C720 All Unit Quizzes - Operations and Supply Chain Management
How do firms primarily benefit from having more cross-functional teams?
Decision making improves because team members share knowledge and understand the needs of the firm.
A periodic inventory system is most likely used by a firm when its suppliers ________.
Deliver only at specific intervals
MRP II is an extension of MRP I that become necessary when computer hardware speed exceeded the ability of MRP I to keep up.
False
Moving from an MRP system to MRP II facilitated better data exchange between manufacturing and advertising.
False
Operations managers rarely become involved with worker safety or environmental pollution complaints because such ethical issues are only handled by organization's legal department.
False
True or False A fast-food restaurant that schedules more workers on historically busy days of the week and fewer workers on typically slow days is using the peak demand scheduling approach.
False
True or False. A well-developed problem statement can be constructed by averaging the results of customer ratings in post-purchase surveys.
False
True or False. According to Dr. W. Edwards Deming, in a manufacturing environment, quality improves when management establishes very specific work quotas.
False
True or False. According to Genichi Taguchi, high levels of quality are achieved when a company closely inspects products after they are manufactured and before they are sold to customers.
False
True or False. After analyzing the situation at the firm, it is recommended that the firm ship products in thicker corrugated boxes to protect items from damage. Once the recommendation is implemented, monthly warranty costs drop from 5% to 4.5%.
False
True or False. For the benchmarking process to provide useful information, the two companies being compared must be direct competitors in the same industry.
False
True or False. In an organization that fully implements total quality management, the quality control department maintains sole responsibility for product and service quality.
False
True or False. Joseph Juran asserted that quality is based on four components: quality improvement, quality control, quality planning, and quality circles.
False
True or False. The first step in the Six Sigma methodology involves measuring current processes to determine the frequency of problems.
False
True or False. When collecting data for statistical process control, a histogram is the primary tool for recording raw data at the location where data is generated.
False
True or False? Although consumers and organizations benefit from the improved efficiency and lower product costs that result from team-oriented operations, teamwork typically results in fewer job opportunities and lower wages for an organization's employees.
False
True or False? Due to the pressure to compete globally, an increasing number of firms are changing their organizational structures. Instead of being organized by business processes, more firms are being organized by business functions.
False
True or false? A product-oriented layout is characterized by demand for a variety of products that have different production requirements.
False
True or false? Although inventory can help companies meet demand, maintaining inventory hinders a company's efficiency and increases costs.
False
True or false? Any organization that adheres to the universal set of customer requirements will develop a competitive advantage and succeed in its industry.
False
True or false? As indicated with flat-screen televisions, when a firm makes improvements to product quality, product costs increase significantly.
False
True or false? Supplier development, which is increasingly important as more firms insource, involves helping both key suppliers and marginal suppliers improve their production and service capabilities.
False
True or false? The aggregate production plan for JIT firms and MRP firms is nearly the same, except that the JIT planning horizon is typically longer.
False
True or false? The typical planning horizon for master production schedules is one year because that is the same timeframe of effective aggregate plans.
False
True or false? When developing systems to produce goods and services, firms must assemble the necessary internal resources, such as employees and equipment. At this stage, organizations should avoid using external resources to ensure the protection of product ideas.
False
True or false? When evaluating location alternatives, a service firm considers qualitative factors, such as labor and transportation costs, and quantitative factors, such as quality of life and cultural activities.
False
True or false? When operations managers use forecasting models, they should consider the forecast to be factual and complete.
False
Which ethical issue would impact an operations manager the most?
Faulty worker safety gear
If an organization sees an opportunity to develop a product in-house that was previously produced by an outside vendor, the organization would most likely decide to engage in ________.
Insourcing
Product characteristics and attributes are the basis for measuring quality if a company has an ________oriented definition of quality.
Internally
Which statement about inventory is correct?
Inventory benefits a company's suppliers by forecasting customer demand
Unlike other quality management strategies, Six Sigma ________.
Involves a five-step methodology
In an effort to improve its warehousing capabilities, managers at Bowman Industries are considering using Solex Industries as a benchmark. Which question is most relevant in this situation?
Is Solex considered the best at warehousing?
Managers at Babson Industries are conducting a SWOT analysis. Which of the following questions will most likely uncover potential threats?
Is technology altering how consumers use Babson products?
Which statement about JIT planning and scheduling is correct?
JIT firms only use the master schedule when ordering items with long lead times.
Which of the following processes would produce the lowest volume of similar products?
Job shop
Which of the following is a philosophy of operation that strives to maximize efficiency and eliminate all forms of waste?
Just-in-time
In an operations environment, which of the following signals the need for more materials, parts, or subassemblies at downstream operations?
Kanban
Due to the rising popularity of___________ supply chains, bottlenecks are an increasing problem for firms, especially when unanticipated supply shortages occur.
Lean
Typically used for products with stable, predictable demand and little innovation, __________ supply chains operate efficiently to reduce costs and minimize inventory levels.
Lean
A manufacturer that uses the assembly line process strives to attain ________, which requires assigning the same amount of work to each workstation and having the appropriate number and type of workstations.
Balance
Which of the following is a qualitative factor that best explains why fast food restaurants often cluster in the same location?
Being close to competitors and customers
Managers at Birdwell Enterprises are debating whether the firm should use a regional facility strategy or a product facility strategy. Which of the following supports the use of a product facility strategy?
Birdwell's production process is complicated and difficult to control.
If a company manufactures a product that experiences stable, predictable demand in an industry with little innovation, which of the following would improve efficiency and minimize costs?
Lean supply chain
Which of the following best describes the purpose of a bill of materials?
Listing the components of a product
The business strategy of TAC Industries includes meeting customer demand for product variations. The operations manager of TAC Industries is considering the use of a flexible manufacturing system (FMS), which would support the production of a high variety of products. What are the characteristics of an FMS?
Low variable costs, high fixed costs, and high volume
Which statement about calculating the mean squared error (MSE) is true?
MSE helps avoid the potential of underestimating errors.
By applying current technology to operations management, a firm is most likely able to
Make better products with fewer resources
A local gasoline station uses TexGas as its gasoline supplier. TexGas will only refill the station's gasoline storage tanks on Mondays. Based on this information, which type of inventory systems does the gasoline station most likely use?
Periodic inventory system
A _____________ inventory system continuously monitors inventory levels and records inventory transactions as they occur.
Perpetual
A key advantage of a ________ system is that a firm can keep a running balance at all times of the amount of capital invested in inventory.
Perpetual inventory
At Sportz Sporting Goods, the bar code of every product sold is scanned at the register and recorded in the retailer's computer system. With this system, managers always know the store's inventory levels and can avoid running out of products that are in high demand. Which of the following does Sportz most likely use?
Perpetual inventory system
RTX Construction is in the process of building a high-rise apartment building. The project is delayed by three weeks when the area experiences heavy rains and flooding. RTX Construction primarily faces a ________ bottleneck.
Physical
Which component of the Plan-Do-Check-Act cycle involves identifying opportunities for improvement?
Plan
The Acme Clothing Store has an inventory system that automatically tracks what has been sold the minute that it is entered into the cash register. What is the Acme Clothing Company utilizing to help keep track of its inventory?
Point-of-sale data
When estimating effective capacity, an operations manager is most likely to consider ________.
Potential production delays
Forecasting is best defined as an effort to ________.
Predict and plan for the future
Which of the following declined in the U.S. because of improvements in farming methods and machinery in the mid- to late-1800s?
Price of food
Which statement about inventory in JIT systems is correct?
Problems and inefficiencies in operations are identified quickly in JIT systems.
________ involves determining the most appropriate method of completing a task based on technical issues and scale issues.
Process selection
A company with an internal orientation towards quality primarily focuses on ________.
Product characteristics
In the 1950s, Coca-Cola replaced glass bottles with lighter, less costly aluminum cans without changing the taste of the soda. This operations change best illustrates how technology altered Coca-Cola's
Product design
According to the ________, a firm has one manufacturing location that produces a single product that is shipped throughout the world.
Product facility strategy
Carbon Computers has a manufacturing plant in Tennessee that is solely responsible for producing the firm's line of tablets, which are shipped internationally. The firm has a second manufacturing plant in Kansas that is solely responsible for producing the firm's line of laptops, which are also shipped around the world. Carbon Computers has implemented a ________.
Product facility strategy
Which of the following is calculated by determining the ratio of outputs achieved divided by the inputs consumed to achieve those outputs?
Productivity
Which statement best explains how productivity affects a nation's standard of living?
Productivity involves less labor and resource usage, which reduces product unit costs.
Which statement about productivity is most likely true?
Productivity measurements are more precise than efficiency measurements.
Managers at Concord Manufacturing are in the process of evaluating locations for the firm's next manufacturing facility. Which of the following is a qualitative factor that the managers should consider?
Supplier proximity
CTX Manufacturing maintains a significant inventory of power tools and lubricant, which support the firm's production process. Which type of inventory does this situation describe?
Supplies
In most cases, companies that sell products and companies that sell services both maintain inventories of
Supporting goods
refers to the organizational issue of balancing financial profitability with environmental responsibility.
Sustainability
Paxton Industries has completed the product development process for a new digital camera. Managers at the firm are now developing systems to produce the camera. Which of the following is important for Paxton managers to consider during the system development process?
Systems development tasks should be interdisciplinary to achieve the best results.
Which statement best explains why team problem solving facilitates the implementation of a decision?
Team members involved in the decision-making process typically feel committed to making a chosen approach work.
Executives of Yummy Yogurt want to forecast sales behavior in San Antonio, a city that executives believe would be profitable for the company. For one month, Yummy Yogurt sells its products from a temporary kiosk in a local mall to determine product demand. Which qualitative forecasting approach is Yummy Yogurt using?
Test market
Which of the following best defines productivity?
The ratio of outputs achieved divided by the inputs consumed to achieve those outputs
True or False For operations managers who are in charge of continuous flow processes, the primary scheduling dilemma involves knowing the best time to switch from making one product to making another product.
True
True or False. According to Deming, today's organizations benefit from training employees to use statistical process control tools.
True
True or False. According to Philip Crosby, most firms underestimate their failure costs and would benefit from evaluating all costs of quality.
True
True or False. An auto mechanic who correctly repairs a customer's transmission illustrates the service quality dimension of reliability.
True
True or False. Organizations that adhere to a philosophy of continuous improvement are likely to assemble cross-functional teams for the purpose of assessing current conditions, evaluating organizational activities, identifying problems, and developing solutions.
True
True or False. Understanding how customers use products and services helps companies to develop new technologies that improve and achieve external quality.
True
True or False? Organizations with flexible operations respond quickly and inexpensively to the changing needs of customers.
True
True or false. If quality is defined from an external perspective, then a company focuses on identifying and meeting customers' needs.
True
True or false? As manufacturing processes became more automated in the early 1900s, more job opportunities became available in the service sector, which improved the overall standard of living in the U.S.
True
True or false? Capacity utilization is a metric that helps operations managers determine the average amount of capacity used.
True
True or false? Carrying costs include the costs for storage space, while ordering costs include the costs of replenishing raw materials.
True
True or false? Dependent demand refers to demand for a product that is generated by a firm's production processes.
True
True or false? For a firm that wants to develop a competitive advantage as a low-cost leader, flow-oriented processes are appropriate.
True
True or false? For an automotive manufacturer, an aggregated plan would state the firm's planned monthly output by product group.
True
True or false? In a manufacturing environment, keeping low levels of inventory can enable operations managers to identify workflow inefficiencies and problems quickly.
True
True or false? Regression analysis can be used to predict both cross-sectional data and time-series data.
True
True or false? When U.S. firms outsource to low-cost suppliers in Mexico, India, and China, supply chains become longer, which often increases transportation and inventory costs.
True
When a firm is trying to develop a competitive advantage, which of the following must occur first?
Understanding customers and the environment
Firms that want to minimize their total annual costs of ordering and holding inventory are likely to ________.
Use the economic order quantity model
What is the best method for measuring process variables?
Using check sheets and Pareto charts to identify the most common reasons for warranty claims
Executives at AXI Electronics have implemented a new quality management effort based on the philosophy of Genichi Taguchi. The company is building a manufacturing facility and hiring hundreds of workers to build a new tablet. Which of the following best illustrates the philosophy of Taguchi?
Using production equipment that eliminates variations in the quality of AXI tablets caused by employee errors.
TXZ Semiconductor manufactures computer chips used in cell phones. Recently, the company has had an increasing number of defective computer chips. Which of the following would likely enable TXZ Semiconductor to correct this costly problem?
Using statistical process control to monitor the chip manufacturing process at TXZ
Which of the following is likely to occur in the "improve" stage of Six Sigma?
Utilizing kaizen teams to make immediate process changes
Which tool is used in the Six Sigma "define" phase to provide an overview of an entire process and identify what is necessary to meet customer needs?
Value Stream mapping
Which of the following is a technique used to analyze the flow of materials, ideas, and information to understand how processes function?
Value stream mapping
The main scheduling problem that must be addressed when a manufacturer uses a continuous flow process relates to ________.
changing the type of product being manufactured
A company that is implementing JIT would benefit from all of the following strategies except ________.
increasing overtime
In the EOQ model, the economic order quantity is the point at which the ________.
total cost function is minimized
A ________inventory system is used when a supplier will only deliver raw materials on a monthly basis.
Periodic
Which aspect of a Hyundai Sonata best illustrates the reliability dimension of product quality?
10-year powertrain warranty
In a JIT environment, the master schedule usually has a ________ planning horizon.
2-3 month
Which term refers to a business running out of inventory?
Stockout
What is the typical length of time considered in long-range operations planning?
5 years
The Fill-er-Up gas station has found that demand for its unleaded gasoline is fairly constant and uniform at the rate of 100,000 gallons per year. Fill-er-Up must pay $100 for shipping per order of gasoline, which it currently buys for $3.75/gallon. Inventory carrying cost is 10% of unit cost per year. How many gallons should be ordered at a time?
7,303 gallons
Which of the following best describes a competitive advantage?
A capability valued by customers that gives a firm an edge over its rivals.
In terms of a SWOT analysis, which of the following best describes a strength?
A characteristic that makes a product unique in comparison to the competition
Which of the following is an example of an internal failure cost?
A restaurant discarding spoiled dairy products
By implementing the theory of constraints (TOC), an operations manager is attempting to ________.
Achieve optimal throughput
After comparing different sedans, Tanya purchases a Toyota Camry instead of a Honda Accord because she prefers the appearance of the Camry. Tanya makes her decision based on the ___________ dimension of quality.
Aesthetics
________ involves combining individual end items into groups or families of parts for planning purposes.
Aggregate planning
Operations managers at Putnam Computers directly facilitate the achievement of organizational goals by
Allocating financial resources
Operations managers primarily help a firm implement a strategy by
Allocating resources
Which statement about master production schedules (MPS) is correct?
An MPS is a detailed extension of the aggregate plan.
Which of the following is an indication that an automaker uses JIT?
An exhaust pipe arrives as a car is ready to have it installed on the assembly line.
What would most likely cause a labor bottleneck at Simpson Manufacturing?
An insufficient number of line workers
Which statement about the relationship between strategy and operations is most likely true?
An operations strategy should develop from an organization's overall strategy
Which of the following best describes value stream mapping?
Analyzing the flow of materials, ideas, and information to understand how processes function.
Managers at Feldman's Fried Chicken, a national fast-food chain, are implementing the Plan-Do-Check-Act cycle to ensure consistent food and service. So far, the managers have determined that the length of time that orders are filled at the drive-through window is too long. New procedures for taking food orders have been implemented and changes have been documented. What should occur next in the Plan-Do-Check-Act cycle?
Analyzing the new process to determine if orders are being filled faster
________ are incurred when a company evaluates customer satisfaction.
Appraisal costs
Managers at Johnson Computers want to understand the expectations that customers have about their products. What is the first step the firm should take to accomplish this goal?
Asking customers what they want in a product
Managers at Comfort Food, Inc., a frozen food company, are considering the idea of changing product packaging and portion sizes. Prior to implementing this decision, the marketing department needs to gather information about the voice of Comfort Food customers. Which of the following would most likely enable the marketing department to accomplish this task?
Asking regional focus groups to discuss their expectations of Comfort Food products
Which of the following best explains the main purpose of using a house of quality matrix?
Assessing the trade-offs between customer needs and product design features
With the assembly-line process, which of the following reduces waste and improves balance?
Assigning equal amounts of work to each workstation
Which of the following is not one of the three main components of total preventive maintenance (TPM)?
Assigning managers to implement maintenance.
During a routine physical exam, Dr. Dodd politely answers Mark's questions about heart disease. Dr. Dodd discusses the benefits of exercise and a healthy diet as well as medications that are available to prevent heart disease. Dr. Dodd seems confident and knowledgeable. Which service quality dimension does this example best illustrate?
Assurance
A business most likely keeps safety stock to ________.
Avoid stockouts
When a firm uses a panel of experts for forecasting purposes, the objective is to ________.
Build consensus quickly
The qualitative forecasting method of starting at the bottom of an organization and making an overall estimate by adding together estimates from each element is known as the ________.
Buildup method
In order to develop a competitive advantage, satisfy customers, and achieve organizational success, a firm should focus on
Business processes
Which term refers to the maximum rate of production?
Capacity
Which of the following is a metric for determining how much capacity is used, on average?
Capacity utilization
What is the formula for calculating capacity utilization?
Capacity utilization = Actual Output / Design Capacity
Which of the following is an assumption of the EOQ model?
Carrying costs are known.
How can a total quality management company promote continuous improvement?
Changing the documentation and standardization when better work procedures are found
What recommendation for improvement would best address one of the secondary causes of high warranty expenses?
Changing the type of packaging straps used to carry boxes
Which of the following would be used to collect raw data during statistical process control?
Check sheet
In an ABC analysis system, ________ items warrant closest control and monitoring through a perpetual inventory system.
Class A
An apparel company most likely use an agile supply chain because ________.
Clothing styles frequently change, and the supply chain must be able to respond quickly
Which of the following is an important component of a pull system?
Communicating backward when more parts are needed.
For an operations manager to improve the accuracy of a forecast, the manager must ________.
Compare the forecast with actual results
Which term refers to a capability valued by customers that enables a firm to improve its profitability?
Competitive Advantage
The first stage of the planning process requires developing a(n)
Competitive strategy
Which statement about supply chain bottlenecks is most likely true?
Complex supply chains make it difficult for firm's to predict shortages.
Executives at ZTX Industries want the firm to become a low-cost leader. Executives are aware that the firm may have high fixed costs due to investing in special equipment. However, they want a process that offers high-volume, mass-production operations to manufacture a highly standardized product. Which process would best fit the business strategy of ZTX Industries?
Continuous flow
Organizational performance can always be better according to the philosophy of ____________
Continuous improvement
Wilson Electronics is using statistical process control to reduce the number of defects in the computer monitors that the firm manufactures. Managers want front-line supervisors to have the ability to determine instantly when the manufacturing process is heading towards instability so that corrective measures can be taken before computer monitors become defective. Which tool would be best for this task?
Control Chart
Acme Manufacturing has a container full of parts that needs to be moved through the production cycle. However this container lacks proper documentation that prevents it from moving forward in the production cycle. What document needs to be attached to the container to authorize its movement to the next cycle in the process?
Conveyance kanban
Effective supply chain management improves the competitiveness of a global firm by ________.
Coordinating supply chain activities to minimize costs
Country X produces toys for the global market better than Country Z. However, Country Z produces appliances better than Country X. Given this information, which statement is most likely true?
Country Z should import toys and export appliances because it has a relative advantage in appliance production.
What is most important in the strategic planning process?
Creating action plans for accomplishing organizational goals
When a firm is engaged in capacity planning, which of the following is most important to consider?
Current and future market demand
A regional facility strategy would be most appropriate when ________.
Customer convenience is important
Modern companies that rely on a philosophy of total quality management (TQM) primarily use _____________ to measure quality.
Customer feedback
A firm's order fulfillment process is successful when a ________.
Customer is satisfied with the product
If a firm measures quality from an external orientation, which of the following is most relevant?
Customer needs
An automotive paint shop discovers that its customers are returning their purchases for refunds 5% of the time. Which of the following represents a well-formed problem statement?
Customers are receiving and returning a high number of defective products
The primary reason for the success of Office Solutions, an office supply company, is the firm's ability to deliver office supplies to clients within 24 hours of orders being placed. Which statement best explains the competitive advantage of Office Solutions?
Customers value Office Solutions' quick response to their needs
Which statement about demand is correct?
Dependent demand stems from a firm's manufacturing processes
Which term is defined as the maximum achievable output of a process or system?
Design capacity
When applying Six Sigma, which tool improves process performance by solving problems in real time?
Design of experiments
Employee training that focuses on the use of Pareto charts will most likely enable employees to ________.
Determine the likely causes of quality problems
In the forecasting process, what is the first step a manager must take?
Determining forecasting objectives
is the first stage of the forecasting process.
Determining objectives
Companies primarily hold focus groups for the purpose of ________.
Determining the needs and wants of customers
Hoffman Pharmaceuticals, which manufactures thirty different medications, uses batch processing. Which of the following would improve the effectiveness and efficiency of the Hoffman production schedule?
Determining the number of units to produce in one batch and the best sequence to use
A company would use an ABC analysis for the purpose of ________.
Determining which inventory items should be closely controlled
Diamond Automotive has experienced an increasing number of product defects over the last six months. In response, the firm has hired a Six Sigma expert to implement the methodology. What is the first step that should be taken by the Six Sigma expert?
Develop a project charter to define the specific problem
A firm most likely benefits from forming a strategic alliance with its suppliers by ________.
Developing access to new markets
What is the likely result of aligning a firm's operational plans with its strategy development plans?
Developing organizational synergy
What is a characteristic of companies that adopt a philosophy of continuous improvement?
Documenting revised procedures
______________requires flexibility within the organization and suggests building volume to cover fixed costs by producing a variety of products on the same equipment.
Economy of scope
_______ is defined as the maximum capacity given equipment changeovers and scheduled downtime of the production schedule.
Effective capacity
Dr. W. Edwards Deming developed 14 points for the transformation of management. Which of the following is one of Deming's points?
Eliminate management by numbers and management by objective
Which quality management strategy involves giving decision-making authority to front-line workers?
Employee empowerment
Which of the following is a key requirement for the effectiveness of the chase demand strategy?
Employees who are willing to work part time
Strategic alliances are important in operations management because they ________.
Enable firms to focus on their core competencies
Which of the following would LEAST likely cause a supply chain bottleneck?
Engaging in vertical integration
Through effective operations management, a company improves customer value by
Enhancing product quality
For a company that has implemented total quality management, which of the following would most likely create customer delight?
Ensuring that all organizational members take responsibility for quality
Which of the following best explains the primary purpose of documentation and standardization?
Ensuring that tasks are performed with consistency
E-Z Delivery Service, a local delivery company, is replacing its fleet of large delivery vans with minivans that are less expensive and use less fuel. Based on the triple bottom line, this decision by E-Z Delivery Service addresses
Environmental viability and profitability
Effective capacity is best described as maximum capacity given
Equipment Failures
The primary purpose of having time fences in a master production schedule is to ________.
Establish boundaries between periods in the planning horizon
Which of the following is a characteristic of the perpetual inventory system?
Establishing the system requires significant time and capital.
Which of the following best describes employee empowerment?
Extending employee responsibility and authority to the lowest levels of an organization
Although the quantitative tools and techniques used in Six Sigma to reduce defects are highly effective, the Six Sigma methodology lacks a useful qualitative component.
False
Demand from customers is considered dependent demand, while demand generated by a firm's production process is considered independent demand.
False
In a supply chain system, a ________ bottleneck occurs when a firm is unable to obtain a line of credit from a bank.
Financial
In a Six Sigma organization, a fishbone chart would most likely be used when a company wants to ________.
Find the underlying cause of a problem identified by a customer
________ are most likely considered independent demand items.
Finished consumer goods
A manufacturer's aggregated plan would most likely state the ________.
Firm's planned monthly output by product group
After analyzing the measurements, which of the following LEAST likely caused the firm's warranty costs to increase?
Flexible box straps
What is a characteristic of an organizational structure based on business processes?
Focusing on customer needs
Which of the following is primarily attributed to Joseph Juran?
Focusing on customers by describing quality as "fitness for use"
Which of the following is an activity of both service producers and goods producers?
Focusing on product improvement
Administrators at State University want to predict the school's future enrollment to determine if additional dormitories should be built. The administrators are currently reviewing the school's enrollment trends over the past two decades. Which planning approach are the administrators using?
Forecasting
Which planning approach involves evaluating past experiences to gain insights about the future?
Forecasting
By subtracting a forecast for one time period from the actual value for the same time period, a researcher is attempting to measure the
Forecasting error
Which statement about the use of forecasting is correct?
Forecasts are possible scenarios that should be tempered with reality
Wilson Foods owns its distribution networks and retail outlets for the purpose of promoting supply chain coordination. Wilson Foods engages in ________.
Forward vertical integration
________ refers to moving products, materials, information, and components through a supply chain that is scattered around the world.
Global logistics
Which of the following is a quantitative factor that influences location decisions for manufacturing firms?
Government incentives
ATX Industries, which uses JIT, would like to reduce set-up time as much as possible. Which of the following would help the firm accomplish this goal?
Having all set-up tools and equipment available in the right locations.
Which of the following best describes the peak demand approach to scheduling services?
Having enough capacity available at all times to meet the highest possible demand
Which of the following is an advantage of the periodic inventory system?
Having low implementation expenses
Nikon is seeking a competitive advantage and mass market appeal for its latest compact digital camera. Which combination of quality and cost would be best for Nikon?
High quality, low cost
A ________, which is also known as a box chart, illustrates the frequency of data observations within a preset range of values.
Histogram
Which statement about inventory is correct? Carrying costs and set-up costs are synonymous terms. Subassemblies produced in-house are considered carrying costs. Replenishing inventory is costly, but storing inventory is not. Holding inventory includes both fixed and variable costs.
Holding inventory includes both fixed and variable costs.
Which tool enables a firm to evaluate the relationship between customer expectations and product design characteristics?
House of quality matrix
Managers at Wilson Electronics, a total quality management (TQM) company, have requested that internal measurements of quality be taken. Which of the following questions is most relevant for this task?
How many customer complaints did Wilson Electronics receive this month?
Awesome Pizza uses an internally oriented definition of quality. Which question is most relevant to an Awesome Pizza manager when conducting a monthly quality assessment?
How many pizzas are delivered on time?
When a firm is developing a system to manufacture a product, ________ is/are essential for making the system work.
Human resources
The first step in the theory of constraints (TOC) process is to ________ system constraints.
Identify
Benson Manufacturing defines quality from an external perspective. In order to create a quality product, what should Benson do first?
Identify customer expectations
The theory of constraints (TOC) improves the capacity planning process by ________.
Identifying and understanding bottlenecks
What conclusion can be drawn after measuring and analyzing process variables?
Identifying the main factors which contribute to an underlying problem.
Measuring process variables involves
Identifying those aspects of a process most relevant to an underlying problem
Managers at Martin Manufacturing have determined that employee empowerment would boost employee morale and organizational efficiency. Which of the following should be implemented at Martin Manufacturing to empower employees?
Implementing team performance evaluations
The primary reason that many firms are shifting to leaner organizational structures is to
Improve decision making
Which statement best explains the value of operations management?
Improved organizational efficiency enables organizations to invest in product improvements and innovations.
Which statement about product cost and quality is most likely true?
Improvements in product and process technology help firms achieve the best balance of high quality and low cost products
If a company's teamwork-oriented operations are managed effectively, what is the likely result?
Increased product sales
Operations managers at Lawton Automotive are considering the idea of using robotic arms instead of line workers to install tires on cars during the manufacturing process. What would be the likely result of implementing this process technology?
Increasing production speed
Executives at Coffman Computers are considering the idea of changing the firm's organizational structure, which is based on functional areas. What would be the primary benefit of Coffman Computers implementing a structure based on business processes
Making quicker, better decisions
Firms use material requirements planning (MRP) to ________.
Manage inventory for dependent demand items
Which statement about product safety is most likely true?
Managerial judgment is often necessary when determining appropriate product safety labels.
According to Joseph Juran, _________ are primarily responsible for ensuring that a company manufactures quality products.
Managers
A firm would most likely use the job shop process to ________.
Manufacture a high volume of products
Which statement best explains why companies should probe customers about their product needs?
Many customers have unspoken product expectations and desires.
Patrick wants a unique pair of basketball shoes, so he goes to the Nike website to design an original pair. Patrick can choose the colors for the exterior material, interior lining, shoelaces, and the Nike swoosh, and he can also have his name embroidered on the shoes. The price of Patrick's special shoes is only slightly more than a basic pair, and the shoes will be delivered to Patrick in a few weeks. What tool is Nike using to gain a competitive advantage?
Mass Customization
A ________, which is based on the aggregate plan, is designed to specify exactly what will be manufactured and when it will be manufactured.
Master production schedule
When comparing quantitative factors to make effective location decisions, management must organize and compare the potential ____________ for each site.
Material and construction costs
Which of the following is used to manage inventory for dependent demand items?
Material requirements planning
Which of the following would most likely use a product-oriented layout?
Mattress manufacturer
Which of the following best defines design capacity?
Maximum achievable output of a process in ideal conditions
The differences between the actual value of a variable and the forecasted value are squared, added together, and divided by the number of observations. The result is called the ________.
Mean squared error
Which of the following suggest that Speedy Oil and Lube is experiencing motion waste?
Mechanics searching for lost tools
A stable inventory primarily helps businesses to ________.
Meet customer demand
Which of the following represents information that should be included in a well-formed problem statement?
Percentage of gross revenue lost from product return costs
Design capacity is based on how a system ________.
Performs under ideal conditions
In his book Quality is Free, Philip Crosby primarily asserts that firms can save money by ________.
Not increasing
Automotive Experts is an automotive repair shop that provides a wide range of services for many brands and types of cars. Given that Automotive Experts has a process-oriented layout, what would be the firm's best metric of capacity?
Number of completed service orders per work bay
Which of the following would a total quality management (TQM) company most likely use to evaluate quality?
Number of returned products
Eric purchases a Dell laptop through the Dell website. The laptop is delivered to Eric's home five days later. After using the laptop for a few days, Eric decides he is satisfied with the purchase. Given the information provided, Dell has been successful at ________.
Order fulfillment
________ refers to obtaining a customer's order, placing the order in the firm's information system, delivering the product, and satisfying the customer with the product.
Order fulfillment
In the fixed order interval model, what does the formula M = D(R + L) calculate?
Order-up-to level
The Acme Retail Company is aware of the importance of maintaining inventory. Acme consistently brings inventory back up to a level sufficient to cover anticipated demand before the next order is received. This is an example of what?
Order-up-to level
Which term refers to the arrangement of formal relationships between a firm's functional areas?
Organizational Structure
What is a key requirement for gaining economies of scope?
Organizational flexibility
Watson Computers obtains the parts required to build its desktop computers from a variety of suppliers located in Mexico and India. Watson Computers engages in
Outsourcing
If a firm manufactures large batches of products due to high setup times and costs, what type of waste will most likely occur?
Over-production
According to an analysis of the measurements, the primary cause for an increase in warranty costs is that ________.
Packages are shipped without all essential parts
An engineer wants a visual representation of the most frequent occurrences in descending order among all data points. Which statistical process control (SPC) tool would be most useful?
Pareto chart
Which tool is used to categorize and rank product defects on customer warranty claims?
Pareto chart
Which of the following best describes work-in-process inventory?
Partially finished components
A service firm that has sufficient capacity available at all time to meet maximum expected demand is using the __________ approach to scheduling.
Peak demand
___________ is a services scheduling method often used by utility companies that involves having enough capacity available at all times to meet the maximum expected demand.
Peak demand
A sports apparel company promotes the brand image of its products through mass market commercials, team sponsorships, and social media campaigns. On which dimension of product quality is the company focusing?
Perceived quality
Managers at Taylor Tool Company are using the philosophy of Dr. W. Edwards Deming to improve product quality. As part of the firm's efforts, which of the following actions will most likely be implemented?
Providing on-the-job training to new employees
After conducting customer surveys, managers at the national hotel chain, Holiday Hotels, determine that the company needs to improve its service quality, primarily in the area of responsiveness. Which of the following would most likely help the company achieve this goal?
Providing room service orders quickly
The owners of Freedom Footwear, a retail shoe store chain, are evaluating potential locations for a new store. Although the firm has a website, the majority of its sales take place in its physical outlets. Which of the following is a qualitative factor that would be most important for the firm?
Proximity to customers
A ---------- moves materials and parts based on actual needs at successive work centers.
Pull system
The Top Toy Company has launched a new product that has had more success than expected. Top Toy now must respond to market demand rather than operate from forecasts. What production technique is Top Toy employing?
Pull system
Which of the following is an MRP output that authorizes a vendor to supply parts?
Purchase order
_________________________________refers to a method of transforming customer needs and expectations into product design characteristics.
Quality function deployment
What is the primary goal of Six Sigma?
Quality of improvement
Which statement best summarizes a key aspect of Taguchi's philosophy about quality?
Quality variations can be eliminated through robust design
Which of the following best explains how to use an ABC analysis?
Ranking inventory items by their dollar usage from highest to lowest.
Which time-series technique should be used if a firm wants an estimate to be continually revised to include the most recent data?
Rapid-change forecasts
Which type of inventory is obtained from suppliers and used in the manufacturing process?
Raw materials
In the forecasting process, which of the following occurs during the application of the forecasting model?
Real-world constraints are considered
Which of the following is a characteristic of a perpetual inventory system?
Recording inventory transactions as they occur.
In statistical process control, check sheets are used for the purpose of ________.
Recording raw data from the source in real time
What advice about quality control would Philip Crosby most likely give to a manufacturing firm?
Reduce failure costs by making products correctly the first time
A firm that uses JIT would most likely use a group technology production system to ________.
Reduce set-up time
The purpose of value stream mapping is to ________.
Reduce the impact of non-value-adding activities on product cost
In JIT systems, which of the following significantly helps operations managers to uncover workflow problems quickly?
Reduced inventory levels
A JIT firm that utilizes a level schedule is likely to reduce its costs by ________.
Reducing employee overtime
Malcolm, an operations manager at Carson Industries, has been assigned the task of implementing the firm's environmental stewardship strategy. Which of the following would be the best way for Malcolm to accomplish this goal?
Reducing energy consumption at Carson manufacturing facilities
Which of the following is a key component of JIT?
Reducing inventory investments
Which statement about variability is correct?
Reducing variability is a method of improving competitive advantage.
Dixon Manufacturing has plants in Texas, Ohio, Georgia, and Minnesota. Each manufacturing facility has a defined marketing area, and each facility produces a complete line of products for that area. Dixon has implemented a ________ strategy.
Regional facility
When a firm implements a __________ strategy, each of its manufacturing plants has a specified marketing area and manufactures a complete line of products for that area.
Regional facility
For the last 20 years, U.S automakers have struggled to compete with their Japanese competitors. The highly effective distribution systems, management practices, and global strategies of Toyota and Honda have allowed these Japanese automakers to develop a _______ in the auto industry.
Relative advantage
The difference between the lowest cost producer of a good and the next-lowest cost producer of the same good is known as a(n)
Relative advantage
Which of the following is an example of an ordering cost?
Replenishing inventory from a supplier.
Which of the following is LEAST likely to be a characteristic of team problem solving?
Resolving issues quickly
With batch processing, when operations managers know the ______________, they can determine which product should be produced next.
Run-out time
The Acme Retail Company knows that it takes two days for its supplier to deliver 200 T-shirts. Acme also knows that when there are 50 shirts left in inventory, stockout will occur in four days. To prevent a stockout, Acme Retail keeps an extra 70 T-shirts in its inventory, which is known as ________.
Safety stock
How do suppliers benefit from using vendor-managed inventory systems?
Selling more products to retailers
Which statement best describes the purpose of benchmarking?
Setting a performance standard for a business activity
Which of the following is NOT input data needed for MRP?
Shop order
Capacity planning is important for both service and manufacturing businesses because ________.
Significant financial investments are needed to build facilities and buy equipment
When forecasting, Coffman Enterprises uses only the most recent time period to project the next time period. With this method, each time period has the same weight. Which forecasting method is the firm using?
Simple moving average
Which statement about services providers and goods producers is true?
Some service providers operate like manufacturers because they sell a finished good.
Southern Airline adheres to a philosophy of total quality management and encourages all employees and suppliers to share responsibility for quality. What is the likely result of these efforts by Southern Airline?
Southern Airline meets customers' needs and expectations.
An organization focused on continuous improvement should engage in ___________, which involves creating preset procedures for job tasks.
Standardization
_______________ involves using methods and tools to determine the stability of a manufacturing process and reduce the number of product defects.
Statistical process control
Which component of a master production schedule acts as a boundary between periods in the planning horizon?
Time fence
In a master production schedule, ---------- serve as boundaries between periods in the planning horizon.
Time fences
Managers at Paxton Automotive have decided to organize employees into teams for the purpose of addressing recent quality problems. Which of the following would promote the effectiveness of the teams?
Training employees in the use of group problem-solving tools
Focus groups enable companies to listen to the voice of the customer and learn about customer needs and expectations.
True
The chase demand scheduling strategy is implemented by ________.
Varying workforce levels
________ involves a supplier having access to a retailer's sales data and inventory levels to help the supplier plan production and to provide the retailer with more goods as needed.
Vendor managed inventory
In terms of economies of scale and economies of scope, a firm's process selection should focus on the ________.
Volume demanded by the market
________ refers to a type of waste that occurs when a good is not being transported or processed.
Waiting
In a SWOT analysis, ______ refer to internal characteristics of a company that could create a disadvantage for the company.
Weakness
Which of the following questions would most likely be addressed by a medium-range operations plan?
What should be the operating hours of our facilities?
Which statement best explains how teamwork-oriented operations affect a firm's ability to compete?
When labor and management work together, a firm's productivity, quality, and sales improve
Which question is most relevant to ask when creating a schedule for a continuous flow process?
When should a product changeover be implemented to minimize costs?
When scheduling a batch process, run-out time answers which of the following questions?
Which product should be produced next?
With the assembly-line process, a manufacturer can achieve balance by ________.
determining the optimal number of workstations and assigning each station equal work
MRP II differs from MRP primarily in that it enables:
more data from more sources.
When customers place product orders at BlueShoes.com, the retailer's computer system requires customers to enter their e-mail addresses twice. If the two addresses match, then a customer is allowed to proceed to the next screen. What cost of quality does this example illustrate?
not appraisal
A key advantage of team problem solving is that team members ________.
not engage or ensure
What is the primary purpose of using statistical process control?
not identify or establish
In the Plan-Do-Check-Act cycle, what occurs in the "check" stage?
not identifying not docum
What recommended change leads to a decline in monthly warranty costs?
not thicker or redesign
In a manufacturing facility that uses JIT, changing and adjusting equipment are aspects of ________ that can disrupt the steady flow of materials.
set-up time
