Question 1

Production and operations management is only applicable in the manufacturing sector.

Accepted Answer

Production and operations management principles are applied in various sectors, including services, healthcare, and information technology, not just in manufacturing.

Question 2

Production and operations management helps the creation of goods and services.

Accepted Answer

Production and operations management involves planning, organizing, directing, and controlling the processes that produce goods and services, ensuring their efficient and effective creation.

Question 3

Manufacturing involves transforming materials and components to finished goods.

Accepted Answer

Manufacturing is the process of converting raw materials, components, or parts into finished goods that meet a customer's expectations or specifications.

Question 4

Value added concept in POM is the difference between the input costs and the marketing costs.

Accepted Answer

The value added concept in Production and Operations Management (POM) refers to the difference between the cost of inputs and the value or price of outputs. It is not specifically about the difference between input costs and marketing costs, but rather about the overall value added through the transformation process.

Question 5

The four major characteristics of services are intangibility, inseparability, uniqueness, and variability.

Accepted Answer

The four major characteristics of services are intangibility, inseparability, variability, and perishability.

Question 6

The service characteristic of inseparability implies that services are produced and consumed simultaneously.

Accepted Answer

Inseparability refers to the fact that services are often produced and consumed at the same time, meaning the service provider and the customer must be present for the service to occur.

Question 7

Globalization of POM has created a network of operations that is borderless.

Accepted Answer

Globalization of Production and Operations Management (POM) has led to the creation of a network of operations that transcends national borders, allowing for the seamless flow of goods, services, and information across the globe.

Question 8

One of the key decisions to be made in international POM is selection of the president heading a company's international operations.

Accepted Answer

In international POM (Production and Operations Management), key decisions typically revolve around location, supply chain management, logistics, production scheduling, and quality control rather than selecting the president or any specific executive position.

Question 9

Location of manufacturing plants is always closer to the upstream distribution process.

Accepted Answer

The location of manufacturing plants is not always closer to the upstream distribution process; it can vary based on factors such as cost of production, availability of raw materials, labor costs, and proximity to markets.

Question 10

Input cost such as wages and salaries is one of the factors that go in the selection of a location to put up a manufacturing facility.

Accepted Answer

Input costs, including wages and salaries, significantly influence the decision on where to locate a manufacturing facility, as they directly affect the overall cost of production.

Question 11

Government incentives offered to international companies to locate their facilities in their country include bonuses to foreign executives.

Accepted Answer

Government incentives typically include tax breaks, grants, or subsidies, rather than direct bonuses to foreign executives.

Question 12

Quality-of-life issues include cost of living, educational facilities, and crime rate.

Accepted Answer

Quality-of-life issues encompass various factors that affect an individual's or community's well-being, including cost of living, educational facilities, and crime rate, among others.

Question 13

Process function within POM brings people, material, machines, and technology together.

Accepted Answer

The process function within Principles of Management (POM) indeed integrates people, material, machines, and technology to ensure efficient production and operations.

Question 14

In vertical integration, a company acquires other companies to add to its product line.

Accepted Answer

Vertical integration involves a company expanding its operations into different stages of production within the same industry, rather than adding different products to its line.

Question 15

Result of adopting total quality management principles is obtaining 3.4 defects per million.

Accepted Answer

The result of adopting total quality management principles is not specifically obtaining 3.4 defects per million. This specific figure is associated with Six Sigma, a separate methodology aimed at reducing defects to no more than 3.4 defects per million opportunities. Total Quality Management (TQM) focuses on continuous improvement in all aspects of an organization's operations, without specifying a particular defect rate.

Question 16

TQM can be defined as an organization-wide approach to continuously improving the quality of an organization's product and processes that are important to the customers.

Accepted Answer

Total Quality Management (TQM) is indeed an organization-wide approach aimed at continuously improving the quality of all the organization's products, services, and processes to meet or exceed customer expectations.

Question 17

Six Sigma is a disciplined methodology that uses data and statistical analysis to measure and improve a company's operational performance by identifying and eliminating defects.

Accepted Answer

Six Sigma is indeed a methodology that focuses on improving quality and efficiency in organizational processes by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes through data-driven techniques and statistical analysis.

Question 18

Layouts are arrangements of computer hardware and software to improve efficiency.

Accepted Answer

Layouts typically refer to the arrangement or organization of elements in a design or physical space, not to arrangements of computer hardware and software. Improving efficiency in the context of computers is more directly related to system architecture, software design, or hardware configuration.

Question 19

The objective of lean manufacturing is to use inexpensive raw materials.

Accepted Answer

The objective of lean manufacturing is to minimize waste and increase efficiency, not necessarily to use inexpensive raw materials.

Question 20

Flexible manufacturing is a system that allows production facilities to respond more quickly to varying demand patterns.

Accepted Answer

Flexible manufacturing systems are designed to easily adapt to changes in the type and quantity of products being produced, allowing for a quicker response to fluctuating market demands.

Quiz 8: Production and Operations Management and Supply Chain Management