20: Operations Management
Draymond works for Klay's Curry Outlet and is pitching the concept of Six Sigma to the CEO. Which of the following would best help Draymond describe the outcome of attaining Six Sigma certification?
Companies that reach Six Sigma have almost no errors thanks to improved quality and reduced waste.
Caesar leads several projects at Apple Pie Industries. He likes to utilize a simple bar graph that shows how much work has been completed on various projects along with processes that are falling behind schedule. Caesar is using a(n)
Gantt chart.
The Fresh Specialist Company goes through a thorough inspection each year relating to its quality assurance procedures. The company is also required to document its quality procedures and demonstrate compliance with various management standards. Fresh Specialist is most likely guided by ________ procedures.
ISO 9000
Ilya is an independent quality assurance expert. She is sent to Evolution Hardware to review the quality assurance procedures in the company's manufacturing and shipping areas. She also reviews procedure documentation and employee training records related to the quality assurance procedures. Evolution Hardware is most likely using the ________ technique.
ISO 9000 series
How does Six Sigma benefit managers as they approach quality issues?
It gives reassurance that there are solutions to problems that are backed by data.
In which scenario would just-in-time inventory be least effective?
LAG Company, whose primary supplier is in a different country.
Which statement best describes the difference between a manufacturing business and a service business?
Manufacturing businesses deal mostly with things, while service businesses deal mostly with people.
Marquis is preparing for an onsite job fair at his company's headquarters. He has reserved rooms, drinks, and appetizers for the event. He will also need to engage and schedule department managers to be available for interviews. Lastly, he will need to advertise the event. He lists out each of the tasks required for each portion of the project and estimates their respective completion times. Marquis is most likely conducting a(n)
PERT chart.
The QA lead at Tamblin Paving needs to convince the Board that attaining Six Sigma is a good idea. Which of the following would best support her argument?
Tamblin would have no more than 3.4 defects per million products.
Why are Gantt charts and PERT diagrams are useful to companies?
They help ensure that projects are completed on time.
All-Star Construction is conducting a program evaluation and review technique analysis. What will be the most likely outcome of this evaluation?
They will know the total time needed to complete the project.
Thompson Company creates trailer hitches for cars and trucks as customer orders dictate. At a meeting, the CEO asks the Operations Manager to consider shifting from an intermittent production process to a continuous production process to increase output and profit. Which of the following would be the best response?
This is not a good idea. We are better suited to utilize an intermittent process so that we can continue to manufacture different products as needed.
Xavier works as an inventory manager for Amity Enterprises. He has been asked to prepare lists of the materials that go into each of the products the company produces. These lists can best be described as
a bill of materials.
Which is the best example of a manufacturing business?
a dairy farm
Which business is using a process layout?
a dining room manufacturer that creates the hutches, chairs, and tables in separate production departments
Which business is an example of the use of synthetic transformation?
a food manufacturer that produces a variety of single-serve meals by adding different meats or vegetables to the package
What would be the best example of a company that should use an intermittent production process?
a jeweler who designs rings and bracelets per customer requirements
Jackee's Retail Outlet is opening its first store and has been searching for a new site for the building. It would make the most sense to build in location is near to which of the following?
a large metropolitan area
Which example demonstrates how automation impacted the history of production?
a steel working company adding robotic lifts and welders to replace humans on its assembly line
Which scenario best describes the concept of a continuous production process?
a water treatment plant that cleans water for daily consumption by residents in the community
What would be the primary benefit for a company that chooses to use many suppliers for their raw materials?
ability to have a backup supplier if one is unable to meet their needs
King Wood Flooring is building a new facility and decides to locate near an area with high unemployment rates. What is the most likely reason for doing this?
access to readily available labor force
A company would most likely consider moving away from a just-in-time inventory system when it is
acquiring a competitor to diversify its product line.
Dayton Manufacturing produces stuffed animals. It uses short production runs and the machines are changed frequently depending on which type of stuffed animal is being produced. This is an example of
an intermittent process.
FFS, Inc. is a logging company based in Oregon. They cut down trees and sell parts of the tree to different businesses. They create mulch by shredding the bark and branches and then they sell the mulch to landscaping companies. They cut the trunk into different-sized pieces and then sand the pieces before selling them to home improvement stores. Which operations process best describes what FFS is doing?
analytic transformation
Shizuka runs a pig farm. She sells the pigs to a butcher who slaughters the pigs and turns them into bacon, pork chops, and ham. This example best describes the _________ process.
analytic transformation
What is the role of registrars in the ISO 9000 process?
audit the various quality assurance procedures
Priyanka is the CEO of Stamp Manufacturing. She believes in measuring the quality and service that Stamp provides against that of her competitors. This is best described as
benchmarking.
Which component of a materials requirement planning system allows a company to know all that is required to go into a finished product?
bill of materials
Rocky Rainbow Company has hired a team of specialists to implement a total quality management system. What would be the best place for this team to start?
compare company performance against their top competitors
Drax Architecture uses design software to create schematics for its various projects. The schematics are then electronically sent to the manufacturing system where the production team assembles a detailed model of the project. Drax is most likely using
computer-integrated manufacturing.
If Shaik wants to get a job managing the facilities at an electric utility company, he should be familiar with which production process?
continuous
KTI Gadgets doesn't store its supplies at its production center; instead, it has suppliers deliver supplies on an as-needed basis. What is the most important benefit of using a model like this?
decreases costs associated with storage
Jillian works with the quality assurance team at Pepper Grinder Enterprises. She is responsible for their ISO 9000 processes. Which of following would best describe her responsibilities?
documenting QA changes and simplifying the reporting process
Forrester Shipping is designing a new supply-chain management system. What would be the most important consideration the company should make as it begins this process?
ensure that its suppliers are involved in the design process
Norski Manufacturing wants to implement a system that will track everything from customer needs, orders, shipping, and payments. Which type of system would be the best for them to investigate?
enterprise resource planning
Salient Solutions has grown rapidly in the past five years. It has implemented different systems to manage things like customer requests, shipping, accounts payable, and more. Which system would best help Salient Solutions organize all this information in one place?
enterprise resource planning
Stump Manufacturing is made up of numerous divisions and facilities across the country. Carsten is hoping to link each of the units into a single integrated computer database. Which system would make the most sense?
enterprise resource planning
A successful supply-chain management system will integrate which of the following items?
facilities, functions, and processes
A Gantt chart is the simplest method for calculating the critical path of a project.
false
A company building new apartment complexes would want to utilize an assembly line arrangement to complete its work.
false
Elena works for TASX Design. She uses a computer program to help create floor plan schematics for retail stores. Elena is using a computer-aided manufacturing (CAM) program.
false
Gizmo, Inc. manufactures commercial air purifiers and sells them to fast food restaurants across the country. Gizmo, Inc. is an example of a service business.
false
Operations Management refers to the management of the shipping process for good and/or services.
false
The supply-chain management system requires suppliers to work directly with customers to determine inventory needs.
false
Trimble Thimbles uses the statistical process control technique to improve production. This means that the company reviews its production output at the end of each day to ensure that no defective products are shipped to customers.
false
Barnaby works for a company building amusement park rides and attractions. What would be the best type of facility layout for this company?
fixed-position
Levi is the owner of Moving On, LLC. He is designing a modern factory that utilizes a computer system to automatically modify the assembly line to switch between different products. This best describes a(n) ________ system?
flexible manufacturing
Vertex Bicycles manufactures a wide variety of bikes, including bikes made for children and for adults, standard to stationary bikes, and bikes with one to three wheels. It can manufacture each bike on the same assembly line by making slight modifications to its production computer. Vertex is most likely using
flexible manufacturing system.
BB Electronics buys broken technology and breaks the devices down into parts that it sells to other technology companies to use in new devices. By breaking down these devices into parts the company can sell, BB electronics has created
form utility.
Coby owns a chain of doggie daycare centers and wants to open a new location. What would be his most important consideration when determining where to build?
government regulations on dogs in the area
Keen Ear is going to begin manufacturing cellular phones. The company decides to use just two different suppliers for its power cables. Which reason best describes the company's rationale for making that decision?
greater reliability in receiving the product
Blue Flower, Inc. wants to reduce the amount of inventory at its production facility. How could Blue Flower best go about accomplishing this?
implement just-in-time inventory control
IT Adventures is looking to improve its supply-chain management system. What would be the best place for the company's general manager to start?
implementing a MRP system
Oscar is a kitchen and bathroom design and construction specialist. Considering his business in the context of operations, the tools, and raw materials he uses would best be classified as
inputs.
Sundial Corporation creates farm implements—things like tractors, plows, and combines. Sundial will spend one or two weeks manufacturing an implement before briefly shutting down its assembly line to switch out machines. The company will then spend another week or two manufacturing another implement before shutting down again for another machine switch. What type of production does this example best describe?
intermittent process
ISO 9000 procedures are best used for
inventory and production departments.
Alexis is working on a project to determine how many supplies and resources are needed for her business. She wants to keep track of quantities on hand, each item's location in the warehouse, and which products it is used for. Alexis is analyzing the ________ process.
inventory control
As a quality control technique, Six Sigma is not a perfect system because it
is not able to compensate for human error.
The CEO at Logicompany wants to lower rental costs by eliminating warehouse space. He plans to accomplish this by minimizing inventory and increasing the flow of raw materials from the Logicompany suppliers. This an example of
just-in-time inventory management.
Buckingham Motor Company manufactures small engines for things like lawn mowers, motor scooters, and snowmobiles. The company recently hired an efficiency engineer who analyzed its productions processes before making recommendations for improvements. The recommendations included a streamlined assembly line, reduced staff, and a just-in-time system for ordering engine parts. Which type of production efficiency did Buckingham Motor Company utilize?
lean manufacturing
What would be the most important aspect of a successful total quality management program?
listening and learning from customers and employees
Nene is hired by XYZ Auto to oversee the process by which steel, plastic, and other materials are converted into new cars. Nene most likely works in a(n) ________ business.
manufacturing
Oh, Nutz! produces gift boxes of nuts by request for its customers. It has hundreds of potential options to quickly meet the needs of anyone and can include extras like flavored dips and even gift wrapping. This example would best describe the concept of
mass customization.
Organique creates customized prepackaged meal kits based on the specific dietary needs of its clients. This example would best be described as
mass customization.
AHA Metals adds a new computer program that schedules for the right amount of raw materials to be delivered to the right production site at the right time to produce goods. This is best described as a(n) ________ system.
materials requirement planning
The first technology change to improve efficiency was ________; it was introduced during the Industrial Revolution, when companies began adding machines to complete the work that laborers had previously been responsible for.
mechanization
Lavar is hired into a newly created department at Xtra Fun Toys. He will be helping to directly transform resources into new toys. Lavar most likely works in ________ management.
operations
Sasha manages a hotel and is responsible for ensuring that rooms and service exceed the expectations of the hotel's customers. Her role would best be described as ________ management.
operations
Brynja runs a home decorating business. She evaluates a client's home, makes recommendations, purchases the paint and decorations, and then hires a team to paint and place the decorations in the home. Brynja's role managing this process can best be described as which of the following?
operations management
Audrey is looking to hire an operations manager for her widget factory. Which task would best describe the manager's primary responsibility?
oversee the transformation process
Freida uses scrap metal to create art that she sells to various galleries around the country. Her studio consists of four main areas: one where she salvages the scrap metal, another where she designs the sculptures, one where she paints the sculptures, and a final area where she preps the sculptures for sale. Which of the following facility layouts best describes Freida's studio?
process
Tia has opened a new business creating hand-crafted tables. She cuts the wood in her shed before moving the materials to her studio for staining and painting. She assembles the tables at her retail store. This best describes a ________ layout.
process
Businesses have reached a point where mass production is possible. The primary benefit of mass production is the ability to
produce similar goods in large quantities.
Wally's Instant Meal company uses a four-step assembly line process to create single-serve meals for sale. The process begins with a tray, followed by the addition of a main course, a side dish, and a dessert. What type of facility layout does this represent?
product
Kripa runs a candle-making business where she turns homemade wax into scented candles. The process of creating the candles is best described as
production.
Altomotive is implementing the statistical process control technique at their production facility. The QA Director needs to provide an overview of the testing process. Which of the following would be his best response?
random sampling throughout each production run to compare with standard acceptability ranges
The most likely reason a company would want to implement ISO 9000 standards would be to
reduce production flaws.
Using a sole supplier allows a company to
reduce the exposure of proprietary secrets.
What would be an important benefit of locating an automobile factory near to a tire manufacturer?
reduced shipping expenses
Optimal Plastics produces customized plastic fittings for its clients. Its factory and shipping facilities are located outside of Austin, where its largest client is located. Which of the following benefits most likely led to Optimal building its facility in this location?
reduction in time to market
Chazz opens his own business as a traveling mechanic. Customers schedule appointments and Chazz comes to them to do basic maintenance like oil changes or windshield wiper replacements. Chazz's company is an example of a ________ business.
service
Crown Lawnmowers manufactures nearly 100 different models of riding lawnmowers. In the past, Crown used a different style of blade for each mower, which led to longer production times as it manufactured each blade. Today, Crown has designed its lawnmowers to use the same style of blades. This example best demonstrates which of the following technology changes to improve efficiency?
standardization
Jitendra is the Vice President for Wedge Widgets and is investigating options for reducing production costs. He realizes the company can use uniform parts that are interchangeable with similar parts on the assembly line. This will allow him to cut some of their more experienced production staff who are currently responsible for creating the parts from scratch. Which type of technology change does this best represent?
standardization
FMD Alarm Company utilizes workstations where employees are responsible for creating the same part repeatedly throughout the day. The parts are then combined to create alarm systems to sell to customers. This best describes the concept of
standardization.
Arrowhead Jerky has a quality assurance team that pulls random production samples for testing. The team tests for things like coloration, weight, and taste to ensure it meets their quality standards. If any aspect is off, Arrowhead pauses its production to remediate the issue. This best describes the ________ process.
statistical process control
Spritely Sprockets has been noticing a high rate of product returns. The company is even in danger of losing some of its customers. Which technique would best help the company improve quality during its production process?
statistical process control
SGE Company manufactures plastic drinking glasses. It conducts periodic inspections during the production process to ensure quality falls within acceptable standards. This best describes
statistical process control.
Darby is a quality assurance analyst with DFF, Incorporated. He is comparing random production samples and notices that they are outside typical quality assurance ranges. If he is following the statistical process control process, what would be his most likely response?
stop production to allow for process corrections
A(n) ________ enables a company to integrate many the factories, processes, and work performed, from supplier to customers.
supply-chain management system
The Miller Swim Center has been struggling with unhappy visitors and ticket sales are at an all-time low. The owner decides to add new concession stands and a splash pad to the park, which leads to a noticeable uptick in sales. This example best demonstrates the concept of ________ transformation.
synthetic
What process is used by the Six Sigma approach to quality control?
testing many variables relating to all company processes
Jamison is completing a PERT diagram at CMS company and wants to establish the critical path for a new project he is leading. The critical path is best described as
the time expected to complete the project.
Darwin is considering opening a new manufacturing facility for his company. His sister suggests that he spend some time considering where to locate the new building. Why is location an important consideration when building a new facility?
there could be government incentives depending on where you build
Angular Technology holds regular meetings for designated members of the various teams around the company. Members of leadership, finance, human resources, sales, technology, product development, and automation all attend and share recent wins and recent concerns with one another. This example best describes a key component of
total quality management.
TempStar utilizes a company-wide plan that focuses on regular quality improvement, training, and customer satisfaction. This is best described as an example of
total quality management.
Illango is hired to work in a newly created Operations Management department for a large bank. In this role, he will be creating checking and savings accounts for customers and processing loans for members. Illango works in a service business.
true
Just-in-time inventory management can be enhanced through the uses of materials requirement planning.
true
Block99 Systems is a manufacturer of portable electronic gaming devices. The company wants to ensure that its specialized technology remains confidential while maintaining some reliability in its shipments. What would be the best strategy for dealing with its suppliers?
using a few trusted suppliers
Maple Grove Café operates in a very busy tourist town. It needs to ensure that the food and drinks it needs to serve meals to its customers are always available at a competitive price. Maple Grove should
utilize multiple suppliers.
