discover products, thus giving them more time to browse.

Question 2

Critics of what firm contend that store layouts are designed to ensure people spend more time shopping and therefore could spend more than they originally planned?
A) Costco
B) Home Depot
C) IKEA
D) Real Canadian Superstore

Accepted Answer

Critics of IKEA contend that the store layout is designed to guide shoppers through a maze-like path, ensuring that they spend more time in the store and potentially spend more money than originally intended.

Question 3

TQM is:
A) a process of technical quality methodology.
B) a small business certification of environmental compliance.
C) a philosophy of management.
D) a traditional method of product pricing.

Accepted Answer

TQM stands for Total Quality Management which is a philosophy of management focused on continuous improvement of quality in all aspects of an organization. It is not a process of technical quality methodology, a certification of environmental compliance, or a traditional method of product pricing.

Question 4

Which of the following site factors are of critical importance for a service business?
A) Surroundings and stairways
B) Age and expansion
C) Parking and configuration
D) Utilities and expansion potential

Accepted Answer

The answer of Which of the following site factors are...

Question 5

Product layout provides for economies of:
A) cost and time.
B) volume and production.
C) scale and labour.
D) time and space.

Accepted Answer

Product layout is a type of manufacturing layout where the machines are arranged in a sequential order to produce a specific product. This layout design allows for economies of cost and time as it reduces the transportation and handling cost of the materials and work-in-progress during manufacturing. It also speeds up the production process by minimizing the time spent on changing the machine set-up, resulting in higher productivity and lower production costs.

Question 6

Process layouts are based on the premise that:
A) segregating processes is more important than outsourcing.
B) it is more efficient for processes to move back and forth to product areas.
C) outsourcing processes is more cost effective than purchasing equipment for use in-house.
D) it is more efficient for products to move back and forth to processes.

Accepted Answer

Process layouts are based on the premise that it is more efficient for products to move back and forth to processes. This is because each process requires different equipment or skill sets, and by grouping similar processes together, it allows for more efficient use of equipment and labor. Products can move from one process to another in a logical sequence, without unnecessary transportation or delays.

Question 7

The owner-manager's task is to:
A) maximize production to utilize 100% of the business's capacity.
B) ensure that production satisfies its customers' demands.
C) produce goods as quickly as possible.
D) organize production so as to produce goods efficiently.

Accepted Answer

The owner-manager's task is to organize production so as to produce goods efficiently. This means that the owner-manager must consider the costs of production, the quality of the goods, and the demand for the goods.

Question 8

Entrepreneurs are typically:
A) strongest in marketing.
B) equally talented in production, marketing, and financial management.
C) weakest in production management.
D) weaker in areas of marketing and financial management than in managing the production process.

Accepted Answer

Entrepreneurs often excel in innovation and product development but may lack expertise in marketing and financial management, which are crucial for business success.

Question 9

For retailing firms, which aspects of building improvement potential are critical?
A) Building exterior and interior
B) Streets and walks
C) Expansion
D) Surrounding area

Accepted Answer

The answer of For retailing firms, which aspects of building...

Question 10

Retail store product placement requires:
A) charging premiums to suppliers.
B) ranking profitability and identifying high traffic areas.
C) determining profit contribution and customer preferences.
D) municipal guidance by way of safety by laws.

Accepted Answer

Ranking profitability and identifying high traffic areas are key factors in retail store product placement.

Question 11

Different areas in a retail store:
A) all contribute equally to income.
B) should be equally accessible.
C) differ from one another in terms of productivity.
D) are more or less comfortable for customer shopping purposes.

Accepted Answer

Different areas in a retail store have different levels of productivity. For example, the checkout area may generate more income than the home decor section. It's important for store managers to regularly evaluate the productivity of each area to ensure that resources are properly allocated and sales are maximized.

Question 12

ISO 9000 is:
A) an effective marketing tool.
B) an International Scheme of Organization for owner-managed businesses.
C) a cost-cutting strategy.
D) a regulatory standard for global shipping practices.

Accepted Answer

ISO 9000 is recognized as an effective marketing tool because it demonstrates a company's commitment to quality standards, which can enhance its reputation and competitiveness in the market.

Question 13

Production processes move to the product in:
A) process layout.
B) small factories.
C) fixed position layout.
D) high-tech industries.

Accepted Answer

In fixed position layout, the product remains stationary while the production processes are brought to it. This is commonly used in industries such as construction, shipbuilding, and aerospace manufacturing.

Question 14

The interior layout of facilities can:
A) greatly enhance productivity.
B) determine staffing needs of the financial management area.
C) impair the budget process.
D) dictate marketing strategies.

Accepted Answer

The interior layout of facilities can greatly enhance productivity by optimizing flow, promoting collaboration, and minimizing distractions.

Question 15

In a small business, inventory management is important because:
A) inventory variety is usually the key to success.
B) otherwise employees will not be happy.
C) customers will stop coming in to make purchases if the inventory is not well-managed.
D) generally there are limited economic resources.

Accepted Answer

Generally, there are limited economic resources.

Question 16

Management must make sure that physical facilities:
A) match their competitors' facilities.
B) are efficient and up to date.
C) provide a pleasant work space.
D) do not harm their public image.

Accepted Answer

The most important consideration for physical facilities is that they are efficient and up to date, as this will lead to increased productivity and cost savings in the long run. While providing a pleasant work space and not harming the company's public image are also important, they are not as critical as ensuring that the facilities are functioning optimally. Matching competitors' facilities may be a consideration, but should not be the top priority.

Question 17

For purposes of layout guidance:
A) service firms can be classified into a standard format.
B) service firms are considered to be manufacturing operations with a retail customer base.
C) service firms tend to be so diverse that it is not possible to provide standard information.
D) service firms mostly use the free flow strategy.

Accepted Answer

Service firms vary widely in their operations, so it is difficult to provide a standard layout format that would work for all of them. Each firm may have different needs depending on the service they provide and their customer base. Therefore, there is no standard classification for service firms.

Question 18

Order lead time refers to:
A) the length of time before a customer wishes to have goods delivered.
B) the length of time before needing to reorder inventory items.
C) the length of time taken to process an order and transport the items).
D) the length of time before competitors begin to stock a specialty item.

Accepted Answer

Order lead time refers to the length of time taken to process an order and transport the items. It involves the time between when the customer places the order and when they receive the goods. It includes processing time, production time, and shipping time.

Question 19

Compared to product layouts, process layouts usually:
A) are used in single-product manufacturing environments.
B) are more expensive and require more management time to ensure efficiency.
C) are more modern.
D) result in greater sales of product.

Accepted Answer

Process layouts are used in job-shop environments where there is a variety of products being produced. They tend to be more expensive and require more management time to ensure efficiency because of the need to constantly reconfigure the layout for each new product.

Question 20

Which of the following site factors are of minimum importance for a manufacturing business?
A) Space and access
B) Setback and window space
C) Frontage and access
D) Building exteriors and floor space

Accepted Answer

Setback and window space are not critical factors for a manufacturing business. Space and access are needed to accommodate manufacturing equipment and transportation of goods; frontage and access are important for customer-facing businesses; building exteriors and floor space are important for maintaining a safe and efficient manufacturing environment.

Quiz 10: Operations Management

Free flow layout refers to:

Critics of what firm contend that store layouts are designed to ensure people spend more time shopping and therefore could spend more than they originally planned?

TQM is:

Which of the following site factors are of critical importance for a service business?

Product layout provides for economies of:

Process layouts are based on the premise that:

The owner-manager's task is to:

Entrepreneurs are typically:

For retailing firms, which aspects of building improvement potential are critical?

Retail store product placement requires:

Different areas in a retail store:

ISO 9000 is:

Production processes move to the product in:

The interior layout of facilities can:

In a small business, inventory management is important because:

Management must make sure that physical facilities:

For purposes of layout guidance:

Order lead time refers to:

Compared to product layouts, process layouts usually:

Which of the following site factors are of minimum importance for a manufacturing business?