business chapter 10 quiz

A CAD/CAM system:

controls flow of material, improves quality, shortens design time, and reduces costs

The goal of cellular manufacturing is to:

create a team environment

Which of the following statements about reverse auctions is true?

in a reverse auction, potential suppliers bid against each other

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:

job shop

The physical arrangement of a production facility is called its:

layout

The Malcolm Baldrige National Quality Award is given to:

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

A process layout is best for a company that has:

a wide variety of products

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

an FMS is initially expensive

The product layout is sometimes called the _____ layout.

assembly-line

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

bill of materials

The letters CAD stand for:

computer-aided design

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

computer-integrated manufacturing

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.

continuous

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:

customization

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

draw products, make changes in products, analyze products, and test prototypes

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

e-procurement

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

enterprise resource planning (ERP)

Cellular manufacturing combines aspects of both:

fixed position and assembly-line layouts

The goal of inventory management is to:

hold down costs and maintain accurate levels of inventory

Business process management (BPM):

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

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

job shop

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.

lean manufacturing

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.

local incentives

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

low volume

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.

make-or-buy

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

materials requirement planning

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

operations management

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?

outsourcing

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.

outsourcing

The three main types of facility layouts are:

product, process, and fixed-position

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

production

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

production

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:

production control

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.

quality

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

quality control

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

quality management control

The first step in controlling production is:

routing

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

scheduling

Inventory management performs all of the following tasks EXCEPT:

selling

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:

the assembly process

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

total quality

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

track inventories

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?

availability of production inputs

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:

mass customization

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

product design

_____ 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.

the program and evaluation review technique

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

proximity to raw materials, nearness to customers, labor costs, and access to transportation

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

value-stream mapping

Operations managers:

work closely with people in marketing, finance, accounting, and human resources departments; control about three-fourths of firm's assets; face the challenge of combining people and other resources to produce high-quality products; and help to decide which products the company should produce

What is Six Sigma?

a quality control process

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

an oil refinery

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:

cellular manufacturing

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

critical path method

Computer-aided manufacturing (CAM) uses computers to:

develop and control production processes

Good routing procedures:

increase productivity

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

job shop

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:

mass customization

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

supply chain

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

supply chain management

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:

the assembly process

Operations management is:

the management of the production conversion process

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:

outsourcing

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

process manufacturing

A CAD/CAM system is a(n):

production design and control system

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

short production runs