Question 1

Patio Products, a company that produces metal patio furniture, uses a process layout with several departments that group related processes. All of the following could be process departments in this company EXCEPT a(n) ________ department.
A) cutting
B) welding
C) painting
D) polishing
E) marketing

Accepted Answer

Firms that use a process layout organize the transformation process into departments that group related processes. As a result, a metal furniture company would have process departments focused on cutting the metal parts, welding the parts together, polishing the metal to a smooth finish, and painting the metal.

Question 2

A hospital that has a laboratory, an emergency department, an intensive care unit, and other departments would best be classified as a(n) ________ organization.
A) intermittent
B) project
C) continuous manufacturing
D) fixed
E) assembly line

Accepted Answer

A hospital may have a laboratory, an emergency department, an intensive care unit, and so on. These types of organizations are sometimes called intermittent organizations, which deal with products of a lesser magnitude than do project organizations, and their products are not necessarily unique but possess a significant number of differences.

Question 3

Logo Designs creates promotional products for small companies. It takes a customer's logo and places it on products such as drawstring bags, coffee mugs, and pens. It produces relatively few units of each product. Because of the low level of output it produces, this company charges a higher price per unit of the product. What type of organization is Logo Designs?
A) a fixed organization
B) a project organization
C) an intermittent organization
D) a process organization
E) a service organization

Accepted Answer

Logo Designs is an intermittent organization because it creates products to customers' specifications and produces relatively few units of each product. Because of the low level of output, the cost per unit of product is generally high.

Question 4

Tech Industries Inc. is a manufacturer of computer monitors. It uses a facility layout in which the workers remain in one location, and the monitors move from one worker to another. Each person in turn performs his or her required tasks. Thus, Tech Industries is using a ________ layout.
A) product
B) process
C) project
D) web
E) fixed-position

Accepted Answer

Tech Industries is using a product layout. In a product layout, workers remain in one location, and the product moves from one worker to another. Each person in turn performs his or her required tasks or activities.

Question 5

Daniel owns a construction company that builds homes. To help his customers visualize the types of homes he can build for them, he designs five different models on the computer, using 3D printing to develop 3D paper models. What type of technology is Daniel using to develop these 3D models?
A) computer-assisted manufacturing
B) flexible manufacturing
C) computer-integrated manufacturing
D) computer-assisted design
E) drones

Accepted Answer

Daniel would use computer-assisted design (CAD) software to construct 3D models of his house designs. This software allows him to design his houses on the computer instead of on paper. CAD software develops a 3D image, which is sent to the printer. The printer uses layers of liquid, powder, paper, or metal to construct a 3D model.

Question 6

A large nuclear power plant uses "steel-collar" workers in the transformation process because having humans perform these tasks would put them at risk. What are these "steel-collar"
Workers called?
A) computers
B) machines
C) 3D models
D) drones
E) robots

Accepted Answer

Robots are also becoming increasingly useful in the transformation process. These "steel-collar"
workers have become particularly important in industries such as nuclear power, hazardous-waste disposal, ocean research, and space construction and maintenance, in which human lives would otherwise be at risk.

Question 7

Enviro Bath is dedicated to green technology and sustainability. As a result, it produces toilets and showers that are designed to conserve water. Doing so not only protects the environment, but it can also
A) decrease customer loyalty.
B) damage the firm's reputation.
C) cause stakeholders to protest.
D) lead to improved profits.
E) decrease the company's profits.

Accepted Answer

Reducing waste, recycling, conserving, and using renewable energy not only protect the environment, but can also gain the support of stakeholders. Green operations and manufacturing can improve a firm's reputation along with customer and employee loyalty, leading to improved profits.

Question 8

When a furniture manufacturer buys the lumber and other raw materials, machines and equipment, manufacturing supplies, and office supplies needed to build its furniture pieces, this is called
A) consumption.
B) logistics.
C) capacity management.
D) procurement.
E) operations.

Accepted Answer

This is known as procurement, or the buying of all the materials needed by an organization. The purchasing department aims to obtain items of the desired quality in the right quantities at the lowest possible cost.

Question 9

Bethany is an inventory manager for a shoe store. She must determine how many pairs of each style of shoes, boots, and sandals to hold in inventory. All of the following are variables she should consider EXCEPT
A) her shoe style preferences.
B) the usage rate of the shoes, boots, and sandals.
C) the cost of maintaining the shoes, boots, and sandals in inventory.
D) future costs of inventory.
E) the cost of the shoes, boots, and sandals themselves.

Accepted Answer

Inventory managers, like Bethany, spend a great deal of time trying to determine the proper inventory level for each item. The answer to the question of how many units to hold in inventory depends on variables such as the usage rate of the item, the cost of maintaining the item in inventory, future costs of inventory and other procedures associated with ordering or making the item, and the cost of the item itself.

Question 10

A consumer electronics company does not store any of its materials in the warehouse. Instead, the company's procurement department orders small quantities of materials as and when they are required. The vendors supply the ordered material directly to the company's manufacturing unit a day or two before the production starts. This arrangement helps the company reduce costs and boost efficiency. This scenario best illustrates
A) continuous manufacturing systems.
B) contract manufacturing.
C) just-in-time inventory management.
D) outsourcing.
E) mass customization.

Accepted Answer

This scenario best illustrates just-in-time inventory management. Just-in-time (JIT) inventory management eliminates waste by using smaller quantities of materials that arrive "just in time"
for use in the transformation process and therefore require less storage space and other inventory management expense.

Question 11

At Killer Kayaks, the inventory-control manager uses material-requirements planning and schedules the precise quantity of materials needed to make all the kayaks the company plans to build each month. What basic component does the inventory-control manager need to create as part of material-requirements planning?
A) an executive summary
B) a master production schedule
C) a promissory bill
D) a balance sheet
E) a balanced scorecard

Accepted Answer

As part of materials-requirement planning, the inventory-control manager would need to create a master production schedule, a bill of materials, and an inventory status file.

Question 12

All of the following are advantages of outsourcing EXCEPT it
A) improves product quality.
B) speeds up the time it takes products to get to the customer.
C) frees companies from having to focus on customer satisfaction.
D) makes the supply chain more efficient.
E) gives companies a competitive advantage.

Accepted Answer

Outsourcing has increasingly been linked with the development of competitive advantage through improved product quality, speeding up the time it takes products to get to the customer, and overall supply-chain efficiencies. Outsourcing allows companies to free up time and resources to focus on what they do best and to create better opportunities to focus on customer satisfaction.

Question 13

Vibo, a company that does online marketing for small businesses, wants to achieve a high level of quality in the services it provides. As a result, it sets a goal of winning the Malcolm Baldrige National Quality Award. Which is one of the criteria the company must meet to receive this award?
A) inseparability of production and consumption
B) product management
C) business results
D) capacity
E) agility

Accepted Answer

If this company wants to receive the Malcolm Baldrige National Quality Award, it must meet certain criteria, which includes (1) leadership, (2) information and analysis, (3) strategic planning, (4) human resource development and management, (5) process management, (6) business results, and (7) customer focus and satisfaction.

Question 14

What is an advantage of making a product correctly from the outset?
A) It allows employees to make better use of their time and materials.
B) It gives the company more time to rework defective products.
C) It makes the transformation process slower and more deliberate.
D) It allows the company to pinpoint quality problems in the production system.
E) It eliminates the need to make other products.

Accepted Answer

When a company makes the product correctly from the outset, it eliminates the need to rework defective products, expedites the transformation process itself, and allows employees to make better use of their time and materials.

Question 15

What is an example of an elaborate inspection technique?
A) weighing the contents of a box of crackers
B) using chemical tests to determine the quality of a migraine medication
C) measuring the time it takes for a customer to receive his or her pizza
D) inspecting chocolate bars to make sure they are wrapped properly
E) checking chip bags to make sure they are sealed properly

Accepted Answer

Inspection reveals whether a product meets quality standards. Some product characteristics may be discerned by fairly simple inspection techniques, such as weighing their contents, measuring the time it takes for a customer to get his or her food, and checking to make sure products are packaged properly. Other inspection techniques are more elaborate, such as pharmaceutical industries using chemical tests to determine the quality of their outputs.

Question 16

Discuss the challenges faced by a service organization during the management of its operations.

Accepted Answer

The answer of Discuss the challenges faced by a service...

Question 17

Nolan and his friend Peter intend to establish their own ventures. While Nolan intends to establish a manufacturing company, Peter intends to establish a multi-specialty hospital. In the context of planning the facilities for their ventures, discuss the types of facility layout that should be implemented by both, prior to the establishment of their ventures.

Accepted Answer

The answer of Nolan and his friend Peter intend to...

Quiz 8: Managing Operations and Supply Chains

Patio Products, a company that produces metal patio furniture, uses a process layout with several departments that group related processes. All of the following could be process departments in this company EXCEPT a(n) ________ department.

A hospital that has a laboratory, an emergency department, an intensive care unit, and other departments would best be classified as a(n) ________ organization.

Tech Industries Inc. is a manufacturer of computer monitors. It uses a facility layout in which the workers remain in one location, and the monitors move from one worker to another. Each person in turn performs his or her required tasks. Thus, Tech Industries is using a ________ layout.

Daniel owns a construction company that builds homes. To help his customers visualize the types of homes he can build for them, he designs five different models on the computer, using 3D printing to develop 3D paper models. What type of technology is Daniel using to develop these 3D models?

A large nuclear power plant uses "steel-collar" workers in the transformation process because having humans perform these tasks would put them at risk. What are these "steel-collar" Workers called?

Enviro Bath is dedicated to green technology and sustainability. As a result, it produces toilets and showers that are designed to conserve water. Doing so not only protects the environment, but it can also

When a furniture manufacturer buys the lumber and other raw materials, machines and equipment, manufacturing supplies, and office supplies needed to build its furniture pieces, this is called

Bethany is an inventory manager for a shoe store. She must determine how many pairs of each style of shoes, boots, and sandals to hold in inventory. All of the following are variables she should consider EXCEPT

All of the following are advantages of outsourcing EXCEPT it

Vibo, a company that does online marketing for small businesses, wants to achieve a high level of quality in the services it provides. As a result, it sets a goal of winning the Malcolm Baldrige National Quality Award. Which is one of the criteria the company must meet to receive this award?

What is an advantage of making a product correctly from the outset?

What is an example of an elaborate inspection technique?

Discuss the challenges faced by a service organization during the management of its operations.