Chapter 10   ACHIEVING WORLD-CLASS OPERATIONS MANAGEMENT     TRUE-FALSE QUESTIONS   1)

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Chapter 10   ACHIEVING WORLD-CLASS OPERATIONS MANAGEMENT

 

 

TRUE-FALSE QUESTIONS

 

1). Production converts inputs into outputs by changing the inputs in some way.

a. True

b. False

 

2. Operations management refers to the role that computers play in the production process.

a. True

b. False

 

3. A job shop uses an intermittent production process.

a. True

b. False

 

4. Low volume, short production runs, and high-variety production are characteristic of the continuous process.

a. True

b. False

 

5. Service companies generally use a repetitive or intermittent production process rather than the continuous process.

a. True

b. False

 

6. Site selection is a part of production planning.

a. True

b. False

 

7. The reason that Castle and Cooke processes and packages Dole pineapple products in Hawaii is more than likely because of low energy costs.

a. True

b. False

 

 

 

8. Lumber mills are located near the forests in the Northwest to save shipping costs and to be near their raw material.

a. True

b. False

 

9. Facilities layout is all-important in production lines but it is not important in service-oriented businesses.

a. True

b. False

 

10. Process layout is almost always designed as a continuous, assembly-line layout.

a. True

b. False

 

11. Product layout is also called assembly-line layout.

a. True

b. False

 

12. Because Straube Electronics has decided to buy terminal switches instead of producing them, Straube has made a make-or-buy decision.

a. True

b. False

 

13. A listing of the components and the number of each required to make the product is called the bill of lading.

a. True

b. False

 

14. The critical path method is a sophisticated scheduling system that is based on the minimum time the project will take to complete.

a. True

b. False

 

15. Total quality management says that quality is the responsibility solely of the production and shipping departments.

a. True

b. False

 

16. The just-in-time (JIT) system schedules arrival of inventory so that it can be used almost immediately and will not need to be stored on site.

a. True

b. False

 

17.  Just-in-time (JIT) is an inventory system that was developed in California and is starting to catch on in Japan.

a. True

b. False

 

18. The critical path method (CPM) is used to design, test, and modify new and existing products.

a. True

b. False

 

19. Computer-aided manufacturing (CAM) uses computers to develop and control the production process.

a. True

b. False

 

20. Robots are especially useful for repetitive tasks such as cutting sheet metal and spot welding.

a. True

b. False

 

21. Replacing human effort with robots is most effective for tasks requiring consistency, accuracy, and speed.

a. True

b. False

 

22. Researchers predict a glut of better-educated and more highly skilled workers.

a. True

b. False

 

23. Business process management provides businesses with a unified system of operation.

a. True

b. False

 

 

MULTIPLE CHOICE QUESTIONS

 

1. _____ is the process that converts inputs into outputs that can be sold as goods and services.

A. Marketing

B. Production

C. Mechanization

D. Specialization

E. Operations

 

2. _____ is the combining of natural resources, human resources, and capital to produce goods and services.

A. Production

B. Marketing

C. Specialization

D. Utilization

E. Mechanization

 

3. When a thermometer manufacture combines glass tubing, mercury, red dye, paint, plastic, and metal to make thermometers, it is an example of:

A. materialization

B. production

C. intangible goods

D. marketing

E. distribution

 

4. _____ is the management of the production conversion process for both goods and services.

A. Total quality control

B. Manufacturing

C. Operations management

D. Specialization

E. Functional management

 

5. Operations management is:

A. the process of turning product research into new product development

B. a part of marketing

C. the management of the production conversion process

D. how the firm is managed on a day-to-day basis

E. a combination of strategic and tactical management activities

 

6. Operations managers:

A. control about three-fourths of firm’s assets

B. work closely with people in marketing, finance, accounting, and human resources departments

C. help to decide which products the company should produce

D. face the challenge of combining people and other resources to produce high-quality products

E. are accurately described by all of the above

 

7. Production and operations management involves three main types of decisions that are made at three different stages.  The first type of decision to be made deals with:

A. production planning

B. improving production and operations

C. the establishing of critical paths

D. inventory control

E. production control

 

8. Production and operations management involves three main types of decisions that are made at three different stages.  The final stage of operations management focuses on:

A. production planning

B. improving production and operations

C. the establishing of critical paths

D. inventory control

E. production control

 

9. During production planning, the operations manager must make decisions about all of the following EXCEPT:

A. site selection

B. facility layout

C. product design

D. the type of production process that will be used

E. resource planning

 

 

10. The ability to manufacture many goods at once is called _____ production.

A. general

B. mass

C. centralized

D. open

E. aggregated

 

11. Spalding produces large numbers of golf balls all at once.  Spalding puts the golf balls in inventory and distributes them around the world.  Spalding uses:

A. production-to-order

B. mass production

C. custom production

D. process production

E. inventory fulfillment

 

12. In the last two years, BMW AG, the Bavarian auto maker, has developed a car made primarily from carbon-fibers that is not only light and fast, but also fuel efficient.  (The automaker is using the carbon fiber similarly to how Audi has used aluminum.)  BMW is planning to build a large plant where it can manufacture thousands of identical carbon fiber parts and then distribute these parts to its automobile manufacturing plants for incorporation into BMW vehicles.  This new plant will engage in:

A. production-to-order

B. mass production

C. custom production

D. process production

E. inventory fulfillment

 

13. In _____, goods are produced using mass production techniques up to a point.  Then production is custom tailored to the needs or desires of individual customers.

A. just-in-time production

B. mass customization

C. individualized production

D. niche manufacturing

E. production-to-order

 

14. There is a standard approach to butchering a steer.  Once the steers are butchered according to the agreed upon method, butchers are able to provide one customer with a 2-inch thick T-bone steak and another with thin pieces of steak for making fajitas.  After standardized preparation, the meat is tailored to meet individual needs and desires.  This is called:

A. just-in-time production

B. mass customization

C. individualized production

D. niche manufacturing

E. production-to-order

 

15. Hans Guten makes furniture according to the specifications of the customer who ordered it.  Each piece of furniture he makes is unique.  He only makes one piece of furniture at a time.  Guten is engaged in:

A. individualized production

B. mass production

C. customization

D. niche manufacturing

E. specialization

 

16. Synergy Oil and Gas builds oil-well drilling platforms to customer and government specifications.  These platforms can cost as much as $1 billion. Synergy works on one platform at a time, and when it is finished, moves its crew to a new project.  Synergy engages in:

A. individualized production

B. mass production

C. customization

D. niche manufacturing

E. specialization

 

17. There is a facility in California that takes off-the-shelf Ford Mustangs and hones them into high-performance vehicles. The assembly line at this facility is simply a line of cars on hand-pushed carts that are moved from station to station, but many of the operations that are typically performed in an assembly plant do take place here. Using this system the company has turned out over 8,000 vehicles, more than any other American specialty vehicle manufacturer.  This is an example of:

A. just-in-time production

B. mass production

C. individualized production

D. niche manufacturing

E. mass customization

 

18. Starcrest Publishing is one of many companies who will take demographic information about your child and publish a story written about that child.  The story is already written, and a computer is used to insert the relevant information into the spaces left blank—such as the child’s name, his address, his age, his grandparents’ name, etc.  Starcrest Publishing uses:

A. just-in-time production

B. mass customization

C. individualized production

D. niche manufacturing

E. production-to-order

 

19. A manufacturer that uses the intermittent process to produce special customer orders is called a:

A. modular shop

B. central shop

C. job shop

D. localized processor

E. centralized processor

 

20. A _____ shop is a manufacturing firm that engages in customization.

A. union

B. process-oriented

C. customer-oriented

D. job

E. production

 

21. In the production of corn meal for baking, corn is ground.  This conversion process is an example of:

A. process manufacturing

B. consumer product conversion

C. the assembly process

D. production segregation

E. product separation

 

22. A(n) _____ is a manufacturing firm that produces goods in response to customized orders.

A. assembly plant

B. job shop

C. engineering plant

D. conversion plant

E. transformation shop

 

23. Hershey’s hot cocoa mix combines dry milk, whey, corn syrup, processed cocoa, aspartame, and artificial flavorings and colors.  This conversion process is an example of:

A. process manufacturing

B. consumer product conversion

C. the assembly process

D. production integration

E. product combination

 

 

 

 

24. Because with building costs soaring out of sight, there is pent-up demand for a well-designed, green-built, contemporary home that's actually affordable. That means it has to be efficiently constructed, and the best way to do this is in a factory, where it can be put together on an assembly line, like an automobile.  A company has developed the Glidehouse can be built that way in 19 days in a factory near Vancouver, British Columbia, then trucked to your property.  Glidehouse is produced through:

A. process manufacturing

B. consumer product conversion

C. the assembly process

D. production integration

E. product combination

 

25. Which of the following is the BEST example of process manufacturing?

A. swimming pool

B. Whirlpool washer/dryer

C. lamb's wool

D. computer monitors

E. home storage buildings

 

26. A system that utilizes long production runs resulting in high-volume, standardized products is called a(n) _____ process.

A. intermittent

B. controllable

C. customized

D. centralized

E. continuous

 

27. Cherokee Spring Mill produces four varieties of corn meal based on how finely the corn is ground.  The mill makes long production runs of high volume.  Cherokee Spring Mill uses a(n) _____ process.

A. continuous

B. centralized

C. intermittent

D. customized

E. transformational

 

28. A continuous production process has all of the following characteristics EXCEPT:

A. low cost per unit

B. easy scheduling

C. standardized parts

D. long production runs

E. low volume

 

29. Which of the following companies would be LEAST likely to use the continuous process?

A. a plywood plant

B. an oil refinery

C. a chemical company

D. a bakery

E. a steel manufacturer

 

30. A company that reupholsters furniture in fabric and style selected by the owner of the piece of furniture is more than likely an example of a:

A. process manufacturer

B. job shop

C. closed shop

D. fixed-position layout

E. continuous production facility

 

31. Which of the following is NOT a characteristic of an intermittent process?

A. low volume

B. high variety

C. custom orders

D. standardized products

E. short production runs

 

32. Which of the following businesses would be LEAST likely to use an intermittent process?

A. a print shop

B. a tax service

C. a bakery

D. an oil refinery

E. an optometrist

 

33. Which of the following is a characteristic of the intermittent process?

A. short production runs

B. low variety of products

C. standardized products

D. high volume

E. none of the above

 

 

 

34. Which of the following factors will be important in the selection of a site for a production facility?

A. labor costs

B. proximity to raw materials

C. nearness to customers

D. access to transportation

E. all of the above

 

35. Levi Strauss was strongly praised when it announced it was leaving China in 1993 because of the country’s poor human rights record.  However, China is also an inexpensive place to manufacture clothing, and in spite of its announcement, Levi did not stop making clothing in China.  What type of facility location factor was most likely instrumental in Levi deciding to continue operating its facility in China?

A. availability of production inputs

B. proximity to raw materials

C. nearness to customers

D. access to transportation

E. none of the above

 

36. Which of the following businesses is most likely to consider proximity to raw materials when locating a new manufacturing plant?

A. a company that provides fresh baked goods for restaurants

B. a manufacturer of hunting equipment

C. a pharmaceutical manufacturer

D. a publisher of textbooks

E. a whiskey distillery

 

37. DaimlerChrysler decided not to build a $750 million plant in southeast Georgia in spite of the state spending $24 million to purchase the property and an additional $36 million to prepare the site specifically for DaimlerChrysler.  The _____ offered was not enough to convince DaimlerChrysler that the Georgia site was a good location for its factory.

A. availability of customers

B. proximity of raw materials

C. low labor costs

D. local incentives

E. manufacturing environment

 

38. The physical arrangement of a production facility is called its:

A. capacity

B. layout

C. process

D. resources

E. plat

 

39. The three main types of facility layouts are:

A. product, process, and fixed-position

B. fixed-position, variable, and product

C. process, product, and service

D. intermittent, process, and customized

E. product, service, and process

 

40. A(n) _____ layout arranges work flow around the production process.  All workers performing similar tasks are grouped together.

A. intermittent

B. process

C. assembly

D. product-line

E. fixed-position

 

41. A process layout is best for a company that has:

A. long production runs

B. repeated routine operations

C. a wide variety of products

D. a high volume of products

E. a limited variety of products

 

42. The product layout is sometimes called the _____ layout.

A. process

B. assembly-line

C. customized

D. intermittent

E. variable

 

43. Which of the following manufacturers would be most likely to use a product layout?

A. a manufacturer of customized air filters

B. a small print shop

C. a motorcycle manufacturer

D. a company that manufacturers the helium balloon characters used in the Macy’s Thanksgiving Day parade

E. a manufacturer of customized luggage

 

44. Products that are difficult to move out of a plant once they are manufactured, such as ocean-going vessels and room-sized murals, are usually manufactured in a _____ layout.

A. customized

B. service

C. static

D. centralized

E. fixed-position

 

45. A German company specializes in building laboratory rooms for handling dangerous viruses and bacteria.  Each room is designed to have a completely separate life support system that allows the users to examine and identify the viruses and bacteria without contaminating any other area.  What type of a layout would be used to construct such a room?

A. process

B. fixed-position

C. stationary

D. static

E. customized

 

46. _____ is a production technique that uses small, self-contained work stations and has each perform all or most of the tasks necessary to complete a manufacturing order.

A. Cellular manufacturing

B. Robotics

C. MRP manufacturing

D. Work station production

E. Team building

 

47. The goal of cellular manufacturing is to:

A. create a zero-defect environment

B. reduce customer defection

C. eliminate shrinkage

D. create a team environment

E. provide quick and inexpensive customer service

 

48. Cellular manufacturing combines aspects of both:

A. intermittent and continuous production

B. fixed position and assembly-line layouts

C. process and product layouts

D. fixed-position and process layouts

E. mass customization and process layouts

 

49. Rego-Fix is a metalworking manufacturing company in Switzerland.  The company primarily manufactures grinding machines in different size ranges. Rego-Fix has reduced setup time and change-over costs through the establishment of small, self-contained production units with teams who produce specific machines on small assembly lines.  Rego-Fix uses:

A. cellular manufacturing

B. business process management

C. MRP manufacturing

D. work station production

E. modified job-shop manufacturing

 

50. The purchasing function, sometimes called _____, is an important part of any firm's production strategy.

A. delivery

B. coordination

C. buying procedure

D. procurement

E. recruitment

 

51. What management function is production manager Cedric Stein using when he orders aluminum component parts (bumpers, drive trains, etc.) to be used in the production of Audi cars in Audi's Neckarsulm plant?

A. delivery

B. coordination

C. materials requirement planning

D. purchasing

E. recruitment

 

52. The _____ is a list of components and number of each needed for file cabinets that a manufacturing company will produce.

A. material plan

B. finished product

C. make-or-buy decision

D. bill of lading

E. bill of materials

 

53. After product specifications are set, a company must decide whether to purchase or manufacture the parts that it needs.  This is called a(n) _____ decision.

A. purchase-or-manufacture

B. buy-or-manufacture

C. make-or-buy

D. order-and-deliver

E. make-or-store

 

54. Taco Bell fast-food restaurant does not chop the lettuce and tomatoes and grate the cheese used to make its menu items, but hires someone outside the restaurant to perform these tasks.  By _____ these tasks, Taco Bell can keep its overhead low and concentrate its resources on taking customer orders and assembling food.

A. outsourcing

B. unbundling

C. remarketing

D. demarketing

E. insourcing

 

55. In a typical set-up, American companies will employ Chinese firms to enter handwritten cards into electronic databases, but the English skills of the Chinese can only take them so far with sloppy American handwriting.  Then the Chinese (or sometimes the American companies) hire Lakota Express, a company that uses Native Americans who live on a reservation in South Dakota to pick up the slack and to vet the often imperfect work.  What kind of work does Lakota Express do?

A. outsourcing

B. unbundling

C. remarketing

D. demarketing

E. insourcing

 

56. Beyond all the publicity around a recent government audit about the lack of oversight by the Federal Aviation Administration (FAA) is another problem that has not received much publicity.  Quality control is not being maintained when an airline engages a contractor to work on an engine, who in turn signs up a subcontractor to work on one part of the engine.  This example represents a problem with:

A. outsourcing

B. unbundling

C. remarketing

D. demarketing

E. insourcing

 

57. Inventory management performs all of the following tasks EXCEPT:

A. ordering

B. receiving

C. selling

D. storing

E. counting

 

58. The goal of inventory management is to:

A. hold down costs and maintain accurate levels of inventory

B. buy as much as possible

C. hold as much as possible in stock

D. always buy the cheapest raw material

E. maintain quality control

 

59. Many companies keep a continuously updated list of inventory levels, orders, sales, and receipts.  This is called a(n) _____ inventory.

A. perpetual

B. just-in-time

C. month-to-month

D. coordinating

E. all-encompassing

 

60. _____ uses a master computerized system to ensure that materials, labor, and equipment are available for production.

A. Perpetual inventory

B. The materials adjustment system

C. Materials requirement planning

D. Controlled assembly plan

E. Raw material coordination planning

 

61. Manufacturing resource planning II (MRPII):

A. generates production plans for the firm

B. uses a complex computerized system to integrate data from many departments

C. lets managers make more accurate forecasts than with older systems

D. can assess the impact of production plans on company profitability

E. does all of the above

 

62. Manufacturing resource planning II (MRPII):

A. was developed by the Japanese at the same they developed just-in-time systems

B. considers both the external and the internal environment

C. is used to make production planning decisions, such as facility layout and site selection

D. is a complex computerized system for generating production plans

E. is the computerized version of a PERT chart

 

63. _____ is a computerized resource planning system that includes information about the firm’s suppliers and customers as well as data generated internally.

A. Enterprise resource planning (ERP)

B. Manufacturing resource planning II (MRPII)

C. The PERT chart

D. Manufacturing resource planning (MRP)

E. Computer-aided resource planning (CARP)

 

64. One of the keys to successful production planning is resource management.  _____ is a system that would note how a possible strike in an Evanston, Indiana, plant will threaten supplies of a needed component part as well as how customer growing preference for time-saving devices such as the company markets and use this information in production planning.

A. Enterprise resource planning (ERP)

B. Manufacturing resource planning II (MRPII)

C. The PERT chart

D. Manufacturing resource planning (MRP)

E. Computer-aided resource planning (CARP)

 

65. The _____ is the entire sequence of securing inputs, producing goods, and delivering goods to a customers.

A. production life cycle

B. supply chain

C. channel of distribution

D. product life cycle

E. demand chain

 

66. _____ focuses on smoothing transitions along the supply chain so that the firm can satisfy its customers with quality products and services while focusing on forging tighter bonds with its suppliers.

A. Channel power management

B. Distribution smoothing

C. Participative channel management

D. Supply chain management

E. Partnering distribution

 

67. Some of the quickest emergency assistance to victims of Hurricane Katrina did not come from the American Red Cross or FEMA. It came from Wal-Mart.  Millions of people were displaced or otherwise affected by the Gulf Coast calamity. Many waited for days as agencies struggled to provide assistance. Wal-Mart moved faster than traditional emergency aid groups because the retail giant has mastered:

A. channel power management

B. distribution smoothing

C. participative channel management

D. supply chain management

E. strategic allying

 

68. Supply chain management:

A. is based on the concept of just-in-time

B. focuses on removing scheduling bottlenecks within the company

C. focuses on the internal routing of products from raw materials to finished goods

D. is a complex computerized system for managing resources efficiently

E. is accurately described by none of the above

 

69. When an operations manager engages in _____, he or she has purchased raw material or component parts on the Internet.

A. e-procurement

B. computer-assisted buying

C. Internet purchasing

D. e-tailing

E. e-management of inventory

 

70. Staples, the office supply chain, allows its business customers to purchase all of the office supplies they need through the Staples Web site.  Businesses that use this service are engaged in:

A. e-procurement

B. computer-assisted buying

C. Internet purchasing

D. e-tailing

E. e-management of inventory

 

71. Electronic data interchange (EDI) is an important communications tool for:

A. supply chain management

B. manufacturing resources planning

C. just-in-time

D. PERT charts

E. flexible manufacturing systems

 

72. Which of the following statements about reverse auctions is true?

A. Large manufacturers do not engage in reverse auctions.

B. There are no risks associated with reverse auctions.

C. Reverse auctions are an effective procurement process for critical production materials.

D. In a reverse auction, potential suppliers bid against each other.

E. None of the above statements about reverse auctions is true.

 

73. The two key aspects of production control are:

A. routing and inventory management

B. inventory and raw material availability

C. routing and scheduling

D. raw material availability and scheduling

E. labor management and raw material availability

 

74. Which of the following is a useful tool for routing?

A. enterprise resource planning (ERP)

B. manufacturing resource planning II (MRPII)

C. value-stream mapping

D. manufacturing resource planning (MRP)

E. computer-aided resource planning (CARP)

 

75. The first step in controlling production is:

A. production planning

B. routing

C. finding suppliers

D. streamlining the production process

E. locating production bottlenecks

 

76. Good routing procedures:

A. continuously confirm the efficiency of the site location

B. ensures the availability of needed materials in a timely fashion

C. increase productivity

D. set up bottlenecks

E. do all of the above

 

77. One useful tool for routing is _____, where production managers “map” the flow from suppliers through the factory to customers.

A. value-stream mapping

B. production charting

C. route visualization

D. bottleneck identification

E. process mapping

 

78. _____ is the aspect of production control that involves specifying and controlling the time required for each step in the production process.

A. Scheduling

B. Time assignment

C. Prioritization

D. Routing

E. Mapping

 

79. For which of the following businesses would scheduling be important?

A. a car repair shop

B. a bakery

C. a school cafeteria

D. a manufacturer of hand tools

E. all of the above

 

80. What do Gantt charts and PERT charts have in common?

A. They are both tools for computer-aided design (CAD).

B. They are both common scheduling tools for complex situations.

C. They are both tools used for evaluating potential site locations.

D. They both are useful in making sure that all resources are available at the start of a complex project.

E. They are communications tool for explaining production needs to suppliers.

 

81. _____ charts are bar graphs that are plotted on a time line to show the relationship between scheduled and actual production.

A. Bellwether

B. Taylor

C. Procedural

D. Gantt

E. Critical path

 

82. Gantt charts are most helpful when:

A. only a few tasks are involved

B. production routes are long and complex

C. task times are less than one hour

D. bottlenecks do not exist

E. costs is not an important consideration

 

83. One of the biggest shortcomings of Gantt charts is that they:

A. cannot be used for simple tasks

B. cannot be used to identify bottlenecks

C. respond so quickly to changes in the external environment

D. assign three time estimates for the completion of each task

E. are static

 

 

84. The _____ is an important scheduling tool for large projects.  It breaks the projects into a sequence of events and smaller tasks.

A. crucial task system

B. critical path method

C. sequence of elements

D. project sequencing

E. elementary scheduling

 

85. PERT charts differ from critical path method (CPM) in one important way.  PERT charts _____, and the CPM does not.

A. assign one time to finish each task

B. are based on the use of quality principles

C. assign three time estimates for each activity

D. can be used in service organizations; and CPM cannot

E. do not help managers locate possible production delays

 

86. _____ is a scheduling tool that assigns three time estimates for each activity ( optimistic, most probable, and pessimistic). This technique allows managers to anticipate delays and potential problems and schedule accordingly. 

A. A Gantt chart

B. Prioritization

C. Bottleneck elimination

D. Value-stream mapping

E. The program and evaluation review technique

 

87. The process of creating quality standards and measuring finished goods and services against standards is called:

A. standard evaluation

B. quality circles

C. controlling the elements

D. quality control

E. coordinating control

 

88. There is a laboratory at the North Carolina Krispy Kreme doughnut plant where the mixture for the doughnut batter is produced and packaged in 50-pound bags. Researchers in the laboratory randomly procure bags of mix and check the mix for consistency, composition, texture, and taste.  The laboratory's function is _____ control.

A. coordination

B. procedural

C. departmental

D. process

E. quality

 

89. _____ management emphasizes the use of quality principles in all aspects of a company's operations.

A. Quality teamwork

B. Cultural quality

C. Total quality

D. Critical quality

E. Total commitment

 

90. Total quality management focuses on:

A. creating buyer/supplier dependence

B. computer-aided design

C. continuous improvement

D. creating transactional relationships

E. stakeholder harmony

 

91. What is Six Sigma?

A. a quality control process

B. a method for customizing production scheduling

C. a technique for routing that eliminates bottlenecks

D. a type of reverse auction

E. the method services use to reduce nonessential costs

 

92. _____ is the streamlining of production by eliminating steps in the production process that do not add benefits that customers are willing to pay for.

A. Lean manufacturing

B. Removing the fat

C. Manufacturing consolidation

D. Manufacturing compression

E. Concentrated manufacturing

 

93. Mazda once included a solar powered ventilation system on its cars.  A solar panel on the roof powered a pair of fans near the trunk, which automatically turned on when the temperature in the car reached 90 degrees.  Because customers were not willing to pay for this benefit and did not complain when it was no longer available, Mazda discontinued it.  This is an example of:

A. lean manufacturing

B. removing the fat

C. manufacturing consolidation

D. manufacturing compression

E. concentrated manufacturing

 

94. The Malcolm Baldrige National Quality Award is given to:

A. U.S. service providers that make the most efficient use of team-building strategies

B. U.S. companies that offer goods and services of world-class quality

C. any company, no matter where it is located, that offers goods and services of world-class quality

D. companies that have achieved quality-oriented goals

E. companies that have shown significant proof of quality improvement from one scoring period to the next

 

95. A few years ago, when Coca-Cola introduced Fruitopia beverage, it spent $30 million and set what it thought was achievable sales goals.  Since its introduction, Fruitopia has not been able to achieve its sales goals and has lost money for Coke.  According to the concept of _____, Coke should delete the product.

A. lean manufacturing

B. removing the fat

C. manufacturing consolidation

D. manufacturing compression

E. concentrated manufacturing

 

96. The Japanese inventory system that minimizes inventory costs and provides those inputs as they are needed for a particular production run is called the ______ system.

A. perpetual inventory

B. materials requirement

C. controlled assembly

D. raw materials coordination

E. just-in-time

 

97. Crown Holdings Inc. manufactures a high-resolution, full color digital inkjet printed cans that allows smaller beverage producers to label the cans as they are needed to be filled rather than keeping a stock of preprinted cans.  This is an example of how a beverage company could use:

A. lean production control

B. controlled production

C. just-in-time

D. materials requirement controls

E. Sigma Six

 

98. Computer-aided design (CAD) can be used to:

A. draw products

B. make changes in products

C. analyze products

D. test prototypes

E. do all of the above

 

 

99. _____ uses a computer to design and test new products and modify existing ones.

A. Computer-aided manufacturing

B. Just-in-time design

C. Flexible manufacturing system

D. Computer-aided design

E. Materials resource planning

 

100. The letters CAD stand for:

A. commercial-art design

B. centralized art design

C. competitive ad designer

D. continuous art documentation

E. computer-aided design

 

101. Computer-aided manufacturing (CAM) uses computers to:

A. design new programs

B. design new products

C. develop and control production processes

D. modify products

E. test new products

 

102. A CAD/CAM system:

A. reduces costs

B. improves quality

C. shortens design time

D. controls flow of material

E. does all of the above

 

103. A CAD/CAM system is a(n):

A. inventory system

B. tax service

C. depreciation schedule

D. production design and control system

E. production database management system

 

104. _____ is the technology involved in designing, constructing, and operating computer-controlled machines that can perform tasks independently.

A. Mechanization

B. Robotics

C. Process manufacturing

D. Computer-based manufacturing

E. Automation

 

105. A flexible manufacturing system (FMS) combines all of the following EXCEPT:

A. human resources

B. computers

C. robots

D. machine tools

E. materials handling machinery

 

106. Which of the following is a disadvantages associated with the flexible manufacturing system (FMS)?

A. An FMS can easily be reprogrammed.

B. An FMS is initially expensive.

C. An FMS can create to customer specifications.

D. An FMS provides consistent quality.

E. Changes to the FMS can be made with little expense.

 

107. _____ combines computerized manufacturing processes with other computerized systems used before and after manufacturing.

A. Computer-aided design

B. Just-in-time manufacturing

C. Computer-integrated manufacturing

D. Flexible manufacturing

E. Computer-based conversion

 

108. With ____, when a part is redesigned in the computer-aided design system, the changes are quickly transmitted both to the machines producing the part and to all other departments that need to know about and plan for the change.

A. computer-oriented design (COD)

B. computer-controlled manufacturing (CCM)

C. a coordinated-manufacturing system (CMF)

D. computer integrated manufacturing (CIM)

E. computer-based conversion (CBC)

 

109. Point-of-sale (POS) terminals would NOT be helpful in which of the following businesses?

A. Kroger supermarkets

B. university book stores

C. JCPenney department stores

D. the manufacturer of plasma television screens

E. Bed, Bath & Beyond stores

 

110. In a retail store, a point-of-sale (POS) terminal would be used to:

A. label merchandise

B. discourage shoplifting

C. track inventories

D. test new salespeople

E. correct sales mistakes

 

111. Business process management (BPM):

A. is roughly the equivalent of office management

B. automates and integrates activities between suppliers and manufacturers

C. can only be used with mass production strategies

D. involves breaking a complex product, service, or process into smaller pieces that can be created independently and then combined quickly to make a whole

E. is accurately described by all of the above

 

112. Which of the following is a current trend in production and operations management?

A. flexible manufacturing systems

B. business process management (BPM)

C. lean manufacturing

D. enterprise resource planning

E. the critical path method (CPM)

 

113. Which of the following is NOT a current trend in production and operations management?

A. business process management (BPM)

B. dwindling U.S. investments in science and research

C. the loss of American innovation leadership

D. quality management control

E. the ability to find qualified, skilled workers

 

 

FILL-IN-THE-BLANK QUESTIONS

 

1. _____ is the creation of goods and services and is an essential function in every firm.

 

2. A firm that produces goods in response to customer orders is called a ______ shop.

 

3. A _____ process uses long production runs that may last days, weeks, or months without equipment shutdown.

 

4. An _____ process uses short production runs to make batches of different products.

 

5. The _____ layout arranges work flow around the process, grouping together all workers who perform similar tasks.

 

6. A continuous or repetitive production process is sometimes referred to as an assembly line or a ______ layout.

 

7. A product layout that stays in one place and in which the workers and machinery move to it as needed is called a _____ layout.

 

8. After product specifications are set, the firm must decide if it should make its own parts or buy them from an outside source.  This is called the _____ decision.

 

9. A continuously updated list of inventory levels, orders, sales, and receipts is called a ______ inventory.

 

10. _____ is a popular computerized system of controlling inventories that uses a master list to ensure availability of materials, labor, and equipment needed for production are at the right places in the right amounts at the right time.

 

11. _____ focuses on smoothing transitions along the supply chain so that the firm can satisfy its customers with quality products and services.

 

 

12. ______ charts are bar graphs plotted on a time line that show the relationship between scheduled and actual production.

 

13. ____ is used to schedule big projects, production and operations managers break complex operations into smaller tasks and estimates the time needed to complete the key tasks.  This scheduling system was developed in the 1950s for building and maintaining chemical plants.

 

14. _____ is a system in which production inputs arrive just when they are needed for production rather than being stored on site.

 

15. _____ combine automated workstations with computer-controlled transportation devices called automatic guided vehicles (AGVs) that move materials between workstations and into and out of the system.

 

16. _____ will provide a unified system for businesses that will allow them to integrate and optimize a company's army of partners and suppliers by automating much of what needs to be done.

 

 

SHORT ANSWER QUESTIONS

 

1. There are four important decisions that must be made during production planning.  What are they?

 

2. What is the relationship between mass production and customization?

 

3. What are the two basic processes for converting inputs into outputs?

 

4. What is another name for the product layout?

 

5. What kind of layout does NASA use when it is building a spaceship to carry astronauts into orbit around the moon?

 

6. Instead of doing its own maintenance, Eaton Corp. has hired Advanced Technology Services, Inc. to maintain and fix equipment problems even though Eaton could have handled the tasks internally. What does this purchase of these maintenance services exemplify?

 

7. One way to determine the best inventory levels is to look at three costs.  What are they?

 

8. How does materials requirement planning (MRP) differ from enterprise resource planning (ERP)?

 

9. What is a supply chain?

 

10. List the three most commonly used scheduling tools for complex production situations.

 

11. Define total quality management (TQM).

 

12. List two methods that are commonly used techniques for streamlining a business’s production.

 

13. What is the name of the production system that combines automated workstations with computer-controlled transportation devices called automatic guided vehicles (AGVs)?