General Business 311 Chapter 17

In the context of the critical path method, which of the following is true of the critical path?

A delay in any activity on a critical path is likely to delay the completion of the entire project.

Which of the following is a key factor that operations managers evaluate when deciding the location of a manufacturing facility?

Adequacy of utilities

Which of the following is a similarity between total quality management (TQM) and Six Sigma?

Both rely on teams of workers to carry out specific projects to improve quality.

_____ software provides powerful drawing and drafting tools that enable users to create and edit blueprints and make drawings quickly and easily.

Computer-aided design

Declan Inc., an airplane manufacturing company, manufactures a standard model of airplane. To improve efficiency, the company focuses on minimizing waste in all spheres of production. Therefore, it only buys materials from suppliers who provide customized raw materials and hires workers who are trained in various manufacturing processes. In the given scenario, which of the following is most likely to be true of Declan Inc.'s production approach?

Declan Inc. focuses on lean production

_____ is a family of generic standards for environmental management established by the International Organization for Standardization.

ISO 14000

_____ is a family of generic standards for quality management systems established by the International Organization for Standardization.

ISO 9000

Which of the following statements is true of a process layout?

In a process layout, products can be moved from one type of machinery to another in whatever sequence is necessary.

Which of the following is a difference between operations management in the 1960s and the 2010s?

In the 1960s, the focus of operations management was on mass production, whereas in the 2010s, the focus of operations management is on mass customization.

Which of the following statements is true of computer-aided engineering (CAE) software?

It can help engineers find and correct design flaws before production.

Brenden Corp. manufactures products at the lowest cost possible. It strives to keep its manufacturing costs low and its product prices competitive. It does not provide technical support for its products as providing such support would add to its cost without earning any profit. Given this information, which of the following statements is most likely true of Brenden Corp.?

It focuses on efficiency at the expense of effectiveness.

Which of the following is a characteristic shared by all versions of total quality management (TQM)?

It focuses on prevention rather than correction of errors.

Which of the following is a characteristic of total quality management (TQM)?

It focuses on the empowerment of employees.

Which of the following statements is true of a servicescape?

It includes factors such as ambience; functionality; and signs, symbols, and artifacts.

Which of the following statements is true of foreign outsourcing?

It is likely to create coordination problems.

Which of the following statements is true of vertical integration?

It occurs when a firm attempts to gain more control over its value chain by developing the ability to perform processes previously performed by other organizations in the chain.

_____ is a system that emphasizes the manufacturing of goods to meet actual current demand, thus minimizing the need to hold inventories of finished goods and work in process at each stage of the supply chain.

Just-in-time production

Which of the following exemplifies an improvement in a servicescape?

Nabila changes the layout of her bookstore to facilitate easy navigation.

Which of the following statements is true of ISO standards?

They are mostly industry-specific.

Which of the following statements is true of poka-yokes?

They help workers quickly catch and correct mistakes in production processes.

Which of the following statements is true of services?

They must be consumed where they are provided.

Which of the following statements is true about enterprise resource planning (ERP) systems?

They provide a common information system that makes it easier for organizations throughout a value chain to communicate and coordinate their activities.

Which of the following statements is true of just-in-time (JIT) techniques?

They result in very small inventory of finished goods.

Which of the following is a difference between Six Sigma and total quality management (TQM)?

Unlike TQM, Six Sigma relies on expensive employee training and expert guidance.

Derick is a regular customer of Looney's, a departmental store. He feels at ease in the store owing to the lighting and soothing background music. He also finds the layout of the store easy to navigate. From the given information, it can be concluded that the departmental store has _____.

a well-designed servicescape

The goal of mass production strategy is to:

achieve reductions in average cost by taking advantage of specialization and the efficient use of capital.

The term _____ refers to replacing human operation and control of machinery and equipment with some form of programmed control.

automation

Ezequiel, a product developer working for Deccan Aviation Inc., wants to test his designs for flaws and further optimize them before the production of aircrafts begins. In this scenario, Ezequiel should most likely use _____.

computer-aided engineering software

Carl, an engineer at an automobile plant, has designed a new type of suspension component. He now wants to create a prototype of his design. To do this, he uses a software that takes the designs of the product and creates programmed instructions that robots can follow to produce the prototype. In the given scenario, Carl most likely uses _____.

computer-aided manufacturing software

Blossom Inc. is a bookstore. In this case, it sells _____.

durable goods

To operations managers, _____ means producing output or achieving a goal at the lowest cost.

efficiency

In a _____, the good or service stays in one place, and the employees, machinery, and equipment are brought to the site when needed during various stages of the production process.

fixed position layout

In the context of the critical path method (CPM), _____ are activities in a project that must be completed before some other specified activity can begin.

immediate predecessors

One potential drawback of just-in-time (JIT) production is that:

it can leave producers vulnerable to supply disruptions.

Eddys Inc., a denim jeans manufacturer, has employed a strategy that allows it to manufacture jeans that suit the needs of specific customers. This strategy enables Eddys Inc. to produce its goods in small quantities and offer a wide variety of options to its customers. The firm is able to do all this at costs almost as low as those associated with traditional production techniques. Given this information, it can be inferred that Eddys Inc. uses _____.

mass customization

Christie went to the local farmers' market and bought some fresh vegetables and fruits. In the given context, Christie bought _____.

nondurable goods

_____ is concerned with supervising all of the activities involved in creating value by producing goods and services and distributing them to customers.

operations management

Otom, a car manufacturer, focuses on total quality management (TQM). To ensure that its products are of superior quality, it incorporates certain methods into its production process that enable its workers to identify and eliminate errors at the production stage. In the given scenario, Otom most likely uses _____.

poka-yokes

A _____ consists of all of the tangible and intangible features that create value for consumers by satisfying their needs and wants.

product

Omega Inc. is a company that manufactures automobile parts. The goods produced are standardized, and they are produced in large volumes to avoid stock-outs. The company uses highly specialized machinery for production. In the given scenario, Omega Inc. most likely uses a _____.

product layout

Lisa, the owner of a sports store, places an order for football merchandise before the beginning of the new season. She orders a larger quantity than what she estimates will be required. In this scenario, Lisa most likely does this because she wants to:

reduce the chance of stock-outs and lost sales.

In the context of facility location, many _____ place primary interest on locating close to their customers.

service firms

In the context of operations management, _____ means finding ways to meet an organization's current objectives while protecting and preserving the environment for future generations.

sustainability

Stylon Inc., a hair salon, sells an exclusive line of hair conditioners and also provides haircut and styling packages. In the given context, Stylon Inc. offers:

tangible as well as intangible products.

TeakO Inc., a construction company, is given the contract to build a primary school. Jim, the project manager, makes a list of activities necessary to complete the project, the time required for each activity, and each activity's immediate predecessors. He wants to use this information to track the project status and ensure that the project completes on time. To accomplish his objective, Jim should create _____.

the critical path

Kyle Chem Inc., a multinational company, manages all its value chain processes within the organization instead of contracting out the work to other specialized firms. The given scenario best exemplifies _____.

vertical integration