Mangt 421 Test #2
A c-chart is based on the A. Poisson distribution. B. Erlang distribution. C. binomial distribution. D. normal distribution.
A. Poisson distribution.
Which of the following would NOT be produced or offered using a fixed-position layout? A. a highway B. a hospital emergency room C. a ship D. a hospital operating room
B. a hospital emergency room
In process-oriented and fixed-position layouts, it is important to minimize the costs of A. skilled labor. B. material handling. C. special-purpose machinery. D. raw material.
B. material handling.
Which of the following phases of the product life cycle has negative cash flow and increasing spending on development and production? A. maturity phase B. decline phase C. growth phase D. introductory phase
D. introductory phase
Amy Xia's plant is designed to produce 10,000 hammers per day but is limited to making 6,000 hammers per day because of the time needed to change equipment between styles of hammers. What is the utilization rate for the plant?
60.00%
Which of the following statements is NOT true about the process capability ratio? A. A capable process has a process capability ratio less than one. B. The process capability ratio is a ratio for determining whether a process meets design specifications. C. The process capability ratio is a ratio of the specification to the process variation. D. The process capability ratio is computed as the difference of the upper and lower specification limits divided by six standard deviations.
A. A capable process has a process capability ratio less than one.
What is an electronically guided and controlled cart used to move materials? A. AGV B. CNC C. AIS D. RFID
A. AGV
Which of the following shows in schematic form how a product is assembled? A. An assembly chart B. A route sheet C. An engineering drawing
A. An assembly chart
When should product strategy focus on forecasting capacity requirements? A. At the growth stage B. At the maturity stage C. At the decline stage
A. At the growth stage
Which of the following is NOT true regarding corporate social responsibility? A. Corporate social responsibility only requires firms to focus on environmentally friendly product disposal. B. Corporate social responsibility means "doing what's right" and doing it properly, which can be beneficial to all stakeholders. C. Companies that practice corporate social responsibility introduce policies that consider environmental, societal, and financial impacts in their decision making. D. The operations function plays a profound role in meeting corporate social responsibility.
A. Corporate social responsibility only requires firms to focus on environmentally friendly product disposal.
Which of the following statements is NOT true? A. Economic change brings increasing levels of affluence in the short run but economic cycles and price changes in the long run. B. Understanding the customer is the premier issue in new-product development. C. Sociological and demographic change may appear in such factors as decreasing family size. D. Political/legal change brings about new trade agreements, tariffs, and government requirements.
A. Economic change brings increasing levels of affluence in the short run but economic cycles and price changes in the long run.
What is the first step to build a house of quality? A. Identify customer wants. B. Identify how the good/service will satisfy customer wants. C. Determine the desirable technical attributes. D. Relate customer wants to product hows.
A. Identify customer wants.
__________ is used to rank a company's products to determine which products represent the best use of the firm's resources, or perhaps, to determine which products are to be eliminated. A. Product-by-value analysis B. Value analysis C. Value engineering
A. Product-by-value analysis
Which of the following statements is NOT true about sustainability? A. Sustainability focuses only on environmental resources. B. Sustainability is often associated with corporate social responsibility. C. Green manufacturing is part of sustainability. D. Sustainability refers to meeting the needs of the present without compromising the ability of future generations to meet their needs.
A. Sustainability focuses only on environmental resources.
What is the major difference in focus between a location decision in the service sector vs. the manufacturing sector? A. The focus in service is on revenue maximization, while the focus in manufacturing is on cost minimization. B. There is no difference in focus. C. The focus in manufacturing is on labor, while the focus in service is on raw materials. D. The focus in manufacturing is on revenue maximization, while the focus in service is on cost minimization.
A. The focus in service is on revenue maximization, while the focus in manufacturing is on cost minimization.
For a full-time college student, which of the following moments of truth exemplifies the customer's standard expectations? A. Your advisor was competent, helpful, and understanding B. Your advisor made you wait, even though you had an appointment C. Your advisor offered to work with you after regular work hours
A. Your advisor was competent, helpful, and understanding
The requirements of work cells do NOT include A. a high level of training and a low level of flexibility. B. being self-contained, with its own equipment and resources. C. identification of families of products. D. testing at each station in the cell.
A. a high level of training and a low level of flexibility.
What are cooperative agreements that allow firms to remain independent, but pursue strategies consistent with their individual missions? A. alliances B. acquisitions C. joint ventures D. enhancements and migration
A. alliances
Cross-docking A. avoids placing the materials or supplies in storage by processing them as they are received for shipment. B. locates stock wherever there is an open location. C. combines orders to reduce picking time. D. uses the warehouse to add value to the product through component modification, repair, labeling, or packaging.
A. avoids placing the materials or supplies in storage by processing them as they are received for shipment.
Product design may be accomplished more quickly through the use of cross-functional teams that work on various aspects of the design at the same time. This approach is known as __________. A. concurrent engineering B. the house of quality C. modular designs
A. concurrent engineering
Self-checkout at a grocery store is an example of: A. customer participation in service delivery. B. customer participation in service design. C. complete automation
A. customer participation in service delivery.
What process uses warehousing to add value to a product through component modification, repair, labeling, and packaging? A. customizing B. servicescaping C. ambient conditioning D. cross-docking
A. customizing
The transportation model A. determines the best pattern of shipments from several points of supply to several points of demand. B. finds the location of a single distribution center that minimizes distribution costs. C. uses both qualitative and quantitative factors. D. determines the crossover point between two different locations.
A. determines the best pattern of shipments from several points of supply to several points of demand.
In manufacturing, excess capacity can be used to A. do more setups, shorten production runs, and drive down inventory costs. B. do more setups, lengthen production runs, and drive down inventory costs. C. do fewer setups, lengthen production runs, and drive down inventory costs. D. do fewer setups, shorten production runs, and drive down inventory costs.
A. do more setups, shorten production runs, and drive down inventory costs.
What does EMV stand for? A. expected monetary value B. expected maintenance volume C. enterprise management valuation D. expected machine valuation
A. expected monetary value
The objective of warehouse layout is to A. find the optimum trade-off between handling cost and costs associated with warehouse space. B. maximize profitability per square foot of floor space. C. build teams. D. provides for comfort, safety, and movement of information.
A. find the optimum trade-off between handling cost and costs associated with warehouse space.
In acceptance sampling, the producer's risk is the risk of having a A. good lot rejected. B. good lot accepted. C. bad lot rejected. D. bad lot accepted.
A. good lot rejected.
Which of the following could reduce costs and increase profit? A. increased productivity B. flexible pricing C. improved response D. improved reputation
A. increased productivity
Which of the following is the Japanese term used to describe continuous improvement efforts? A. kaizen B. six sigma C. poka-yoke D. kanban
A. kaizen
Process capability A. means that the natural variation of the process must be small enough to produce products that meet the standard. B. is assured when the process is statistically in control. C. exists when CPK is less than 1.0. D. exists only in theory; it cannot be measured.
A. means that the natural variation of the process must be small enough to produce products that meet the standard.
A device or technique that ensures production of a good unit every time is a A. poka-yoke. B. fail-safe. C. control chart. D. zero defect.
A. poka-yoke.
The two popular measures for quantitatively determining if a process is capable are A. process capability ratio and process capability index. B. upper specification and lower specification. C. process mean and standard deviation of the process population. D. process mean and range.
A. process capability ratio and process capability index.
What is a design that can be produced to requirements even with unfavorable conditions in the production process? A. robust design B. modular design C. DFMA D. CAD
A. robust design
Which of the following is NOT an external failure cost? A. scrap B. returned goods C. lost goodwill D. costs to society
A. scrap
Which of the following is NOT a production technology that enhances production and productivity? A. service blueprinting B. process control C. automatic identification systems D. vision systems
A. service blueprinting
What is training and empowering frontline employees to solve a problem immediately? A. service recovery B. courtesy C. employee empowerment D. quality circle
A. service recovery
Which of the following terms describes the physical surroundings in which a service takes place, and how they affect customers and employees? A. servicescape B. ambience C. service decor D. landscape
A. servicescape
In the service industry, the crucial moment that exemplifies, enhances, or detracts from the customer's expectations is called __________. A. the moment of truth B. The payoff C. the product value moment
A. the moment of truth
The change in cell-phone model life cycles from 2 years to under 6 months is the result of: A. time-based competition. B. value analysis. C. design for manufacture and assembly.
A. time-based competition
The role of decision trees in product design is __________. A. to calculate the expected value of each course of action B. to better understand the customers' wants C. to rank products in descending order of their dollar contribution to the firm
A. to calculate the expected value of each course of action
Defining a product means A. to define the new good's or service's function. B. to list the hierarchy of components, their description, and the quantity of each required to make one unit of a product. C. to decide to produce a component or service or purchase from an outside source. D. to identify components by a coding scheme that specifies size, shape, and the type of processing.
A. to define the new good's or service's function.
Which of the following technologies is particularly useful for prototype development and small lot production? A. 3-D printing B. CAM C. STEP D. CAD
A. 3-D printing
Which of the following is NOT one of the five elements for each city that geographic information systems use to analyze location decision factors? A. rivers, mountains, lakes, and forests B. transportation options C. cultural and entertainment centers D. residential areas
A. rivers, mountains, lakes, and forests
What is the percentage defective in an average lot of goods inspected through acceptance sampling? A. LTPD B. AOQ C. OC curve D. AQL
B. AOQ
Which of the following is NOT true regarding corporate social responsibility? A. Companies that practice corporate social responsibility introduce policies that consider environmental, societal, and financial impacts in their decision making. B. Corporate social responsibility only requires firms to focus on environmentally friendly product disposal. C. The operations function plays a profound role in meeting corporate social responsibility. D. Corporate social responsibility means "doing what's right" and doing it properly, which can be beneficial to all stakeholders
B. Corporate social responsibility only requires firms to focus on environmentally friendly product disposal.
Which of the following is NOT one of the techniques for building employee empowerment? A. Build communication networks that include employees. B. Eliminate formal organization structures such as teams and quality circles. C. Develop open, supportive supervisors. D. Build high-morale organizations.
B. Eliminate formal organization structures such as teams and quality circles.
Which of the following statements is NOT true regarding production technologies? A. CNC is machinery with its own computer and memory. B. Flexible manufacturing systems and computer-integrated manufacturing are increasing the distinction between low-volume/high-variety and high-volume/low-variety production. C. Vision systems combine video cameras and computer technology and are often used in inspection roles. D. Robots are mechanical devices that use electronic impulses to activate motors and switches.
B. Flexible manufacturing systems and computer-integrated manufacturing are increasing the distinction between low-volume/high-variety and high-volume/low-variety production.
What is a system that stores and displays information that can be linked to a geographic location? A. CIM B. GIS C. ASRS D. RFID
B. GIS
Which of the following is NOT an example of technology's impact on the financial services industry? A. electronic funds transfer B. RFID C. debit cards D. Internet stock trading
B. RFID
Which of the following is NOT an approach to ensure a successful transition from development to production? A. Use product development teams. B. Segregation of the product development and manufacturing organizations. C. Integration of the product development and manufacturing organizations. D. Appoint a project manager.
B. Segregation of the product development and manufacturing organizations.
Which of the following statements is NOT true regarding the importance of the role that an operations manager plays in addressing service quality? A. The tangible component of many services is important. B. The manager may be able to influence the quality of the service but has little control over the customers' expectation. C. Managers must expect exceptions. D. The operations manager should realize that the customer' expectations are the standard against which the service is judged.
B. The manager may be able to influence the quality of the service but has little control over the customers' expectation.
Which of the following is NOT one of the reasons that the techniques for addressing fixed-position layout are complicated? A. At different stages of a project, different materials are needed. B. The volume of materials needed is constant. C. There is limited space at virtually all sites. D. Different items become critical as the project develops.
B. The volume of materials needed is constant.
Which of the following determinants of service quality means approachability and ease of contact? A. tangibles B. access C. security D. courtesy
B. access
Inspections should NOT take place A. at your supplier's plant while the supplier is producing. B. after costly or irreversible processes. C. at your facility upon receipt of goods from your supplier. D. during the step-by-step production process.
B. after costly or irreversible processes.
Which service strategy describes separating services that may lend themselves to some type of automation? A. modules B. automation C. focus D. separation
B. automation
What is a means of finding the point, in dollars and units, at which costs equal revenues? A. zero-sum analysis B. break-even analysis C. bottleneck analysis D. capacity analysis
B. break-even analysis
The difference between selling price and variable cost is called A. fixed cost. B. contribution. C. the break-even point. D. the bottleneck.
B. contribution.
Which type of control chart should be used when it is possible to have more than one mistake per item? A. x-bar chart B. c-chart C. R-chart D. p-chart
B. c-chart
The five core elements of ISO 14000 are A. environmental management, auditing, performance evaluation, labeling, and value analysis. B. environmental management, auditing, performance evaluation, labeling, and life cycle assessment. C. environmental management, planning, performance evaluation, labeling, and life cycle assessment. D. environmental management, planning, performance evaluation, labeling, and value analysis.
B. environmental management, auditing, performance evaluation, labeling, and life cycle assessment.
Cause-and-effect diagrams are also known as A. target specification graphs. B. fish-bone charts. C. flowcharts. D. Pareto charts.
B. fish-bone charts.
A product-oriented layout A. addresses the layout requirements of large, bulky projects such as ships and buildings. B. is organized around products or families of similar high-volume, low variety production. C. deals with low-volume, high-variety production. D. allocates shelf space and responds to customer behavior.
B. is organized around products or families of similar high-volume, low variety production.
Which of the following is an external product development strategy? A. migrations of existing products B. joint ventures C. new internally developed products D. enhancements to existing products
B. joint ventures
The most aggressive and risky approach to capacity planning is A. lagging demand with incremental expansion. B. leading demand with one-step expansion. C. attempts to have an average capacity that straddles demand with incremental expansion. D. leading demand with incremental expansion.
B. leading demand with one-step expansion.
A route sheet A. is a correction or modification of an engineering drawing or bill of materials. B. lists the operations necessary to produce the component. C. is an instruction to make a given quantity of a particular item. D. shows in schematic form how a product is assembled.
B. lists the operations necessary to produce the component.
Which of the following represents an internal product development strategy? A. joint ventures B. migration of existing products C. purchase technology or expertise by acquiring the developer D. alliances
B. migration of existing products
What is a means of determining the discounted value of a series of future cash receipts? A. cash flow B. net present value C. future value D. variable cost
B. net present value
Which of the following is NOT one of the advantages of ISO 14000? A. reduction in the need for multiple audits B. positive public image and increased exposure to liability C. good systematic approach to pollution prevention through minimization of ecological impact of products and activities D. compliance with regulatory requirements and opportunities for competitive advantage
B. positive public image and increased exposure to liability
What is a flowchart with time added on the horizontal axis? A. process chart B. process mapping C. CNC D. service blueprinting
B. process mapping
What is the fundamental rethinking of business processes to bring about dramatic improvements in performance? A. process strategy B. process redesign C. process design D. process analysis
B. process redesign
High-volume, low-variety production is best suited for which of the following process strategies? A. repetitive focus B. product focus C. mass customization D. process focus
B. product focus
Workspace can inspire informal and productive encounters if it balances three physical and social aspects: A. proximity, people, and permission. B. proximity, privacy, and permission. C. product, people, and permission. D. product, privacy, and permission.
B. proximity, privacy, and permission.
Which of the following costs is NOT a cost of quality? A. scrap B. research and development C. lost goodwill D. rework
B. research and development
Which of the quadrants in the service process matrix has low labor intensity and low customization? A. professional service B. service factory C. mass service D. service shop
B. service factory
Moving a product from development to production is referred to as A. product development. B. transition to production. C. product design. D. product definition.
B. transition to production.
What is the probability of accepting a bad lot? A. LTPD B. type II error (beta) C. type I error (alpha) D. AQL
B. type II error (beta)
A goods-producing location decision would likely emphasize the importance of which of the following? A. security and lighting B. utility and labor costs C. appearance and image D. parking and access
B. utility and labor costs
In many applications, human quality inspectors can be replaced effectively by A. RFID tags. B. vision systems. C. automated storage and retrieval systems. D. FMS
B. vision systems.
Which of the following statements is NOT true? A. Selection of a particular process strategy requires decisions about equipment and technology. B. The selection of equipment requires considering cost, cash flow, market stability, quality, capacity, and flexibility. C. Adding flexibility to the production process can be a major competitive advantage. Building flexibility into a production process is usually inexpensive, but difficult. D. Selecting the best equipment requires understanding the specific industry and available processes and technology.
C. Adding flexibility to the production process can be a major competitive advantage. Building flexibility into a production process is usually inexpensive, but difficult.
Which is the best statement regarding an operating characteristic curve? A. As the fraction defective increases, the probability of accepting the lot also increases. B. As the lot tolerance percent defective decreases, the consumer's risk also decreases. C. As the AQL decreases, the producer's risk also decreases. D. As the fraction defective decreases, the probability of accepting the lot also decreases.
C. As the AQL decreases, the producer's risk also decreases.
What is the key tool for reducing industrial greenhouse gas emissions in the European Union? A. UNFCCC B. GHG C. EUETS D. ISO
C. EUETS
Which of the following statements is NOT true? A. Sociological and demographic change may appear in such factors as decreasing family size. B. Political/legal change brings about new trade agreements, tariffs, and government requirements. C. Economic change brings increasing levels of affluence in the short run but economic cycles and price changes in the long run. D. Understanding the customer is the premier issue in new-product development.
C. Economic change brings increasing levels of affluence in the short run but economic cycles and price changes in the long run.
Which of the following statements is NOT true regarding joint ventures? A. Joint ventures are firms establishing joint ownership to pursue new products or markets. B. Ownership can be 50-50, or one owner can assume a larger portion to ensure tighter control. C. Joint ventures are more likely to work when the risks are unknown. D. Joint ventures are usually between just two firms.
C. Joint ventures are more likely to work when the risks are unknown.
Which of the following is NOT helpful for retail layout? A. Use prominent locations for high-impulse and high-margin items. B. Locate the high-draw items around the periphery of the store. C. Keep end-aisle locations empty to facilitate traffic flow. D. Distribute what are known in the trade as "power items" to both sides of an aisle.
C. Keep end-aisle locations empty to facilitate traffic flow.
Which of the following statements is NOT true regarding process redesign? A. Process redesign is also called process reengineering. B. Effective process redesign works only if the basic process and its objectives are reexamined. C. Process redesign is also called process reinvention. D. Process redesign also focuses on those activities that cross functional lines.
C. Process redesign is also called process reinvention.
An assembly chart is A. a listing of the operations necessary to produce the component. B. an instruction to make a given quantity of a particular item. C. a schematic showing how the product is assembled. D. an exploded view of the product.
C. a schematic showing how the product is assembled.
The "A" on an office relationship chart means A. absolutely unimportant. B. nothing; it is not used on an office relationship chart. C. absolutely necessary. D. across from.
C. absolutely necessary.
Efficiency is given by A. actual output divided by design capacity. B. design capacity divided by utilization. C. actual output divided by effective capacity. D. effective capacity divided by actual output.
C. actual output divided by effective capacity.
An investment that generates a series of uniform and equal cash amounts is referred as A. cash flow. B. future value. C. an annuity. D. net present value.
C. an annuity.
Which of the following is an example of technology's impact on wholesale/retail trade industry? A. automatic toll booths B. interactive TV C. bar-coded data D. automatic teller machines
C. bar-coded data
What term refers to the location of competing companies near each other? A. neighboring B. centralizing C. clustering D. battling
C. clustering
Resources that are held by the public are said to be resources in the A. domain. B. joint. C. common. D. sharing.
C. common.
What is a successful technique used by companies such as Ingall Ship Building Corporation to avoid some of the difficult problems producing items in fixed-position layouts? A. hire cross-trained workers B. use blanket purchase contracts that cover projected purchasing needs over a one-year time period C. complete as much of the project as possible offsite D. hire time-flexible workers
C. complete as much of the project as possible offsite
Self-checkout at a grocery store is an example of A. delayed customization. B. customer participation in service design. C. customer participation in service delivery. D. complete automation.
C. customer participation in service delivery.
A process-oriented layout A. seeks the best personnel and machine utilization in repetitive or continuous production. B. addresses the layout requirements of large, bulky projects such as ships and buildings. C. deals with low-volume, high-variety production. D. deals with high-volume, low-variety production.
C. deals with low-volume, high-variety production.
Operation of a hair salon is an example of A. modularization. B. an assembly line. C. delayed customization. D. automation.
C. delayed customization.
To develop a standard or benchmark, firms need to start with A. collecting benchmarking information. B. forming a benchmark team. C. determining what to benchmark. D. identifying benchmarking partners.
C. determining what to benchmark.
The objective of layout strategy is to A. improve customer interaction. B. improve the flow of information. C. develop an effective and efficient layout that will meet the firm's competitive requirements. D. improve employee morale.
C. develop an effective and efficient layout that will meet the firm's competitive requirements.
Managing quality helps build successful strategies of A. differentiation, time and response. B. differentiation, time and service. C. differentiation, low cost and response. D. differentiation, low cost and service.
C. differentiation, low cost and response.
What is a drawing of the movement of material, product or people? A. RFID B. process chart C. flowchart D. AIS
C. flowchart
Which of the following moves production to a large work cell that remains part of the present facility? A. cross-docking B.fixed-position layout C. focused work center D. focused factory
C. focused work center
Which of the following DOES NOT increase profit by improving quality? A. flexible pricing B. improved reputation C. higher warranty costs D. increased productivity
C. higher warranty costs
Which of the following TQM tools would be best suited for displaying the number of students majoring in each business discipline? A. flowchart B. scatter diagram C. histogram D. cause-and-effect diagram
C. histogram
What are groups or batches of parts processed together? A. customized lots B. work cells C. job lots D. cross-docking jobs
C. job lots
The main objective of retail layout is to A. provide for comfort, safety, and movement of information. B. minimize total costs. C. maximize profitability per square foot of floor space. D. build teams.
C. maximize profitability per square foot of floor space.
One hundred percent inspection A. catches all of the defective parts. B. means that only good parts will be shipped to a customer. C. means that every part is checked to see whether or not it is defective. D. Is practical and an excellent fit for world-class manufacturers.
C. means that every part is checked to see whether or not it is defective.
Bridget's Hamburger Stand uses only 7 ingredients but offers 15 different burgers. This process is known as __________. A. robust design B. value analysis C. modular design
C. modular design
Which of the following measures the proportion of variation (3σ) between the center of the process and the nearest specification limit? A. process range B. process capability ratio C. process capability index D. standard deviation of the process population
C. process capability index
What is analysis that focuses on the ways in which processes can be designed to optimize interaction between firms and their customers? A. value engineering B. product-by-value analysis C. process-chain-network analysis D. value analysis
C. process-chain-network analysis
Which of the following is NOT an example of tangible costs? A. labor B. depreciation C. public transportation facilities D. utilities
C. public transportation facilities
The 3Rs for sustainability are A. reduce, reuse, and reputation. B. reduce, reputation, and recycle. C. reduce, reuse, and recycle. D. reputation, reuse, and recycle.
C. reduce, reuse, and recycle.
Which of the following allocates display space and responds to customer behavior? A. warehouse layout B. product-oriented layout C. retail layout D. office layout
C. retail layout
Which of the following is a possible option to employ when demand exceeds capacity? A. increase advertising expenditures B. lower prices C. schedule long lead times D. temporarily lay-off workers
C. schedule long lead times
Which of the following statements is NOT true regarding a bill of material (BOM)? A. A BOM lists the quantity of each component required to make one unit of a product. B. In the food-service industry, BOMs manifest themselves in portion-control standards. C. A BOM lists the hierarchy of components and their description. D. A BOM cannot be referenced on other bills of material.
D. A BOM cannot be referenced on other bills of material.
Which of the following is NOT one of the tasks of random stocking systems? A. Sequencing items to minimize the travel time required to "pick" orders. B. Maintaining accurate records of existing inventory and its locations. C. Maintaining a list of "open" locations. D. Assigning certain items or classes of items to particular warehouse areas so that the total distance traveled within the warehouse is maximized.
D. Assigning certain items or classes of items to particular warehouse areas so that the total distance traveled within the warehouse is maximized.
Which of the following is a characteristic of the maturity phase of the product life cycle? A. Product designs begin to stabilize. B. Products are considered for termination. C. Products are "fine-tuned." D. Competitors are well established.
D. Competitors are well established.
Which of the following statements is NOT true regarding decision trees? A.Decision trees are particularly helpful when there are a series of decisions and various outcomes that lead to subsequent decisions followed by other outcomes. B. A decision tree is a great tool for thinking through a problem. C. Decision trees can be used for other management problems besides product design. D. Decision trees should only be used for new-product decisions when no uncertainty is present.
D. Decision trees should only be used for new-product decisions when no uncertainty is present.
Which of the following is NOT a regulatory agency that provides guidance and standards of operations for manufacturing and assembly activities? A. OSHA B. state and local agencies that regulate workers rights and employment standards C. EPA D. EUETS
D. EUETS
Which of the following statements is NOT true regarding location decisions? A. Location often has the power to make or break a company's business strategy. B. Location decisions to support a low-cost strategy require particularly careful consideration. C. Location decisions are important because location has a major impact on the overall risk and profit of the company. D. Once management is committed to a specific location, many costs become relatively easy to reduce.
D. Once management is committed to a specific location, many costs become relatively easy to reduce.
Which of the following procedures is TRUE regarding the construction of a decision tree for product design? A. Payoffs are entered at the beginning of the appropriate branch. B. Be sure that all possible alternatives and states of nature (beginning on the right and moving left) are included in the tree. C. To determine the expected value of each course of action, we need to start at the beginning of the tree and work toward the end of the tree. D. The possible alternatives include an alternative of "doing nothing."
D. The possible alternatives include an alternative of "doing nothing."
Which of the following statements is NOT true? A. Many service firms refer to their offerings as "products." B. The objective of the product decision is to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage. C. The product decision includes the selection, definition, and design of products. D. The term "products" refers to tangible goods only.
D. The term "products" refers to tangible goods only.
A house of quality would depict the strength of the relationship between which of the following two items? A. The customer's need for a sealable change pocket and the customer's need for plastic inserts to display pictures. B. The design team's choice of material for a wallet and the materials that were considered but rejected by the design team. C. The stitching used in your company's new product and the stitching used in a competitor's wallet. D. The customer's desire for a durable wallet and the company's choice of material for the wallet.
D. The customer's desire for a durable wallet and the company's choice of material for the wallet.
Which of the following is NOT true regarding layout decisions? A. Layout designs need to be viewed as dynamic because of our increasingly short-life-cycle and mass-customized world. B. Layout is one of the key decisions that determines the long-run efficiency of operations. C. An effective layout can help an organization achieve a strategy that supports differentiation, low cost, or response. D. To obtain flexibility in layout, operations managers could keep investments high.
D. To obtain flexibility in layout, operations managers could keep investments high.
To provide better access and possibly reduce the number of workers needed, work cells may be designed in the shape of what letter of the alphabet? A. D B. O C. V D. U
D. U
A fixed-position layout A. seeks the best personnel and machine utilization in repetitive or continuous production. B. allocates shelf space and responds to customer behavior. C. groups workers, their equipment, and spaces/offices to provide for movement of information. D. addresses the layout requirements of large, bulky, projects such as ships and buildings.
D. addresses the layout requirements of large, bulky, projects such as ships and buildings.
A successful quality strategy begins with A. engaging employees in the necessary activities to implement quality. B. an understanding of the principles of quality. C. satisfying customers and obtaining a competitive advantage. D. an organizational culture that fosters quality.
D. an organizational culture that fosters quality.
Which of the following methods is a mathematical technique used for finding the best location for a single distribution point that services several stores or areas? A. transportation model B. factor-rating method C. locational cost-volume analysis D. center-of-gravity method
D. center-of-gravity method
Which of the following regions of a process chain includes the process steps that involve interaction between participants? A. independent processing region B. substitute interaction region C. surrogate interaction region D. direct interaction region
D. direct interaction region
How companies remain in business is referred to as A. social accounting. B. corporate social responsibility. C. carbon footprint. D. economic sustainability.
D. economic sustainability.
What is the ability to respond with little penalty in time, cost, or customer value? A. repetitive process B. postponement C. mass customization D. flexibility
D. flexibility
Attribute inspection measures A. such dimensions as weight, speed, size, or strength to see if an item falls within an acceptable range. B. whether or not the product attributes conform to the inspector's personal tastes. C. if cause and effect are present. D. if the product is good or bad.
D. if the product is good or bad.
Which of the following is an example of ambient conditions? A. Hard Rock cafe's wall of guitars B. Walmart's greeter at the door C. Best Buy's wide center aisle D. leather chairs at Starbucks
D. leather chairs at Starbucks
What is an analysis of environmental impacts of products from the design stage through end-of-life? A. value analysis B. product-by-value analysis C. process-chain-network analysis D. life cycle assessment
D. life cycle assessment
A fast food restaurant is an example of A. low customization and high degree of labor. B. high customization and low degree of labor. C. high customization and high degree of labor. D. low customization and low degree of labor.
D. low customization and low degree of labor.
Generally the goal of assembly line balancing is to A. determine the maximum time that an item is allowed at a workstation. B. maximize the number of workstations. C. minimize the efficiency of the line. D. minimize imbalance between machines or personnel while meeting a required output from the line.
D. minimize imbalance between machines or personnel while meeting a required output from the line
When ordering a new zagflatz, customers must choose the style of three major components, each of which has about ten variations. This is an example of A. robust design. B. CAD. C. environmentally friendly design. D. modular design.
D. modular design.
What are the three Ps in the triple bottom line of the three Ps? A. people, planet, and product B. people, product, and profit C. product, planet, and profit D. people, planet, and profit
D. people, planet, and profit
Low-volume, high-variety production is best suited for which of the following process strategies? A. product focus B. repetitive focus C. mass customization D. process focus
D. process focus
Which of the following approaches is also called a "job shop?" A. work-cell layout B. fixed-position layout C. product-oriented layout D. process-oriented layout
D. process-oriented layout
Listing products in descending order of their individual dollar contribution to the firm is called A. product decision. B. product life cycle. C. brainstorming. D. product-by-value analysis.
D. product-by-value analysis.
Which of the quadrants in the service process matrix has high labor intensity and high customization? A. mass service B. service shop C. service factory D. professional service
D. professional service
Taguchi's quality loss function is based on a A. linear equation. B. negative exponential distribution. C. binomial distribution. D. quadratic equation.
D. quadratic equation.
Work cells typically have A. increased work-in-process inventory. B. increased raw materials inventory. C. increased direct labor needs due to specialization. D. reduced investment in machinery and equipment.
D. reduced investment in machinery and equipment.
Which of the following determinants of service quality means the firm performs the service right the first time and that the firm honors its promises? A. credibility B. competence C. responsiveness D. reliability
D. reliability
Which of the following is a requirement to be able to compute expected monetary value? A. each state of nature is equally likely to occur B. each decision alternative needs at least two states of nature C. the probability of each decision alternative is known D. the probability of each state of nature is known
D. the probability of each state of nature is known
Which of the following techniques might a service or retail organization use to make a location decision? A. crossover charts B. transportation method C. locational cost-volume analysis D. traffic counts
D. traffic counts
What is a review of successful products that takes place during the production process? A. CAD B. LCA C. virtual reality D. value analysis
D. value analysis
Which of the following arranges machinery and equipment to focus on production of a single product or group of related products? A. process-oriented layout B. product-oriented layout C. fixed-position layout D. work-cell layout
D. work-cell layout
Value analysis takes place
during the production process when it is clear the new product is a success
